Sienna Cancer Diagnostics Limited (ASX:SDX)

SDX Details

Planning to expand in US markets - Sienna Cancer Diagnostics Limited is an Australia-based biotechnology company. The Company is focused on the development and commercialization of novel in vitro diagnostic (IVD) tests for detection and monitoring of cancer. Recently, the Group announced the results of the largest independent study to date using Sienna’s IVD test, conducted by Johns Hopkins Hospital. It was reported that test was shown to be most useful where a patient has a low-risk indeterminate urine cytology result, and a negative or absent cystoscopy result.

In the meanwhile, Paradigm Wealth management Pty Ltd became the substantial holder of the Group by holding 9,105,829 securities and 5.05 per cent of the voting power. The Company appointed Helen Fisher as an Independent Non-Executive Director and Chair of the Audit and Risk Committee. The Company received its R&D Tax Incentive Refund of $631,691 for the 2017 financial year. Further, it ended the March Quarter with a cash balance of $2.9 million and product orders were received in each month of the quarter.


Performance of cytology compared with gold standard (Source: Company Reports)

Moreover, the Company announced the first sale of the company's hTERT test in Switzerland through its distribution partner, Biosystems Switzerland AG. Further, after signing of Biosystems Switzerland’s exclusive distribution arrangement of Sienna's novel IVD test, the first order from a Swiss laboratory was already delivered. The Group is planning to expand its market share in US markets. Primarily the Group focuses on the clinical translation of biomarkers using novel diagnostic technologies and it is continuously evaluating opportunities for addition to its R&D pipeline. The Group reported product revenue of $267,826 (2016: $293,724) for the half-year ended 31 December 2017 and a gross profit of $241,260 (2016: $273,218). The capital raised through the Company’s IPO contributed $4,597,600 to equity. However, the group has highlighted higher costs in terms of administration expenses and contract manufacturing expenses.

The stock price has been falling since it has been listed on ASX (down by 44.90 per cent in three months as on 12 July 2018). The stock was however, up by 7.40 per cent as on 13 July 2018. The stock is trading at $0.058 (near its 52-week low price that is $0.050). Owing to the volatility and high risks, the stock might not offer a great buying opportunity but can be a “Hold” for investors with some exposure as the test results may provide a changing scenario.
 

SDX Daily Chart (Source: Thomson Reuters)

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