There are a good number of dividend shares for investors to choose from on the Australian share market.

Two that offer above-average yields are listed below. Here’s what you need to know about them:

Accent Group Ltd (ASX: AX1)

Accent is a footwear-focused retailer which owns retail store brands such as HYPE DC, Platypus, The Athlete’s Foot and Sneaker Lab. Although many retailers have struggled in 2020 because of the pandemic, Accent wasn’t one of them. Thanks largely to its in-demand brands and its growing online business, in FY 2020 the company posted a 7.5% increase in net profit after tax to $58 million.

One broker that is confident this positive form can continue is Morgan Stanley. It believes Accent is well-positioned for long term growth thanks to its store rollouts, strong online offering, and focus on active and casual wear. In light of this, it is expecting the company to increase its dividend to 9.4 cents per share in FY 2021. Based on the current Accent share price, this equates to a fully franked 5.5% dividend yield.

BWP Trust (ASX: BWP)

Another ASX dividend share with an above-average yield is BWP Trust. It is the largest owner of Bunnings Warehouse sites in Australia, with a portfolio of 68 stores. In addition to this, seven of its properties have adjacent retail showrooms that are leased to other quality retailers. Like Accent, BWP was a positive performer in FY 2020. It reported an occupancy rate of 98% and generated annual rental income of $151.4 million.

Given the strength of the Bunnings business, a similarly positive result is expected from the real estate investment trust in FY 2021. Analysts at Ord Minnett, for example, have pencilled in an 18 cents per share distribution over the next 12 months. Based on the current BWP share price, this will mean a yield of 4.3% for investors.

More reading

• 2 ASX dividend shares with 4% yields
• Why I would buy Woolworths (ASX:WOW) and these shares for a retirement portfolio
• Attention value investors: These ASX shares could be very cheap
• Forget savings accounts and buy these ASX dividend shares instead
• Buying these ASX dividend shares could solve your income needs

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of Wesfarmers Limited. The Motley Fool Australia has recommended Accent Group. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. 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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“Today is a great day for science and humanity,” said Dr. Albert Bourla, Pfizer Chairman and CEO.

This follows the first set of results from its phase 3 COVID-19 vaccine trial, which provides the initial evidence of its vaccine’s ability to prevent COVID-19.

According to its announcement, the vaccine candidate was found to be more than 90% effective in preventing COVID-19 in participants without evidence of prior SARS-CoV-2 infection in the first interim efficacy analysis.

This was notably higher than experts had been hoping for, with many suggesting 60% to 70% effectiveness would have been positive.

The study enrolled 43,538 participants, with 42% having diverse backgrounds, and no serious safety concerns have been observed.

What now?

Safety and additional efficacy data continue to be collected and a Submission for Emergency Use Authorization (EUA) to the U.S. Food and Drug Administration (FDA) is planned soon after the required safety milestone is achieved. This is currently expected to occur in the third week of November.

The analysis evaluated 94 confirmed cases of COVID-19 in trial participants, but more data is wanted.

As such, the clinical trial will continue through to final analysis at 164 confirmed cases in order to collect further data and characterize the vaccine candidate’s performance against other study endpoints.

Based on current projections, Pfizer expects to produce globally up to 50 million vaccine doses in 2020 and up to 1.3 billion doses in 2021. The good news for Australia is that the government has previously secured 10 million doses of the vaccine.

How did the market react?

This news has given global markets a major lift, with shares and energy prices surging higher in Europe and the United States overnight.

For example, the DAX jumped 4.9%, the FTSE rose 4.7%, the WTI crude oil price is up 8.8%, and the Dow Jones has stormed 4.3% higher.

Pleasingly for Australian investors, the S&P/ASX 200 Index (ASX: XJO) is expected to follow their lead and storm higher itself this morning.

According to the latest SPI futures, the ASX 200 is poised to open the day a sizeable 56 points or 2.5% higher.

More reading

• 5 things to watch on the ASX 200 on Tuesday
• ASX 200 jumps 1.75% on Monday
• Latest 3 “buy” recommendations from top brokers
• Here’s why ASX gold shares are surging today
• Why the CBA (ASX:CBA) share price and these ASX stocks could get a $100bn boost

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. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. 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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On Monday the S&P/ASX 200 Index (ASX: XJO) continued its impressive run and stormed higher. The benchmark index rose 1.75% to 6,298.8 points.

Will the market be able to build on this on Tuesday? Here are five things to watch:

ASX 200 poised to surge higher.

It looks set to be a great day of trade for the Australian share market amid positive vaccine news in the United States. According to the latest SPI futures, the ASX 200 is expected to open the day a massive 179 points or 2.8% higher this morning. In late trade on Wall Street the Dow Jones is up 4.75%, the S&P 500 has climbed 3%, and the Nasdaq is up 0.5%.

Pfizer vaccine more than 90% effective.

The catalyst for the strong gains on Wall Street has been a COVID-19 vaccine update by healthcare giant Pfizer. According to its announcement, the vaccine candidate was found to be more than 90% effective in preventing COVID-19 in participants without evidence of prior SARS-CoV-2 infection in the first interim efficacy analysis. The study enrolled 43,538 participants, with 42% having diverse backgrounds, and no serious safety concerns have been observed.

Oil prices jump higher.

It could be a very positive day for energy producers such as Oil Search Limited (ASX: OSH) and Santos Ltd (ASX: STO) after the vaccine news sent oil prices hurtling higher. According to Bloomberg, the WTI crude oil price jumped 8.8% higher to US$40.40 a barrel and the Brent crude oil price is up 7.7% to US$42.50 a barrel.

Gold price crashes lower.

Safe haven assets like gold took a big hit overnight after investor sentiment improved materially. This could be bad news for gold miners including Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) on Tuesday. According to CNBC, the spot gold price has sunk 4.65% lower to US$1,861.40 an ounce.

Domain AGM.

The Domain Holdings Australia Ltd (ASX: DHG) share price will be on watch on Tuesday when it holds its virtual annual general meeting. The property listings company is likely to release a trading update with its presentation. Expectations are high after rival REA Group Limited (ASX: REA) smashed expectations with its first quarter update last week.

More reading

• ASX 200 jumps 1.75% on Monday
• Latest 3 “buy” recommendations from top brokers
• Nine (ASX:NEC) share price edges up on rugby union deal
• Here’s why ASX gold shares are surging today
• Why the REA Group (ASX:REA) share price jumped 10% to a record high

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has recommended REA Group Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. 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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The S&P/ASX 200 Index (ASX: XJO) went up by 1.75% today to 6,299 points.

Strong day for the ASX 200

The ASX 200 had one of its best days in months after the US election was finally called for Joe Biden.

There were a lot of gains today.

The REA Group Limited (ASX: REA) share price went up by 9%, the Nearmap Ltd (ASX: NEA) share price grew by 8.1%, the Zip Co Ltd (ASX: Z1P) share price rose by 7%, the Fortescue Metals Group Limited (ASX: FMG) share price grew by 6.4% and the Mineral Resources Limited (ASX: MIN) share price rose around 6%.

Crown Resorts Ltd (ASX: CWN)

Crown announced some changes for its operations today.

The casino complex at Melbourne has received approval to commence the operation of a limited number of electronic gaming machines and electronic table games in accordance with restrictions agreed with the Victorian government.

The restrictions include restricted operations to ten designated VIP areas, each with a maximum capacity of ten patrons with no smoking permitted. There will be physical distancing between patrons with every second electronic gaming machine and electronic table deactivated. Patrons will be restricted to 90 minutes of activity per day. There will be a COVID-19 marshal for each area and there will be enhanced hygiene protocols.

Gaming operations are expected to commence from Thursday, 12 November 2020 for the ASX 200’s Melbourne operations.

In addition, following the Victorian government’s recent announcements regarding the easing of restrictions in Victoria, select retail outlets re-commenced operations from 28 October 2020, select food and beverage outlets re-commenced operations from 2 November 2020 and Crown Towers Melbourne re-opened today in accordance with the Victorian government’s restrictions.

Crown Aspinalls ceased operations from 5 November 2020 after the government’s announcement of new restrictions in the United Kingdom.

Ken Barton, the Crown CEO, said: “We have been working for some time with the Victorian government and health authorities to determine how we can safely re-open Crown Melbourne and have developed extensive physical distancing and hygiene measures to allow re-opening in a safe manner. We are pleased to be able to commence the process of welcoming back our employees and customers to Crown Melbourne.”

The Crown share price rose by 3.6%.

Tabcorp Holdings Limited (ASX: TAH)

The Tabcorp share price fell by around 3% after the company announced that services were largely stored.

There was a major outage which impacted the ASX 200 share’s TAB, Keno and gaming services operations and systems from around 11:30am on Saturday.

Tabcorp has commenced a comprehensive and urgent review into this incident, which will be overseen by the board.

The company said that based on a preliminary assessment, a smoke and likely fire incident at a third-party managed data centre in Sydney resulted in extensive damage to Tabcorp’s servers and associated infrastructure. This led to technical and systems outages, as well as the closure of TAB retail venues.

At this stage, there is no evidence of any potential cyber security issues or customer data breaches.

Lost wagering turnover over the weekend is estimated to have impacted Tabcorp earnings before interest, tax, depreciation and amortisation (EBITDA) by less than $10 million.

Tabcorp managing director and CEO David Attenborough said: “The outage was unacceptable. Tabcorp remains deeply sorry for this and acknowledges the significant disruption caused to our customers, the racing industry and venue partners.

“Our teams and technology partners are continuing to deploy all available resources into restoring the full Tabcorp gambling entertainment experience for our customers and partners.”

It was the worst performer in the ASX 200 today.

More reading

• Latest 3 “buy” recommendations from top brokers
• Here’s why ASX gold shares are surging today
• Why the REA Group (ASX:REA) share price jumped 10% to a record high
• Why this broker has rated Jumbo (ASX:JIN) shares a buy
• Why Alcidion, Avita, BHP, & REA Group shares are storming higher

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 Nearmap Ltd. and ZIPCOLTD FPO. The Motley Fool Australia has recommended Crown Resorts Limited, Nearmap Ltd., and REA Group Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. 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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The CSL Limited (ASX: CSL) share price was a positive performer on Monday and pushed higher with the market.

The biotherapeutics company’s shares ended the day 1% higher at $304.92.

Why did the CSL share price push higher?

As well as getting a boost from improving investor sentiment, CSL’s shares were given a lift by the release of an announcement relating to its COVID-19 vaccine activities.

According to the release, this morning CSL commenced the manufacturing of the University of Oxford/AstraZeneca AZD1222 COVID-19 vaccine candidate at its advanced manufacturing facility in Broadmeadows, Victoria.

This is before the vaccine candidate has even completed its trials or been approved for use.

The company has separate contracts with both AstraZeneca and the Australian Government to manufacture approximately 30 million doses of the AZD1222 vaccine candidate. The first doses are planned for release in the first half of 2021, pending the outcome of clinical trials and regulatory approval.

What now?

According to the release, the manufacturing process will start with the thaw of vials containing vaccine cells. The cells, which were frozen under liquid nitrogen to preserve their integrity, need to be thawed in preparation for replication in the bioreactors at the company’s Broadmeadows facility.

After growing in the bioreactors, the vaccine is then filtered and purified leaving just the antigen, or vaccine product. It is then ready for final formulation and filling into dosage vials.

During 2020/2021, CSL will manufacture eight large scale batches of vaccine drug substance. Should the vaccine demonstrate its safety and efficacy in clinical trials that are currently underway, it is anticipated that it will require a two dose per person regime.

The company notes that the Australian Government has provided support in order to augment its capacity and capability to manufacture the AZD1222 vaccine.

This support has enabled the acquisition of specialised equipment and production inputs, the recruitment, training and redeployment of dozens of additional production personnel, and the reconfiguration of air handling and some structural modification to the manufacturing facilities.

Pleasingly, despite the commencement of these activities, it has been able to maintain commitments to manufacture the company’s vital core biotherapies.

CSL’s Chief Scientific Officer, Dr Andrew Nash, commented: “This is an important milestone and marks the end of many months of around the clock preparation by our skilled personnel globally within CSL Behring, Seqirus and research and development. Both campaigns are still technically challenging but at this time we are tracking well and expect to produce the AZD1222 and the UQ-CSL V451 vaccine for Australia by mid-2021.”

“There’s still a long way to go and our first priority resolutely remains the safety and efficacy of the vaccines we produce. We are undertaking these manufacturing activities at-risk and in parallel with the clinical trials and approvals processes in recognition of the significant urgency of the COVID-19 pandemic,” he concluded.

More reading

• Leading brokers name 3 ASX shares to buy today
• ASX 200 Weekly Wrap: US election special
• 2 ASX healthcare shares to buy today
• Top brokers name 3 ASX shares to buy today
• ASX 200 Weekly Wrap: ASX 200 has another shocker as US election approaches

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 CSL Ltd. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. 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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The IOUpay Ltd (ASX: IOU) share price surged today following the shares return to the market after a trading halt last week.

The IOUpay share price closed the day’s trade at 22 cents a share, up 10.26%, after opening at 21 cents. IOUpay shares traded at 20 cents a share last Wednesday (4 November) before they were placed in a trading halt by the company.

A successful capital raise

The reason for this halt was a capital raise, the details of which we didn’t find out until today. That’s because, unlike many capital raises ASX investors would be used to, this particular one was open to “sophisticated and institutional investors” only and conducted behind closed doors.

The company told investors this morning that the raise was successful, and has resulted in the company raising $10,055,300 via the issuance of approximately 62.85 million shares at a price of 16 cents each. This was made up of 2 tranches of different prices and volumes. 

The IOUpay chair Aaron Lee had this to say on the placement:

The Company is delighted to see the market respond so strongly to our plans to accelerate our market position as a leading operator in the digital payments sector in South East Asia. This capital raising represents another important milestone in our roadmap to expand our existing and new product offerings. We welcome all new shareholders and thank our existing shareholders for their continued support.

IOUpay told investors that the capital raised from this program will go towards a number of areas. These include “salaries, professional services, administration expenses, product development, digital payment inventory and marketing development.”

If today’s share price movement is anything to go by, IOUpay investors seem to be enthusiastically on board with the company’s plans.

Who is IOUpay?

IOUpay is one of the newest ASX fintech shares, having only debuted on the ASX in September. It caused quite an impression when it surged 44% on IPO day.

IOUpay provides digital commerce software solutions and services. The company helps institutional clients expand their digital platforms, products and offerings to any mobile device. According to the company, it aims to be “one of the leading digital transaction processors in the booming cashless economies of Southeast Asia.”

The IOUpay share price is currently sitting more than 46% higher than when it IPOed, with a current market capitalisation of just over $79 million.

More reading

• The IOUpay (ASX:IOU) share price is in a trading halt today
• Why the IOUpay (ASX:IOU) share price jumped 14% this morning
• Douugh and Ioupay were among the most traded shares on the ASX last week
• Are speculators driving today’s 44% Ioupay (ASX:IOU) share price gains?

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. 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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Industrial equipment manufacturer PPK Group Limited (ASX: PPK) has announced a joint venture (JV) today with Amaero International Ltd (ASX: 3DA) and Deakin University.

The plan is to develop a new super strength aluminium alloy that can be used in industries seeking materials that are lighter, stronger, and more durable.  These industries include sporting goods, auto racing, aerospace, and defence.

How did the market react?

Both PPK Group and Amaero International’s share prices have surged up amid a broader market rise in the ASX today.

The PPK Group share price was up 8.17% to $5.69 at the time of writing. Meanwhile, the Amaero International share price surged up by 14.05% to 69 cents. At these prices, the companies command a market cap $452 million and $55 million respectively. 

Details of the joint venture

PPK Group says that a new legal company called Strategic Alloys Pty Ltd will be incorporated to undertake this advanced materials project. The new entity will be owned 45% by PPK Group, 45% by Amaero Alloys Pty Ltd (a subsidiary of Amaero International), and 10% by Deakin University.

The new super strength aluminium alloy will include boron nitride nanotubes (BNNT) in its formulation. This acts as a nano-reinforcement in certain metals, significantly improving mechanical properties.

PPK Group said this project would create new intellectual property – along with employment, sales, and exports – for years to come. The research will be undertaken at Amaero’s laboratories in Notting Hill, Victoria, and also at Deakin University in Geelong. 

What did management say?

Commenting on the news, PPK Group executive chair Robin Levison, said:

We are looking forward to working with Amaero on this project, it is an important step in demonstrating the benefits of BNNT additions to alloys that will provide valuable data for clients interested in the unique properties that can be delivered. 

Amaero International CEO Barrie Finnin also welcomed the joint venture, saying:

The joint venture between Amaero, PPK and Deakin University is a new partnership in materials development that will give rise to new intellectual property and create opportunities for high end applications across the aerospace and defence industries as well as some other high performance markets.

The joint venture aims to develop this revolutionary technology in Australia and create new industry, employment, products and exports for many years to come.

The project will start in November 2020, with initial material validation expected in early 2021. 

More reading

• IOUpay (ASX:IOU) shares rally after successful capital raise
• Why the Azure Minerals (ASX:AZS) share price soared 44% higher today
• The A2 Milk (ASX:A2M) share price is up 4% today. Here’s why.
• Here’s why the Impedimed (ASX:IPD) share price shot up 13% today
• Why the Resapp (ASX:RAP) share price stormed 5% higher today

Motley Fool contributor Eddy Sunarto has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. 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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The Azure Minerals Limited (ASX: AZS) share price is up 44% today to 52 cents per share. This follows the company’s ASX announcement this morning on the drilling program at its Andover project in the West Pilbara region of Western Australia.

Azure shareholders are no strangers to big share price swings in both directions. On 12 October, Azure’s share price surged 70% in intraday trading after the company emerged from a trading halt to announce the results of its first drill hole at Andover.

Today’s gains have sent Azure’s share price up 271% year-to-date. By comparison the All Ordinaries Index (ASX: XAO) is down 4% so far in 2020.

What does Azure Minerals do?

Azure Minerals is a minerals explorer primarily focused on its portfolio of projects in Mexico, though it’s the Western Australia project that’s currently exciting investors. The company’s flagship project is the Oposura project, containing zinc, lead and silver resources. It’s situated in the northern Mexican state of Sonora.

The company also undertakes early-stage exploration for new greenfield prospects, and partners with major resource companies to develop projects with the potential for large-scale, long-life mining operations.

What did Azure announce to send the share price up 44% today?

In this morning’s announcement to the ASX, Azure Minerals reported that assays from the first 2 drill holes of its maiden drilling program at its Andover Project in Western Australia confirmed the presence of high-grade nickel-copper mineralisation.

Assays from the third hole are pending. And Azure reported its fourth drill hole – testing a new target zone defined by a strong electromagnetic conductor – is close to complete.

Azure owns 60% of the project and Creasy Group owns the other 40%.

Commenting on the results, Azure’s managing director Tony Rovira said:

With assays confirming that the massive and semi-massive sulphides seen visually in the first 2 drill holes contain high grades of nickel and copper, and with our third hole intersecting similar looking sulphide mineralisation, the Andover Ni-Cu Project is swiftly confirming our confidence in its potential to host a substantial Ni-Cu deposit.

Noting the the company is still at an early stage of exploration, Rovira added, “With additional success, there is potential here for a sizeable nickel and copper deposit typical of other layered mafic-ultramafic-hosted nickel-copper deposits in Western Australia.”

With the results from Azure’s third and fourth drill holes still pending, the Azure share price is one to keep an eye on.

More reading

• The Azure Minerals (ASX:AZS) share price has rocketed 62%. Here’s why.

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. 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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The A2 Milk Company Ltd (ASX: A2M) share price has surged up 4.30% to $14.30 today amid a broader market rise in the ASX. Let’s take a look at how the company has evolved in the last two years, and why the A2 Milk share price keeps coming back up.

Evolution of the A2 Milk share price

A2 Milk has experienced a bit of a roller coaster period in the last two years. At the beginning of 2019, the A2 Milk share price was trading around $10, and by the end of that year, had increased by 40% to $14. This momentum continued until March 2020 when it was trading as high as $16.60.

But then, global markets encountered a major shock as the coronavirus pandemic gripped the whole world – dragging A2 Milk’s share price back down to the $14 levels. The market eventually settled down, and by August the company’s share price has surged back to a YTD high of $20.05.  

In late September, however, the company announced a negative outlook for FY21. A2 Milk noted that sales to retail ‘daigous’ in Australia and New Zealand (ANZ) would be curtailed due to the pervailing pandemic restrictions and reduction of tourists and students from China. Note that tourists and students from China make up a big portion of A2 Milk’s export channel, as these so-called daigous fulfil orders from Chinese customers overseas.

Since that announcement, the company’s share price dropped as low as $13.24 before bouncing back in the last few days of trading to the current price of $14.32.

A2 Milk’s business model

A2 Milk differentiates itself from other brands by marketing its unique A2 protein content as a healthier and safer choice. A2 beta-casein is a type of protein found in milk. Some studies have found that it is a healthier option than the more common A1 type found in regular milk. Other companies have tried to produce A2 milk and imitate its business model, but their lack of success has only stamped A2 Milk’s superior position within the industry. 

The company has a strong demand in China for its infant milk formula product. To get around the daigou export problem, A2 Milk says that it is rapidly building its Chinese-based business by increasing its e-commerce presence, as well as expanding its physical distribution to more mother and baby (MAB) stores across mainland China. 

However, China is not the only export channel for A2 Milk. According to the company, its US liquid milk business is growing quickly, and Canada shapes up to be the next market frontier for A2 Milk. 

A2 Milk by the numbers

A2 Milk’s balance sheet is strong with debt comprising only around 22% of its capital structure. The company is also very liquid with its current assets representing 78% of total assets. Current assets are those assets that can converted into cash within one year. 

A2 Milk expects its total FY21 revenue to be around $1.9 billion, which would be a growth of close to 10%. 

On the earnings side, its revenue has doubled in just two years, while maintaining net profit margin at a healthy 22%. The rocket-like rise in its earnings per share (EPS) from 24 cents to 49 cents came from a low base in 2015, when it was a struggling company.

At the current price of $14.32, the A2 Milk commands a market cap of $10.2 billion.

More reading

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• 4 outstanding ASX 200 shares to buy with $4,000
• I plan to invest heavily in ASX shares next week
• 3 great ASX growth shares to buy in November
• 3 explosive ASX growth shares to buy with $3,000

Motley Fool contributor Eddy Sunarto has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended A2 Milk. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. 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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The Impedimed Limited (ASX: IPD) share price rocketed by 13.41% today to close the day’s trade at 9.3 cents per share. This came after the company announced that its Sozo medical device has been selected by AstraZeneca for use in a phase 2 drug trial.

What did Impedimed announce?

Impedimed is a medical device company that produces a family of FDA-approved devices. It has been listed on the ASX since 2007.

According to Impedimed, pharmaceutical giant AstraZeneca has selected its Sozo device for a phase 2 trial in order to measure fluid volume in patients with chronic kidney disease. The AstraZeneca study will use the Impedimed device to evaluate the efficacy, safety and tolerability of a combination of 2 AstraZeneca drugs.

The trial will begin in January 2021 and run for approximately 18 months. According to Impedimed, the study will generate $2 million in revenue. The total expected revenue from this trial and a previously announced AstraZeneca trial, in which it is also using Sozo, is $4.5 million. 

An additional 200 Sozo devices will be leased across 24 countries for the trial, bringing the total Sozo devices leased for AstraZeneca studies to 375.

Impedimed managing director and CEO Richard Carreon commented: “There are millions of people today living with chronic kidney disease, and we look forward to learning more about the impact this trial will have on improving patient care.”

How has Impedimed performed recently?

In the first quarter of FY2021, Impedimed had revenue of $1.5 million, an increase of 11% on the prior corresponding period. Impedimed had $15.4 million cash on hand at 30 September 2020.

The Impedimed share price is up more than 187% since its 52-week low of 3.2 cents, however, it is down 38% since the beginning of the year. The Impedimed share price is down 34% since this time last year.

More reading

• The A2 Milk (ASX:A2M) share price is up 4% today. Here’s why.
• Why the Resapp (ASX:RAP) share price stormed 5% higher today
• The RPMGlobal (ASX:RUL) share price is up 9% in a week. Here’s why.
• ASX stock of the day: Elixinol Global (ASX:EXL) shares blaze new highs
• Leading brokers name 3 ASX shares to buy today

Motley Fool contributor Chris Chitty has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. 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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