Category: Stock Market

The Atomo Diagnostics Ltd (ASX: AT1) share price has gone berserk in the past week.

In the last 7 days, shares in the medical device company have soared more than 30%.

Let’s take a look at why the Atomo share price is flying.

Demand for rapid testing fuelling Atomo share price

In the past week, Atomo has not released any price-sensitive news that could explain the bullish price action.

As a result, various other catalysts could be fuelling investor demand for the company’s shares.

With the Delta outbreak threatening to get out of hand in Australia, there has been increasing demand for rapid testing solutions.

Australia has largely relied on pathology testing in fighting the COVID-19 pandemic.

However, various sources have reflected concern on their turnaround time for results.

Pathology testing can take up to three days to deliver a result, by comparison, rapid antigen tests can detect COVID-19 in as little as 10 minutes.

Atomo is one of the few listed companies in Australia that has produced rapid COVID-19 testing.

Of particular interest is the company’s rapid antibody test CareStart EZ COVID-19, which was developed in conjunction with its partner Access Bio.

Earlier this year, Access Bio received Emergency Use Authorisation (EUA) from the U.S. Food and Drug Administration (FDA) for point-of-care use of its CareStart EZ COVID-19 test.

The biotech has supplied its CareStart EZ COVID-19 test to various Olympic and sporting teams, whilst also supplying aged care providers.

More on Atomo

Atomo is a medical device company that supplies rapid diagnostic test devices to the global diagnostic market. The company’s patented devices simplify testing procedures and enhance useability for professional users.

The biotech recently published its full-year results for FY21, which was highlighted by a 25.1% increase in revenue to $6.72 million.

Other highlights from Atomo’s report included;

• Cost of sales up 52% to $3.3 million
• Gross profit up 7% to $3.42 million
• Underlying operating loss widened 101% to $4.79 million
• Cash balance of ~$18 million

According to Atomo, revenue was largely driven by consumer demand in Europe and North America for its COVID-19 antibody tests.

At the time of writing, shares in Atomo are trading slightly lower for the day at 28 cents.

The post Why the Atomo Diagnostics (ASX:AT1) share price has soared 30% in a week appeared first on The Motley Fool Australia.

More reading

• Atomo Diagnostics (ASX:AT1) share price sinks 8% on FY21 results

Motley Fool contributor Nikhil Gangaram 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 Bruce Jackson.

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The Telix Pharmaceuticals Ltd (ASX: TLX) share price is up almost 6% in early trade.

Below, we take a look at the ASX biotechnology company’s announcement of its approval to conduct a clinical trial.

What did Telix announce?

The Telix share price is up 5.94% this morning to $6.96 after the company reported positive progress for its investigational kidney cancer therapy, TLX250.

In another step forward for TLX250, the United States Food and Drug Administration (FDA) has accepted the Investigational New Drug Application (IND) to commence a clinical study of the experimental treatment.

Telix expects to enrol 29 patients with advanced clear cell renal cell carcinoma (ccRCC) in its STARLITE 2 study. The goal of the study is to determine the efficacy of combining immunotherapy with TLX250.

Commenting on the study, principal investigator Darren Feldman said:

Each year 76,000 Americans will be diagnosed with kidney cancer, therefore it is important we continue to explore new treatment options. The selective targeting of TLX250 to CA9 delivers radiation therapy directly to ccRCC tumours. Combining this innovative approach with anti-PD-1/PD-L1 therapy could enhance existing immune-based treatments.

Telix chief medical officer Colin Hayward added:

The introduction of immunotherapy agents has improved the outlook for patients with advanced clear cell renal cancer, but most patients eventually progress. This therapy, along with patient selection and treatment response assessment with our CA9-targeting imaging agent TLX250-CDx may potentially offer a new paradigm of more accurate staging and personalised treatment for kidney cancer patients through a “theranostic” approach.

Today’s FDA approval comes on the heels of yesterday’s announcement revealing that Telix had “entered into an exclusive commercial distribution agreement with Bologna-based Radius” to distribute Illuccix – a cancer imaging tool – in Italy.

Telix share price snapshot

Over the past 12 months the Telix share price has soared 279%, well outpacing the 27% gains posted by the All Ordinaries Index (ASX: XAO).

Telix shares have continued to move higher over the past month, up 21%.

The post Why the Telix (ASX:TLX) share price is rocketing 6% today appeared first on The Motley Fool Australia.

More reading

• Why the Telix (ASX:TLX) share price is charging higher today
• Telix Pharmaceuticals (ASX:TLX) share price up 7% on revenue increase
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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 Bruce Jackson.

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The Propel Funeral Partners Ltd (ASX: PFP) share price is edging higher on Tuesday after the company announced three material acquisitions.

At the time of writing, the Propel Funeral Partners share price is up 5.54%% to $4.00.

What did Propel acquire?

Propel announced this morning that it has executed binding sale agreements to acquire three funeral services businesses.

The three businesses include:

• Berry Funeral Directors located in Norwood, Adelaide
• Glenelg Funerals located in Glenelg, Adelaide
• State of Grace which operates from two locations in Auckland

Together, the businesses perform approximately 1,200 funerals per annum and generated combined revenue of $9.0 million in the most recent financial year. Propel Funeral Partners expects the acquisition to be earnings accretive in year one.

Propel will acquire the three businesses and related assets and infrastructure for a total consideration of up to $17.6 million.

According to the announcement, $15.2 million in cash and $0.2 million in shares (subject to escrow arrangements) will be paid on the completion of the proposed transactions.

In addition, $2.2 million will be payable in cash if certain financial milestones are achieved during the three years following the acquisition.

The acquisition will be funded by existing debt facilities.

The acquisition will expand the company’s network in Australia and New Zealand. It will also drive entry into a new metropolitan market in Adelaide and expand its presence in Auckland.

Excluding the acquisition, Propel Funeral Partners currently operates 136 locations across Australia and New Zealand. This includes 2 sites in South Australia and 25 in New Zealand.

Propel Funeral Partners share price snapshot

The Propel Funeral Partners share price has rallied strongly in 2021, up 40% year-to-date.

The post Propel Funeral Partners (ASX:PFP) share price lifts 5% on acquisition news appeared first on The Motley Fool Australia.

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• 2 ASX dividend shares that just grew their dividend by more than 10%
• The Propel Funeral Partners (ASX:PFP) share price lifts 5% on FY21 performance

Motley Fool contributor Kerry Sun 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 recommended Propel Funeral Partners Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The AMP Ltd (ASX: AMP) share price has continued to decline over the past month. This comes despite the financial services company not releasing any new market sensitive news since its half-year results last month.

At the time of writing, AMP shares are edging 0.19% to $1.037. It’s worth noting that the company’s share price is nearing its all-time low of $1.04 reached on 30 July.

What is going on with AMP shares?

It has been a challenging period for AMP shareholders, with no indication of when the heavy selling will stop.

The company’s financial scorecard produced a largely positive performance.

Net Profit After Tax (NPAT) grew to $181 million, up 57% on the prior corresponding period. This was mainly driven by an increase in Australian wealth management assets under management (AUM) of $121 billion, up 8%.

In addition, Australian wealth management net cash outflows came to $2.7 billion. A massive improvement compared to the $4 billion in net cash outflows recorded in first-half of FY20.

Controllable costs excluding AMP Capital, stood at $387 million, down 6% caused by lower disciplined cost management.

Nonetheless, the AMP share price has been trading at record lows since ASIC commenced proceedings against the company in May.

According to financial regulator, AMP wilfully deducted life insurance premium and advise service fees from superannuation accounts of deceased customers.

The company stated that action has since been taken to correct the error. It has been conducting a thorough review of its policies and processes. The matter was later covered in the financial services royal commission.

So, what’s the outlook for the FY21 full year for AMP?

Looking ahead, the group is projecting controllable costs of $775 million, which is in line with the prior guidance.

AMP is expecting the Global Equities and Fixed Income (GEFI) and Multi-Asset Group (MAG) to internally separate in FY21. The demerger program is scheduled for completion by the middle of FY22. This will see the transition of MAG from AMP Capital to AMP Australia, creating a superannuation and investment platform business.

Loan growth momentum for AMP Bank is expected to continue to run into the second half while AMP Capital earnings are forecasted to decline. The group stated that this is due to lower performance and investment returns.

AMP share price snapshot

The last 12 months have been yet another disappointing result for AMP shares, falling by more than 30%. When looking at the last 5 years, these losses are magnified even greater, dropping around 80% in value.

Based on today’s price, AMP presides a market capitalisation of roughly $3.38 billion and has 3.2 billion shares on issue.

The post The AMP (ASX:AMP) share price has fallen another 7% in a month. What’s next? appeared first on The Motley Fool Australia.

More reading

• Here’s why the AMP (ASX:AMP) share price is down 4% in a week
• How have ASX financial shares performed during the August 2021 earnings season?
• What does the future look like for the AMP (ASX:AMP) share price?
• When was the best day ever on the AMP share price chart?
• The AMP (ASX:AMP) share price is down 28% so far in 2021. Here’s why

Motley Fool contributor Aaron Teboneras 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 Bruce Jackson.

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The tech business Siteminder may be getting closer to an initial public offering (IPO). Investors can already indirectly access exposure to Siteminder through tech investor Bailador Technology Investments Ltd (ASX: BTI).

What is Siteminder?

Siteminder is a hotel booking business. It is one of the world leaders in connecting hotels to online distribution channels for bookings. The company says that there are 35,000 hoteliers globally that are already using Siteminder.

It offers a number of services such as channel manager (including revenue insights), a hotel booking engine (including rate parity insights), competitive and market insights and hotel website design.

Bailador says that Siteminder generates more than $100 million of annualised recurring revenue through a subscription revenue model with a gross margin of more than 70%. It is reportedly triple the size of the nearest competitor and has an addressable market of 1 million hotels.

That revenue comes from more than 160 countries, with 80% of revenue from international markets. It has a skew towards the leisure market, which was described as more robust.

Bailador says that Siteminder exhibits resilient characteristics of a software as a service (SaaS) revenue model and is valued as a premium SaaS business.

How has COVID-19 affected the business?

COVID-19 has been tough on ASX travel shares that have been impacted by restrictions and limited demand over the last year and a half. Businesses like Webjet Limited (ASX: WEB), Flight Centre Travel Group Ltd (ASX: FLT), Sydney Airport Holdings Pty Ltd (ASX: SYD) and Corporate Travel Management Ltd (ASX: CTD) continue to be impacted.

However, Bailador says that performance has been managed prudently during COVID-19. Despite significant difficulties for the travel industry, Siteminder has experienced flat revenue over the 12 months to 30 June 2021.

Bailador believes that the hotel booking business is positioned for “rapid growth” as travel volumes increase.

Is Siteminder about to IPO?

Siteminder is one of Bailador’s largest holdings. At the time of the ASX tech investor’s FY21 result, it said that IPO preparation was underway, including ensuring appropriate governance for a public company.

According to reporting by the Australian Financial Review, Siteminder has just finished a funding round of at least $100 million. It is not rushing to IPO, but it is expected that an IPO will occur in FY22. Many of the investors in that funding round were investors that Siteminder already had an association with.

The AFR said that the Siteminder CEO Sankar Narayan noted the business has continued to invest in its technology and offering. Mr Narayan also said that Siteminder is aiming for further global expansion, to add on to its recent European expansion, particularly in German-speaking countries.

However, referring to the timing of a potential IPO and whether it related to the return of travel, Mr Narayan was tight-lipped. He said:

For a lot of reasons I can’t talk about that, I can’t actually talk about an IPO or any IPO plans.

The post Is hotel booking tech company Siteminder close to an IPO? appeared first on The Motley Fool Australia.

More reading

• Own Wesfarmers (ASX:WES) shares? It’s about to be payday…for you and the CEO
• These three ASX retail shares delivered double (and triple!) digit returns in 2021
• Here’s why the Vulcan (ASX:VUL) share price is frozen
• Zip (ASX:Z1P) share price lower despite savings and crypto products update
• The Incannex (ASX:IHL) share price is up 40% in a month. Here’s why

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Bailador Technology Investments Limited. The Motley Fool Australia owns shares of and has recommended Corporate Travel Management Limited and Webjet Ltd. The Motley Fool Australia has recommended Bailador Technology Investments Limited and Flight Centre Travel Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Investors in Wesfarmers Ltd (ASX: WES) shares would be licking their lips right now. The Aussie retail conglomerate is set to return a significant chunk of capital to shareholders after posting a $2,421 million full-year net profit after tax.

Wesfarmers bumped its full-year dividend up 17.1% to 178 cents per share in August and announced a $2.3 billion capital return to shareholders.

However, investors aren’t the only ones set for a handy boost to the hip pocket. CEO Rob Scott is in line for a bumper pay day if approvals are granted at the company’s annual general meeting (AGM).

Why investors in Wesfarmers shares are set for a big payday

According to an article in The Australian, shareholders will vote on a $7.37 million performance bonus package for Scott.

That comes after a year in which Wesfarmers and its key brands weathered the COVID-19 pandemic. In fact, the Aussie conglomerate posted a 10% increase in revenue to $33,941 million.

Bunnings, Kmart Group and Officeworks all contributed to earnings growth despite on-again, off-again restrictions across the country.

Now investors will be asked to approve the performance reward package for the company CEO. It’s been a solid year for Wesfarmers shares which have gained 27.4% in the past 12 months, not including dividends.

Scott is in line for two tranches of performance shares worth $7.37 million. The board is reportedly proposing $3.684 million in deferred performance stock and $3.684 million in performance shares.

The article notes that the performance shares agenda item last year passed with a 97.15 vote in favour from shareholders.

They’ll be waiting for their own reward for holding Wesfarmers shares after a promised $2 per share capital return.

Foolish takeaway

There’s something of a cash splash looming for Wesfarmers. CEO Rob Scott is in the box seat for $7.37 million of performance shares while investors await their own returns.

Wesfarmers shares are worth watching on the ASX as Australia eyes a re-opening of the economy following COVID-19 restrictions in 2020 and 2021.

The post Own Wesfarmers (ASX:WES) shares? It’s about to be payday…for you and the CEO appeared first on The Motley Fool Australia.

More reading

• Why the Woolworths (ASX:WOW) share price has outperformed Wesfarmers so far this year
• Here’s why the Wesfarmers (ASX:WES) share price is in focus today
• 4 ASX shares just got a massive boost
• These ASX 200 dividend shares are about to dish out $40bn to shareholders
• How have ASX retail shares performed during the August 2021 earnings season?

Motley Fool contributor Ken Hall 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 owns shares of and has recommended Wesfarmers Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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We all know the damage that pandemic lockdowns and social restrictions have done to the retail sector. Traditional retailers – particularly those with a large brick-and-mortar presence – have struggled over the last 18 months.

Despite a recent rally, shares in Myer Holdings Ltd (ASX: MYR) are barely above their pre-COVID levels. And shares in Kathmandu Holdings Ltd (ASX: KMD) are still almost 50% off their February 2020 prices. Many other ASX retail shares have also suffered similar declines.

But despite these difficult market conditions, there is a new generation of ASX retail companies that have seen their share prices soar during the pandemic. These are companies with little (or no) physical shopfronts and that rely almost entirely on digital sales channels.

Investors have been favouring these companies over their traditional peers – and have sent their share prices rocketing into the stratosphere.

Let’s look at three of the ASX retail shares with some of the biggest price gains so far this year.

Dusk Group Ltd (ASX:DSK)

Dusk only listed on the ASX in November 2020 – but has already made quite an impression. Its shares are up almost 40% so far in 2021 (to $3.10, as at the time of writing).

Dusk specialises in home fragrance products such as candles, diffusers and essential oils. With people spending a lot more time at home during lockdowns, it’s easy to see why demand for its products has spiked.

However, Dusk is also something of an outlier on this list as it still makes the majority of its revenues through traditional channels. That said, online sales increased by 27% in FY21 and made up 7.5% of the year’s total sales.

FY21 was a bumper year for the company with sales up over 47% (to $148.6 million). As well, disciplined cost management meant that pro forma net profit after tax (NPAT) surged over 225% year-on-year (to $26.8 million). Pro forma NPAT is reported NPAT adjusted for some one-off items – the most notable of which was $6.6 million in costs associated with the company’s initial public offering.

City Chic Collective Ltd (ASX:CCX)

City Chic specialises in plus-size women’s fashion. It has expanded significantly during the pandemic and now has a strong presence in both the US and UK markets. City Chic also has a brick-and-mortar presence but pivoted strongly towards its digital sales channels last year.

City Chic reported sales revenues of $258.5 million for FY21, a year-on-year increase of almost 33%. This was driven by online sales which jumped 49.3% and made up more than 70% of City Chic’s total sales for the year. The result also showed the benefits of the company’s international expansion plans with more than 44% of sales coming from overseas markets.

The City Chic share price has surged almost 60% higher this year to $6.30 (as at the time of writing) and just recently set a new 52-week high price of $6.49.

Cettire Ltd (ASX:CTT)

The standout performer on this list of ASX retail shares is online luxury fashion retailer Cettire. Its share price has rocketed a scarcely believable 602% higher so far in 2021 to $3.49 (as at the time of writing). The massive share price gains have come on the back of incredibly strong FY21 financial results.

The company beat its own upgraded earnings guidance for the year, reporting sales growth of 304% year-on-year (to $92.4 million). The result also showed that the company was beginning to develop a loyal customer base, with 40% of FY21 sales from repeat customers (up from just 26% in FY20).

The positive momentum seems to have carried forward into FY22, with July unaudited gross revenue up 181% versus July 2020.

The post These three ASX retail shares delivered double (and triple!) digit returns in 2021 appeared first on The Motley Fool Australia.

More reading

• Top brokers name 3 ASX shares to buy next week
• The Dusk (ASX:DSK) share price is worth $5: fund manager
• Why the Cettire (ASX:CTT) share price is slumping 5% today
• The Cettire (ASX:CTT) share price is up a whopping 500% this year
• Why the Cettire (ASX:CTT) share price rocketed 24% higher on Friday

Motley Fool contributor Rhys Brock has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Cettire Limited. The Motley Fool Australia has recommended Cettire Limited and Dusk Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Vulcan Energy Resources Ltd (ASX: VUL) share price won’t be going anywhere on Tuesday after the company requested a trading halt.

What’s the trading halt for?

Vulcan said the trading halt was requested pending an announcement to the market in relation to a capital raising.

The company advised that its shares will remain halted until Thursday, 16 September or until an announcement is made in relation to the outcome of the capital raising.

According to the company’s June quarterly cash-flow report, it had $114.7 million in cash and cash equivalents at the end of the period.

Capital raising highlights

Vulcan launched an institutional placement to raise $200 million at an offer price of $13.50 per share. The offer price represents a 15.1% discount to its last closing price of $15.90 on Monday, 13 September.

In addition, the company intends to undertake a share purchase plan for existing eligible shareholders to raise up to a further $20 million.

The company is busy working through a number of prerequisites before construction kicks off for its flagship Zero Carbon Lithium project. This includes securing offtake agreements, the completion of a definitive feasibility study, and additional exploration activities.

Vulcan said the proceeds from the offer will be used to “accelerate exploration initiatives and expand Vulcan’s dual renewable energy and lithium development strategy”.

Vulcan share price rides the lithium hype

The Vulcan share price has climbed the ranks from a mere small cap 12-months ago to joining the S&P/ASX 300 (INDEXASX: XKO) index following the most recent indices rebalance.

Vulcan is aiming to become the world’s first lithium producer with net-zero greenhouse gas emissions. The company’s flagship Zero Carbon Lithium Project aims to operate as both an energy and lithium business, from the same geothermal brine resource.

The Vulcan share price continues to boom in 2021, up 474% year-to-date.

The post Here’s why the Vulcan (ASX:VUL) share price is frozen appeared first on The Motley Fool Australia.

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• Which ASX shares are set to finish the week as the top movers on the ASX 300?

Motley Fool contributor Kerry Sun owns shares of Vulcan Energy Resources Limited. 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 Bruce Jackson.

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The Zip Co Ltd (ASX: Z1P) share price is trading lower ahead of its Retail Investor Day event.

At the time of writing, the buy now pay later (BNPL) provider’s shares are down 2% to $6.89.

This means the Zip share price is now down almost 19% over the last six months.

Why is the Zip share price dropping today?

The weakness in the Zip share price today may have less to do with what was included in its presentation and more to do with what was not included in it.

Zip’s presentation provided the market with a lot of promising product updates, but didn’t give an update on its performance so far in FY 2022.

Given how there has been speculation that its rebrand has slowed momentum in the US, investors may have been hoping that these concerns were eased with a strong update today.

What was in the presentation?

Today’s presentation revealed a number of products that Zip is hoping will drive growth in the coming years.

This includes following the lead of rival Afterpay Ltd (ASX: APT) by offering savings accounts to its users. These accounts also appear to offer users the ability to access their pay ahead of time.

In addition, the company presented its cryptocurrency offering, which will allow users to buy, hold, sell, and even pay with crypto. Users will also be able to earn crypto rewards from purchases. There are cash rewards on offer for users that are not interested in cryptocurrencies.

Management also spoke about its global market opportunity. It highlights that the US market remains its highest priority and is forecasting strong growth in the BNPL market.

It estimates that the BNPL market currently accounts for 1.6% of the $5.2 trillion US retail market. However, it is forecasting this to grow to 4.5% in 2024.

Combined with growth in other markets, management believes this leaves Zip well-positioned to deliver material growth in the future.

The post Zip (ASX:Z1P) share price lower despite savings and crypto products update appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended AFTERPAY T FPO and ZIPCOLTD FPO. The Motley Fool Australia owns shares of and has recommended AFTERPAY T FPO. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Incannex Healthcare Ltd (ASX: IHL) share price has been a winner on the ASX over the last few weeks and posted outsized gains.

Whereas the S&P/ASX 200 Index (ASX: XJO) has slipped 2.7% into the red over the past month, Incannex shares have soared 42% in that time to now trade at 39 cents each.

Let’s dive in to see what’s behind Incannex shares lately.

A bit more on Incannex and the industry

Incannex is a biopharmaceutical company that has expertise in medicinal cannabis and psychedelics. There is a wealth of research that now exists to support the use of these compounds as prescription-type medicine.

For instance, Incannex’s labels are indicated in conditions such as sleep apnoea, traumatic brain injury (TBI), osteo arthritis and rheumatoid arthritis, and inflammatory bowel disease (IBD).

At the time of writing, Incannex has a market capitalisation of $432 million.

What’s been driving the Incannex share price lately?

Incannex has been on the good end of clinical and regulatory tailwinds that have impacted its share price.

Earlier in March, the company revealed its drug candidate IHL–675A, indicated for use in rheumatoid arthritis, was more effective at reducing symptoms associated with rheumatoid arthritis versus other labels on the market.

This is promising news for the company, given that its CBD based treatment avenues appear to be gaining steam in the domain of autoimmune/auto-inflammatory disorders like rheumatoid arthritis.

In fact, in a nice add-on to the study, the IHL–675A compound was also found to be effective in treating other inflammatory based conditions such as bronchitis, asthma and colitis.

Incannex also recently announced its intention to float on the NASDAQ using American Depositary Receipts under the ticker “IXHL”.

It announced the filing of a Form F-1 last month with the US Securities and Exchange Commission (SEC). The F-1 form is what non-US companies file if wanting to list onto a US exchange, such as the NASDAQ. It’s the same as an initial public offering (IPO) on the ASX.

Aside from this, Incannex also successfully filed several patent applications in the last few months. It completed applications in Europe, Japan and Australia for its IHL–42X development program.

Investors bought Incannex shares on the patent news as well as the company’s FY21 results where it grew revenue 214% year on year.

There has been no other market-sensitive information for the company lately so it appears investors are buying Incannex shares on the back of these catalysts.

Incannex share price snapshot

The Incannex share price has posted outsized returns since January and has climbed 152% this year to date. This extends the gain over the past 12 months to a mammoth 561%.

Both of these results have far outpaced the broad index’s return of around 25% over the past year.

The post The Incannex (ASX:IHL) share price is up 40% in a month. Here’s why appeared first on The Motley Fool Australia.

More reading

• Why the Incannex (ASX:IHL) share price is rocketing 170% in 2021
• Why the Incannex (ASX:IHL) share price leapt 9% today

The author Zach Bristow has no positions 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 Bruce Jackson.

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