Azzet reports on two ASX with notable trading updates today.
Dimerix moves higher on Japan trial
Shares in Melbourne-based Dimerix (ASX: DXB) were up around 3% at the open after the small-cap biotech stock revealed its first clinical trial site in Japan for the Phase 3 ACTION3 study of DMX-200, targeting FSGS (a rare kidney disease).
The trial - which marked a key regulatory milestone in Japan - triggered a ¥400 million ($4.3 million) milestone payment from its Japanese partner FUSO Pharmaceutical.
What captured the market’s imagination today were revelations that the FUSO agreement is part of a broader licensing strategy, which management believes could yield up to $1.4 billion in milestone payments and royalties.
Commenting on today’s update CEO Nina Webster told investors that opening the first clinical site in Japan is another major step forward for its global ACTION3 clinical program.
“This milestone reflects the strength of our data to date, the rigor of our clinical trial design, and the expertise from our local partner in Japan, FUSO,” said Webster.
Meanwhile, the biotech continues to focus on ACTION3 Phase 3 clinical trial delivery and licensing opportunities with potential partners in territories not already licensed.
The Dimerix share price is up 20% in the last month after they announced the receipt of an initial payment of US$30 million ($48 million) relating to the license agreement with Amicus Therapeutics.
Under the agreement, Amicus has been granted exclusive rights to commercialise DMX-200 for FSGS in the U.S.
It’s understood that Dimerix remains eligible for further potential development milestones of up to US$560 million ($892 million) for success-based milestone payments, in addition to tiered royalties on US sales.
Dimerix has a market cap of $337 million; the share price is up 27% over one year and up 70% year to date.
The stock is in a long-term bullish pattern confirmed by multiple indicators.
Shares are currently trading at $0.580.
Healthco rallies on rental deal with Healthscope
Shares in HMC Capital’s ASX-listed HealthCo Healthcare and Wellness (ASX: HCW) were up around 13% heading into lunch after the REIT updated the market on rental arrangements with ailing private hospital provider Healthscope.
The market has found favour with news that HealthCo and the Unlisted Healthcare Fund (UHF) have entered into a short-term partial rent deferral agreement with Healthscope and its receivers.
While HealthCo owns four properties tenanted by Healthscope, another seven [tenanted] properties are owned by the UHF fund.
Under this agreement:
- Essential services continue at all hospitals.
- All outstanding rent arrears for March and April 2025 and 85% of rent for May 20252 will be paid immediately.
- HealthCo and UHF (Landlords) will receive 85% of the rent due for June-August 2025.
- The remaining 15% deferred rent for the May-August 2025 period is due in September 2025.
Commenting on today’s update, HMC Capital Managing Director, Real Estate, Sid Sharma mentioned ongoing discussions with Healthscope about the sale process with its receivers. He is also working on an appropriate transition of services to new operators or owners in a timely manner.
Meanwhile, both landlords have also received formal expressions of interest from alternative Australian hospital operators to re-tenant all 11 facilities.
HealthCo Healthcare and Wellness has a market cap of $514 million; the share price is down 17% over one year and up 12% in the last month.
In March, HealthCo and UHF issued breach notices to the struggling hospital operator to pay all rent due for March.
HealthCo and UHF acquired the 11 freehold private hospitals leased to Healthscope from New York-listed Medical Properties Trust in 2023 for $1.2 billion.
Healthscope entered receivership earlier this week after lenders rejected its offer to take board control and enable a solvent restructure.
The stock shares appear to be weak with little demand from investors.
Current share price is $0.93.
This article does not constitute financial or product advice. You should consider independent advice before making financial decisions.