![\"\"](\"https:\/\/www.newsbeep.com\/au\/wp-content\/uploads\/2026\/10\/200-Sectors-Sep-300x147.jpg\")
Source: S&P DJI<\/p>\nASX healthcare led the market in September as its recovery gains momentum. Pic: Getty Images <\/p>\n
ASX healthcare rose 3.64% in past five days as broader market fairly flat up 0.04%
\nCSL in deal with Swiss biotech Alentis to co-develop potential first-in-class treatment for inflammation and fibrosis in rare kidney and liver diseases
\nNeurizon receives positive feedback from the FDA on regulatory pathway for its amyotrophic lateral sclerosis drug candidate NUZ-001<\/p>\n
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Healthcare and life sciences expert Scott Power, a senior analyst at Morgans Financial for 29 years, and his team share their insights on the ASX healthcare sector for the week.<\/p>\n
The ASX healthcare sector is continuing its recovery moving higher this week after defying a historically softer September for global markets to be the top performer for the month, beating the benchmark which fell 2.42%.<\/p>\n
The XHJ has moved up 3.64% over the past five days, while the benchmark S&P\/ASX 200 (ASX:XJO) is fairly flat gaining just 0.04%.<\/p>\n
\u201cThe rotation into healthcare continues and we have defied that September weakness which sets us up well into the end of the year,\u201d Power said.<\/p>\n
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Source: S&P DJI<\/p>\n
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Countdown to AGM and quarterly reporting season<\/p>\n
AGM season and quarterly reporting season is also approaching, providing investors with an opportunity to gauge company performance and outlook.<\/p>\n
\u201cThere will be plenty of information to digest over the next few weeks, which will hopefully set the sector up for a solid run into the end of the year,\u201d\u00a0 Power said.<\/p>\n
\u201cAgainst a soft Australian economy, we are expecting positive trading updates from Sigma Healthcare (ASX:SIG)<\/a> and EBOS Group (ASX:EBO)<\/a> and key clinical\/regulatory milestones from Imricor Medical Systems (ASX:IMR)<\/a>, Vitrafy Life Sciences (ASX:VFY)<\/a>, Tetratherix (ASX:TTX)<\/a> and Blinklab (ASX:BB1).<\/a><\/p>\n \u201cBuckle up it will be a fun ride.\u201d<\/p>\n \u00a0<\/p>\n \ufeff\ufeff\u00a0<\/p>\n \u00a0<\/p>\n CSL rebuilds pipeline, one partnership at a time<\/p>\n CSL (ASX:CSL)<\/a> has entered an exclusive agreement with Switzerland-based biotechnology company Alentis to co-develop and co-promote lixudebart, a potential first-in-class treatment targeting inflammation and fibrosis across rare kidney and liver diseases.<\/p>\n CSL will pay US$355m upfront, fund development and share global profits 55:45.<\/p>\n In a research note, Morgans healthcare analyst Derek Jellinek wrote the deal was positive and may provide a meaningful external addition to CSL\u2019s nephrology pipeline, while addressing a key weakness identified in its strategic reset of insufficient R&D productivity.<\/p>\n \u201cHowever, while a potentially more capital efficient route to growth than internal efforts, with lixudebart still in Phase II development, the deal is more strategic than a near-term earnings catalyst and remains subject to clinical execution risk,\u201d he wrote.<\/p>\n Lixudebart is being evaluated in a rare, severe and potentially life-threatening autoimmune condition, ANCA-associated vasculitis with rapidly progressive glomerulonephritis (AAV-RPGN), which can cause severe and rapid kidney damage, with planned development in other rare kidney diseases.<\/p>\n \u201cWe view this opportunity as particularly relevant to CSL Vifor, where CSL has been seeking to rebuild its nephrology franchise following the division\u2019s soft performance and the loss of VELPHORO\/TAVNEOS revenues (>\\~A$500m in combined sales),\u201d Jellinek wrote.<\/p>\n He wrote that lixudebart operates via a novel mechanism of action, targeting inflammation and fibrosis, potentially distinguishing it from existing approaches, although clinical efficacy remains to be demonstrated.<\/p>\n \u201cThe transaction is consistent with CSL\u2019s stated strategy to improve R&D productivity through life-cycle management, novel modalities and external partnerships rather than relying solely on internally generated assets,\u201d he wrote.<\/p>\n \u201cWhile US$355m upfront and commitment to fund multiple trials represents a meaningful investment, we view the 55% share of global profits as attractive if lixudebart successfully progresses through development and commercialisation.\u201d<\/p>\n Morgans has a buy rating on CSL and 12-month target price of $187.71.<\/p>\n \u00a0<\/p>\n Neurizon gets FDA clarity on registration pathway<\/p>\n Neurizon Therapeutics (ASX:NUZ)<\/a> has received positive feedback from the US Food and Drug Administration (FDA) on the regulatory pathway for its amyotrophic lateral sclerosis (ALS) drug candidate NUZ-001.<\/p>\n NUZ has received written responses from the FDA to its Type C meeting request with the regulator indicating that the Phase 2\/3 HEALEY Regimen I trial could serve as the sole registrational study for a traditional approval application.<\/p>\n In a research note Morgans healthcare analyst Iain Wilkie wrote the feedback was consistent with its existing assumptions, with the broker already modelling a single Phase III study leading to a New Drug Application (NDA).<\/p>\n The FDA also left the door open for the company to resubmit for Fast Track designation (FTD).<\/p>\n Morgans said the update removed a regulatory risk that emerged following the FDA\u2019s rejection of its FTD application in January 2026, which had raised the possibility that the regulator could require a confirmatory trial.<\/p>\n The FDA also agreed with NUZ\u2019s approach to measuring plasma neurofilament light chain (NfL), a marker of nerve damage, and outlined the types of evidence that would be needed for NfL to support accelerated approval.<\/p>\n Wilkie pointed to tofersen (brand name Qalsody), an FDA-approved treatment for patients with SOD1-mutated ALS, as a precedent for using NfL as a biomarker to support an accelerated approval pathway.<\/p>\n However, he noted tofersen targeted a genetically defined form of ALS, whereas NUZ-001 was being developed for the broader ALS population.<\/p>\n Wilkie wrote this could make it more challenging to establish that changes in NfL reliably predict clinical benefit across the more diverse sporadic ALS population.<\/p>\n An expanded access program funded by the US National Institutes of Health, expected to involve about 200 US patients for up to 96 weeks from Q1 CY27, is expected to generate longer-term safety and biomarker data that could contribute to supporting evidence<\/p>\n \u201cWith the regulatory path now clearer, focus again shifts squarely to the HEALEY Regimen I topline readout in Q2 CY27, which remains the key value inflection point for NUZ,\u201d Wilkie wrote.<\/p>\n Morgans retains a speculative buy recommendation on NUZ and a 12-month price target of 20 cents per share.<\/p>\n \u00a0<\/p>\n Saluda\u2019s CAP24 moves to US commercial rollout<\/p>\n Saluda Medical (ASX:SLD)<\/a> has started the US commercial release of CAP24 following a successful limited market launch across selected centres, opening the door to a previously unaddressed ~30% of the US$3bn US spinal cord stimulation (SCS) market.<\/p>\n SLD\u2019s CAP24 is a paddle lead for its Evoke spinal cord stimulation system and was granted FDA approved in June 2026.<\/p>\n In a research note Jellinek wrote CAP24 was the first FDA approved paddle lead purpose built for physiologic, dose controlled closed loop therapy allowing neural responses to be measured and stimulation adjusted in real time.<\/p>\n It is now broadly available to neurosurgery and orthopaedic spine practices following a successful limited launch, including positive physician feedback on device performance and clinical integration.<\/p>\n \u201cWe view the full commercial release of CAP24 as an important FY27 catalyst, expanding SLD\u2019s addressable market while providing an opportunity to increase revenue productivity across its existing US commercial infrastructure,\u201d\u00a0 Jellinek wrote.<\/p>\n \u201cWith broad commercial availability established, the focus shifts to surgeon activation, procedure volumes and utilisation.<\/p>\n \u201cWe expect a gradual revenue contribution as surgeon training, hospital adoption and field inventory scale.\u201d<\/p>\n Morgans has a speculative buy rating on SLD and 12-month target price of $2.17.<\/p>\n \u00a0<\/p>\n Good and bad news in Clarity\u2019s trial updates<\/p>\n