From the ASX listed companies, two healthcare stocks were racing higher today. Backed by new distribution arrangements, the two emerge as growing companies to invest in.
Clarity Pharmaceuticals Limited (ASX: CU6)
Clarity Pharmaceuticals has entered into a new supply agreement with The University of Queensland's Australian Institute for Bioengineering and Nanotechnology (UQ AIBN) to secure a consistent source of copper-64 (Cu-64) for its expanding clinical and pre-clinical programs. The agreement will support the ongoing Phase III CLARIFY and AMPLIFY trials for Clarity’s diagnostic agent 64Cu-SAR-bisPSMA, which is being developed for prostate cancer imaging. Additionally, the supply will contribute to the Co-PSMA investigator-initiated trial at St Vincent’s Hospital in Sydney and the SECuRE theranostic trial in Australia. Beyond its clinical trials, Clarity will also use the Cu-64 supply for its pre-clinical programs, including the development of SAR-bisFAP and SAR-trastuzumab theranostic products.
This agreement strengthens Clarity’s existing collaborations with UQ, as the company has been actively engaged in research and development initiatives, including its participation in the Australian Research Council’s Hub for Advanced Manufacture of Targeted Radiopharmaceuticals (AMTAR). The AIBN facility, which houses an on-site cyclotron and advanced radiochemistry capabilities, will provide weekly Cu-64 shipments to Australian trial sites, complementing Clarity’s existing domestic supply agreements.
Clarity is among the best growth stocks because its 64Cu-SAR-bisPSMA is an innovative diagnostic tool for prostate cancer imaging that has already received two Fast Track Designations (FTDs) from the U.S. Food and Drug Administration (FDA), recognizing the high unmet need in prostate cancer diagnostics. The product offers distinct advantages over existing radio-diagnostics, primarily due to its dimer “bis” structure, which enhances tumour uptake and retention, and the longer half-life of Cu-64 (12.7 hours), which allows for next-day imaging. Clinical trials have demonstrated significant benefits, with next-day imaging detecting lesions in up to 80% of patients, compared to 58% on same-day scans. The extended half-life also provides logistical advantages, as Cu-64 can be centrally produced in large volumes and distributed efficiently to treatment facilities, reducing issues related to product shortages and geographic limitations.
The partnership with UQ AIBN is a strategic step in ensuring that Clarity can meet the growing demand for its next-generation imaging and therapeutic agents. With a robust pipeline, regulatory support from the FDA, and a strong commitment to innovation, Clarity Pharmaceuticals continues to position itself as a leader in the emerging field of radiopharmaceuticals.
AVITA Medical, Inc. (ASX: AVH)
AVITA Medical has announced a significant expansion of its partnership with Stedical Scientific through new manufacturing and distribution agreements for PermeaDerm®, a biosynthetic wound matrix. Under the newly established Contract Manufacturing Agreement, AVITA Medical will manufacture PermeaDerm at its state-of-the-art facility in Ventura, California. This move ensures a consistent supply of the innovative wound treatment product while optimizing production capacity to meet increasing market demand. By leveraging its existing infrastructure, AVITA aims to streamline manufacturing, enhance scalability, and improve cost efficiencies.
The existing Exclusive Distribution Agreement, originally signed in January 2024, has also been amended to align with this manufacturing arrangement. The revised agreement modifies the revenue-sharing structure, extends the contract term, and introduces performance-based milestones. Under the new terms, AVITA Medical will retain 60% of the average sales price from PermeaDerm sales after deducting manufacturing costs, an increase from the previous 50% split with Stedical.
PermeaDerm is a biosynthetic wound matrix that supports wound healing by providing high permeability and biocompatibility. The product is FDA-cleared for treating various wound types, including those associated with AVITA Medical’s Spray-On Skin™ Cells, prepared using the RECELL® System. Additionally, PermeaDerm is eligible for reimbursement across U.S. inpatient and outpatient settings, improving its accessibility for healthcare providers and patients.
AVITA Medical is a leading therapeutic acute wound care company specializing in innovative skin regeneration technologies. The company’s flagship RECELL® System is FDA-approved for treating thermal burns and full-thickness skin defects. In addition to PermeaDerm, AVITA holds exclusive rights to market and distribute Cohealyx™, a collagen-based dermal matrix. The company has a strong international presence, with the RECELL System approved for use in Australia, Europe, and Japan.
Through these strengthened agreements, AVITA Medical and Stedical Scientific are poised to enhance the availability of PermeaDerm, ensuring patients receive advanced wound care solutions while driving commercial growth and innovation in the field.
(Source: Company's Report)
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