Biotech Daily

Daily news on ASX-listed biotechnology companies

Biotech Daily covers the major announcements from more than 140 ASX-listed biotech companies as well as research institutes and developments in government policy.

Published shortly after the stock market closes five days a week - excluding public holidays - Biotech Daily is the only comprehensive daily source of information on the listed biotechnology sector.

The Biotech Daily Top 40 Index (BDI-40) is selected on the basis of interesting technologies, benefit to human health and investment potential. Market capitalization is important, but is not a sole arbiter.

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Subscribers include biotech directors and CEOs, major pharmaceutical companies, universities, research institutes, investment houses, market analysts, retail investors, doctors, medical specialists and hospital management.

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All April Indices Down: BDI-40 6%, ASX200 1% Big Caps 2%, NBI 10%

Monday May 2, 2022

It's Autumn in Australia - a season that the Americans call Fall - and that's what the stock markets have done. All indices lost ground in the month of April.

Despite the January and February plunge, a slight easing in March and another fall in April the Biotech Daily Top-40 Index (BDI-40) is still well above the February and March 2020 Covid write-down but at its lowest point since November 2020 (see charts below).

The BDI-40 fell a further 6.1 percent in April to a collective market capitalization of $15,752 million, but a significant 20.2 percent below April 30 last year.

The ASX200 slipped 0.9 percent in April, but was up 5.8 percent for the year, while the Nasdaq Biotechnology Index (NBI) lost 9.7 percent in April and 22.7 percent for the year.

Resmed dragged the collective value of the three Big Caps (which are not included in the BDI-40) down 2.2 percent for the month but the group was up 5.6 percent for the year. Resmed lost 10.1 percent to $2,623 million, while Cochlear climbed 1.8 percent to $15,093 million and CSL edged up 0.3 percent to $129,502 million.

Thirty-five of the BDI-40 companies fell in April, with 18 down by more than 10 percent; while just five were up, with three up more than 10 percent. Some of the greatest April losses are inexplicable and some expected to fall have weathered the storm.

Universal Biosensors led the April falls, down 22.5 percent to $117 million, despite good news, followed by Avita (20.9%), Kazia (17.8%), Impedimed (17.4%), Dimerix (17.2%), Imugene (16.0%), Actinogen (15.5%), Amplia (14.3%), Compumedics (13.2%), Clinuvel (12.9%), Polynovo (12.4%), Proteomics (11.8%), Immutep and Starpharma (11.7%).

Oncosil climbed 43.75 percent to $46 million following months of falls, followed by Pharmaxis (12.8%), Genetic Signatures (11.0%), Paradigm (9.4%) and Telix (1.0%).

But the 12-month data is more informative, underlining the relevance of time-points. Imugene was up 35.4 percent for the year to May 1, because its rise to $3.1 billion began a year ago. In June, it could be the year’s deepest fall, while still being worth more than $1 billion with no product sales.

Polynovo lost 69.5 percent for the year to April 30, followed by Avita (64.9%), Starpharma (53.2%), Alcidion and Paradigm (47.3%), Atomo (46.7%), Clinuvel (46.3%) and Next Science (44.5%). These are all good companies, so why the sell off?

The more speculative stocks had deeper falls: Inoviq (Bard1) lost 78.6 percent in 12 months, followed by Oventus (73.1%), Anteo (71.9%), Exopharm (71.7%), Radiopharm (68.3%), Optiscan (67.5%), Bionomics (66.4%), Zelira (65.2%) and Creso (65.0%).

Biotech Daily has observed institutional gambling on biotech, showing that some fund managers are disinterested in the sector, chasing temporary gains. Biotech requires long-term investment and that means putting one’s money in and leaving it there for a decade. There is money to be made in biotech but day-trading isn’t the way to do it.

The 11 companies in Cannabis Corner fell a further 12 percent in April to $1,177 million, but 1.4 percent above April 30, 2021. Only Cann Group and Medlab improved in April.

BDI-40 v S&P ASX200 Jun 30, 2006 to Apr 30, 2022

5-Year Big Caps (Cochlear, CSL, Resmed) to Apr 30, 2022

BDI-40 ($m) v S&P ASX200 – Jan 31, 2020 - Apr 30, 2022
(current, raw data)

Biotech Daily Top 40 With Market Capitalization At Apr 30, 2022

Biotech Daily editor, David Langsam, owns shares in Acrux, Actinogen, Alcidion, Alterity, Amplia, BTC Health, Clarity, Cochlear, Control Bionics, Cynata, Nanosonics, Neuren, Patrys, Polynovo, Telix and Volpara, as well as non-biotechnology stocks.

Through Australian Ethical Superannuation he has an indirect interest in a range of biotechnology companies.

These holdings are liable to change:
https://www.australianethical.com.au/personal/ethical-investing/companies-we-invest-in/

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