Good morning

The last few months have felt like there is some life back in the small to mid-cap biotech space.

Look at the performance of ILA, COV, 4DX, SPL… just to name a few.

The green shoots in the industry are emerging, and it is giving hope to other biotech companies that a re-rate is just around the corner if the company can deliver some good news.

The exact same thing is happening in America right now.

This week the NASDAQ Biotech index (INDEXNASDAQ: NBI) hit another record high, with the index tracking very favourably since May this year:

It’s my view that the biotech and life sciences industry will continue this trend well into 2026.

But what do I know, I’m just The Armchair Analyst.

Want to help a friend level up their biotech knowledge?

The Daily Check-up

Dave Williams announces that he finishes up as Chairman of InovIQ (ASX: IIQ | MC: $50M) at the end of this year. (IIQ)

🪑Williams also resigned from his role as Chair of Polynovo (ASX:PNV | MC: $821M) last month. (AFR)

HITIQ (ASX:HIQ | MC: $11.7M) commences an Australian retail distribution trial with Rebel Sports for its mouth guard product that measures concussions. (HIQ)

The Monash IVF (ASX:MVF | MC: $331M) saga continues with the Victorian Department of Health imposing certain conditions to confirm the intended biological source for each cycle at its IVF clinics. (MVF)

Shareholders of the embattled Hexima (ASX:HXL | Suspended) may get some closure after the board decided to return $1M to the shareholders after over a year in suspension. (HXL) 

Researchers at University of Oxford released results of a study showing a new AI-analysis of coronary CT scans can predict risk of a heart attack years in advance. (AFR Report, Oxford Study)

Cash Injection

BTC Health (ASX:BTC | MC: $19M) raises $2M via a share placement at a 3% premium to the last closed price of $0.059 in a non broker-led deal. (BTC)

Under the Microscope

Yesterday it was revealed that Mercer, a substantial shareholder of Genetic Signatures (ASX:GSS | MC: $65M | Cash $28M), bought ~$1.3M worth of shares in an off-market transaction at $0.285 (GSS):

Since July this year GSS has traded on relatively low volumes (average of $44,000 of stock per day), which means that it would have taken a while for the seller to exit the market.

It is generally good for the overall health of the share register when shares move from a big seller to what should be a sticky holder in one transaction.

It clears out the selling overhang into someone that should be in the stock for the long run.

This means that if GSS announces something material that causes volume and interest in the stock to increase, a big seller of the shares is now off the table.

It doesn’t guarantee a sustained rise on the next catalyst, but it does give GSS a much better chance at a re-rate on good news.

See you tomorrow.

The Armchair Analyst

Jason Segal

*Disclosure: I don’t own any of the shares mentioned in this newsletter