Check Up: Dimerix and ImpediMed announced breakthroughs, while earnings dominate news flow in August

Although earnings results were the main theme in August, there were also some notable healthcare breakthroughs on the ASX.

Dimerix (ASX:DXB) jumped 45% during the month after announcing the commencement of ACTION 3, a Phase III study in patients with focal segmental glomerulosclerosis (FSGS).

FSGS is a rare disease that attacks the kidney’s filtering units that could lead to permanent kidney damage and failure.

Dimerix’s Phase III study will assess the efficacy and safety of DMX-200 in patients with FSGS who are receiving a stable dose of an angiotensin II receptor blocker (ARB).

ImpediMed (ASX:IPD) rose by 25% this month after saying that its lead product SOZO has received a US FDA Breakthrough Device Designation for treatment and diagnosis of renal failure.

The company says the current process, which utilises weight scales to determine accumulation of fluid, has significant deficiencies.

SOZO is a bioimpedance spectroscopy (BIS) platform which tackles that problem by providing an exact measure of fluid volume to remove during a dialysis session.

Best and worst performing health stocks in August

IDT Australia (ASX:IDT) was the best healthcare stock on the ASX in August, rising by more than 60%.

Last week, the company announced that it has formalised activities with the Australian Government to potentially assist with the production of a COVID-19 vaccine.

IDT says it signed a Sterile Readiness Agreement with the government to bring its sterile manufacturing facility into a state of readiness to potentially produce the vaccine.

Cannabis play Incannex Healthcare (ASX:IHL) soared by 65% this month, following an announcement that it has lodged a registration form with US SEC for a potential dual listing on the Nadsaq.

In comments to Stockhead, Incannex highlighted the strategic rationale for the US listing, which it said would provide greater access to a larger pool of global investors.

Pharmaxis (ASX:PXS) rose by 35% this month after announcing its treatment to prevent wound and burn scars has cleared the Phase 1 trial, and will now advance to the next stage of development in patients.

In a study of healthy volunteers led by renowned surgeon Professor Fiona Wood AM, the Pharmaxis drug PXS‐6302 demonstrated good tolerability and full inhibition of the enzymes being targeted to prevent scarring.

Earlier in the month, the company granted Aptar Pharma the option to acquire the worldwide rights to Pharmaxis’ proprietary inhaler, Orbital, a unique device designed to deliver high payload dry powder to the lungs.

Best earnings picks

August was earnings season and there were some interesting results to pick from in the Health sector.

Virtus Health (ASX:VRT) delivered a full year FY21 revenue of $324.6m, compared to FY20 revenue of $258.9m.

The company also entered into a binding agreement with Healius (ASX:HLS) to buy Healius’ Adora Fertility business and three co-located Healius Day Hospitals for $45m.

Monash IVF Group (ASX:MVF) posted strong FY21 results, with full year NPAT up by 61.5% to $23.3m.

Promedicus (ASX:PME) also recorded another year of strong growth across all metrics.  The company reported a 19.5% jump in revenue to $67.9m and a 43% increase in EBIT to $42.7m.

Dental facilities 1300 Smiles (ASX:ONT) meanwhile, has received a takeover offer from Abano Healthcare for $8.00 per share less dividends.

In an interesting turn of events, the offer comes less than two years after ONT’s attempt to secure Abano’s Australian portfolio of 116 practices.

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