ScoPo powerplays: profit taking on the agenda for health stocks that have made good races


Healthcare and life sciences expert Scott Power, who was a senior analyst at Morgans Financial for 24 years, explains what movers and shakers have done in healthcare and gives his edge over it. ‘ASX.

Theme of the week

The Healthcare Index (XHJ) is down 1.28% for the week at the time of writing, against the larger market which has fallen 1.78%.

Despite the poor performance of the stock market this week, there has been price momentum in some of the health names.

Clinuvel Pharma (ASX: CUV) has grown almost 50% since posting record revenue and profit for the entire year.

The genetics and metabolic disease-focused company delivered a record $ 48.5 million for the full year, up from $ 33.9 million a year ago. Its pre-tax net income more than doubled to $ 25.7 million.

Clinuvel has successfully marketed its FDA-approved SCENESSE, a treatment for adult patients with a history of phototoxic reactions (skin damage).

It is also currently in a Phase 2 clinical trial of CUV801, which will investigate the potential of afamelanotide in patients who are not eligible for standard stroke treatment.

“With big rises in the stock price, at some point there will be a bit of profit taking, so we would be happy to reduce our position in Clnuvel,” Power said. Storer.

This profit taking was also manifested in ProMedicus (ASX: PME), which had seen a 60% price hike in the past six months before profiting, has seen the stock fall 10% in recent weeks.

The other values ​​of health on a good run

Nanosonic (ASX: NAN) also had a massive stroke over the past month, increasing by over 20%.

Nanosonics recently detailed information on its next major product, a flexible endoscope.

The commercial launch is estimated for CY23, and management has indicated that the revenue model will be similar to the Trophon2 device, with a capital and consumable component.

“There are a bunch of companies that are profiting from the reopening of the US economy, and Nanosonics is one of them. They have better access to the hospital network there, and that sounds more positive, ”Power said.

Hearing technology Audeara (ASX: AUA) was up 10% this week, but on low volume.

Audeara recorded a full-year EBITDA loss of $ 0.7 million after excluding one-time IPO expenses of $ 0.4 million, and fell to 11 cents after making its public debut at 20 cents in May.

But Power believes the company has strong momentum for FY22 with repeat sales growing.

“Audeara appears to have advanced its entry into the United States through the Westone deal, giving it access to approximately 16,000 clinicians,” said Power.

In the field of immuno-oncology, both Imugene (ASX: IMU) and Immutep (ASX: IMM) have also had some good leads this year.

Imugene has grown 40% over the past month, while Immutep has grown 70% over the past six months.

“There is a lot of global interest in these cancer control programs. “

“That said, we are still happy to make profits with strong appreciation in stock prices,” Power said.

On the fundraising side, Imricor Medical Systems (ASX: IMR) is currently raising $ 16.5 million to increase sales of MRI and X-ray machines.

The company said there is a growing addressable market for cardiac catheter ablation, which is approximately $ 6 billion worldwide.

ScoPo’s power play

Powerplay Action of the Week is Breast Imaging Company Volpara Health Tech (ASX: VHT).

VHT just provided a strong cash report for the first quarter of FY22, despite a seasonally weak quarter with record cash inflows.

As interest in personalized medicine grows, VHT is also focusing on risk and genetics.

Its recent acquisition by CRA and the collaborations with Ambry Genetics and Invitae Corporation are key elements of that strategy, Power said.

Management has reconfirmed revenue guidance for FY22 in a range of NZ $ 25 million to NZ $ 26 million, which, combined with a stable cost base, brings the company closer to positive activity for cash flow.

“I think Volpara will come out of this trading range and move higher, as we enter stronger selling periods,” Power said.

Morgans has an Add recommendation on the VHT stock, with a 12-month price target of $ 1.87 from the current price of $ 1.22.

Volpara share price today:

The views, information or opinions expressed in the interview for this article are solely those of the interviewee and do not represent the views of Stockhead.

Stockhead has not provided, endorsed or otherwise assumed responsibility for the financial product advice contained in this article.

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