5 pharma and biotech stocks on the move in July

1) Cleanspace Holdings Limited (ASX: CSX)

There has been a change in focus from healthcare markets to industrial sectors with 97% of revenue derived from industrial sectors in FY24. Europe continues to be a strong market with revenue growth in Asia Pacific and North America in the 2H. The Company reset it strategy post the pandemic with the company seeking to drive growth while focusing on taking costs out of the business. The key elements of the strategy are: 

• Realign resources to industrial and prioritise only existing/targeted healthcare opportunities;  
• Focus on priority markets where the company has a presence and foundations for growth including France, US, Australia, UK, Germany, Nordics and Japan; 
• Expand the product portfolio to capture additional market sectors and customer needs; 
• Build consumable revenue streams with additional innovative services and solutions; and 
• Tightly manage costs and cash to align with business revenue.

With the company previously reporting that it expects to be cash breakeven during CY2024, no doubt the market will be watching the FY24 results scheduled to be released on 27 August.

2) Alcidion Group Limited (ASX: ALC)

The company also announced that it had been selected as the preferred supplier by North Cumbria Integrated Care NHS Foundation Trust (NCIC) for its Electronic Patient Record (EPR) system, following a tender process. NCIC provide hospital and community health care for approximately half a million people across two acute care hospitals, eight community-based hospitals, eight Integrated Care Communities and a number of support staff locations over a large geographical footprint, working collaboratively with primary care networks, including 39 General Practices and an out of hours GP service.

The announcements build on the strong 2H’FY24 period with the company having record cash receipts of $18.6 million in 4Q’FY24, resulting in positive cashflow for the quarter and the 2H’FY24. 

FY24 revenue is expected to be slightly down on the previous year, in the range of $37-$37.5 million with approximately 74% relating to recurring product revenue and the remaining being services revenue. As at 30 June 2024, the company had $11.8 million cash with no debt. The company has approximately $130 million of contract and renewal revenue able to be recognised from FY25 to FY29, not including any upside expansion from existing customer contracts or the NCIC contract which is yet to be finalised.

3) SomnoMed Limited (ASX: SOM)

During the month, SomnoMed announced FY24 revenue (unaudited) of $91.7 million, a 9.6% increase on the pcp and above the top end of the revised guidance. This will be a record annual revenue for the company. The company provided FY24 EBITDA guidance (excluding one-off restructuring costs) of $0.3-$0.8 million, up from the previous guidance of -$1-$0 million. Restructuring costs of $3 million were incurred in 4Q’FY24 with the annualised savings expected to be realised in FY25.

The company had $16.2 million cash as at 30 June 2024 with a low interest government-backed unsecured loan facilities in France and Germany of $1 million. The company’s debt facility with Epsilon Direct Lending has been repaid in full which will result in annual interest cost savings of $1.7 million.

4) Tissue Repair Ltd (ASX: TRP)

Sales in June reached a new high with 3Q’FY24 revenue up 130% on the prior quarter driven by distribution expansion, albeit from a low base. This is with the TR Pro+ categorised as a cosmetic. TGA approval is a significant development with the listing allowing the company to expand the use of the product into a broader range of dermatology and aesthetic indications. The company stated in a recent presentation that TR Pro+ has the potential to generate revenue of $10-$50 million in Australia alone, assuming a 10%-20% market penetration rate. This represents the potential for a significant business for the company.

The company is going into the Phase 3 trials with confidence, buoyed by the Phase 2 trial results which showed a significant improvement in wound healing. The total addressable market for TR987 is significant with positive readouts likely to support further positive share price momentum.

5) Amplia Therapeutics Limited (ASX: ATX)

The company has completed the enrolment of the first 26 patients in the trial. Once 6 patients have confirmed partial or complete responses an additional 24 patients will be enrolled, for a total of 50 patients for the trial. The results from the initial patients is positive and provides some confidence for the company hitting its 6 partial response requirement from the patient pool. The company has subsequently announced a fourth patient has recorded a partial response.

With a quarterly cash burn rate over $2.5 million and just shy of $4 million in cash, the company will have to raise additional capital to further propel clinical development activities. If positive results continue from the trial and given the high unmet need for new treatments for pancreatic cancer, we would expect that company to be able to find support from capital markets.