The Starpharma Holdings Limited (ASX: SPL) share price is pushing higher on Tuesday morning.

At one stage today, the dendrimer products developer’s shares were up as much as 6% to $1.98.

At the time of writing, Starpharma share price has eased back but remains 1% higher at $1.89.

Why is the Starpharma share price pushing higher?

The catalyst for this gain has been the release of a positive announcement this morning relating to its second radiopharmaceutical candidate, DEP HER2-lutetium.

According to the release, DEP HER2-lutetium achieved potent and durable anticancer activity in a human breast cancer model. The release advises that it demonstrated complete tumour regression, outperforming Herceptin (trastuzumab) labelled with lutetium.

The study was conducted at University of Queensland’s Centre for Advanced Imaging. It evaluated the anticancer activity of different doses of DEP HER2-lutetium and DEP lutetium. Treatment with either a 1×15 MBq or 2×9 MBq dose of DEP HER2-lutetium showed a potent anti-tumour effect, resulting in complete tumour regression in the BT474 human breast cancer model.

Positively, all dose regimens of DEP HER2- lutetium were extremely well tolerated. Furthermore, there were no deaths due to treatment or as a result of tumour growth in any treatment group.

What now?

Management notes that radiotheranostics is a rapidly developing area of cancer treatment and diagnosis, which has recently generated several high-value deals. Recent deals include the acquisition of Endocyte by Novartis for US$2.1 billion and the acquisition of former ASX listed company Sirtex by CDH Genetech for ~A$1.9 billion.

Sales in the category are estimated to grow to $12 billion to $15 billion by 2030.

Starpharma’s CEO, Dr Jackie Fairley, commented: “We and our specialist radiotheranostics clinical advisers are very excited by these latest data. Starpharma now has multiple potential DEP products in the radiopharmaceuticals and radiodiagnostic area. We are delighted to continue working with Professor Kristofer Thurecht at the University of Queensland’s Centre for Advanced Imaging, as well as building strong relationships with radionuclide specialists and clinicians.”

More reading

• Which ASX healthcare shares saw the biggest gains in February?
• Starpharma (ASX:SPL) share price slips after posting loss
• Here’s why the Starpharma (ASX:SPL) share price is rocketing 13% higher
• Why Bank of Queensland, MNF, Oil Search, & Starpharma are charging higher

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 Starpharma Holdings Limited. The Motley Fool Australia has recommended Starpharma Holdings 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 Brainchip Holdings Ltd (ASX: BRN) share price nosedived at market open following the surprise exit from its CEO. At one point, the artificial intelligence technology company’s shares hit as low as 47.5 cents. However, some bargain hunters have swooped in, easing the share price to 51 cents, down 9%.

What’s driving the BrainChip share price lower?

The BrainChip share price is deep in the red today as investors weigh up the company’s latest update.

According to this morning’s release, the BrainChip board has mutually decided to terminate the managing director and CEO, Louis DiNardo, from his post. While no reason was stated for the abrupt exit, the decision was made with immediate effect, concerning shareholders. The company said that Mr. DiNardo was leaving to ‘pursue other interests’.

In a bid to quickly fill the hole left, the board has appointed Peter van der Made as the new interim CEO. Mr van der Made is the current chief technology officer, co-founder, and executive director of BrainChip. He was also CEO of the company from October 2015 until September 2016, when Mr. DiNardo took over the reins.

During the interim period, Mr van der Made will be assisted by his senior management team to fulfil his outstanding duties. This includes Anil Mankar who is co-founder and chief development officer, Ken Scarince, chief financial officer, and Rob Telson, vice president of worldwide sales.

BrainChip noted that there will be no changes to Mr van der Made’s remuneration package, while he serves the new temporary role. A search is currently underway to find a permanent replacement.

To ensure a smooth transition process, Mr. DiNardo will move into a 12-month part-time role with BrainChip, supporting Mr van der Made.

Management commentary

BrainChip non-executive chair Mr. Emmanuel Hernandez commented:

On behalf of the Board and the employees of Brainchip, we thank Lou for his years of service to Brainchip and for taking us from concept to silicon. We wish him the best in his future endeavours.

Mr. van der Made went on to add:

I also want to thank Lou for leading us to this point. I am honoured to lead our team during this interim period, while the Board commences an expeditious search for our next seasoned Chief Executive Officer, to further advance the commercialization of our Akida technology and strategy for the future.

Despite today’s fall, the BrainChip share price has gained more than 1,500% since this time last year.

More reading

• ASX quarterly rebalance: HUB24 joins ASX 200, Brainchip into ASX 300
• Brainchip (ASX:BRN) share price tumbles 5% today. Why?
• Brainchip (ASX:BRN) share price slides on bigger loss

Motley Fool contributor Aaron Teboneras 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 Rhythm Biosciences Ltd (ASX: RHY) share price has opened higher on Tuesday after the successful completion of Study 6 for its ColoSTAT product. At the time of writing, the Rhythm share price is trading at $1.60, up 6.33%.

Let’s take a closer look at this announcement and what it means for the Rhythm share price.

Why the Rhythm share price opened higher on Tuesday 

The Rhythm share price has surged. Climbing from a low of 3.5 cents 12-months ago to a high of $1.675 on 2 March. The company continues to hit significant milestones. In particular, for the commercialisation of its simple, affordable, and effective ColoSTAT blood test. This test focuses specifically on the early detection of colorectal cancer, the third-largest cause of cancer-related deaths globally. 

Today, the company announced the successful completion of Study 6 for ColoSTAT. Study 6 confirmed that the third-party commercially manufactured ColoSTAT prototype test-kid demonstrated a high level of accuracy for the detection of colorectal cancer via a simple blood test. 

This test utilised a third-party, commercially developed test-kit which proved that the test was reproducible, salable and consistent. Study 6 demonstrated an increase in performance over Rhythm’s earlier testing results announced in November 2020.

The company will now progress to Study 7, which involves a ~1000 patient clinical trial across ten clinical trial sites. The newly appointed sites will provide geographical diversity across four states. These trials will ultimately support regulatory submissions. In particular, for the Conformitè Europëenne (CE) Mark and the Therapeutic Goods Administration (TGA) in Australia. 

Rhythm share price eyes global opportunity 

Rhythm highlights the growing burden of colorectal cancer in the US. The US Preventative Services Task Force currently recommends the screening age to be reduced from 50 to 45 years. This would increase the targeting screening population in the US to ~144 million people, up from 94 million. The US Centres for Medicare and Medicaid Services has also released a draft decision outlining the criteria for reimbursement of current and future blood-based colorectal cancer screening tests. Rhythm also notes that its ColoSTAT testing kid would be able to meet the requirements for reimbursement eligibility in the US. This comment was based on the Study 6 performance. 

Comments from the CEO

Rhythm CEO, Glenn Gilbert is pleased with the company’s results today and eyes future opportunities to commercialise the ColoSTAT test:

We continue to target ColoSTAT® as a disruptive cancer detection technology for the global mass screening market to address the growing burden of colorectal cancer. The completion, increase in performance and generally positive outcome of Study 6, is a critical milestone for the Company as we progress our clinical trial, and importantly, how we now consider our entry plans for the global markets, including the US.

Additionally, in Rhythm’s half-year results, the company notes that it remains fully funded to execute its development plan. Furthermore, Rhythm ended the December 2020 period with a cash balance of $6.02 million. 

More reading

• Which ASX healthcare shares saw the biggest gains in February?

Motley Fool contributor Kerry Sun 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 Clover Corporation Limited (ASX: CLV) share price is surging this morning following the release of its results for the first half of FY21.

At the time of writing, the specialist ingredients company’s shares have climbed 5.62%, trading at $1.41.

Let’s take a closer look and see how the company performed over the period.

What were the financial highlights?

The Clover share price is climbing this morning despite the group reporting a set of negative numbers.

For the six months ending 31 January 2021, Clover delivered total net sales revenue of $29.4 million, reflecting a 21.7% decrease on the prior corresponding period (pcp). The soft result was primarily driven by difficult trading conditions caused by COVID-19 across the infant formula industry.

The Chinese market experienced supply channels fluctuations as demand from Daigou’s tumbled with international travel halted, affecting ‘grey market’ importation.

Adding to the company’s woes, local Chinese manufacturers have increasingly become more competitive with international brands. This includes pricing war and aggressive channel strategies, which has led the Australian and New Zealand market to record a fall in revenue.

Elsewhere, however, Clover grew revenue slightly in Europe, Asia and its United States segments, based on new customers and products.

Operating expenses came to $4.6 million for the first half, a drop of 15% on this time last year. The reduction was attributed to management’s focus on limiting discretionary spending through several initiatives. It’s worth noting that the company has also put many new product programs on hold as customer’s staff continue to work from home.

On the company’s bottom line, net profit after tax (NPAT) sank to $2.5 million, which is a heavy fall of 45.8% over H1 FY20. While expenses were curtailed, one-off impacts such as start-up costs in Melody Dairies and ongoing legal fees were to blame. The latter is associated with enforcing the company’s intellectual property rights against Pharmamark Nutrition Pty Ltd.

Clover closed the period with a cash balance of $9.8 million, a slight increase of $0.6 million on the prior comparable term. Total current liabilities stood at $6.5 million, down from $10.9 million achieved in H1 FY20.

Despite the poor result, the board declared a fully franked dividend of 0.5 cents per share to be paid on 29 April 2021.

Outlook for the Clover share price

Looking ahead, Clover revealed that global uncertainty is leading to a slow recovery in the infant formula market. With this in mind, it expects revenue for the entire FY21 period to be between $60 million and $70 million.

In addition, the company stated that it would seek to pursue opportunities that will enhance growth across its customer base. It said that establishing new sources of raw materials and rolling out new product applications will advance the business’ prospects.

The Clover share price has lost close to 30% of its value over the past 12 months. Year-to-date, the story is no different, with its shares down almost 20%.

More reading

• No ASX dividend share is perfect, but Soul Patts (ASX:SOL) is more perfect than most

Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Clover Limited. 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 Piedmont Lithium Ltd (ASX: PLL) share price has been a very strong performer on Tuesday morning.

At the time of writing, the North American-based lithium company’s shares are up 9% to $1.06.

This leaves the Piedmont Lithium share price trading within a whisker of its all-time high of $1.09.

Why is the Piedmont Lithium share price charging higher?

Investors have been buying Piedmont Lithium shares today after it announced the commencement of a definitive feasibility study (DFS). This study is for its integrated North Carolina lithium hydroxide operations and will include Metso Outotec’s innovative alkaline pressure leach technology.

According to the release, using Metso Outotec’s technology, which omits the acid roasting step of conventional spodumene conversion, air emissions from the chemical operations are expected to be reduced compared with previous studies. Furthermore, the consumption of sulphuric acid and sodium sulphate waste products will be eliminated.

Management notes that the DFS will also evaluate enhancements to its North Carolina operations. This includes the installation of solar generating capacity, in-pit crushing systems, and the elimination of haul trucks from its operations plan. These are all expected to improve both carbon emissions and project economics.

What now?

The DFS is expected to be completed by the end of the third quarter of 2021. Ahead of that, the company intends to update investors with a preliminary economic assessment of the integrated business, including the Metso Outotec technology, and a mineral resource estimate with the second quarter.

After which, if everything goes to plan, the construction of the concentrate operations is anticipated to be completed by the end of 2022, and the chemical plant is expected to be completed in 2023.

Piedmont Lithium’s President and CEO, Keith D Phillips, commented: “Demand for locally and ethically-sourced battery raw materials is accelerating, and Piedmont is engaging in multiple initiatives to meet this opportunity in the most sustainable way possible. With the backdrop of new executive orders supporting the domestic battery supply chains, we are very pleased to launch an integrated definitive feasibility study to advance our North Carolina operations.

“In adopting the innovative Metso Outotec process we hope to deliver enhanced DFS economics while also positioning the Piedmont Lithium Project to have a lower environment impact than any of the lithium hydroxide projects currently operating and under construction around the world.”

More reading

• Why Afterpay, Piedmont Lithium, ResApp, & Santos are charging higher
• Here’s why the Piedmont Lithium (ASX:PLL) share price is jumping 11% today
• Here’s why the Piedmont (ASX:PLL) share price jumped 10% today
• These 2 ASX mining shares have gained over 8% this week
• Why the Piedmont (ASX:PLL) share price just hit an all-time high

Motley Fool contributor James Mickleboro 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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A few ASX shares are growing really rapidly, which may mean that they’re worth looking at.

Businesses that are increasing the revenue and profit at a very fast pace may be able to deliver good shareholders.

Technology businesses in-particular are growing at a very fast rate in reaction to some COVID-19 impacts.

Temple & Webster Group Ltd (ASX: TPW)

Temple & Webster is one of the ASX shares that have seen the most growth over the last year after the COVID-19 crash.

Over the last year the Temple & Webster share price has risen 342%. The ASX retail share has benefited from the high level of interest from shoppers in digital channels.

In the Temple & Webster half-year report, it revealed that active customers more than doubled to 678,000. Not only that, but revenue per active customer increased by 6% to $401 due to a higher level of repeat buying.

Not only is Temple & Webster increasing its marketing spending as it gets bigger, but its conversion rate is also improving along with a higher customer satisfaction rate. It has done a number of things to make things better for customers including: better range and quality, it doubled capacity in the ‘care team’, added more carriers for bulky delivery, invested in data integration for self-service and AI-assisted help, and it’s working with logistics partners in peak periods.

Temple & Webster generated revenue growth of 118% to $161.6 million and earnings before interest, tax, depreciation and amortisation (EBITDA) growth of 556%.

The company shared some reasons why investors should be interested in the business. The ASX share said it’s the leading pure play online retailer for furniture and homewares in Australia. It has a large addressable market with accelerating online adoption. Finally, Temple & Webster says it’s profitable with strong top-line growth and a debt free balance sheet.  

Pushpay Holdings Ltd (ASX: PPH)

Pushpay is an ASX share that has benefited from a rapid shift to digital payments over the last 12 months.

The tech business provides tools and services so that churches can manage their donations and connect with their congregations. One benefit of Pushpay’s offering is that it has a livestreaming function.

Pushpay’s FY21 interim result included a number of strong growth statistics including 203% growth of operating cashflow to US$27 million and earnings before interest, tax, depreciation, amortisation and foreign currency (EBITDAF) growth of 177% to US$26.7 million.

The combined offering of Pushpay and Church Community Builder, called ChurchStaq, is proving to be popular with churches and may help increase the stickiness of those clients as they’re getting all the benefits that Pushpay has to offer.

The ASX share continues to boast of increasing operating leverage and this was shown in January 2021 when it increased its EBITDAF guidance for FY21 once again with the forecast range now US$56 million to US$60 million. Processing volume over the month of December 2020 was slightly higher than the company’s internal forecast.

Will Pushpay’s profit margins keep rising? Pushpay said it expects operating leverage to continue to accrue to the business over the rest of FY21.

The Pushpay share price is valued at 22x FY23’s estimated earnings according to Commsec.

More reading

• 10 of the best ASX shares to buy in March
• 2 fantastic ASX shares with long runways for growth
• Will the ASX share e-commerce boom last?
• Why Afterpay, Nearmap, Temple & Webster, & Z Energy are tumbling lower
• 2 great ASX tech shares to buy today

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 PUSHPAY FPO NZX and Temple & Webster Group Ltd. The Motley Fool Australia has recommended PUSHPAY FPO NZX and Temple & Webster Group 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 BARD1 Life Sciences (ASX: BD1) share price is on watch today after positive results from the evaluation of its EXO-NET product in pancreatic cancer. 

Let’s take a closer look at the announcement and what this means for the BARD1 share price. 

What’s driving the BARD1 share price higher? 

BARD1 maintains a cancer diagnostics portfolio. This includes the commercialised hTRET test which is used as a supplement to urine cytology tests. Additionally, the portfolio also includes diagnostics tests in development for ovarian, breast, lung, prostate, and pancreatic cancers. The group is working towards commercialising its proprietary Molecular NET technology. In particular, its lead EXO-NET product designed to capture and purify exosomes in a rapid, scalable and cost-effective manner. 

There are currently multiple EXO-NET evaluations underway. These evaluations are being conducted by various academic and industry partners. Notably, the partners include the University of Sydney, University of Queensland, Minomic International and VivaZome Therapeutics. 

On Tuesday, BARD1 announced positive results from a collaborative research study. The intention of the study was to evaluate its EXO-NET exosome capture technology and Minomic’s anti-GPC-1 antibody. Primarily, this technology is used for the detection of pancreatic cancer. The study found that EXO-NET was highly effective at isolating exosomes from both pancreatic cancer and healthy control samples. While the anti-GPC-1 antibody appeared to bind specific pancreatic cancer exosomes for pancreatic cancer patients. 

BARD1 CEO, Dr Leearne Hinch was pleased with the results and commented on the next steps for EXO-NET: 

This is a very encouraging result that clearly demonstrates the commercial potential of our soon-to-be launched RUO EXO-NET™ product for capturing exosomes and the feasibility of using GPC-1+ exosomes for detection of pancreatic cancer. BARD1 and Minomic are extremely pleased by this outcome and will discuss how to advance the project towards development of an exosome-based GPC-1 test for early detection of pancreatic cancer to improve patient outcomes and survival for this important unmet need.

What’s in store for 2021? 

BARD1 is making significant progress in the development and commercialisation of its diagnostic solutions. In particular, its BARD1, SubB2M, Molecular NETs, and hTRET platforms for healthcare professionals and patients.

BARD1 will continue to test the EXO-NET in collaboration with other academic and industry partners. The company believes the product is on track for commercial launch in 2021.

More recently, an Australian patent was granted for hTERT. The hTERT patent now has granted patents in Australia, China, Europe, Japan and the United States. Additionally, there are currently pending patents in Israel. Moreover, hTERT revenue is in its early days, with the product generating $148,140 for the half-year ended 31 December 2020. 

SubB2M is a unique cancer probe that is currently being used in in-house research programs for the detection and monitoring of prostate and pancreatic cancers and used in collaboration with Griffith University to develop SubB2M-based tests for the detection of ovarian and breast cancers. 

The company currently has a market capitalisation of approximately $230 million with $7.3 million cash at 31 December 2020. 

 

More reading

• Why the BARD1 (ASX:BD1) share price is climbing 6% today
• These small cap ASX shares surged more than 100% in February
• BARD1 (ASX:BD1) share price plummets 15% on legal proceedings

Motley Fool contributor Kerry Sun 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 Syrah Resources Ltd (ASX: SYR) share price is on the move on Tuesday morning.

At the time of writing, the graphite producer’s shares are up over 5% to $1.22.

This latest gain means that the Syrah share price is now up an impressive 24% since the start of the year.

Why is the Syrah share price pushing higher on Tuesday?

Investors have been buying Syrah shares this morning following the release of an update on its Balama operation in Mozambique.

According to the release, the company has achieved consistent production of on-specification natural graphite at Balama during March to date. This positions it ahead of schedule versus the expected lead time of two to three months for its first production.

Given that Syrah announced its plan to restart production at Balama on 22 February, it has taken less than a month to get it to this stage.

What now?

The company advised that it will progressively increase plant utilisation and production volumes as the full contingent of labour at Balama continues to be reinstated.

Syrah’s Managing Director and CEO, Shaun Verner, commented: “During the period of temporary suspension at Balama, we reduced costs whilst also maintaining operating and marketing capability to ensure that we could promptly respond to an improvement in market conditions.”

“Our re-start progress to date is a testament to the ongoing preparedness work by the Balama Operations team during the temporary suspension and positions us well to ramp-up into improving market demand,” he added.

Looking further ahead, the company notes that it continues to progress towards becoming a vertically integrated producer of natural graphite Active Anode Material (AAM) to service ex-Asia markets. It intends to operate Balama in parallel with progressing its natural graphite AAM project at Vidalia, Louisiana, USA.

More reading

• ASX lithium shares to get price shock as commodities supercycle charges up
• Leading brokers name 3 ASX shares to sell today
• Here’s why the Syrah (ASX:SYR) share price is rocketing 15% today

Motley Fool contributor James Mickleboro 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 shares of mining giants BHP Group Ltd (ASX: BHP), Fortescue Metals Group Limited (ASX: FMG), and Rio Tinto Limited (ASX: RIO) have come under a spot of pressure recently.

This has been caused by a reasonably sharp pullback in iron ore prices from their recent highs.

Where next for iron ore prices?

The Goldman Sachs commodities team has been looking into iron ore and has made some changes to its forecasts for the steel making ingredient.

Its team is now expecting a recovery in Brazilian exports and a Chinese environmental policy driven slowdown in steel production to narrow the seaborne iron ore deficit in 2021.

Instead of a 27Mt deficit, it is now forecasting a 9Mt deficit for the year. However, due to the strong start that iron ore prices have had in 2021, it has modestly upgraded its 2021 forecast to an average of US$135 per tonne. Goldman was previously forecasting US$120 per tonne.

Looking further ahead, the broker is forecasting a clear surplus in 2022 instead of another deficit. Its analysts have pencilled in a 23Mt surplus next year, compared to an 8Mt deficit previously. Whereas in 2023 Goldman Sachs expects the surplus to increase to 49Mt.

In light of this, its analysts are forecasting an average iron ore price of US$95 per tonne in 2022 and then a long run iron ore price of US$65 per tonne.

Fortunately for Fortescue and other iron ore producers, Goldman believes that in the near term, ongoing strong demand from China (for infrastructure and property) and mill margin strength should limit the sustainability of any iron ore sell-off in the next few months. Furthermore, China’s environmental policies should provide more support for higher grade ore versus lower grade 58% ore.

Should you buy the miners?

Taking all that into account, the broker is still recommending investors buy BHP shares.

It has a buy rating and $53.40 price target on the Big Australian’s shares. This compares to the latest BHP share price of $47.88.

As for the others, Goldman Sachs has a neutral rating and $20.40 price target on Fortescue’s shares and a neutral rating and $118.80 price target on Rio Tinto’s shares.

Goldman commented:

“The higher 2021 Fe forecast (US$135/t) has resulted in upgrades to our EPS estimates, NAVs and 12-m TPs for the 6 iron ore stocks under coverage. Although we are calling for a c. US$50/t or 30% drop in iron ore by year-end, we think the ongoing recovery in global steel demand in 2Q means it is too early to become bearish on the iron ore sector considering the strong FCF/dividend yields in 2021 (average 10%/7%) and 2022 (average 7%/6%), despite the sector trading at 1.15x NAV.”

“BHP and RIO are trading on 5.5-6x, still below the 25-yr historical average of 6.5-7x, with FMG appearing overvalued at 8x compared to its historical average of 5x. Therefore, we see the drop in iron ore price as mostly priced into BHP and RIO already. We maintain our Buy on BHP due to strong FCF, production growth and 30% EBITDA exposure to our bullish view on met coal, copper and oil.”

More reading

• Chinese factory output is up an astonishing 35%
• Struggling to ride the wave of constant investing news?
• Why the Magellan (ASX:MFG) share price leapt 5% today
• Triple whammy hammers the Fortescue (ASX:FMG) share price today
• Why Afterpay, Fortescue, GWA, & Jupiter Mines are dropping today

Motley Fool contributor James Mickleboro 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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Portugal has joined a list of at least 16 countries that have suspended use of the AstraZeneca plc (LON: AZN) COVID-19 vaccine over fears it may cause blood clots in some recipients. The manufacturer of the vaccine, which has been approved for use in Australia, insists there is no risk from the product’s use.

Studies conducted during the development of the vaccine, as well as observations during the public rollout, do not indicate any level of heightened threat.

With an effective vaccine distribution contributing to recent market confidence, could fears over the vaccine’s safety impact the ASX?

Australian Government continuing vaccine rollout

Treasurer Josh Frydenberg said Australia will not pause the AstraZeneca vaccine rollout.

“[Australian health experts] have not found any causal link between the vaccine and blood clots,” he told Sky News this morning.

“…the vaccine rollout will continue.”

Similarly, Prime Minister Scott Morrison said the Therapeutics Good Administration (TGA) does not need to reconsider approving the vaccine. The PM has previously cited a thorough examination of the efficacy and safety of the AstraZeneca shot as a reason for Australia’s slower than expected inoculation speed.

While the TGA has approved the imported AstraZeneca vaccine for use in Australia, it is yet to approve the locally manufactured variant. The CSL Limited (ASX: CSL) mass-produced vaccine will provide 50 million doses for Australia and its neighbours.

What a delayed rollout could mean for the ASX

The S&P/ASX 200 Index (ASX: XJO) is up 2,227 points (or 49%) since the coronavirus induced mass sell-off of March last year. Arguably, part of the reason for the strong recovery can be attributed to optimism that vaccines will lead to a quick end to the pandemic.

Again, the Australian government does not intend to pause the AstraZeneca vaccine in Australia and there is no evidence of direct harm caused by it.

However, the share market isn’t always a rational beast. Any fears over a delay to the vaccine’s rollout in Australia could spook some investors.

The economic impacts of COVID-19 and subsequent restrictions devasted some of Australia’s largest companies, particularly those operating in the travel sector or those which are heavily reliant on open borders for their revenue.

It will be interesting to see whether ASX shares such as CSL, Qantas Airways Limited (ASX: QAN), Flight Centre Travel Group Ltd (ASX: FLT), and A2 Milk Company Ltd (ASX: A2M) see any fallout from reports surrounding the AstraZeneca vaccine when today’s session kicks off.

More reading

• Chinese factory output is up an astonishing 35%
• The Flight Centre (ASX:FLT) share price is up 40% in six months: Can it go higher?
• Leading brokers name 3 ASX shares to buy today
• Why brokers think the Qantas (ASX:QAN) share price could fly 17% higher
• These are the 10 most shorted shares on the ASX

Marc Sidarous has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of CSL Ltd. The Motley Fool Australia owns shares of and has recommended A2 Milk. The Motley Fool Australia has recommended 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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