There’s been a lot to process for ASX healthcare investors this week. Pic: Getty Images <\/p>\n
ASX healthcare outperformed the market this week despite ongoing macro headwinds
\nCynata Therapeutics falls 93% on Friday after two trials fail to meet endpoints\u00a0
\nIsland Pharma secured FDA orphan drug status for Galidesivir as catalysts stack up elsewhere<\/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
The ASX healthcare sector has stayed in the green for a second consecutive week, continuing its recovery story after a bruising start to 2026 that still leaves it down more than 26%.<\/p>\n
At close on Friday, the XHJ was up a solid 3.99% over the past five days, outperforming the benchmark S&P\/ASX 200 (ASX:XJO) which fell 0.88% over the same period.<\/p>\n
Morgans senior healthcare analyst Scott Power said the sector continued to be dominated by broader geopolitical and macroeconomic factors.<\/p>\n
The Reserve Bank of Australia (RBA) left interest rates unchanged at 4.35% on Tuesday,\u00a0 after three rate rises in 2026 but maintained a hawkish tone as inflation remains above its 2-3% target.<\/p>\n
US President Donald Trump\u2019s pick for Fed chair was widely tipped to lower rates, but Kevin Warsh instead shook markets by keeping them steady and warning they may rise if inflation stays above the central bank\u2019s 2% target.<\/p>\n
\u201cThe commentary coming from the new Fed chairman is a turnaround from previous commentary and higher rates pulls the risk appetite down for growth stocks,\u201d Power said.<\/p>\n
\u201cObviously the resolution to the Middle East conflict will keep oil prices down and help bring inflation under control.\u201d<\/p>\n
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Cynata drops 93% as trials fall short<\/p>\n
Shares in stem cell and regenerative medicine player Cynata Therapeutics (ASX:CYP)<\/a> plunged more than 93% on Friday after two clinical trials failed to meet their primary endpoints.<\/p>\n Cynata had been in a trading halt since late last week before moving into voluntary suspension on Tuesday pending the release of results from both studies.<\/p>\n Results were released on Wednesday of a phase II trial of CYP-001 in patients with high-risk acute graft-versus-host disease (HR-aGvHD), a serious complication that can occur following donor stem cell or bone marrow transplantation.<\/p>\n The trial found no significant differences between patients treated with CYP-001 plus steroids and those receiving placebo plus steroids (control group) across either the primary or key secondary endpoints.<\/p>\n CYP-001 is Cynata\u2019s Cymerus induced pluripotent stem cell (iPSC)-derived mesenchymal stromal cell (MSC) product candidate for intravenous administration.<\/p>\n On Friday, Cynata resumed trading after releasing top-line results from the phase III SCUlpTOR trial of CYP-004 in patients with knee osteoarthritis.<\/p>\n The study found no statistically significant differences between treatment and placebo groups on either of its co-primary endpoints, including knee pain and cartilage loss at 24 months.<\/p>\n CYP-004 is Cynata\u2019s Cymerus off-the-shelf iPSC-derived MSC product candidate for intra-articular injection.<\/p>\n Cynata said it was now<\/a> \u201cactively reviewing options for further development of the Cymerus technology\u201d with CEO Dr Kilian Kelly and chairman Dr Geoff Brooke scheduled to host an investor webinar on Monday.<\/p>\n Power said it was a \u201cvery disappointing outcome for Cynata and the emerging ASX healthcare space\u201d, coming after recent clinical disappointments at Opthea (ASX:OPT)<\/a> and Immutep (ASX:IMM).<\/a><\/p>\n \u00a0<\/p>\n Healthcare catalyst pipeline remains active<\/p>\n All is not lost with several upcoming catalysts remaining for ASX healthcare stocks in June. Echo IQ (ASX:EIQ)<\/a> is awaiting US Food and Drug Administration (FDA) 510(k) clearance for its artificial intelligence (AI) heart failure solution, EchoSolv HF.<\/p>\n Top-line results are expected this month from a European ADHD study of Blinklab\u2019s (ASX:BB1)<\/a> smartphone-based neurobehavioural assessment platform.<\/p>\n Imricor Medical Systems (ASX:IMR)<\/a> is awaiting FDA approval of a paediatric label expansion for its NorthStar 3D Mapping System through the Special 510(k) pathway. The system enables radiation-free, MRI-guided cardiac mapping procedures.<\/p>\n And Neuren Pharmaceuticals (ASX:NEU)<\/a> is also anticipating a key regulatory outcome, with its Nasdaq-listed partner Acadia Pharmaceuticals expected to receive a decision this month on its request to re-examine the European marketing application for trofinetide, marketed as DAYBUE, for the treatment of Rett syndrome.<\/p>\n \u201cWe are looking for a number of companies to hit some key milestones and assuming they are successful that could bring investor interest back into the space,\u201d Power said.<\/p>\n \u201cAt the moment there are other areas like AI and the resource sector which is attracting more of the speculative money.\u201d<\/p>\n \u00a0<\/p>\n \u00a0<\/p>\n \u00a0<\/p>\n Island secures orphan drug designation for antiviral<\/p>\n