It’s been a nervous watch but ASX healthcare is showing signs of life as key catalysts approach. Pic: Getty Images <\/p>\n
The ASX healthcare sector move up xx% this week as CSL and Cochlear rebound
\nUpcoming catalysts for several companies in June provide sector with a lift
\nEBR launches $150m capital raise to fund US rollout of WISE CRT system<\/p>\n
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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.<\/p>\n
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As the World Cup kicks off, the ASX healthcare sector has been kicking some goals of its own this week, showing signs of recovery after entering June under pressure with the S&P\/ASX Health Care Index (ASX:XHJ) down ~30% YTD.<\/p>\n
Near close on Friday, the XHJ was up 5.68% over the past five days, while the benchmark S&P\/ASX 200 (ASX:XJO) rose 1.14% over the same period.<\/p>\n
Morgans senior healthcare analyst Scott Power said many of sector\u2019s biggest names, including blood and vaccines products giant CSL (ASX:CSL<\/a> \u2013 which was at multi-year lows following earnings downgrades, had caught a bid this week.<\/p>\n CSL is up more than 15% in the past five days, while hearing implants company Cochlear (ASX:COH)<\/a> rebounded more than 6% in the same period.<\/p>\n Cochlear fell more than 40% on April 22 in its biggest daily tumble since listing in 1985 after downgrading its FY26 net profit guidance by ~30% at the midpoint to $290\u2013$330 million.<\/p>\n Power said the macroeconomic backdrop had been challenging for the sector with the Reserve Bank of Australia (RBA) delivering three consecutive 25bp hikes so far in 2026 bringing the cash rate to 4.35% as it wrestles to get inflation back to its 2-3% target zone.<\/p>\n \u201cThe focus is now on its decision next Tuesday with mixed views on whether the central bank will lift rates with the CBA expecting a pause while Westpac calls a fourth hike to 4.60%,\u201d Power said.<\/p>\n He said ongoing macro data releases in the US, alongside geopolitical developments including tensions in the Middle East, have been influencing currency markets and in turn outlooks for ASX healthcare companies with US operations.<\/p>\n \u201cThe AUD\/USD is tracking around US71.6 cents, materially above the US64 cent level embedded in FY25 healthcare earnings models, creating a meaningful translation headwind,\u201d he said.<\/p>\n \u00a0<\/p>\n June a big month of catalysts for sector<\/p>\n In a positive sign, Power said June was shaping up as the \u201cmost catalyst-dense month of the year for ASX healthcare small caps\u201d.<\/p>\n Echo IQ (ASX:EIQ)<\/a> is expecting US Food and Drug Administration (FDA) 510(k) clearance for its artificial intelligence (AI) heart failure solution, EchoSolv HF.<\/p>\n Echo IQ previously secured FDA 510(k) clearance for its EchoSolv AS aortic stenosis software in October 2024, providing a regulatory precedent as it now seeks approval for its heart failure platform.<\/p>\n EchoSolv HF uses AI to analyse heart ultrasound scans (echocardiograms), automatically reviewing images and measurements to help doctors detect heart failure.<\/p>\n \u201cA Mayo Clinic distribution agreement is already in place, while the reimbursement pathway has been established and is expected to be available immediately upon approval,\u201d Power said.<\/p>\n Morgans has a speculative buy rating on EchoIQ and a 12-month target price of $1.30.<\/p>\n Blinklab (ASX:BB1)<\/a> is expecting top-line results from a European ADHD study of its smartphone-based platform for the condition dubbed Dx2 in June.<\/p>\n The company has also developed a smartphone-based diagnostic platform for autism called Dx1 with a pivotal trial to secure US FDA 510(k) clearance underway, with submission targeted end CY26.<\/p>\n \u201cBlinkLab recently completed a $17.5 million capital raising which comfortably funds its two clinical programs in ASD and ADHD,\u201d Power said.<\/p>\n Morgans has a speculative buy on BlinkLab and a 12-month target price of $1.76.<\/p>\n Imricor Medical Systems (ASX:IMR)<\/a> is expecting FDA paediatric label expansion via the Special 510(k) pathway for its NorthStar 3D Mapping System, a radiation-free, MRI-guided cardiac mapping platform.<\/p>\n \u201cNorthStar received adult clearance in January 2026 with approval anticipated to unlock access to ~250 US children\u2019s hospitals,\u201d Power said.<\/p>\n \u201cImricor also recently completed a $60m capital raise providing the company with a strong funds runway.\u201d<\/p>\n Morgans has a speculative buy rating on Imricor and a 12-month target price of $2.61.<\/p>\n Neuren Pharmaceuticals\u2019 (ASX:NEU)<\/a> Nasdaq-listed partner Acadia Pharmaceuticals is also expected to receive a decision in June on its request for re-examination of its European application for trofinetide (marketed as DAYBUE) in Rett syndrome.<\/p>\n The request follows an initial negative opinion from the European Medicines Agency\u2019s Committee for Medicinal Products for Human Use (CHMP), which raised concerns around the magnitude and interpretation of the treatment effect.<\/p>\n \u201cA reversal would materially expand the addressable market in Europe and provide broader global validation for DAYBUE, supporting its commercial scalability trajectory into FY27.\u201d<\/p>\n \u00a0<\/p>\n Radiopharmaceuticals in focus with M&A activity<\/p>\n Power said radiopharmaceuticals could remain in focus, with investors closely watching sector sentiment following reported M&A activity involving Nasdaq-listed Lantheus Holdings and France-based Curium Pharma.<\/p>\n The potential transaction valuing Lantheus at ~US$7 billion is being viewed as an important read-through for valuation in the global radiopharmaceutical space, where strategic consolidation and private equity interest continue to support elevated multiples.<\/p>\n He added that any progress or outcome from the deal could provide useful sector comparison for listed peers such as Telix Pharmaceuticals.<\/p>\n \u201cWe expect the market to keep one eye on that process through June,\u201d he said.<\/p>\n \u00a0<\/p>\n \ufeff\ufeff\u00a0<\/p>\n \u00a0<\/p>\n EBR Systems launches $150m capital raise to fund US rollout of WISE<\/p>\n EBR Systems (ASX:EBR)<\/a> has launched a fully underwritten $150m capital raising to support the US commercial expansion of its WISE wireless cardiac pacing system for heart failure patients.<\/p>\n The raise comprises a $64.4m institutional placement and an $85.6m accelerated non-renounceable retail entitlement offer, comprising institutional and retail components.<\/p>\n Pricing is set at 38 cents per share, representing a 19.1% discount to the last close and an 11.2% discount to the theoretical ex-rights price.<\/p>\n Proceeds will be used to fund the US launch of WiSE and drive the business toward cashflow breakeven, including investment in sales and marketing, manufacturing scale-up, R&D and ongoing clinical activity.<\/p>\n The placement includes a $29.4m first tranche and a $35m second tranche. The second tranche is subject to shareholder approval at an expected August meeting.<\/p>\n Funds advised by Brandon Capital Partners have committed up to $46.65m, including participation in the tranche two placement and sub-underwriting up to $11.5m of the retail entitlement offer.<\/p>\n Following completion, EBR expects pro-forma cash of about US$133.4m (~A$185m).<\/p>\n The retail entitlement offer is scheduled to close on June 22, with Canaccord Genuity, E&P Capital and Morgans Corporate acting as joint underwriters and bookrunners.<\/p>\n \u00a0<\/p>\n Sigma drops on UK Boots acquisition talk<\/p>\n Chemist Warehouse owner Sigma Healthcare (ASX:SIG)<\/a> fell ~5% on Wednesday after confirming media reports about a possible acquisition of British retail chemist giant Boots.<\/p>\n Reuters reported Boots was in talks with the Canadian billionaire Weston family and Sigma over a \u00a37.5 billion (~A$11.5bn) sale that would see it scrap plans for a London IPO.<\/p>\n Boots, which has more than 1800 stores across the UK, is reportedly worth around $14 billion with Sigma addressing the speculation in an announcement to the market.<\/p>\n \u201cSigma continuously reviews opportunities that would create value for shareholders and has engaged in preliminary discussions in relation to the sale process,\u201d the announcement said<\/a>.<\/p>\n \u201cThere is no certainty that any transaction will eventuate.\u201d<\/p>\n Power noted Sigma had already dipped its toe into the UK market with a JV with GreenLight Healthcare where SIG will acquire a 75% stake, licensing the brand and providing retail support.<\/p>\n \u201cOur industry calls indicate that the UK pharmacy market is a tough place to operate and has been struggling for a number of years,\u201d he said.<\/p>\n \u201cThe bull view is that an acquisition could be at attractive valuation given the poor performance of the sector and the Chemist Warehouse model could drive improved profitability, while the bear view is the industry may take some years to turn around.\u201d<\/p>\n Morgans has an accumulate rating on Sigma and 12-month target price of $3.30.<\/p>\n \u00a0<\/p>\n Morgans raises price target for Tetratherix<\/p>\n