OncoSil Medical Ltd

 

OSL Details
 
OSL Receives Approval from BSI: OncoSil Medical Ltd (ASX: OSL) is involved in the expansion of its lead product candidate, OncoSilTM localized radiation therapy for the treatment of pancreatic cancer. On 1^st April 2020, the company stated that it’s OncoSil™ device has received European CE Marking approval for the treatment of locally advanced pancreatic cancer (LAPC) along with chemotherapy. This first approval from the British Standards Institute (BSI) is a key positive for OSL and will enable the marketing of the OncoSil™ device across the European Union and the UK.It is worth noting that due to ongoing COVID-19 crisis, the company will witness delays in the European commercial launch due to reduced hospital access and worldwide shipping disorder.
 
Other Recent Updates:  On 31^st March 2020, OSL appointed Mr Karl Pechmann as the Chief Financial Officer and Company Secretary of the company, effective immediately. In another update, the company stated that Lumyna Investments Limited, Lumyna Specialists Fund has become a substantial holder with a voting power of 5.62%.
 
FDA Grants Breakthrough Device Designation: The company has recently stated that OncoSil™ device has been granted Breakthrough Device Designation by the FDA for the treatment of unresectable locally advanced pancreatic cancer along with systemic chemotherapy.
 
1HFY20 Key Highlights for the Period ended 31^st December 2019: The company has released its interim results, wherein it reported income and interest revenue of ~$1.24 million, down 36.2% year over year. Cash and cash equivalents as at 31 December 2019 came in at $6.8 million.
 

1H20 Financial Highlights (Source: Company Reports)
 
What to Expect: The company’s progress to achieve CE Mark for OncoSil™ device will permit future commercial sales in the European Union. OSL remains on track to progress in manufacturing abilities, supply chain and sales and marketing infrastructure to boost both planned commercial and clinical activities.
 
Stock Recommendation: As per ASX, the stock of OSL is trading below the average of its 52-weeks’ low and high level of $0.047 and $0.215, respectively. The stock has given a return of ~100% in the past six months and has corrected by ~18.75% on a year-to date basis. As on 9^th April 2020, the market capitalization of the company stood at $81.99 million, with outstanding shares of ~630.71 million. On TTM basis, the stock is trading at a price to book value multiple of 11.2x, higher than the industry average (healthcare) of 3x. Considering the volatility in returns, recent updates and nod of BSI for OncoSil™ device capabilities amid COVID-19 crisis, we have a watch stance on the stock at the current market price of $0.125, down by 3.846% on 9^th April 2020.

 
OSL Daily Technical Chart (Source: Thomson Reuters)
 

Osteopore Limited

 

OSX Details
 
Update on COVID-19 Impact: Osteopore Limited (ASX: OSX) is a medical technology company, which is engaged in providing products designed to facilitate bone healing across various therapeutic areas. On 8^th April 2020, the company provided an update regarding the ongoing COVID-19 impact. The company is focusing on health and safety of its staff, contractors and their respective families, along with confirming business continuity across its operations. The company further confirms that its sales remain strong and have not been substantially impacted by COVID-19. For 1QFY20, sales were reported at ~S$270,000 (A$313k), up 60% year over year. The company remains on track to implement its growth strategy to increase revenue and enter into new markets with its existing bioresorbable scaffold products.
 
Financial Highlights for the Period Ended 31^st December 2019: During the period, the company reported total revenues of ~$1.1 million, depicting growth of 14% year over year. During the period, the company invested in its growth initiatives to drive future revenues. The company carried out business development activities and improved on its production capability to drive product demand.
 

Revenue Growth (Source: Company Reports)
 
What to Expect: As at 31^st December 2019, the company had a cash balance of ~$3.3 million. With this, OSX remains on track to drive momentum in FY20, and aims to achieve numerous clinical, commercial and corporate milestones that are expected to provide enhanced shareholder value.
 
Stock Recommendation: The stock of the company generated a negative return of 58.25% in the past six months. As per ASX, the stock of OSX is trading below the average of its 52-weeks’ low and high level of $0.275 and $1.225, respectively. The company is committed to its growth strategy and is continuously striving to boost its capabilities. Despite these challenging times, the company aims to ensure safety of its staff and continue business development. On TTM basis, the stock is trading at a price to book value multiple of 8.9x, higher than the industry median (healthcare) of 2.2x. Considering the backdrop of the above factors, we have a watch stance on the stock at the current market price of $0.500, up 16.279% on 9^th April 2020. The rise in price can be attributed to the minimum impact of COVID-19, continued momentum expectation in FY20 and strong balance sheet position.
 
 
OSX Daily Technical Chart (Source: Thomson Reuters)

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