EOFY specials: these healthcare beauties might have a bit on the clock, but there’s plenty of life in them yet if you keep the oil topped up. Pic: Getty Images.<\/p>\n
Led by the top end, life sciences stocks enjoyed a much-needed bounce in June
\nI got my money in the pocket, says Echo IQ \u2013 and a bit of investor love
\nBiome is quick off the EOFY mark with revenue update<\/p>\n
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Having underperformed the broader markets for the last 12 months, the ASX healthcare and biotech sectors bounced strongly in June, led by names such as Cochlear (ASX:COH)<\/a> , CSL (ASX:CSL)<\/a> and Ramsay Health Care (ASX:RHC)<\/a>.<\/p>\n Broker UBS describes the recovery as broad based.<\/p>\n \u201cThere was limited company specific news to explain this recovery, suggesting it was due to broader market forces including sector rotation,\u201d the firm says.<\/p>\n \u201cThe uplift was correlated with the US biotech index.\u201d<\/p>\n The S&P\/ASX200 healthcare index bounced 15%, trimming the calendar year to date loss to 22%. The sector still drooped 37% in the financial year.<\/p>\n The Nasdaq biotech index jumped 11.6% for the month, taking the financial year gain to 55%. It\u2019s not quite comparable to the ASX healthcare gauge, which consists of established stocks.<\/p>\n Pro Medicus (ASX:PME)<\/a> shares led the charge, up 40% for the month. This was on the back of ongoing US client wins and abating fears about SaaScopalypse Now (or even later).<\/p>\n Cochlear shares bounced 20%, spurred on by \u2026 nothing in particular.<\/p>\n As we reported yesterday,<\/a> US consumer confidence remains poor and that may affect the company\u2019s US hearing implant sales further.<\/p>\n Similarly, CSL shares recovered 22 percent, despite no sign of market conditions improving. In some respects, the signs are worse.<\/p>\n Put in context, both stocks swooned 60% and 52% respectively over the financial year.<\/p>\n The country\u2019s biggest private operator, Ramsay enjoyed a 20% bounce. The company is benefiting from better pricing dynamics and expectations it will shed its laggard French arm Sant\u00e9 Health.<\/p>\n Or should that be not-so-Sant\u00e9 Health?<\/p>\n Shares in pathology chain Sonic Healthcare (ASX:SHL)<\/a> popped up 8%, despite headwinds including wages pressure and what UBS dubs \u201cchallenging competitive dynamics\u201d.<\/p>\n \u00a0<\/p>\n Echo IQ seals capital raising deal<\/p>\n Ahead of expected FDA clearance for its most important heart disease detection device, Echo IQ (ASX:EIQ)<\/a> has raised circa $110 million in an institutional placement.<\/p>\n The company did the deed at $1.45 a share, a defendable 8.8% discount to last Friday\u2019s frozen price.<\/p>\n With no share purchase plan or rights issue, retail investors dip out. C\u2019est la vie.<\/p>\n Perhaps unusually, the company did not piggyback on the pending FDA decree so it could raise at a (presumably) higher price.<\/p>\n Echo IQ will use the funds to roll out its AI-enabled Echosolv tools in the US. The FDA already has green-lighted its aortic stenosis detection module, Echosolv AS.<\/p>\n Echo IQ shares last week spurted after Pro Medicus said it would invest $10-20 million in the company and resell the Echosolv products to its expansive customer base.<\/p>\n The company also has a commercial tie-up with the esteemed Mayo Clinic.<\/p>\n Echo IQ shares this morning defied the usual post-raising lull, with the shares down around 1%.<\/p>\n The stock has spurted 560% over the last financial year.<\/p>\n The shares to be issued equate to 11.5% of Echo IQ\u2019s current issued capital.<\/p>\n \u00a0<\/p>\n Biome in bullish sales update<\/p>\n