From cell therapies and cancer research to COVID-19 and CBD capsules, healthcare stocks are hard at work developing the next generation of diagnostic and therapeutic solutions.
It’s only the start of the year, but ASX-listers have continued to progress their clinical vision over 2023’s March quarter, expanding and refocusing their pipelines to meet major unmet medical need.
So as technology evolves and more drug candidates hit the clinics, what do healthcare stocks plan to achieve in the quarters to come?
Market movers
Despite a slowdown in the annual inflation rate, Australia’s latest round of CPI data shows the cost of health services continues to rise.
In the last three months, the price of medical and hospital services jumped 4.2% due to an increase in private health insurance premiums and increases in non-hospital medical services.
Pharmaceutical products also spiked, up 4.5% thanks to a cyclical reduction in consumers who qualify for subsidies.
“Prices for medical and hospital services typically rise in the March quarter as GPs and other health service providers review their consultation fees, and the Medicare Safety Net is reset at the start of the calendar year,” ABS head of prices statistics Michelle Marquardt explained.
“This year some private health insurance premiums also increased in January, adding to the price rise for medical and hospital services.”
On the ASX, healthcare players are keeping the sector in the green. Year-to-date figures indicate the industry is up 6.13%, while the XHJ index has jumped 9.09% since this time last year.
Amid rising health costs and a flurry of clinical activity, the stage is set for ASX-listed biotechs to deliver dynamic, cost-effective solutions that combat modern healthcare woes.
In the spotlight: ASX healthcare stocks
AdAlta
AdAlta Ltd (ASX:1AD) spent the March quarter making plans to bring lead asset AD-214 back to clinical trials ahead of schedule.
The next generation antibody therapeutic is expected to return to the clinic under a Phase 1 extension study in the September quarter — more than a year earlier than previously forecast.
In the last three months, the oncology-focused stock released new data for its lead product, ALA-101, and had the data accepted for presentation at the prestigious American Association for Cancer Research’s (AACR) Annual Meeting.
Interestingly, the data indicates ALA-101 has the potential to be a novel ‘off-the-shelf’ cell therapy to treat CD19-expressing leukemias and lymphomas, teeing the company up for a Phase 1 clinical trial.
Arovella also generated promising in vitro data for ALA-101 in combination with fellow ASX-lister Imugene Ltd (ASX:IMU, OTC:IUGNF)’s CF33 oncolytic virus. Both parties have since progressed the joint research program to in vivo testing.
In recent months, the company has also brought on more clinical and executive leadership to advance its therapeutic pipeline — expertise that will come in handy ahead of manufacturing scale up and proof-of-concept studies.
Chimeric Therapeutics
Chimeric Therapeutics Ltd (ASX:CHM) kept busy over FY23’s third quarter as it evaluated cancer-combatting CAR-T cell therapies in the clinic.
In its pipeline are three major programs, including CHM 1101 (CLTX CAR T) for the treatment of solid tumours, CHM 2101 (CDH17 CAR T) for gastrointestinal tumours and the CHM 0201 (CORE-NK platform) for blood cancers and solid tumours.
Most notably, the Australian developer dosed its first patient in a CHM 0201 combination trial and hit other dosing milestones in its CHM 1101 Phase 1A study.
Chimeric also reported positive feedback from the US FDA at a pre- Investigational New Drug (IND) meeting for its CHM 2101 treatment candidate.
On the financial front, the ASX-lister cashed in with a A$3.06 million R&D refund, recognising the company’s work over the 2022 financial year.
With an emphasis on bringing the promise of cell therapy to life for more patients with cancer, Chimeric remains focused on discovering, developing and commercialising therapies with curative potential.
Prescient Therapeutics
Focused on developing PTX-100 and the next generation of its OmniCAR platform, Prescient Therapeutics started the new year with plenty of clinical activity.
Headlining the quarterly, the oncology stock reported encouraging clinical results from a trial evaluating its PTX-100 compound in T Cell Lymphoma patients and secured orphan drug designation from the FDA.
Together with Clarion Clinics Group, the company plans to open clinics across Australia and overseas, with the flagship Melbourne clinic expected to open its doors in Q3 FY23.
To realise that vision, Dr Paul Liknaitzky, Professor Suresh Sundram and Sean O’Carroll have joined the Board of Directors at an Incannex subsidiary, where they’ve taken up key roles within the venture.
With A$37.1 million in the bank to support its clinical vision, Incannex also plans to continue its Phase 2 psilocybin-assisted psychotherapy trial and a Phase 2 rheumatoid arthritis study.
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