Health Check: Today's flood of last-minute quarterly ‘homework' scores a solid pass
Telehealth group looks to post-pandemic recovery
Botanix, Amplia and Vitrafy pass muster with the brokers
Some students hand in their homework with days to spare, while others lob their hastily scrawled efforts at the eleventh hour.
Plenty of biotechs also prefer the latter 'just in time' approach, judging from today's clump of quarterly reports lobbing in just ahead of today's end-of-month deadline.
But in most cases, we won't mark down their quality.
In the drug development domain, the 'students' are look well cashed up and well prepared. They've remembered to bring their excursion money and their sports uniforms.
For instance, popular student Amplia (ASX:ATX) ended the quarter with cash of almost $6.7 million. This since has been bolstered by last week's $27.5 million capital raising.
The company reported operating cash outflows of $3.8 million. This reflects spending on its 55-patient phase II pancreatic cancer trial, dubbed Accent.
The study attracted wide interest by reporting 17 partial responses and two 'complete responses' – a.k.a. a cure.
Given pancreatic cancer is such a deadly disease, this was most unexpected.
Recovering from its failed Duchenne muscular dystrophy trial, Percheron Therapeutics (ASX:PER) spent just under $2.75 million, ending with cash of $10.16 million.
This dosh is a lifeline for the company, which has acquired an immune-oncology drug asset.
The developer of an ovarian cancer diagnostic and breast and lung cancer therapies, Inoviq (ASX:IIQ) expended a modest $1.44 million and ended up with cash of $6.5 million.
Inoviq's chairman, the ubiquitous David Williams, attributes the company's sagging share price to a fund selling out.
'We anticipate share price recovery as the selling ends and we continue to advance our diagnostic programs,' he says.
Medadvisor tempers expectations
Following a weak June quarter related partly to cancelled US programs, medication compliance and drug education provider MedAdvisor (ASX:MDR) has tweaked its full-year guidance.
Medadvisor now expects revenue for the year to June 2026 of $88 million, compared with the previously envisaged $93-99 million.
Management expects an underlying loss of $6.5 to $7.3 million, compared with the previously guided $2.6 to $5.5 million.
Medadvisor's June quarter revenue declined 16% to $18.6 million, with full year turnover declining 28%.
The company cites several delayed US drug launch programs, which has deferred revenue into the current quarter.
Medadvisor is aligned to the drug companies' rollout of new vaccines. But these have been stymied by sluggish demand amid the ongoing political controversy over these prophylactics.
Meanwhile, the company has sold its non-core Australian ops to Jonas Software, for $35 million plus $7.5 million of earnouts.
After extinguishing all its debt, Medadvisor has a healthy cash balance of $16.5 million.
What's up DOC? A profit turnaround
Doctor Care Anywhere Group PLC (ASX:DOC) slips under the radar because the telehealth provider operates solely in the UK.
But we'll rectify this dearth of coverage by reporting that the company managed cash inflow of £2.17 million ($4.4 million) in the June (second) quarter.
This is a turnaround from the March quarter deficit of £1.46 million and an 'historic milestone' for the company
Receipts surged 32% to £10.93 million, despite consultations declining 7% year on year to 176,000.
DOC ended the stanza with cash of £4.8 million ($10) million, 'enough to see the company through to long term profitability and continued net cash generation.'
DOC works with insurers, healthcare providers and corporate customers to connect patients to digitally enabled telehealth services on its proprietary platform.
The company listed here in December 2020, amid the pandemic-inspired telehealth craze, raising a chunky $101 million at 80c cents apiece.
The shares have been in the sick ward ever since but achieving profitability would be the right prescription.
Trio goes to the well
Shares in Imagion Biosystems (ASX:IBX), Nyrada (ASX:NYR) and HeraMED (ASX:HMD) are on trading halt pending capital raising, with announcements expected on Monday.
With $883,000 in the bank as of June-end, Imagion eyes more funds to further its innovative Magsense imaging system.
The company is preparing a submission to the US Food & Drug Administration, for a trial enrolling HER-2 breast cancer patients.
With cash of $2.93 million, Nyrada is seeking a top-up to support development of its drug candidate, Xolatryp, for traumatic brain injury and strokes.
The company is undertaking a phase I TBI safety and efficacy trial.
The developer of a foetal monitoring device, Heramed hasn't yet lodged its June quarterly. At the end of March, the company had cash of $1.88 million.
Meanwhile oncology drug developer Prescient Therapeutics (ASX:PTX) said it had raised $3 million from a placement. This follows a share purchase plan that bought in $6.9 million.
These readies should be enough to fund the company's phase II trial of its T cell lymphoma dug candidate towards 'potential regulatory approval'.
What the brokers say
Canaccord has initiated coverage on Botanix Pharmaceuticals (ASX:BOT) with a 'buy' call.
This is despite taking a sterner stance on drug pricing, yields and script refill rates than the company's assumptions.
Botanix in January launched the US rollout of its drug Sofdra, to treat the excessive underarm sweating condition primary auxiliary hyperhidrosis.
Canaccord scribes a 'price target' of 27 cents per share, compared with Thursday' close of 17 cents.
The firm assumes current year revenue of $67.8 million and a $41.8 million loss. Next year, turnover rises to $145 million, with a $14.3 million profit.
Bell Potter reckons the aforementioned Amplia Therapeutics is worth almost twice as much as its current valuation, despite the drug developer's stellar run.
The firm values Amplia shares at 42 cents, compared with 24 cents currently.
Bel Potter also has a 'speculative buy' call on cryopreservation play Vitrafy Life Sciences (ASX:VFY).
Vitrafy is developing its yet-to-be approved novel deep-freezing device, iiitally for the for research market.
Vitrafy listed last November at $1.84 apiece, having raised $35 million.
The firm values Vitrafy shares at $2, implying 22% of upside.
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