ImpediMed Limited (ASX: IPD)
Positive update on PREVENT trial: The securities of the medical technology company, ImpediMed Ltd rose by 5.1% on April 19, 2018, with the release of findings of the interim analysis of the PREVENT trial. Primarily, encouraging results from PREVENT prospective, randomized trial interim analysis have been reported with regards to preventing lymphoedema as noted for over 500 patients in two groups, one using the L-Dex BIS system, and the other using traditional tape measurements. The PREVENT Trial is the largest international multicentre randomised controlled trial undertaken in the prevention of breast cancer-related lymphoedema. This is expected to help during early treatment for chronic lymphoedema as compared to the same intervention when initiated from tape measurement. We believe the development is a positive for the group and reinforces a “Buy” opportunity.
Fairfax Media Limited (ASX: FXJ)
Takeover Speculation: Fairfax Media Limited’s share surged up by 5.3% on April 19, 2018, as the speculation of a takeover was doing the rounds in the market. Particularly, Seven West Media has been thought to be a prospective acquirer, while the companies have not confirmed the speculation. It is believed that many big players may be vouching for a potential takeover of the group. Meanwhile, FXJ was removed from S&P/ASX 100 Index as noted in the recent March quarterly rebalance of S&P/ASX Indices. We maintain a “Hold” on the stock at the current price.
Australian Pharmaceutical Industries Limited (ASX: API)
Mixed Interim Result: Australian Pharmaceutical Industries Limited’s stock slipped by 2.3% on April 19, 2018 as the group announced its 1HFY18 underlying NPAT of $26.8m for the six months to 28 February 2018, and this was 8% down on the prior corresponding period while it was slightly ahead of revised guidance. Further, reported NPAT was $24.9m, down 14.4%. However, underlying return on capital employed (ROCE) increased to 15.41%, from 15.23% on the pcp and underlying return on equity (ROE) decreased to 9.22%, from 10.56% on the pcp. The group still maintained performance for its Pharmacy Distribution with underlying sales growth of 9.8% while Priceline/Priceline Pharmacy total network sales growth was 2.1% with 466 stores. The fully franked interim dividend of 3.5 cents per share was similar to the pcp. Reported net debt was $32.3m lower than the same time last year, at $25.1m, and the group expects to have FY18 underlying result marginally above FY17. We have a “Hold” on the stock at the current price.
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