Healthcare: Overall Micro to mid-cap catalyst table (2Q CY22)

About the author:

Iain Wilkie
Author name:
By Iain Wilkie
Job title:
Research Analyst
Date posted:
17 June 2022, 9:00 AM
Sectors Covered:
Healthcare and Life Sciences

  • Since our last report (17 March), the losses across our basket of 185 ASX listed healthcare stocks have continued to accelerate, with an average loss of 23.5% (market cap agnostic). Broken down into market capitalisation buckets, it’s clear to us the market continues to favour larger, profitable, liquid names.
  • During times of extreme volatility, investor time horizons shorten considerably. Added with macro concerns continuing to favour value-oriented stocks, pressure on growth / pre-revenue / pre-profit / concept stocks has continued in the absence of positive news flow. However, we view clear and meaningful catalysts will remain key for the sector for some time, particularly in smaller names.
  • In this report is a list of 90 micro to mid-cap healthcare/life science companies and we highlight key catalysts expected to read out over the next 18 months. We view the information as a guide around timing of major events while adding a market impact overlay to highlight potentially significant event reactions (good or bad).
  • We have also added several new points of interest, highlighting the largest period and single-day movers, potential momentum stocks, and provide a broad historical overview on pharmaceutical development and partnership risk metrics.

Major catalysts our team is watching, ordered by assumed timing

Hexima (HXL): Ph2 top-line results.

Proteomics (PIQ): Potential US licensing deal (ProMarkerD) / Endometriosis trial results / First sales ProMarkerD in EU.

Audeara (AUA): US hearing-aid regulatory changes / First non-clinical partnership / First large ex-AUS partnership.

ResApp (RAP): Confirmatory COVID data study readout.

Rhythm Biosciences (RHY): TGA approval / Commence distribution partnerships (AU/EU/US).

EBR Systems (EBR): Recruitment completion / Top-line results - SOLVE trial.

Neuren Pharma (NEU): NDA submission / FDA approval / Milestone payout.

Immutep (IMU): TACTI-003: Ph2b HNSCC operational and data / TACTI-002: Ph2 – interim data read out.

Recent major catalysts and share price reactions

ResApp (RAP): Positive COVID-19 study results (22-Mar-22). 92% sensitivity / 80% specificity. Subsequent take-over offers from Pfizer @ A$0.115 (11-Apr-22), increased to A$0.146 on unconfirmed data consideration or A$0.207 consideration on confirmed data (14-Jun-22) (+174% over timeframe).

Ramsay Healthcare (RHC): 20-Apr-2022 - Positive. KKR-led consortium non-binding takeover bid @ A$88.00 (+0% in 7-day lead-up, +27% in 7 days post).

Rhythm Biosciences (RHY): 4-Apr-2022 - Positive. ColoSTAT meets primary endpoints. Outperforms accuracy of standard of care by 35%. 81% sensitive, 91% specific (+9% in 7-day lead-up, -2% in 7 days post).

Audeara (AUA): 3-Jun-2022 - Positive. Signs Specsavers reseller agreement, new strategic investor (+4% in 7-day lead-up, +33% in 7 days post).

Figure 1: ASX listed healthcare returns (185 stocks) since 18 Mar 2022 – broad weakness, particularly in the tail Growth stocks have had a choppy ride since the onset of the pandemicSource: Morgans Financial, Company, IRESS

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Disclaimer: The information contained in this report is provided to you by Morgans Financial Limited as general advice only, and is made without consideration of an individual's relevant personal circumstances. Morgans Financial Limited ABN 49 010 669 726, its related bodies corporate, directors and officers, employees, authorised representatives and agents (“Morgans”) do not accept any liability for any loss or damage arising from or in connection with any action taken or not taken on the basis of information contained in this report, or for any errors or omissions contained within. It is recommended that any persons who wish to act upon this report consult with their Morgans investment adviser before doing so.

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