FPH, AFT, TRU: 3 stocks to eye as Budget targets resetting healthcare

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FPH, AFT, TRU: 3 stocks to eye as Budget targets resetting healthcare

 FPH, AFT, TRU: 3 stocks to eye as Budget targets resetting healthcare
Image source: MVelishchuk, Shutterstock.com

Highlights:

  • FM, Grant Robertson delivers his first pre-Budget speech
  • Says, healthcare to be a key focus area in Budget 2022
  • According to FM, major health reforms are also in the offing

In a preview of the Budget for this year, Finance Minister Grant Robertson said the government was going to focus on two key areas-- healthcare and climate change-- in one year.

Robertson said that the Budget’s focus this year is around health reforms as he outlined the plans during his first major speech on Tuesday.

In healthcare a new streamlined system is in the offing, FM said.

Once that system is in place, health will be placed on a three-year budget, so that the DHBs can plan for what services Kiwis need and then start delivering services.

 Against this backdrop let’s examine three NZX-listed healthcare stocks

                                                         Source: © 2022 Kalkine Media®

 Fisher and Paykel Healthcare Limited (NZX:FPH, ASX:FPH )

Fisher & Paykel Healthcare is a designer, producer, and seller of products for acute respiratory and chronic care.   systems for use in acute and chronic respiratory care. It expects its revenue to be NZ$1.675 to NZ$1.70 billion for FY22. Its CEO, Lewis Gradon said that the Company's revenues in hospital consumables are expected to be in the same band as the 1HFY22. In the Homecare product segment, the OSA mask sales are likely to be above expectations despite supply chain disruptions.

Also Read: Fisher & Paykel (NZX:FPH): How will it fare in its upcoming FY22 results?

On 3 May, the stock was trading down by 0.42% at NZ$21.44, at the time of writing.

AFT Pharmaceuticals Limited (NZX:AFT)

AFT a pharmaceutical company  welcomed the dismissal of an application by Reckitt &Benckiser on the advertisement by the Company. The High Court of Australia turned down the application by the UK-based consumer products giant which found AFT justified in making a series of claims in relation to its pain-relieving tablets Maxigesic.

A day before that it announced on the NZX that the US Food and Drug Administration (FDA) had given a nod to topical treatment indicated for facial angiofibroma.  While this treatment has been developed by a Japanese firm Noblepharma, its active ingredient rapamycin is also being developed by AFT.

Also Read: CBD, AFT & BLT: A glance at 3 attractive NZX pharma stocks

Related Read: AFT Pharmaceuticals (NZX:AFT): What are its expectations for CY2022?

on 3 May, the stock was trading down by 1.67% at NZ$ 3.540, at the time of writing.

TruScreen Limited (NZX:TRU)

TRU provides cancer screening solutions. The Company’s cancer screening methods recently received validation from China’s Obstetricians and Gynaecologists Association (COGA). After completing a trial with TRU’s screening method, China gave a thumbs up to its cervical screening as being simple, effective, and a rapid real-time method.

Also Read:  TruScreen (NZX:TRU) reports strong revenue growth of 25%

On 3 May, the stock was trading flat at NZ$0.072, at the time of writing.

Bottom Line: The Finance Minister in his pre-Budget meeting outlined healthcare as a priority. It needs to be seen whether it will have an impact on the healthcare companies in NZ.

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