Fancy grabbing a 917% one-year return from your ASX healthcare stock investment?
Me too!
The stock in question is clinical stage drug discovery and development company Dimerix Ltd (ASX: DXB)
As you can likely guess by the phenomenal share price growth, shown in the chart below, a lot’s been going right with the company’s drug development and discoveries.
Yep, just one year ago, you could have bought the ASX healthcare stock for 6.0 cents a share.
At market close on Thursday, shares finished trading up 9.91%, swapping hands for 61 cents apiece.
That’s enough to turn a $5,000 investment into a whopping $50,833 in just 12 months.
Take that inflation!
Here’s why investors have been sending the stock through the roof.
How has the ASX healthcare stock rocketed 858% in a year?
As mentioned up top, Dimerix has released numerous promising updates on its operations and product line over the year.
One of the biggest share price moving pieces of news was released on 5 October.
Investors sent the ASX healthcare stock rocketing 154.1% higher in a single day after the company, together with Advanz Pharma, reported it had entered into an exclusive license agreement for the European Economic Area, the UK, Switzerland, Canada, Australia, and New Zealand for the commercialisation of its phase 3 drug candidate DMX-200.
DMX-200 is intended to treat focal segmental glomerulosclerosis kidney disease.
Also likely boosting investor sentiment in the ASX healthcare stock was the fact that Dimerix retained all rights to commercialise DMX-200 outside of these territories.
“We are excited to announce this partnership with Dimerix, which is fully in line with our strategy to be a partner of choice for the commercialisation of specialty, hospital, and rare disease medicines in Europe, Canada, and Australia,” Advanz Pharma CEO Steffen Wagner said on the day.
The good times kept coming
As mentioned, Dimerix shares kept on gaining as the company released a series of other positive announcements over the following months.
Most recently, on 27 May, the ASX healthcare stock closed up 25.0% after reporting that Taiba Middle East had acquired exclusive rights to register and commercialise DMX-200 in the United Arab Emirates, Saudi Arabia, Oman, Kuwait, Qatar, Bahrain and Iraq.
Atop the deal inked with Advanz Pharma, the two license deals provide almost $11.5 million in upfront payments to the ASX healthcare stock along with some $340 million in potential milestone payments.
“We are thrilled to partner with Dimerix in launching DMX-200 in the Middle East pending FDA approval,” Taiba CEO Saif Al Hasani said.
The post If you invested $5,000 in this ASX healthcare stock a year ago, you’d have $50,833 now! appeared first on The Motley Fool Australia.
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Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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