Good morning, Armchair Army,
Welcome to today's edition of The Armchair Analyst, a 5-minute daily update on the ASX life-sciences sector.
Disclosure: Armchair Analyst Media Pty Ltd owns 1,000,000 escrowed EMD shares. I have also personally bought an additional 1,000,000 EMD shares over the previous 12 months. EMD has engaged Armchair Analyst Media for investor awareness services.
This information is general in nature and does not constitute personal financial advice.
Yesterday, I had the pleasure of introducing the healthcare industry to a room full of retail investors at the East Coast Investor Lunch, celebrating 20 years of Jane Morgan Management.
Big thanks to Jane.
20 years is a very good innings.
Six healthcare companies presented: EMD, BB1, NSB, COV, BOT and the unlisted IndetifyGenetics.
Emyria (ASX: EMD), my Second Armchair Pick, presented at the event.
EMD provides mental health services through psychedelic-assisted therapies for people with PTSD and treatment-resistant depression.
I’ve been following the story for almost three years…
But it was the first time I had actually heard Executive Chair Greg Hutchinson present in person.
He commanded the room with a captivating story about Jess Yugovich.
Diagnosed with PTSD.
Tried SSRIs. Tried therapy. Tried everything.
Nothing worked.
Until MDMA-assisted therapy…
In an interview with ABC she said that the treatment “saved her life”.
(You can see the interview here)
(Source: ABC)
Watching the interview and hearing Greg speak about the company was a sobering reminder of the important work that Emyria is doing.
Before I was a stock analyst (when I was at university), I worked for a mental health charity called LifeChanger.
LifeChanger runs positive self-identity programs for schools around Australia.
The stats are seared into my brain.
Over 1.5 million Australian adults have PTSD.
Over 1.1 million Australians have treatment-resistant depression.
Suicide is the leading cause of death among males.
I could go on and on…
In my talk yesterday about the healthcare sector, I tried to answer the question…
Why invest in life sciences companies?
What I came to was that healthcare is a true stock picker's market.
Where value is built over a long period of time but only recognised in a short period of time.
4D Medical is the best example of this.
This time last year, 4D Medical was trading at 24 cents.
It hit $7.50 in April.
It didn’t execute on $2B worth of value in the last six months… that was built over 20 years.
… it was only recognised in the last six months.
That’s the beauty with healthcare stocks.
But on reflection, there was one thing that I left out...
Which is the human element of healthcare.
The fact that Australian companies are building impactful, life-changing medicines, devices, and businesses.
So I thank Greg for his talk, and a reminder that healthcare investing is about BOTH making money and changing people’s lives.
This morning Emyria also published its 4C report.
Quick take? Very good.
The scale-up continues with revenue of $1.53 million for the quarter.
(up from ~$1.2 million)
This rounds out the year with $4.3 million in revenue in FY26.
Up 210% on FY25.
(Source: EMD)
It has been less than 12 months since the company secured a payer agreement with Australia’s largest private insurance company Medibank, and they’ve already grown to…
Five clinics around Australia, from just one.
Over 100 trained therapists, from just a handful.
12 authorised prescribers.
(In fact, Emyria's Medical Director was one of the first handful of authorised prescribers in Australia).
But in my eyes this is just the beginning.
Only one clinic has ramped up to profitability.
Perth.
Over the next 12 months, Brisbane and Melbourne will be ramping up, with Sydney to launch in the back half of this year.
Again, big thank you to Jane and her team for a wonderful event.
And thank you to all of you in the Armchair Army that said hi!
Let’s dive in.
The Pulse Check
Racura Oncology (ASX: RAC) dosed the first patient in the HARNESS-1 trial. (RAC)
Cyclopharm (ASX: CYC) Technegas product is now published in US guidelines as Preferred Ventilation Agent. (CYC)
🪑 Big news, nice work.
FDA approves Freenome’s colorectal cancer blood test. (Fierce Biotech)
🪑 Will be interested to see how this affects ASX-listed Rhythm Biosciences.
The Report Card
Lots of 4C reports out today; won’t have time to go through them all while I’m at the TechKnow event, but here are just a couple that caught my attention.
Emyria (ASX: EMD) reports Q2 FY26 revenue of $1.53M and a cash position of $7M in the bank. (EMD)
Adherium (ASX: ADR) revenue of A$479k, up 39% from Q3 FY26, but another $4M in operating cash outflows. (ADR)
🪑 It was an ambitious goal to get cash flow breakeven in six months since the last capital raise. Fell well short.
InteliCare Holdings (ASX: ICR) reports $1.8M in cash receipts and positive cash flow for the quarter. (ICR)
🪑 Nice work.
See you all tomorrow,
The Armchair Analyst
