The ASX is starting 2026 with renewed strength. Pic: Getty Images
ASX health sector up 0.96% for the week, while broader market rises 2%
Imricor surges after receiving FDA 510(k) clearance for its Vision MR Diagnostic Catheter
Morgans upgrades 12-month target price for EBR systems after strong Q4 CY25 result
Healthcare and life sciences expert Scott Power, who has been a senior analyst with Morgans Financial for 27 years, gives his take on the ASX healthcare sector for the week and his ‘Powerplay’ stock pick.
The ASX healthcare sector has modestly lagged the broader market this week, with Power feeling positive of renewed momentum in the sector at the start of 2026.
At about 2pm on Friday the ASX Health Care Index (ASX:XHJ) was up 0.96% for the past week, while the benchmark S&P/ASX 200 (ASX:XJO) had risen 2%.
Power noted several ASX companies presented at the 44th Annual J.P. Morgan Healthcare Conference held in San Fransisco this week.
The world’s largest healthcare investment symposium brings together corporate leaders, financial sponsors and institutional investors.
“There is always a plethora of news flow coming out of that conference and I think we’ve picked up there is a more buoyant attitude amongst investors, which is leading to a positive start to 2026,” Power said.
“There’s certainly the expectation of more M&A activity and particularly among big pharma and device companies as they have a lot of their big-selling drugs and products coming off patent in the next couple of years.
“The mood is definitely a lot more positive this year.”
Imricor surges on FDA approval
Imricor Medical Systems (ASX:IMR) has kicked off 2026 positively after receiving FDA 510(k) clearance for its Vision MR Diagnostic Catheter, enabling commercial sales in the US.
The catheter is designed for use under real-time MRI guidance and forms part of Imricor’s MRI compatible electrophysiology device platform.
The company expects additional regulatory clearances throughout the year with CEO Steve Wedan highlighting the milestone as a major achievement for future growth.
“Imricor has started 2026 with a positive regulatory announcement,” Power said.
“We are expecting a year of regular news flow which will increase investor interest.”
Imricor is improving cardiac ablation procedures for treating abnormal heart rhythms by using real-time MRI guidance instead of traditional X-ray fluoroscopy.
The catalysts Morgans are focused on for the company in 2026 include:
NorthStar mapping system US approval expected Q1 CY26
FDA approval for treatment of Atrial Flutter expected in H2 CY26
Additional procedures to be performed to gain approval in Europe for ventricular tachycardia as part of VISABL-VT trial enrolling 64 patients
Additional commercial sales in Europe and the Middle East
Morgans has a speculative buy on Imricor and 12-month target price of $2.33.
Morgans upgrades EBR after strong Q4 CY25
Morgans has upgraded its 12-month target price for EBR Systems (ASX:EBR) from $2.86 to $2.95 after the company announced it expects Q4 CY25 revenue of US$870,000 toUS$935,000, exceeding Morgans’ forecast of US$570,000.
EBR is also targeting FY25 revenue of US$1.55 to $1.62million, above Morgans’ forecast of US$1.1 million, as adoption of its wireless cardiac pacing technology WiSE continues to build.
The WiSE system was implanted in 18 patients, doubling quarter on quarter, with 30 implants to date during the combined pilot phase and limited market release following FDA approval in April 2025.
The company inked nine additional purchase agreements in Q4 with 11 additional physicians now trained to support the adoption of WiSE (33 total).
CEO and president John McCutcheon presented at the J.P. Morgan Healthcare Conference this week.
McCutcheon provided an overview of the company’s commercial progress, clinical programs and strategic priorities, including recent developments supporting the broader adoption of WiSE.
“With a sound commercial strategy, along with incentivised reimbursement lowering adoption barriers, we view EBR as well placed to build a profitable medical device business in the cardiac resynchronisation therapy (CRT) space,” Morgans’ analyst Derek Jellinek wrote in a note to clients.
Morgans maintains a buy rating on EBR.
Avita secures new debt facility
Wound care house Avita Medical released a business update ahead of presenting at the J.P Morgan Healthcare Conference, including a new US$60m debt facility, with US$50m drawn upfront, improving liquidity and resetting covenants to more achievable levels
Morgans’ analyst Iain Wilkie said this partially addresses the primary short-term risk the broker highlighted in its most recent note, with, at that time, a cash runway of less than quarters covenant pressure and a likely imminent and dilutive equity raise.
He said the key will be AVH’s Q 4FY25 report due on February 13 for an update on key financial metrics, including cash burn levels and balance.
The new facility retires the US$40m OrbiMed facility, so the pressure is only lifted slightly by US$10m in the immediate term, with the final US$10m being available from Q127.
“[This] gives AVH a little more breathing room (by about one quarter based on recent cash burn rates) but more importantly – reduces covenant pressures,” Wilkie wrote.
Avita also provided updated FY25 revenue guidance of US$71.6m and FY26 guidance of US$80-85m, in line with Morgans’ numbers.
“This update reinforces our views around AVH as an attractive clinical proposition with genuine long term upside, but requires better execution, more consistent revenue delivery, and a stronger balance sheet than the company has demonstrated in recent years,” Wilkie noted.
“We see this update as a positive albeit small step, reducing near term financial stress and improving guidance credibility, but not as a turning point.”
Morgans has a speculative buy on Avita and 12-month target price of $1.35.
Power’s Powerplay: Tetratherix completes second trial safety review
Tetratherix has successfully completed the second safety review of its second cohort for the TetraDerm clinical, confirming zero adverse events and a strong safety profile.
Nine patients in the second cohort completed six-week follow-ups, allowing the trial to progress to the third and final cohort in Q1 CY26.
The company said the majority of the third cohort will be represented by the fast-growing segment of the plastic and reconstructive surgical market, including patients undergoing body contouring procedures resulting from weight loss following the recent rapid uptake of obesity treatments.
Power said key priorities for H2 FY26 include:
Advancing TUTELA trial for its Tutelix tissue spacing product in Cohort 2 for prostate cancer treatment towards pivotal US FDA trial for potential 510(k) approval
Continue Tegenix/Tegen EOS FDA animal studies for bone regeneration with FDA submissions on track, then approval in mid-year
Optimising Optelex formulation and performance validation for tissue spacing during eye surgery
Supporting BioOptix joint venture capital raising and strategic partnerships
Completing fit-out and relocation to the new manufacturing facility
“Tetratherix continues to hit key milestones across its three verticals – bone regeneration, tissue spacing and tissue healing,” Power said.
“So far milestones have been met on time which the market will appreciate.
“We look forward to the FDA submission for the bone regeneration products Tegenix and TegenEOS as being important milestones which are expected shortly and approval in 2026.”
Morgans has a speculative buy on Tetratherix and a 12-month target price of $5.76.
Morgans Corporate Limited was a joint lead manager to the placement of shares and entitlement offer in EBR Systems in September 2024 and received fees in this regard.
It was a lead manager to the placement of shares for Imricor Medical Systems in March 2025 and may have received fees in this regard.
The company was also a lead manager to the IPO for Tetratherix in May 2025 and has received fees in this regard.
Scott Power owns shares in Imricor , EBR Systems, Neuren Pharmaceuticals and Tetratherix. Iain Wilkie owns shares in Neuren Pharmaceuticals.
At Stockhead we tell it like it is. At the time of writing, EBR Systems is a Stockhead advertiser but did not sponsor this article.