Virtus Health Ltd

Enhanced stake in SIMS IVF Group: Virtus Health Ltd (ASX: VRT), Australia’s assisted reproductive services provider, has exercised its first option to acquire a further 15% stake in the Sims IVF Group, for €4.8million via Virtus Health Ireland Ltd. The Sims IVF Group’s full year net profit after tax for FY2017 was €3.1m and has three clinics: Sims IVF Dublin, Sims IVF Cork and the Rotunda IVF clinic Dublin. The acquisition has enhanced the group’s ownership in Sims IVF Group to 85%, and will provide an advantage to the group in terms of the performance.

VRT was noted to deliver a total of 15,776 cycles in Australia in FY17 with weakness that impacted 1H17 trend to continue in 2H17. Full service cycles also dropped 3.1% for the full year, while performance at QLD and TAS had offset the performance in NSW market. VRT had witnessed a 3.9% volume growth with 24% lift in low-cost cycle volumes in 2H17.
We maintain our “Hold” recommendation on this dividend yield stock at the current price of $ 5.49

AusCann Group Holdings Ltd

Boost from the Medicinal Cannabis Legislation Amendment:AusCann Group Holdings Ltd (ASX: AC8) is finding support from the Medicinal Cannabis Legislation Amendment (Securing Patient Access) Bill 2017 (the Bill) that has been passed in the Senate. This Bill would allow terminally ill patients to have access to cannabinoid medicines through Therapeutic Goods Administration Special Access Scheme Category A. Thus, cannabinoid medicines produced by AusCann in Australia as well as those medicines being imported by AusCann, can now be made available to terminally ill patients. This is a positive milestone for the group. Primarily, under the TGA Special Access Scheme Category A the doctors may prescribe the requisite medicines to terminally ill patients without waiting for prior approval from the TGA. The group is now working with doctors that are able to prescribe the medicines under the legislation, in Australia. Considering the industry scenario, the group also seems to be benefitting from its healthy collaborative relationships in Chile and Canada.
We give a “Buy” recommendation on the stock at the current price of $ 0.43

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