4 small cap healthcare stocks with catalysts

Morgans Financial Limited

Morgans Financial Limited

Sentiment in the life sciences sector remains weak. However as always companies with near-term catalysts, or milestones, are attracting attention, and I'll mention four names that I think are worth having a closer look at.

 

Firstly is Nanosonics. They have high-level disinfection equipment, which is being sold around the world. We're expecting guidelines to be released from the English health authorities. We expect those guidelines to be published shortly and that'll increase demand in that region for the company. Currently the share price is trading just under $3. We think that's back into buying territory. So have a look at Nanosonics.

 

Second is Impedimed, a fluid measurement company. The key catalyst we're looking for there is European clearance and that's expected in July. A key catalyst for them there.

 

Thirdly Volpara report their full year results on Monday. This is an exciting digital health company. So on Monday the 29th, their full year results (They have a March year end). The key focus for the company will be the growing sales pipeline. They have been transitioning from a capital model to a SaaS mode, that's going very well, they're getting a lot of positive customer commentary and we expect that more customers will be signing up. So we're looking for a solid update from Volpara on Monday with respect to their sales pipeline.

 

The fourth is Admedus, and it's a one that we're actually cooling on. Three parts to that business: They have a vaccine business, tissue regenerative business, and a medical distribution business. It has been in turnaround. We think that turnaround is going slowly. The company has pointed to getting back to breakeven over the next 12 months and we're very cautious that that will be achieved. So really taking a negative view on Admedus, and happy to continue to lighten on that name.

Contributed by Scott Power, Senior Analyst,  Healthcare, Life Science and Technology:  You can access the original podcast here:  (VIEW LINK)

 

 


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