OncoSil Medical Ltd
OSL Details
IDE Approval from the US FDA: OncoSil Medical Ltd (ASX: OSL) received investigational device exemption (IDE) approval from the US food and Drug Administration (FDA). Post approval, the company would initiate a pivotal clinical investigation for OncoSil
TM for the treatment of eligible subjects with pancreatic cancer. Improvement in study design and the clinical protocol would lead to a faster patient recruitment and higher quality evidence development at the back end of the trial. In Europe, regulator has spent almost a year assessing the company’s application to market its product for treating pancreatic and liver cancers. The group’s technology platform is suitable for multiple solid-state tumors providing a more targeted therapy. The global pancreatic cancer market is of US1 $Billion. OncoSil is poised for commercial launch in CE market in near term.
Company’s targeted milestones (Source: Company Reports)
The Company also has strong revamped leadership to manage execution risk. OSL has 28 patents granted and have filed 6 more patent applications (as of May 2016). The group also has trademark granted in key markets namely, UK, EU, Australia, New Zealand, Singapore, Japan and USA. The stock has corrected over 10.34% in the last three months (as at August 10, 2016) but rose around 3.8% on August 11, 2016. We recommend for a “Speculative Buy” at the current market price of $0.13
OSL Daily Chart (Source: Thomson Reuters)
CSL Ltd
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CSL Details
Product and regional diversification: CSL Ltd.’s (ASX: CSL) had received FDA approval for AFSTYLA (rFVIII – single chain) and Flucelvax Quadrivalent (influenza vaccine) few months ago. The company also received European commission approval for IDELVION® (rFLX-FP). CSL’s Seqirus is the second largest influenza vaccine provider to the US$6 billion market. Its core business is of blood plasma therapies for a wide range of indications. CSL enjoys broadest range of quality products.
The Company has become a leading player in China too. Almost 75% of its sales is from North America and Europe also provides wide scope of penetration going forward. CSL is a low cost leader in the collection of blood plasma from donor through its vast network of highly collection centers. The stock rose over 13.7% (as of August 10, 2016) in the last six months and is trading at a low dividend yield with a high P/E. We believe that the stock is “Expensive” at the current market price of $115.57, ahead of its full year results due on August 17, 2016.
CSL Daily Chart (Source: Thomson Reuters)
Ramsay Health Care Ltd
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RHC Details
Strong revenue growth and acquisition benefits: Ramsay Health Care Ltd (ASX: RHC) reported a solid 1HFY16 performance with 24.9% growth in revenues to $4.2 billion. Group’s net profit grew 16.2% to $237.4 million. During the period, the company has integrated Ramsay Sante and Generale de Sante and also acquired nine hospitals in Lille, France. Along with inorganic growth, the group has completed $126 million brownfield expansions. The company has also offered interim dividend of 47 cents per share continuing its trend of rewarding shareholders. Moreover, the company has strong balance sheet and strong operating cash flow to fund its brownfield expansion and future acquisition. The industry outlook remains positive on the back of rising healthcare demand driven by ageing population, emerging technology and the rising rate of chronic disease.
The group has upgraded guidance of core NPAT and core EPS growth to 15% and 17% for full year as compared with previously announced guidance of 12% and 14%, respectively. We believe the stock is headed for strong growth and hence recommend a “Hold” on the stock at the current market price of $75.13
RHC Daily Chart (Source: Thomson Reuters)
ResMed Inc
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RMD Details
Strong Q4 result:ResMed Inc (ASX: RMD) announced its Q4FY16 result and reported a 14% rise in revenues to $518.6 million, and a rise of 15% on constant currency basis. Excluding the contribution from the Brightree acquisition, revenue for the quarter was $489.7 million, a rise of 8%. Revenue from America grew 19% to $324.5 million. On the other hand, the group’s gross margin for the quarter fell to 58.1%, due to lower average selling price and change in product mix. RMD’s net revenue for year ended June 30, 2016 rose 10% over 2015 with a 17% surge in net revenue from North and Latin America. The gross profit for the year was up 5% while net income was flat.
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Financial Summary (Source: Company Reports)
Moreover, the stock is trading at a high P/E, and already generated over 16.56% (as of August 10, 2016) in the last three months. We rate the stock as “Expensive” at the current market price of $9.15
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RMD Daily Chart (Source: Thomson Reuters)
Pulse Health Ltd
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PHG Details
Growing by acquisition:Pulse Health Ltd.’s (ASX: PHG) strategy is to grow via acquisition or development of niche, specialized private hospitals or day surgeries. During H1FY16, the group finished successful integration of The Hills Clinic, acquired in May 2015, with utilization and profitability exceeding business case. It further ramped up Mackay Rehabilitation Hospital to profitability within 12 months of acquisition. The Group executed the acquisition of seven facilities across Australia and New Zealand with completions spanning H2FY16. It had developed Gold Coast Surgical Hospital which was opened on August 31, 2015 as a Specialist surgical hospital with 6 theatres, 24 bed in-patient ward and the same would be on track for contribution in FY17. PHG completed fully underwritten $43m equity capital issue. Moreover, the group reported that the operators of Evolution Healthcare have recently increased its stake in the company to about 11%.
The company has also received proposals (as admitted by company) relating to the acquisition. Although the management explained that the board has not pursued these confidential proposals but has also retained Allier Capital to act as financial adviser and Norton Rose Fulbright as its legal adviser. We give a “Speculative Buy” at the current market price of $0.295
PHG Daily Chart (Source: Thomson Reuters)
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