Good morning ,

Welcome to today’s edition of the Pulse Check, a 5-minute daily update on the ASX life-sciences sector.

It looks like an intern at the ASX tripped over a cord in the data room this morning and broke the announcement feed…

So today’s newsletter covers all the after market announcements Friday, plus everything that was announced before 9:00am this morning.

Enjoy - The Armchair Analyst

Under the Microscope

Over the last two days Avecho (ASX:AVE | MC: $33M) has had its second and third largest volume days for the year…

…on no news.

In March, AVE signed a 10-year licence agreement with Sandoz (SWX: SDZ | US$31B) for its medical cannabis insomnia product: royalties + US$16M + US$3M in upfront payments.

The milestone payments are contingent on AVE proving that its insomnia product works in a Phase 3 clinical trial - the interim readout is scheduled for the first half of next year.

AVE recently raised $2.5M at $0.005, but this is the first meaningful volume going through the stock for months:

A little birdie tells me that AVE is on a roadshow in Perth right now and the buying may be coming from some of the institutions that have been impressed by the story.

While I don’t own any shares in AVE, my dad does… and he’s owned them since 1999.

(It’s gone through a few names since then). 

Dad always said: “time in the market is better than timing the market”.

But over 25 years holding on to a speckie? 

I think I’ll stick to “timing the market”... thanks dad.

Want to help a friend level up their biotech knowledge?

The Daily Check-up

Pro Medicus (ASX:PME | MC: $28B) signs a $25M, 7-year cloud medical imaging contract with US-based healthcare company BayCare. (PME)

🪑 PME’s sales team must be getting a big Christmas bonus this year… almost $100M across six deals announced in the last three weeks.

Control Bionics (ASX:CBL | MC: $24M) appoints long time shareholder Stephen Rix as Chairman of the company. Rix holds a number of board positions including 20-years as a director at the Cancer Research Foundation. (CBL)

🪑 Disclosure, I own shares in CBL - I’m keen to see what Stephen can bring to the table, big things I hope.

Singular Health Group (ASX:SHG | MC: $86M) submitted 510(k) for FDA clearance of its ‘next generation’ retrieval and management technology for medical imaging. This will expand capabilities of the first generation to include X-ray and ultrasound. (SHG)

Healthcare startup Eucalyptus is set to become Australia’s next tech unicorn with $190M of fresh capital to be raised at a $1.37 billion valuation. (AFR)

The US FDA has approved its first gene replacement therapy for adolescents and adults with spinal muscular atrophy. (RegMedNet) 

MedAdvisor Solutions (ASX:MDR  | MC: $14M) has changed its name to Adheris Health Limited (ASX:AHE). Also major shareholder Jencay Capital has mopped up 10 million shares over the last four weeks in the company. (AHE, AHE)

M&A, Big Pharma Wants a Wife

ParagonCare (ASX:PGC | MC: $488M) acquires 100% of distributor of medical-aesthetic services Haju Medical Indonesia for A$70M (A$30M upfront). The deal adds $30M of annual revenue and $7.7M of annual EBITDA. Acquisition to be funded through the company’s working capital. (PGC)

🪑 I did have to look up what “medical-aesthetics” business is. It’s essentially non-invasive medical enhancements like botox, teeth whitening, hair restoration etc… very popular in Korea, where Haju Medical imports products from to the Indonesian market.

Cash Injection

At its AGM on Friday, shareholders of BCAL Diagnostics (ASX:BDX | MC: $37M) approved a $10M convertible note facility. (Details)

13.5 million in-the-money 30 cent share options for Cleo Diagnostics (ASX:COV | MC: $80M) are set to be released from escrow on December 12th. (COV)

🪑 If exercised, it represents $4M in funding for COV. These options are from the IPO two years ago and have a 12-month to expire. 

Two directors of Race Oncology (ASX:RAC | $508M) have been buying shares on market: Daniel Tillett and Dr. Peter Smith. (RAC, RAC)

See you tomorrow.

The Armchair Analyst

Jason Segal