Ramsay Health Care Ltd

Management changes: Ramsay Health Care Ltd.’s (ASX: RHC) Managing Director and Chief Executive Officer, Mr. Chris Rex reported his intention to retire this year who has been with the company for nine years. On the other side, RHC has achieved 3.5% growth in the revenue and EBIT growth of 8.8% on the previous corresponding period, primarily driven by strong admissions growth. RHC’s global procurement strategy has begun to deliver substantial savings in the supply costs after securing improved commercial terms with major international supply companies. Moreover, RHC has progressed its strategy of establishing a network of pharmacies with the aim of providing care to patients beyond the hospital walls. However, the group is assessing major opportunities to grow their franchise network. Additionally, RHC has upgraded the guidance of Core NPAT and Core EPS growth to 12% to 14% for full FY 2017 (as compared to the 10% to 12% range). Meanwhile, RHC stock has fallen 15.32% in the last six months as on March 22, 2017. We maintain a “Hold” recommendation on the stock at the current price of – $ 67.34
 

1H 17 Group Financial Performance (Source: Company Reports) 

Bionomics Ltd

BNC105 Clinical Trial: Bionomics Ltd (ASX: BNO) had recently advised that its cancer drug candidate BNC105 would be evaluated in a combination trial with blockbuster immune-oncology drug Keytruda. The collaboration between Peter MacCallum Cancer Centre and Olivia Newton-John Cancer Wellness & Research Centre (ONJ Centre) has received $2.25 million grant to fund BNC105 trial in combination with Keytruda, a checkpoint inhibitor developed by MSD. Moreover, the trial would enroll patients with advanced melanoma who are unresponsive to standard treatments and the trial has been said to commence in 1H of CY 2017. Meanwhile, BNO stock has risen 7.5% in the last three months but fell 13.25% in last one month (as on March 22, 2017). Bionomics was reported to host a Key Opinion Leader Meeting focused on PTSD and Anxiety on March 23, 2017 in New York. We give a “Speculative Buy” recommendation on the stock at the current price of – $ 0.36

Cynata Therapeutics Ltd

Wide product pipeline:Cynata Therapeutics Ltd (ASX: CYP) has signed an agreement with the Monash Lung Biology Network, consortia involving researchers from the Monash Biomedicine Discovery Institute and Department of Pharmacology at Monash University, Melbourne, to conduct a further preclinical study to support the use of Cymerus mesenchymal stem cells (MSCs) for the treatment of asthma. Cymerus MSCs have significant beneficial effects on all three key components of asthma that include airway hyper-responsiveness, inflammation and airway remodeling. The additional preclinical study is expected to pave the way for a potential clinical trial. CYP’s product pipeline includes products catering to areas of immunological disorders, pulmonary disorders, circulatory disorders and cancer, under respective preclinical and/or phase 1 trials. The group has appointed Dr Paul Wotton as the Chairman of Cynata. Meanwhile, CYP stock has fallen 21.01% in six months as on March 22, 2017 and we give a “Speculative Buy” recommendation on the stock at the current price of – $ 0.53

Mesoblast Ltd

Positive developments:Mesoblast Ltd (ASX: MSB) has 36-month results from the randomized, placebo-controlled 100-patient Phase 2 trial of its proprietary allogeneic Mesenchymal Precursor Cells (MPCs) in patients with chronic low back pain (CLBP) due to intervertebral disc degeneration. A single intra-discal injection of 6 million MPCs has resulted in meaningful improvements in both pain and function that were durable for at least 36 months. Moreover, the United States Food and Drug Administration (FDA) has granted a Fast Track designation for the use of its cell therapy, MSC-100-IV, for attaining an improved overall response rate in children with steroid refractory acute Graft Versus Host Disease (aGVHD). Meanwhile, MSB stock has risen 62.99% in the last three months as on March 22, 2017, and we give a “Hold” recommendation on the stock at the current price of – $ 2.29

Sirtex Medical Ltd

Buy-back program:Sirtex Medical Ltd (ASX: SRX) now intends to buy-back shares in the period April 17, 2017 to September 08, 2017 (inclusive) or earlier if the maximum number of   shares are bought back prior to the last date. In February 2017, Sirtex had received a letter and draft statement of claim from a law firm regarding a foreshadowed Federal Court of Australia proceeding but declined the invitation to enter into settlement discussions with plaintiff. On the other hand, SRX has been removed from S&P/ASX 100 index, effective at the open on March 20, 2017. We maintain a “Hold” recommendation on the stock at the current price of – $ 17.39

Healthscope Ltd

Securing long-dated contracts: Healthscope Ltd (ASX: HSO) has reported for 3.9% growth in the group revenue to $1,192.0m in the 1H 2017 and a 5.1% growth in the group operating EBITDA to $216.8m. However, the statutory NPAT fell 7.0% to $90.5m. Moreover, the Hospitals Operating EBITDA growth of 2.2%. The result reflected the softer operating environment, while there was support from strong growth in New Zealand pathology and action is taken to increase flexibility in the Hospitals cost base in light of ongoing market variability. HSO is securing long-dated contracts, and has renegotiated multi-year contracts with NIB and the Australian Health Service Alliance. The company has successfully renewed three DHB contracts in New Zealand in advance of maturity. Additionally, HSO has posted increase in depreciation due to completion of three major hospital expansion projects in 2HFY16, increased investment in New Zealand pathology and investment in theatre technology. We give a “Buy” recommendation on the stock at the current price of – $ 2.17
 

1H 17 Financial Performance (Source: Company Reports) 

Zelda Therapeutics Ltd

Expansion move on opportunities:Zelda Therapeutics Ltd (ASX: ZLD) has expanded its clinical trial programme in Chile by including two new trials to begin in the second half of CY2017. The trials will target insomnia and eczema, two significantly sized markets with combined global value of approximately $8 billion in 2016. ZLD also executed a new license agreement with Caziwell Inc, including Aunt Zelda’s Inc. This new agreement provides significant immediate and long-term financial benefits for the company and replaces the existing agreement previously disclosed to the market. ZLD maintains an exclusive access to patient data, formulations and protocols for use in its current research activities. Meanwhile, ZLD stock has risen 256.5% in the last six months as on March 22, 2017. We give a “Hold” recommendation on the stock at the current price of – $ 0.082

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