Stocks’ Details
 

Starpharma Holdings Limited

 
SPL Grants Marketing Rights Permission to Okamoto: Starpharma Holdings Limited (ASX: SPL) is engaged in R&D and commercialisation of dendrimer products for a pharmaceutical, life-science and other applications. Recently, the company announced that post the positive unveil of the VivaGel antiviral condom by Okamoto Industries, Inc. in Japan, SPL has approved Okamoto further marketing rights to 11 countries in Asia. These include South Korea, Indonesia, Malaysia, Thailand, Singapore, and the non-government China market.
 
1HFY20 Operational Highlights for the Period ended 31^st December 2019: SPL declared its half-yearly results, wherein the company reported revenue and other income of $5.7 million, as compared to $0.7 million reported in the year-ago period. During the period, loss amounted to $5.9 million, as compared to a net loss of $7.3 million reported in the year-ago period. The company exited the period with a cash balance of $35.9 million. Net cash used in operating activities stood at $5.2 million in 1HFY20, as compared to a cash outflow of $7.3 million in 1HFY19.
 

1HFY20 Key Highlights (Source: Company Reports)
 
Stock Recommendation: The stock of SPL is trading at $0.825 with a market capitalization of ~$303.64million. The stock made a 52-week low and high of $0.615 and $1.445 and is currently trading at the lower band of its 52-week trading range. The stock has corrected ~33.2% and ~29.44% in the last three months and six months, respectively. Current ratio of the company stood at 6.01x in 1HFY20 as compared to the industry median of 1.44x, which reflects that the company is in a decent position to address its short-term obligations against the broader industry. Gross margin stood at 88.5% in 1HFY20, higher than the industry median of 70%. Therefore, considering a decent liquidity position, outlook, and current trading levels, we give a “Speculative Buy” recommendation on the stock at the current market price of $0.825 per share, up 1.227% on 2 April 2020.
 

Noxopharm Limited

 
NOX Investigates Possible Medication for COVID-19: Noxopharm Limited (ASX: NOX) is a pharmaceutical and biotechnology company with a market capitalisation of $41.12 Mn as on 2nd April 2020. Recently, the company stated that the Hudson Institute of Medical Research (Hudson Institute) in Melbourne has discovered that idronoxil impedes a key anti-inflammatory particle known as a cytokine storm. These anti-inflammatory particles are assumed to be liable for most deaths in patients with COVID-19 virus.
 
Managerial Changes:In another update, the company announced that Mr Boris Patkin has been appointed as a non-executive director to the company, replacing Dr Beata Niechoda who resigned from this position in 2019.
 
1HFY20 Key Highlights for the Period ended 31^st December 2019: NOX declared its half-yearly results, wherein the company reported total loss of $7.7 million, as compared to a net loss of $4.5 million reported in the year-ago period. The company exited the period with cash and cash equivalents of $1.7 million. Net cash used in operating activities stood at $5.5 million in 1HFY20, as compared to cash outflow of $3.1 million in 1HFY19.
 
 

Consolidated Profit & Loss (Source: Company Reports)
 
Stock Recommendation: The stock of NOX is trading at $0.215 with a market capitalization of ~$41.12million. The stock made a 52-week low and high of $0.095 and $0.740 and is currently trading at the lower band of its 52-week trading range. The stock has corrected ~3.57% and ~33.33% in the last three months and six months, respectively. On the valuation front, the stock is trading at an EV/Sales multiple of 5.7x as compared to the industry median of 6.4x on TTM (Trailing Twelve Months) basis. Hence, considering the aforesaid facts and current trading levels, we have a watch stance on the stock at the current market price of $0.215 per share, down 20.37% on 2 April 2020, due to global uncertainty on the back of COVID-19 outbreak.
 

Paradigm Biopharmaceuticals Limited

 
Shares of PAR on a Trading Halt: Paradigm Biopharmaceuticals Limited (ASX: PAR) is a biopharmaceutical company which is engaged in researching and developing therapeutic products for human use. On 2 April 2020, the shares of the company were placed on a trading halt at the request of PAR as the release of an announcement is awaited. It was also mentioned that the securities would remain suspended until the pending announcement is made to the market.
 
PAR Starts Treatment of Patients in The US Post FDA Nod: In another update, the company stated that it has started medicating all the ten patients with Zilosul, after receiving approval of FDA approved Expanded Access Program (EAP) in the US. It also has confirmed that it is offering a chance for shareholders and investors to view a virtual presentation by Paul Rennie at the NWR Small Cap Virtual Conference to be conducted on 26 & 27 March.
 
Other Recent Updates: Recently, the company announced that Paul Rennie, a shareholder of the company, has decreased its voting power from 12.14% to 11.95%.
 
1HFY20 Key Highlights for the Period ended 31^st December 2019: The company has also released its interim results, wherein it reported a substantial increase of ~$574k in revenue to $602k.Net loss for 1HFY20 amounted to $5.1 million.
 

1H20 Financial Highlights (Source: Company Reports)
 
Stock Details: The stock of the company corrected by ~42.32% over the past one month and around 16.4% in a year’s time. As on 2 April 2020, the market capitalization of the company stood at $334.31 million, with outstanding shares of ~ 197.81 million. The stock will remain in a trading halt until the earlier of the commencement of normal trading on 06 April 2020 or when pending announcement is made to the market. The stock was closed at $1.690 on 01 April 2020. The stock last traded at $1.690 on 01 April 2020.
 
 
Comparative Price Chart (Source: Thomson Reuters)

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