5 pharma & biotech stocks on the move in September

Below we take a look at 5 Pharma & Biotech companies whose share prices rallied in September.  

1) Cann Group Limited (ASX: CAN)

While there was no specific news that seemed to drive the share price and heightened volume, during the month the Company provided an investor presentation with the Company providing a strategy to profitability. The Company will focus on the production of high quality, GMP medical cannabis products of various forms to meet market demands. This will see the Company place greater priority on some product lines, whilst reducing production on less profitable products, allowing the Company to maintain and potentially increase the average revenue per gram.

Subsequent to September-end, the Company announced a Non-Renounceable Entitlement Offer to raise ~$6.25 million (before costs). The Offer includes an Entitlement Offer that provides eligible shareholders the opportunity to subscribe for 1 new share for every 3 shares held at a price of 4 cents per share and 1 free attaching option for every 3 new shares subscribed to with an exercise period of 24 months and an exercise price of 8 cents per share. The Offer is scheduled to close on 21 October 2024. Capital raised will be used to assist with executing a range of activities to grow the business as well as servicing lines of credit. 

After rising 137.5% in September, the announcement of the Entitlement Offer resulted in the share price falling back towards the offer price of 4 cents per share, resulting in significant share price volatility.

2)  Althea Group Holdings (ASX: AGH)

In July, the Company announced it had finalised the JV with Flora, targeting the US cannabis beverages market. Peak USA and Flora have jointly developed 6 THC cannabis beverages that are intended to be distributed through the US. The JV positions the Company to take advantage of the growth opportunities in the cannabis beverages market with the US cannabis beverages market projected to grow from US$966.9 million in 2024 to US$19 billion by 2028 according to Market Data Forecast.

The Company has provided FY25 revenue guidance of $50-$60 million and EBITDA guidance of $4-$7 million with expansion into the US being a key driver of growth.  

3) EZZ Life Science Holdings Limited (ASX: EZZ)

There was no news flow during the month with the positive share price momentum continuing on from the FY24 results released towards the end of August.

4) 4DMedical Limited (ASX: 4DX)

Under the agreement, the 4DMedical and Imbio portfolios have been added to the Philip’s product catalogue and will be offered as a third-party solution to its US customer base. The agreement is for a 5-year period with stipulated minimum thresholds for annual sales targets.

The Company has not provided guidance for FY25, however the agreement is significant. The opportunities within VA are considered twofold: 

1) 4DMedical and Philips will work together to support the need for scalable, non-invasive lung screening in support of the PACT Act. The PACT Act represents a US$280 billion commitment over ten years, covering numerous respiratory illnesses as presumptive conditions, providing healthcare eligibility to 6 million Veterans exposed to airborne hazards while on deployment; and

Outside of VA, there is a sizable opportunity in the US market with an estimated 10.9 million Thoracic CT scans performed in 2019 at an estimated expenditure of US$5.7 billion. The Company was granted reimbursement for XV LVAS and CT LVAS from the U.S. Centers for Medicare and Medicaid Services (CMS) in May 2024, with the products now accessible at more than 4,000 Medicare-certified hospitals through the US. 

5) Antara Life Sciences Ltd (ASX: ANR)

GaRP has the potential to be a disease-modifying treatment that aims to positively impact a substantial proportion of the population that suffer from the debilitating symptoms of digestive disorders, including irritable bowel syndrome (IBS). Due to the mechanism of action, GaRP is expected to be applicable to a wide range of indications in gastrointestinal health beyond IBS. The mechanism of action of GaRP is based on ingredients designed to restore and maintain the gastrointestinal tract lining and dynamics, using sophisticated coatings and combinations.

The Company is currently undertaking a Phase 2 clinical trial for the use of GaRP to treat IBS. The Phase 2 trial comprises two stages. The first stage of the trial has been completed in which 61 patients were treated across 3 arms - placebo, low dose and high dose. The trial met its primary endpoint of at least a 20% improvement (reduction) in the IBS-SSS score with no safety concerns. Over the 8 week period, the median improvement in the IBS-SSS score was 56% in the low dose and 50% in the high dose arm. This constitutes a meaningful improvement and has provided a level of confidence progressing to Stage 2 of the trial.

There is a significant unmet need for suffers of IBS. According to surveys, less than 20% of patients are satisfied with suggested treatments that are available on prescription or otherwise. Most treatments are directed at symptom relief and not control of the underlying processes affecting the complexities of the gastrointestinal tract. The GaRP preliminary results suggest the potential for a treatment that relieves and also controls the ongoing process by restoring the gastrointestinal tract (GIT) lining and homeostasis. This is a considered a major point of differentiation from other products on the market.

The Company is continuing to engage with global pharma companies interested in expanding their portfolio of complementary medicines. The Company believes GaRP will provide a meaningful adjunctive treatment for patients with IBS and other medical indications such as Inflammatory Bowl Disease (IBD).