3 Healthcare Stocks Which Proved to Be A Gold Mine: FUM, AVCT and ETX

3 Healthcare Stocks Which Proved to Be A Gold Mine: FUM, AVCT and ETX

 

  • Pharma companies making round the clock efforts to find a cure for the Covid-19
  • Futura Medical Plc despite weak earnings posted humungous gains in May
  • Avacta Group Plc has been successful in generating many Affimer reagents, which help in binding the novel coronavirus spike protein

The outbreak of Covid-19 has wreaked havoc in terms of human life as well as wealth erosion. As of today, (30 May 2020) the deadly pandemic has claimed nearly 38 thousand lives in the United Kingdom, according to the World Health Organisation report. A lot of wealth has been wiped off from the stock markets across the globe.

Due to lockdown induced by Covid-19, a lot of businesses are preserving cash as of now and many are on the verge of shutdown. Lot of people across the globe have lost their jobs, while the governments are still chalking out exit strategies from the lockdown. Most of us know that the lockdown could only contain the spread of the deadly virus, to eliminate the risk of virus, a vaccine or a cure is required and there comes in play the pharma companies.

The pharmaceutical companies are working hard to find a cure for this deadly virus. Some of them have even progressed into the second stage of trials. The WHO and the British government along with the Oxford University, had earlier announced that the Covid-19 vaccine would be ready by September this year.  Last week, Moderna Inc announced successful results for its experimental COVID-19 vaccine, mRNA-1273 in the Phase I trial. The global stock markets, specifically, the most beaten-down Travel & Leisure stocks were up due to this positive stimulus, as they are the one which are desperately looking for the earliest breakthrough.

In the current times, when the pandemic has engulfed most of the countries, the investors are drained both financially and emotionally and as of now, all the action seems to be in the pharmaceutical space.

In this article, we would discuss some Healthcare stocks which have generated superfluous returns in May 2020.

  • Futura Medical Plc

Futura Medical Plc (LON: FUM) is based in the United Kingdom and develops products for relieving pain and for sexual wellness. The company focuses on Research & Development of medical devices and drugs along with their commercialisation. The science of absorption of medicine or drug through a sticky patch by application on the external body, typically skin is known as Transdermal delivery. The company has developed this technology which makes the skin to absorb active molecules known as DermaSys®; focused on sexual wellness and pain relief. The company has popular products such as Zanfil (gel used by patients suffering from ED) and TPR100 (pain reliever).

Last month, the company declared its full-year results for 2019 period ended 31st December 2019. Due to a significant reduction in R&D spend and current activities, the company expects cash runway to be sufficient to Q2 2021. The company has witnessed a limited impact in terms of the devastation caused by Covid-19 pandemic.

However, the company recorded a net loss of £8.92 million in the fiscal year 2019 as against the net loss of £5.88 million in the fiscal year 2018. By the end of the period, the company had cash balances of £2.51 million. The company received R&D tax credits of £1.36 million for 2018 in August 2019. In addition, the company managed to raise £3.25 million in January 2020.

(Source: Thomson Reuters)

On 29th May 2020, after the market close, Futura Medical Plc shares were down by 1.35 per cent against its previous day closing price; last traded at GBX 22. Stock's 52 weeks High and Low is GBX 49.20 /GBX 7.16. The beta of the company stood at 2.77, reflecting higher volatility as compared to the benchmark index. Futura Medical Plc’s market capitalisation stood at £54.77 million.

On a YTD basis, the stock generated a price return of 58.55 per cent.  In May 2020, the stock generated a price return of nearly 89 per cent.

 

  • Avacta Group Plc

Avacta Group Plc (LON: AVCT) is the United Kingdom domiciled Biotechnology company engaged in the research and development of novel therapeutics for the diagnosis and treatment of oncological ailments. The company’s R& D facilities are in the Cambridge United Kingdom.

Avacta has been successful in generating many Affimer reagents, which help in binding the novel coronavirus spike protein and therefore blocks the interaction with cells inside the human body. The Company entered a distribution agreement with Medusa19 Limited for selling saliva-based test or COVID-19, on 20th May 2020. 

Several core clinical trials are facing delays or have been halted as the regulators are prioritising COVID-19 related therapies. Moreover, the Group relies heavily on other clinical research organisations for therapeutic development programmes, and hence, the underperformance of these clinical research organisations could impact the performance of the company in the near term. The Group reported a cash balance of £8.8 million as on 31st December 2019.

(Source: Thomson Reuters)

On 29th May 2020, after the market close, Avacta Group Plc shares were down by 4.72 per cent against its previous day closing price; last traded at GBX 181.50. Stock's 52 weeks High and Low is GBX 202 /GBX 14. The beta of the company stood at 2.44, reflecting higher volatility as compared to the benchmark index. Avacta Group Plc’s market capitalisation stood at £397.21 million.

On a YTD basis, the stock has generated a price return of 952.17 per cent.  In May 2020, the stock generated a price return of nearly 85 per cent.

 

  • E-Therapeutics Plc

AIM-listed E-Therapeutics Plc (LON: ETX) is a biotechnology and pharmaceutical company. They have a unique computer-based platform, and a revolutionary network driven drug discovery (NDD) system, which enables them to discover novel and better drugs faster. 

Using the proprietary Network-driven Drug Discovery (NDD) platform, the group has initiated its experimental testing on the first set of compounds for the treatment of COVID-19. In addition, the company would perform studies using WuXi AppTec. For the treatment of COVID-19, the company would continue to pursue an NDD approach to identify approved and known drugs along with all possible combinations.

(Source: Thomson Reuters)

On 29th May 2020, at the market close, E-Therapeutics Plc shares last traded at GBX 21.75. Stock's 52 weeks High and Low is GBX 21.75 /GBX 1.5. E-Therapeutics Plc’s market capitalisation stood at £70.13 million.

On a YTD basis, the stock generated a price return of 601.61 per cent. In May 2020, the stock generated a price return of nearly 70.6 per cent.

 


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