Although ASX Healthcare stocks lagged the broader index last year. However, in an uncertain economy, these have the potential to emerge as the defensive stocks to be included in a portfolio.
The demand for pharmaceuticals has surged, driven by factors such as the rising prevalence of chronic diseases, an aging population, and increased healthcare spending. 2029. The growth is driven by increasing demand for innovative and personalized medications among consumers.
Opthea Limited (ASX: OPT)
Opthea Limited is actively developing treatments for wet age-related macular degeneration (Wet AMD), which is the leading cause of vision loss in the elderly, despite existing anti-VEGF-A therapies. The company’s candidate, sozinibercept, aims to target VEGF-C/D signaling pathways, potentially offering superior visual outcomes and addressing significant unmet needs in the market. While Opthea currently faces a high debt profile due to secured financing, this initial challenge may be mitigated by anticipated improvements in revenue and cash flow once sozinibercept gains approval and is effectively utilized by patients.
The company has successfully secured nearly $300 million through three capital raises, which will fund operations through the topline data readout of pivotal global trials and support commercial-scale manufacturing for the anticipated Biologics License Application (BLA) filing in the U.S.
Notably, Opthea has completed the enrolment of close to 2,000 patients in its Phase 3 clinical trial program for wet AMD, marking a significant milestone for the company's ambitious goals in fiscal year 2025 and beyond.
The completion of patient enrollment in the pivotal clinical trials, COAST and ShORe, represents a significant milestone for Opthea. Results from COAST are anticipated in early Q2 CY 2025, followed by ShORe in mid-CY 2025. Positive outcomes from these trials could establish sozinibercept as a first-in-class treatment for wet AMD, in combination with current anti-VEGF-A therapies. This would not only position COAST and ShORe as landmark studies in the retinal field but also pave the way for the Biologics License Application (BLA) submission and subsequent FDA approval.
Sozinibercept, a proprietary VEGF-C/D “trap” inhibitor, holds promise in addressing the limitations of existing anti-VEGF-A therapies for wet AMD, a complex disease characterized by multifactorial mechanisms.
Sozinibercept demonstrates a clear change in the wet AMD market focusing on visual outcomes for patients, and those of payors and insurance companies. Enhancing the clinical efficacy and providing better health economics this drug is well positioned for reimbursement and wider acceptance in the market place. With its ability to be administered concurrently with anti-VEGF-A treatments, sozinibercept could not only enhance patient quality of life but also create a sustainable competitive edge in a landscape that increasingly values innovative therapeutic solutions. Overall, Opthea has strong chances to grab fair shares from the broadening and lucrative market of wet AMD and DME therapies.
EBOS Group Limited (ASX: EBO)
Over the past five years, EBOS Group has demonstrated impressive financial performance, marked by a substantial increase in revenue, gross profit, and net profit after tax (NPAT). Revenue surged from $8,765.54 million in FY2020 to $13,189 million in FY2024, reflecting a robust 50.4% growth. Concurrently, gross profit more than doubled from $844.66 million to $1,504.04 million, highlighting improved cost management and operational efficiency.
The company has a solid track record of consistent dividend payments, reinforcing its commitment to returning value to shareholders.
EBOS has shown impressive earnings growth for FY24, driven by organic expansion and acquisitions. Despite a challenging macroeconomic environment, the company's performance highlights its resilience and diverse operations. EBOS has projected FY25 Underlying EBITDA in the range of $575 million to $600 million, reflecting a growth of 5% to 10% compared to the previous year, excluding the CWA contract. This anticipated growth is expected to be driven by continued expansion in the Healthcare and Animal Care segments, revenue gains and market share improvements in Community Pharmacy amid shifting industry dynamics, and ongoing cost-cutting measures.
EBOS Group stands out for its solid financial performance and strategic growth initiatives. The company's diversified model and leadership in healthcare and animal care distribution position it well for future success.
Source: Company’s Report
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