Admedus
About the author:
- Author name:
- By Scott Power
- Job title:
- Senior Analyst
- Date posted:
- 13 November 2015, 10:47 AM
- Sectors Covered:
- Healthcare, Life Sciences
Key points
- Expanded applications of CardioCel® across heart valve reconstruction and vascular repair moves company away from reliance on a single product.
- HSV-2 Phase 2 trial expected to read out interim results in December 2015.
- Share consolidation likely to reduce daily share price volatility.
CardioCel® continues to gain traction
Admedus (AHZ) now has CardioCel® in around 120 centres globally and over 2,500 implants. More recently the company announced positive results from an animal study and the initiation of CardioCel® use in heart valve reconstructions. The product has already cleared the FDA for this indication with the study designed to facilitate market expansion.
The company is already progressing with its vascular tissue product range and expanding into dura mater, illustrating that AHZ is developing an entire portfolio of tissue products rather than relying on a single product.
Immunotherapy Phase II recruitment closing
AHZ is progressing with two vaccine trials. The first of the trials, a Phase II trial for a therapeutic vaccine for Herpes Simplex Virus (HSV-2), is on track to complete recruitment in 4QFY15 with interim results expected next month (December 2015). The second trial, a therapeutic treatment for HPV, is currently progressing towards a Phase Ib trial.
Share consolidation
The 10 to 1 share consolidation will help reduce the volatility in the daily share price. The last day for trading pre-consolidation is the 16th of November and shares will trade post consolidation on the 27th of November.
Investment view remains positive
We maintain our Add recommendation for AHZ and make no change to our share price target. Near-term catalysts include the Phase II HSV-2 vaccine trial results and further growth in CardioCel® sales (reported each quarter). The key risk is higher-than-forecast costs of building the CardioCel® business.
More information
Morgans clients can access our detailed research on Admedus (AHZ). If you are interested in finding out more, please contact your nearest Morgans office.
Disclaimer(s): Analyst owns shares.
The information contained in this report is provided to you by Morgans Financial Limited as general advice only, and is made without consideration of an individual's relevant personal circumstances. Morgans Financial Limited ABN 49 010 669 726, its related bodies corporate, directors and officers, employees, authorised representatives and agents (“Morgans”) do not accept any liability for any loss or damage arising from or in connection with any action taken or not taken on the basis of information contained in this report, or for any errors or omissions contained within. It is recommended that any persons who wish to act upon this report consult with their Morgans investment adviser before doing so.
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