Latest news with #Bioxyne
News.com.au
01-07-2025
- Business
- News.com.au
Health Check: And the EOFY biotech winner is … gasp … a pot stock
Bioxyne stars with a 720% gain in the 2024-25 year Paradigm shares soar 34% after $41 million convertible note deal Biotechs turn to debt funding The ASX biotech sector's best EOFY performer has come from left field: the local and European focused medicinal cannabis supplier Bioxyne (ASX:BXN). According to the Health Check Biotech Pulse – trademark pending – Bioxyne shares soared 720% in 2024-25, leaving its largely poorly performing pot peers in the dust. Bioxyne's fortunes have been driven by its Breathe Life Sciences arm, which purveys cannabis products including not just flowers and oils but pastilles, vapes, pessaries and suppositories (we kid you not). The company recently upgraded full-year revenue guidance from $25 to $28 million and promised positive cash flow and – gasp! – profitability. Amplia (ASX:ATX) took second place, with a 233% gain (300% over the last month). The stock soared after Amplia unveiled clinical trial results showing two 'complete responses' among a cohort of advanced pancreatic cancer patients. Orthocell (ASX:OCC) shares vaulted 220% on the back of US Food & Drug (FDA) approval of its novel nerve repair tool Remplir. Imricor Medical Systems (ASX:IMR) shares ended the year 189% to the good, as the company eyes FDA approval of its world's first MRI-guided ablation catheter. Other triple digit dazzlers were myelofibrosis drug developer Syntara (ASX:SNT) (up 130%), autism testing device play Blinklab (ASX:BB1) (up 116%) and the beloved radiology imaging tearaway ProMedicus (ASX:PME) (up 110%). Sorry – there's no prize for trying Sadly, there's still too much red ink in the rankings. In your columnist's opinion, investors have marked down many worthy stocks unfairly. But we're not in primary school and everyone doesn't get a ribbon for trying, so the record books will show that medication compliance group MedAdvisor (ASX:MDR) led the falls with an 82% decline. Other laggards are the multi-pronged Universal Biosensors (ASX:UBI) (down 76%), Proteomics International Laboratories (ASX:PIQ) (down 62%, see below), lung imager 4D Medical (ASX:4DX) (down 56%) and Clarity Pharmaceuticals (ASX:CU6) (down 51%). Shares in the busy Clarity shares peaked at $8.74 last October – a 70% gain for the year – but even after the subsequent sell off the company still bears an $800 million market cap. Strictly speaking, Opthea shares fared the worst after the company's infamous eye disease trail failure in March. Opthea shares never resumed trading, so the official records show a 73% gain when in fact the stock is worth next to nothing. Genetic Technologies and Nuheara are also missing from the laggards list, only because they went into administration and subsequently de-listed. Paradigm shifts to convertible notes With the equity capital raising outlook still looking shaky, Paradigm Biopharmaceuticals (ASX:PAR) has become the latest in a string of biotechs to tap alternative funding sources. The developer of a knee osteoarthritis (OA) drug candidate has tapped US$27 million ($41.2 million), by way of convertible notes. These have been issued to New York based alternative funder Obsidian Global Partners. Under the terms, Paradigm will draw an initial US$7 million to fund patient recruitment, trial operations and regulatory milestones. The balance of the facility is available at Paradigm's discretion, 'offering operational flexibility and strategic control over future funding needs'. Barring default, the notes are interest free. The cash will help to fund Paradigm's pivotal phase III trial of its repurposed drug candidate pentosan polysulphate sodium (PPS, or Zilosul). Investors have keenly awaited this trial initiation – and confirmation of how it will be funded. Reflecting this, Paradigm shares this morning surged 34%. The 466-patient study in underway across up to 15 Australian and 50 US sites. The company says it is now fully funded up to the interim analysis of the first 50% of patients, due in mid 2026. Last week Paradigm hedged its bets by paying as much as $16.5 million for Proteobioactives Pty Ltd ($500,000 upfront) This company owns an early-stage oral candidate for minor to mild OA, which combines PPS with a COX-2 inhibitor (Coxib). When debt is not a dirty word The term 'debt' can have unfortunate connotations – especially in the context of your columnist's household budget. But it can be cheaper than equity and has the benefit of being non-dilutive and more flexible with the timing of drawdowns. Often, it's simply more accessible than equity. The developer of better working anti-infectives, Recce Pharmaceuticals (ASX:RCE) last month availed of a US$20 million ($30 million) draw-down facility from the New York based Avenue Capital Group. Recce pockets an initial US$7.5 million and a further US$5 million between April and September this year. The remainder is available in calendar 2027, with all the amounts subject to 12.75% interest. The funds will support Recce's two phase III registrational studies on diabetic foot infections and acute bacterial skin and skin structure infections. Recce also recently raised $15.8 million of equity. Last month, dermatology group Botanix Pharmaceuticals (ASX:BOT) unveiled a circa US$30 million ($48 million) debt facility with Kreos Capital. Kreos is an arm of the world's biggest investment manager Blackrock. The facility provides for circa $US20 million to be drawn now, with the remainder to be tapped by October 2026 at the company's option. Under certain conditions, Kreos Capital can convert 20 percent of the loan into Botanix shares, at 33 cents apiece. Botanix developed Sofdra, a treatment for excessive underarm sweating and has started selling the product in the US. In mid-April Botanix also raised $40 million of equity, via an institutional placement. Proteomics secures non-dilutive $6 million Then there's non-dilutive grant funding. The Perth-based Proteomics today said it had secured a $6 million investment from the federally funded Bioplatforms Australia and the WA government. The funding will support developing an accredited protein biomarker analysis platform, in partnership with the University of Western Australia. Proteomics chips in $1 million over the three-year funding period. Proteomics has commercialised a predictive test for diabetic kidney disease and is developing assays for endometriosis, esophageal cancer and oxidative stress. Meso-blast off for FDA application? Stem-cell drug developer Mesoblast (ASX:MSB) says the company and the FDA are 'aligned' on what the company needs to do before it lodges a US marketing application for its heart disease candidate, Revascor. In late December Mesoblast won FDA approval for its childhood graft-versus-host disease (GvHD) candidate. This followed years of the company and the agency being decidedly 'unaligned'. Given the heart disease heart indication is much bigger than GvHD, today's news is more significant than it may appear at first blush. Mesoblast intends to file for accelerated approval by the end of the year. This is to treat ischemic heart failure patients with reduced ejection fraction and inflammation.
Yahoo
18-04-2025
- Business
- Yahoo
Bioxyne Limited's (ASX:BXN) Stock Has Shown Weakness Lately But Financial Prospects Look Decent: Is The Market Wrong?
It is hard to get excited after looking at Bioxyne's (ASX:BXN) recent performance, when its stock has declined 14% over the past month. However, stock prices are usually driven by a company's financials over the long term, which in this case look pretty respectable. Particularly, we will be paying attention to Bioxyne's ROE today. Return on equity or ROE is an important factor to be considered by a shareholder because it tells them how effectively their capital is being reinvested. In simpler terms, it measures the profitability of a company in relation to shareholder's equity. Our free stock report includes 3 warning signs investors should be aware of before investing in Bioxyne. Read for free now. The formula for return on equity is: Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity So, based on the above formula, the ROE for Bioxyne is: 36% = AU$2.5m ÷ AU$6.9m (Based on the trailing twelve months to December 2024). The 'return' is the yearly profit. Another way to think of that is that for every A$1 worth of equity, the company was able to earn A$0.36 in profit. Check out our latest analysis for Bioxyne So far, we've learned that ROE is a measure of a company's profitability. We now need to evaluate how much profit the company reinvests or "retains" for future growth which then gives us an idea about the growth potential of the company. Assuming all else is equal, companies that have both a higher return on equity and higher profit retention are usually the ones that have a higher growth rate when compared to companies that don't have the same features. To begin with, Bioxyne has a pretty high ROE which is interesting. Additionally, the company's ROE is higher compared to the industry average of 10.0% which is quite remarkable. For this reason, Bioxyne's five year net income decline of 48% raises the question as to why the high ROE didn't translate into earnings growth. So, there might be some other aspects that could explain this. These include low earnings retention or poor allocation of capital. So, as a next step, we compared Bioxyne's performance against the industry and were disappointed to discover that while the company has been shrinking its earnings, the industry has been growing its earnings at a rate of 7.6% over the last few years. Earnings growth is a huge factor in stock valuation. What investors need to determine next is if the expected earnings growth, or the lack of it, is already built into the share price. This then helps them determine if the stock is placed for a bright or bleak future. Is Bioxyne fairly valued compared to other companies? These 3 valuation measures might help you decide. Bioxyne doesn't pay any regular dividends, meaning that potentially all of its profits are being reinvested in the business, which doesn't explain why the company's earnings have shrunk if it is retaining all of its profits. So there could be some other explanations in that regard. For instance, the company's business may be deteriorating. In total, it does look like Bioxyne has some positive aspects to its business. Yet, the low earnings growth is a bit concerning, especially given that the company has a high rate of return and is reinvesting ma huge portion of its profits. By the looks of it, there could be some other factors, not necessarily in control of the business, that's preventing growth. While we won't completely dismiss the company, what we would do, is try to ascertain how risky the business is to make a more informed decision around the company. To know the 3 risks we have identified for Bioxyne visit our risks dashboard for free. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Yahoo
31-01-2025
- Business
- Yahoo
Shareholders have faith in loss-making Bioxyne (ASX:BXN) as stock climbs 47% in past week, taking one-year gain to 267%
Unfortunately, investing is risky - companies can and do go bankrupt. But when you pick a company that is really flourishing, you can make more than 100%. For example, the Bioxyne Limited (ASX:BXN) share price has soared 267% in the last 1 year. Most would be very happy with that, especially in just one year! Shareholders are also celebrating an even better 267% rise, over the last three months. And shareholders have also done well over the long term, with an increase of 110% in the last three years. The past week has proven to be lucrative for Bioxyne investors, so let's see if fundamentals drove the company's one-year performance. See our latest analysis for Bioxyne Bioxyne isn't currently profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. When a company doesn't make profits, we'd generally hope to see good revenue growth. That's because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size. Bioxyne grew its revenue by 82% last year. That's well above most other pre-profit companies. Meanwhile, the market has paid attention, sending the share price soaring 267% in response. That sort of revenue growth is bound to attract attention, even if the company doesn't turn a profit. Given the positive sentiment around the stock we're cautious, but there's no doubt its worth watching. The company's revenue and earnings (over time) are depicted in the image below (click to see the exact numbers). You can see how its balance sheet has strengthened (or weakened) over time in this free interactive graphic. It's good to see that Bioxyne has rewarded shareholders with a total shareholder return of 267% in the last twelve months. That's better than the annualised return of 26% over half a decade, implying that the company is doing better recently. In the best case scenario, this may hint at some real business momentum, implying that now could be a great time to delve deeper. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. For instance, we've identified 4 warning signs for Bioxyne (3 can't be ignored) that you should be aware of. Of course Bioxyne may not be the best stock to buy. So you may wish to see this free collection of growth stocks. Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on Australian exchanges. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
