“The first wealth is health!”
The famous saying by Philosopher Ralph Waldo Emerson in 1860 still rings true today and Australia’s had its fair share of success in the development of medical breakthroughs throughout the years: from the electronic pacemaker in 1926; to the ultrasound machine in 1961; and the multi-channel cochlear implants in the 1970s.
In more recent times, there’ve been some major transactions here on the ground, in fact, US investment into Australian life sciences topped USD$1.4 billion between 2018 and 2022.
At the moment there are more than 1300 medical technology, biotechnology, and pharmaceutical companies around the nation working to make a positive impact.
Of those, 152 are listed on the ASX – with a total market capitalisation above A$179 billion!
But it can be a super-slow process to get new treatments to markets.
It can take years, with several phases of trials required, and approvals. So, investors can require a high level of patience if they’re in these stocks!
Let’s dive into four of those on the ASX – that are moving closer to taking a health solution to commercialisation.
Recce Pharmaceuticals (ASX:RCE) was launched in 2007 and is developing a new class of synthetic anti-infectives designed to address the global threat of antibiotic-resistant superbugs. The team at Recce is testing the drug candidate R327 on sepsis, urinary tract infections, diabetic foot infections and burn wounds, on the way to developing the next generation of antibiotics! Quite impressive, right? R327 is in Phase 1 and 2 of clinical trials with the aim to reach commercialisation and save lives with their drug.
ResMed (ASX:RES) goes way back to 1989. ResMed already has product solutions for people with sleep apnoea, obstructive pulmonary disease and other sleeping disorders out in the market. Its mission is to provide global leadership in sleep medicine and non-invasive ventilation.
Clarity Pharmaceuticals (ASX:CU6) was launched in 2010 – and is a leader in Targeted Copper Theranostics (TCT) – which aids in advancing cancer treatment. It is out to develop next-generation radiopharmaceutical products that improve treatment outcomes for children and adults with cancer. “SarbisPSMA” – is one of its developments- a tool used to diagnose pre-radical prostatectomy – and is now in its third and final phase!
Imugene (ASX:IMU) was founded in 2012, Imugene is an immuno-oncology company developing therapies that seek to activate cancer patients’ own immune systems to fight and eradicate tumours faster. Its candidate “Vaxinia” has been granted US FDA fast-track status as it showed potential in treating bile duct cancer cells – and is now well underway in phase 1 of clinical trials.
Investing in health stocks
Investing in a successful healthcare stock can be highly profitable and can help other people in the long run. You can be investing in companies saving human lives.
And speaking of profits, if for example – you invested $1000 towards the very end of 2008 (November) in ResMed – that investment is now worth $8600!
At the same time, the journey from development to commercialisation tends to be super expensive and also very slow. On average, the process typically takes around 10 to 15 years, but this can be longer or shorter depending on so many factors.