Good morning,
Welcome to today's edition of The Armchair Analyst, a 5-minute daily update on the ASX life-sciences sector.
Just a short update from me today and a quick reflection on yesterday’s Stocks in the Vines.
Two companies presented: Imunexus and Myopharm, both looking to go public this year.
There are a couple of other healthcare stocks circling the IPO float window as well, and I think that it is a great sign for the sector.
Last year, there were four IPOs…
TTX, NXN, SLD and EPI.
All medical device companies. No drug developers.
In 2024, there were just three IPOs.
RNV, BB1 and VFY.
Again, no drug developers.
So, while the bull market in 2021 was a hotbed for biotech IPOs, there hasn’t been a new biotech drug developer that hit the listing boards in years.
The tide seems to be turning, though.
Imunexus, Myopharm and HaemaLogiX are all looking to float this year.
All drug developers.
(I’ll have my write-ups on the stocks when the companies do list).
IPOs are an important part of the ecosystem.
But they need to be done right.
By right, I mean make sure that the investor capital isn’t BBQed from day one.
… like what happened to Saluda and Epiminder last year.
It all comes down to pricing the deals and valuation.
Are the valuations fully priced?
OR have they left room for the company to GROW into those valuations so that IPO investors can make money too…
If there is no meat left on the bone, the on-market support won’t be there on listing day.
Lessons from Epiminder and Saluda = value the company at IPO so retail investors can make money too.
The goal of the IPO shouldn’t just be the exit liquidity for the private capital, but a chance to grow the company’s valuation in a public market.
It all comes down to price and value.
Let’s dive in…
The Pulse Check
Racura Oncology (ASX: RAC) moves to the next dosing stage in its Phase 1 Cardioprotection and Anticancer trial to 80mg/m² after demonstrating safety at 40mg/m². (RAC)
🪑 Important safety milestone ticked.
Pacific Edge (ASX: PEB) announces draft Medicare coverage for Cxbladder Triage and Triage Plus tests, priced at $1,328 each. (PEB)
🪑 Reimbursement is one of my key pillars for any diagnostics product.
Nice job, but I do wonder what the steps are to go from “draft coverage” to “full coverage”.
Oneview Healthcare (ASX: ONE) launches 'Bedside Hub', creating a new revenue channel. (ONE)
OncoSil Medical (ASX: OSL) reports interim results from the OSPREY trial showing 91.4% disease control at 12 weeks for first-line pancreatic cancer patients and a median overall survival of 20.6-22.0 months. (OSL)
AVITA Medical (ASX: AVH) reaffirms FY26 revenue guidance of US$80-85M (12-19% YoY growth). (AVH)
M&A, Big Pharma Wants a Wife
Fosun Pharma paid US$60M upfront to option AriBio's once-daily oral PDE5 inhibitor in Alzheimer's Disease. (Fierce Biotech)
🪑 US$60 million, just for an *option*.
See you all next week.
The Armchair Analyst.
