Latest news with #Alcidion
News.com.au
24-07-2025
- Business
- News.com.au
Health Check: Records tumble as biotech's star quarterly reporters pick up the pace
• Several emerging life science plays are taking revenue to new heights – and some have even turned profitable • Little Green Pharma seeks to avoid a second pay 'strike' • Althea founder exits the building It is a truth, universally acknowledged, that biotechs with little or no revenue and cascading cash outflows will leave their quarterly disclosures to the last possible moment. Given dozens of other companies holding off until around July 31 – the deadline for lodging June quarterlies – this crowds out the bad news. The corollary is that those with pleasant surprises prefer to break with the hoi polio and go early. True to trend, today's reporters have broken more sales records than our Glasgow-bound Gout Gout. In fact, the last time your columnist heard so much about records was in a Brashs store in the 1980s … which dates him somewhat. The company (and patient) are doing well The provider of software to make hospitals run more smoothly, Alcidion (ASX:ALC) reports record quarterly cash flow of $7.4 million for the quarter. This takes the year's surplus to $5.8 million (also an all-time high). Full-year receipts came in at $50.9 million, 16% higher. Alcidion provides software to hospitals – such as patient workflow tools – to enable them to run more smoothly and prevent surgeons from amputating the wrong leg. The company has a meaningful local and UK presence across 400 hospitals and 87 healthcare organisations. Management reports new June quarter sales of $6.7 million, 73% of which are recurring. The company also affirms underlying earnings of $4.5 million for the 2024-25 year, upped from $3 million in June. This should be confirmed at August's full year results prezzo. Hear! Hear! A record year for Audeara The maker of hearing augmentation devices, Audeara (ASX:AUA) reports June quarter revenue of $722,000, which takes full-year turnover to a record $3.78 million (up 22%). Audeara own-branded headphones are sold via hearing clinics. But the company has skewed its business to its AUA Technology arm, which has an 'Intel inside' model of providing the technology to big-ticket international customers. These include the 400-year-old US instrument maker, Avedis Zildjian. Audeara founder and CEO Dr James Fielding dubs the quarter as a 'period of consolidation'. He says the company 'executed on several strategic initiatives to ensure it capitalises on the growth established through the AUA Technology division over the previous 12 months". Audeara also had $757,000 of cash outflows for the quarter, reducing June-end cash to $1.42 million. But Fielding says the company should see a 'material uplift' in current quarter revenues, owing to a chunky Avedis Zildjian re-order. Bioxyne eyes European growth A supplier of cannabis and psychedelic meds, Bioxyne (ASX:BXN) more than doubled full-year revenue to $9.55 million, with full-year revenue up 215% to $29.3 million. Did we mention that was a record? The company also managed positive cash flow of $1.5 million for the June stanza. This takes the full-year cash flow to $6.2 million, compared to a $3.6 million deficit in 2023-24. Management attributes the surge to the Australian operating of its subsidiary Breathe Life Sciences. But Bioxyne's greater growth prospects lie with the UK and European markets, notably Germany where it has inked two key manufacturing and supply agreements. Little Green faces big pay votes Still on pot stocks, Little Green Pharma (ASX:LGP) again faces the music on two remuneration-related motions at its August 21 AGM. As a March balance date entity, Little Green beats the usual AGM rush. Last year, 83% of voting shares were cast against Little Green's 'rem' report, well beyond the 25% 'no' vote threshold. If investors again knock back the proposal, they'll vote on a motion to spill the board (this one requires a minimum 50% 'yes' vote). The board has also reprised last year's proposal to accelerate the vesting of management and executive share incentives, in the event of the "person ceasing to hold such office." Investors overwhelmingly opposed this one last time as well. Thorney Investments is Little Green's biggest shareholder on 19.7%. Gina Rinehart's Hancock Prospecting supported a 2021 capital raising and emerged with 10%. But it's not clear how much she holds now. Althea founder bows out We're not obsessed with cannabis – that's a promise – but it behooves us to report that Althea Group (ASX:AGH) founder and CEO Josh Fegan has left the company, with 'immediate effect'. Fegan created Althea in 2016 and the company listed in September 2018. Fegan had been at the helm all that time. As we reported on Wednesday, Althea has given up on the over-competed local medicinal pot sector. The company now is focusing on the North American recreational market via its subsidiary Peak Processing. Specifically, Peak is getting into THC-laced beverages as an alternative to alcoholic ones. Althea share tumbled 10% on the surprise tidings. On Bell Potter's gut feel, Microba's worth much more Bell Potter reckons there's 60% share price upside in Microba Life Sciences (ASX:MAP), which provides microbiome testing. Microba on Wednesday reported a 13% June quarter revenue decline, to $4.2 million. But stripping out the divestment of a legacy research business, revenue grew 4% year-on-year. Microba has two core products: Metaxplore and Metapanel. Metapanel is the 'first line' test to determine whether a doc can treat a pathogen simply with antibiotics. Metaxplore probes anything else that could be wrong with the patient's microbiome. The company has free cash flow burn of $6.3 million for the quarter and $15.3 million for the year. But this rate has been 'relatively steady' over the last two years. Following a $14.5m capital raising – backed by biggest shareholder Sonic Healthcare – Microba has $20.2 million of cash with no debt. "Most legacy sales have now unwound, so we anticipate more meaningful consolidated topline growth for the group in 2025-26," Bell Potter says. The forecasts an adjusted net loss of $14.6 million for 2024-25 and a simialar deficit this year. The company expects to break even in 2027-28. Bell Potter values stock at 16 cents, tempered from its previous 26 cent guesstimate.
News.com.au
22-04-2025
- Business
- News.com.au
Health Check: In rude health, Alcidion shrugs off UK National Health Service reforms
Alcidion (ASX:ALC) chief Kate Quirke is sanguine about the pending merger of England's National Health Service (NHS) with the Department of Health and Social Care. Alcidion says the abolition of the UK NHS could create opportunities Ahead of being taken over, Mayne Pharma has flagged a strong full-year profit Global biotech IPOs surge – then stall This is a key plank of the new-ish Labor government's ten-year reform plan for the country's groaning health system. The revamp is significant for the UK-centred Alcidion, given it services current NHS trusts heading for the chop. One of the few ASX life-science plays to focus on the UK, Alcidion has developed software that manages patient flows and integrates data across multiple healthcare facilities. On an investor hook-up this morning, Quirke said the push for more productivity with fewer staff was likely to mean greater demand for Alcidion's digital platforms. Also, most NHS staff will transition to the mega department and the changes won't take place until 2027 'I see the opportunity increasing," Quirke says. "But we are waiting to see what the ten-year plan indicates in terms of where the priority areas are.' In rude health Meanwhile, Alcidion expects a full-year profit turnaround after posting March (third) quarter positive operating cash flow of $2.5 million. This is a turnaround on the December quarter deficit of $260,000 and $1.4 million of outflows a year previously. March quarter receipts came in at $13.1m, with new contracted sales of $48.8m. Of this, $11.5m is expected to be recorded in the current quarter. The new sales include a 'milestone' ten-year, $37.5m contract with the North Cumbria Integrated Care NHS Trust for a new electronic patient record platform. Given the company usually posts a strong fourth quarter, management has upgraded guidance to underlying full-year earnings of more than $3m, compared with a $4.58m loss for the 2023-24 year. The company expects revenue of at least $40m. Alcidion has been in intensive care in recent years, with slower than expected tender processes and lengthier procurement cycles. Unless the NHS reforms contain some hidden nasties, it's time for a discharge. Mayne Pharma looks to end its listed life with a bang Mayne Pharma (ASX:MYX) looks to be ending its listed life on a high, flagging a 100%-plus full-year profit improvement ahead of being taken over. The company today reported unaudited March quarter revenue of $86.8 million, down 11% year on year with an underlying loss of $3.4 million. But with improved trading relative to January and February, Mayne expects full-year earnings to come in at $47-51 million, a 105-123% improvement. For the first nine months of the year, revenue edged up 5% to $300 million and underlying earnings soared 116% to $28.6 million. The company cites strong growth in its women's health (contraceptive) franchise, up 23% and international (non-US) up 2%. This partially was offset by a 9% decline in its dermatology arm. But all three segments should gain in the full year. Mayne also announced a US$16 million purchase deal with the Nasdaq listed Sol-Gel Technologies, to exclusively license two dermatology products. Mayne is under a takeover offer from US dermatology house Cosette, which is offering $7.40 of cash per share in a scheme of arrangement. The scheme booklet is now due in mid-May, with expected deal completion in late June or early July. While the offer was at a 37% premium when unveiled in early February, some investors object that Cosette will enjoy too much upside from improved conditions. They will have their say at a scheme meeting in mid-June. Biotech IPOs flag after a stellar 2024 Global biotech listings soared to their highest level in three years in calendar 2024. That's the good bit: this year's activity to date has been dampened by the Trump-related regulatory and other uncertainties swirling around the sector. According to analysis house Global Data, 50 initial public offers (IPOs) were completed in 2024, with a total value of US$8.52 billion (up 68% on the 2023 tally of US$5.06 billion). This is the highest value since 2021, when 180 deals worth US$34bn were executed. The value of US$100 million deals doubled in 2024 to US$7.88bn, led by the US$2.48bn IPO of the Swiss dermatology company Galderma. 'While cautious, investors are showing interest in companies with strong clinical data … and a shift towards more advanced stage biopharmaceuticals,' Global Data opines. Trends are more off the pace this year to date, with US$2bn of deals done. Last year, only three life sciences companies listed on the ASX. They were utism tester Blinklab (ASX:BB1) in April, as well as ReNerve (ASX:RNV) (nerve repair) and Vitrafy Life Sciences (ASX:VFY) in November. This year, the only one on the horizon is the delayed listing of cosmetic injectables group Stormeur. The developer of a rapid point-of-care test for group B streptococcus in pregnancy, Nexsen Biotech last year undertook a pre-IPO funding round. But no appearance yet, your Worship. Post-election Reserve Bank rate reductions might help to crank up the pipeline, but investors don't have the appetite for risk. Broker applauds Clarity on program Broker Canaccord applauded Clarity Pharmaceuticals' (ASX:CU6) pre-Easter decision to lighten up on its nuclear medicine programs. Culling an overly busy rota of trials, Clarity has prioritised its diagnostic and therapeutic programs for prostate cancer, in cases of patients expressing the prostate specific membrane antigen (PSMA). The company also will stress its program for neuroendocrine tumours. Clarity has closed its programs for paediatric high-risk neuroblastoma and low-PSMA metastatic prostate cancers. 'A good biotech undertakes scientific discovery to place the right asset in the right indication, but also knows when there is not enough evidence and commercial viability for the program to continue,' says Canaccord. Crucially, the reduced expenditure pushes the runway on Clarity's $106m cash balance out to June next year. The firm values Clarity at $6.74 on a sum-of-the-parts basis, an 8% reduction on its previous assessment. On an unrisked basis, the valuation increases to $11.71 a share, but of course everything must go right.
