- Some healthcare providers have delivered good financial performances in FY21, leading to a triple-digit surge in their share prices.
- ONE, ACW, PTX are some healthcare penny stocks that have cheered investors this year.
- These returns might seem lucrative, but investors need to maintain caution while investing in penny stocks.
The healthcare industry has transformed at a rapid pace during the onset of the COVID-19 pandemic. Healthcare infrastructure and medical facilities had been utilised at their peak capacity in order to take control over the pandemic.
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Consequently, some of the healthcare companies have reported better-than-expected business performances, leading to a massive surge in their stock prices this year. Let us have a look at five healthcare stocks that have cheered their investors with a massive rally this year.
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- Oneview Healthcare PLC (ASX:ONE)
Oneview provides software platforms to the healthcare industry and has a market capitalisation of AU$182.2 million. The company was able to cut its net loss by 22% to AU$4.4 million in 2H FY21 on the back of a 79% increase in non-recurring revenue.
Its Cloud Enterprise has given patients and their families the ability to communicate virtually with healthcare teams during the pandemic. The ONE share price has delivered a massive return of 800% this year and is currently trading at AU$0.41.
- Actinogen Medical Limited (ASX:ACW)
Actinogen Medical is an AU$175.6 million biotechnology company. In FY21, it cut its losses from AU$5.33 million to AU$3.91 million and massively increased its net cash position to AU$13.42 million from AU$5.04 million a year ago.
For FY22, the management is working on strengthening its strategic and expert partnerships. The ACW share price is trading at AU$0.11 and has delivered a 400% gain this year.
- Prescient Therapeutics Limited (ASX:PTX)
Prescient Therapeutics is a small molecule drug development company, having a market capitalisation of AU$177.2 million. Net assets for FY21 increased to AU$20,427,267, a healthy increase of AU$9,239,108 over last year.
Operating cash outflows for the reported year increased to AU$3.97 million, as compared with AU$2.31 million in 2020. The PTX share price has delivered a 310.4% return this year and is currently trading at AU$0.28.
- IDT Australia Limited (ASX:IDT)
Pharmaceutical company, IDT Australia’s share price has rallied over 224.3% this year as the company recorded a 209.6% increase in the net profit to AU$2.1 million for FY21. Revenue for the reported year was also up 19.5% to AU$16.9 million, finishing the year with a cash balance of AU$6.9 million.
The company has a market capitalisation of AU$143.9 million and its share price is trading at AU$0.6.
- MGC Pharmaceuticals Limited (ASX:MXC)
MGC Pharmaceuticals is a Europe-based bio-pharma company with a market capitalisation of AU$140 million. The MXC share price has delivered a year-to-date return of 136% and is currently trading at 0.06.
In the quarter ended 30 June 2021, the company posted record sales of ~AU$945K in revenue, comprising ~AU$665,000 of phytocannabinoid medicines. It had also received second Wholesale purchase order for ArtemiCTM from Swiss PharmaCan, amounting to AU$1 million in revenue.
As the COVID-19 pandemic had proven to be a nightmare for many industries, the healthcare sector, despite taking an initial hit has been able to turn it into an opportunity. Consequently, some healthcare stocks have skyrocketed to triple-digit returns this year, making investors cheer all the way to the bank.
These returns might seem lucrative, but investors need to tread caution while investing in penny stocks.