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In today's market updates, Lumos Diagnostics aims to raise $10 million to advance its diagnostic technology, while ASX healthcare stock Memphasys ventures into the equine fertility sector with its innovative sperm-selection device. Vitura Health also reports strong performance amid increased competition in the medical cannabis market.
Lumos Diagnostics (ASX:LDX) Raises Funds for Growth
Lumos Diagnostics is embarking on a significant fundraising initiative to secure $10 million for the advancement of its flagship product, FebriDx. This finger-prick blood test can differentiate between viral and bacterial infections within just 10 minutes, offering a rapid diagnostic solution.
The company is conducting a non-renounceable rights offer, where existing shareholders can acquire new shares at 3.8 cents each, representing a 17.4% discount to the previous closing price. The offer consists of a $4 million institutional component and a $6 million fully underwritten retail component.
Additionally, Tenmile Ventures, a division of Andrew and Nicola Forrest’s private investment group Tattarang, will take a substantial 45 million share stake in Lumos, acquired through a block trade with the company’s founding shareholder, Planet Innovations. Post-offer, Tenmile Ventures will hold a 9.3% stake in Lumos, making it the largest shareholder.
The funds raised will support ongoing product development and a Clinical Laboratory Improvement Amendment (CLIA) study in the US. A CLIA waiver would significantly expand the addressable market for FebriDx, potentially increasing it to $1 billion annually. Lumos shares remained steady at 4.6 cents in morning trade.
Memphasys (ASX:MEM) Ventures into Equine Market
Memphasys is preparing to introduce its Felix sperm-selection device to the equine market within the next year. The company has announced plans to conduct a three-year fertility study in collaboration with the University of Newcastle, EquiBreedUK Ltd, Arrowfield Stud, and Vinery Stud.
Felix, primarily focused on human artificial insemination (AI), will now target non-thoroughbred horse breeders, estimated at over 4,000 globally. The device uses electrophoresis, a gentler technique that separates sperm using electrical charge, in contrast to traditional methods like density gradient centrifugation (DGC) and ‘swim-up’, which can cause cell damage.
Despite the current challenge of thoroughbred AI being outlawed, Memphasys sees a growing global market for equine fertility solutions, projected to be worth $1.03 billion annually. On the human side, Felix is being tested in trials with Monash IVF, comparing its performance against existing sperm-selection methods. Memphasys shares remained unchanged at 0.9 cents.
Vitura Health (ASX:VIT) Outperforms Expectations
Vitura Health has reported a positive performance for the current year, despite increased competition in the medical cannabis sector. The company’s revenue for the period has risen by 5.6% to $123.9 million, although net profit has decreased by 75% to $4.8 million due to falling gross margins.
Unlike many competitors, Vitura does not produce cannabis but operates the Canview platform, which connects patients with over 15,000 prescribers through a marketplace of around 60 third-party brands. The company is also expanding into general telehealth, following the acquisition of Doctors on Demand. The acquisition has significantly boosted consulting revenue by 874% to $15.4 million in the first eight weeks of ownership.
Vitura shares saw a 1.2% increase, trading at 8 cents.
Lumos Diagnostics secures funding to expand its product capabilities, Memphasys targets a new market with innovative technology, and Vitura Health demonstrates robust performance amidst market challenges.
