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The Telstra Corporation Ltd (ASX: TLS) share price is standing firm on Wednesday morning. This is despite the Australian telecommunications giant announcing the renewal of a large contract with the Department of Defence.

In early trade, shares in the telco are trading at $3.90, the same as at yesterday’s close.

Telstra secures an important contract

In news that could give the Telstra share price a boost, the tenth-largest S&P/ASX 200 Index (ASX: XJO) constituent announced an important contract renewal.

According to the release, the company has reached an agreement with the Australian Department of Defence to continue delivering critical network and telecommunications services.

The renewed contract will span the next 5 years and is worth over $1 billion. As part of this agreement, Telstra will provide the Department with its range of telco solutions and technology. Additionally, the Department of Defence will have the option to extend the contract by up to 3 years.

Furthermore, Telstra’s side of the deal will see a significant increase in wireless coverage via a Wi-Fi 6 rollout program. This relatively new Wi-Fi protocol is a much more efficient protocol, upping potential connection speeds from 3.5 gigabit per second (Wi-Fi 5) to 9.6 gigabit per second. At the same time, Telstra’s 5G mobile network will be made available to all Defence personnel.

In addition, the telco giant will provide full SD-WAN (software-defined wide-area network) and SDN capabilities. In turn, this will enable a more flexible, self-healing, and predictive network. The Telstra share price has barely managed to waver, despite this news.

Management commentary

Commenting on the major contract renewal, Telstra CEO Andrew Penn said:

We are very pleased to extend and deepen our partnership with the Department of Defence and use our unique sovereign capabilities, decades of experience, and cutting-edge technology to co-design solutions for today and into the future.

Telstra is committed to working with the Australian Government to ensure a thriving and safe digital economy and society, including ensuring the Department of Defence and Australian Defence Force have access to world-leading technology.

Moreover, management highlighted this contract as a piece of the puzzle contributing towards the company returning to growth. In fact, the deal is the largest customer contract of its kind signed by Telstra Enterprise in its history.

Finally, the Telstra share price is up 30% year to date, bringing its market capitalisation to $46.38 billion. In other words, it has been a good year for Telstra shareholders so far.

The post Telstra (ASX:TLS) share price struggles despite Department of Defence contract renewal appeared first on The Motley Fool Australia.

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• 2 top ASX dividend shares with 4%+ yields

Motley Fool contributor Mitchell Lawler 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 Telstra Corporation 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 Graincorp Ltd (ASX: GNC) share price could soon be setting new record highs as it prepares to release its earnings results next week.

It the numbers are as good as Macquarie Group Ltd (ASX: MQG) are expecting, shares in the grain handler could rally to its price target.

The broker pegs fair value at $7.32 a share. It is recommending investors buy the ASX shares ahead of the company’s results on 11 November.

Graincorp share price rising ahead of results

Perhaps some of the enthusiasm is already seeping into the Graincorp share price. It’s jumping 1.6% to $6.52 in morning trade.

That puts it within striking distance to its record high of $6.61 that it reached last month and is still 12.3% below Macquarie’s target.

Don’t forget that the expected FY22 dividend of around 4% will come on top of any capital gain.

Record earnings forecast

Macquarie reckons that Graincorp will deliver a record FY21 result next Thursday with momentum carrying through to the current financial year, and maybe even into FY23.

“We are at the upper end of GrainCorp’s guidance of $310-330m EBITDA and $125-140m NPAT,” said Macquarie.

“This largely reflects a favourable seasonal backdrop across Eastern Australia, resulting in the largest ECA winter crop on record in 2020/21 (30mmt vs LTA of 17mmt).”

Graincorp share price could be on an upgrade cycle

The broker is forecasting Graincorp to post an earnings before interest, tax, depreciation and amortisation (EBITDA) of $324 milion and a net profit after tax (NPAT) of $136 million.

That’s slightly ahead of consensus forecast of $323 million and $131 million, respectively.

“Our analysis from early Sep indicated that the 2021/22 ECA winter crop could be up to 28.5mmt based on Jan-Aug rainfall and historic ABARES revisions,” said Macquarie.

“This compares to the current ABARES forecast and our model estimate of 26.5mmt (similar to consensus).”

Beating consensus could push the Graincrop share price north of $7 a share, although buy the rumour, sell the fact could see profit takers jump in on the day of the results.

Positive outlook

But any price weakness may not last. Macquarie believes there’s more hay to be made as the sun keeps shining on Graincorp.

Actually, the positive sentiment is more to do with the rain than sun. The Bureau of Meteorology believes there is a 70% chance of La Nina over the coming months.

“La Nina events increase the chances of above-average rainfall for northern and eastern Australia during spring and summer,” explained Macquarie.

“Whilst still relatively early on, this could be supportive for the soil moisture profile leading into the 2022/23 winter crop.”

The post Why the Graincorp (ASX:GNC) share price could outperform next week appeared first on The Motley Fool Australia.

More reading

• The top performing ASX 200 energy shares in October unmasked
• Here’s why the Renergen (ASX:RLT) share price is soaring 21% today
• Bubs (ASX:BUB) share price dips amid China MD appointment
• These were the best performing ASX healthcare shares in October
• The Elixir Energy (ASX:EXR) share price is down 15% in 2 weeks. What’s happening?

Motley Fool contributor Brendon Lau owns shares of Macquarie Group 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 owns shares of and has recommended Macquarie 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 S&P/ASX 200 Index (ASX: XJO) struggled in October, closing the month down 0.1%.

But not all shares performed equally.

Leading ASX 200 energy shares returned some outsized gains.

The companies received some welcome tailwinds in the form of higher energy prices. Brent crude oil kicked off October trading for US$79.28 per barrel. By the end of the month that same barrel was worth US$84.38, up 6.4%.

Now that wasn’t enough to lift all the ASX 200 energy shares.

Below we look at the 3 top performers for the month. Taken together, the 3 stocks gained an average of 8.5%. Quite an outperformance.

October’s top 3 energy shares

Leading the pack last month was Ampol Ltd (ASX: ALD). The diversified ASX 200 energy share, with a current market cap of roughly $7.4 billion, gained an impressive 9.3% in October.

Ampol’s share price received a mid-month boost when it announced its agreement to acquire Z Energy Ltd (ASX: ZEL). The agreement valued Z Energy at approximately NZ$2.8 billion, with Ampol saying the acquisition would create a “Trans-Tasman fuel champion”.

Ampol was also rewarded by investors for posting relatively strong third quarter results, released on 26 October.

Moving on to the second best performing ASX 200 energy share, we have Worley Ltd (ASX: WOR). Worley only just missed out on the top spot, delivering a gain of 9.2% in October.

Australia’s largest oil and gas engineering group received a few boosts over the month with the announcements of major contract awards. Those included a service contract with global energy giant Shell.

Which brings us to our third best energy share for October, Origin Energy Ltd (ASX: ORG). Origin finished the month up 7%.

Origin’s share price benefited on several fronts last month. Among those was the company upgrading its guidance for the 2022 financial year (FY22).

Origin’s shares also gained later in the month when the company reported it was selling a 10% stake in Australia Pacific LNG to EIG for $2.12 billion. Origin kept hold of its remaining 27.5% stake in Australia Pacific.

Do these ASX 200 energy shares pay dividends?

That covers off last months outperforming share price gains.

And these 3 ASX 200 energy shares also pay dividends.

Origin pays a 3.96% trailing dividend yield, unfranked.

Worley pays a 4.62% trailing dividend yield, unfranked.

And Ampol pays a 2.45% trailing dividend yield, 100% franked.

The post The top performing ASX 200 energy shares in October unmasked appeared first on The Motley Fool Australia.

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• Could the Origin (ASX:ORG) share price hit $6 by the end of 2021?
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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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Shares in natural gas and helium producer Renergen Ltd (ASX: RLT) have jumped out of the starting blocks today and are now changing hands 21% higher at $3.40 apiece.

To start the session, the Renergen share price was trading up 25% at $3.45 before correcting back down.

Renergen shares are on the move following a company announcement updating its flagship Virginia gas project in South Africa.

Here are the details.

Renergen increases reserves by over 600%

Renergen advised that after a recent successful drilling campaign, it commissioned a reserves and resources accreditation agency to “estimate the reserves and resources of methane and helium within the company’s Virginia production area”.

The estimate enabled Renergen to substantially upgrade its methane and helium reserves at the site.

The release notes that 1P helium reserves have increased by a mammoth 620% to 7.2Bcf and 1P methane reserves have increased by 427% to 215Bcf.

Judging from the the results, the estimate upgrade “highlights the exciting potential of Virginia to be a globally significant supplier of helium”.

Immediately following the announcement, Renergen also released an investor presentation detailing the upgrade and some of the particulars of the Virginia site.

Investors have sent the Renergen share price flying on the back of the news this morning, solidifying their position in the natural gas and helium producer.

With natural gas prices approaching 10-year highs, and already surpassing 5-year highs, it stands to reason the company may benefit from the newfound resource capacity.

Without a doubt, Renergen management is ecstatic with the upgrade, noting it is a “major milestone for the company and confirms the Virginia project as a world class helium project”.

What are management saying?

Speaking on the announcement, Renergen’s CEO Stefano Marani said:

We have and continue to work towards ensuring Virginia is well-placed to supply helium into a growing and constrained market. Increasing our 1P helium reserves by over 600% since March 2019 is a great step forward in achieving this goal and importantly, highlights the enormous potential of Virginia to become a significant helium supplier to not only South Africa but globally as well. Additionally, an estimated 400 petajoules of methane at 2P also positions the Company exceedingly well to become an integral part of South Africa’s energy mix.

Marani continued:

2021 has been an excellent year for Renergen, with several milestones achieved and we look forward to firmly ending the calendar year. 2022 is shaping up to be even more exciting as we commence production from the Phase 1 plant and begin generating revenue.

Renergen share price snapshot

It’s been a year in the green for the Renergen share price, having climbed 168% in the past 12 months after rallying 215% since January 1.

These results have far outpaced the S&P/ASX 200 Index (ASX: XJO)’s climb of around 24% over the same time.

The post Here’s why Renergen (ASX:RLT) share price is soaring 21% today appeared first on The Motley Fool Australia.

More reading

• Bubs (ASX:BUB) share price dips amid China MD appointment
• These were the best performing ASX healthcare shares in October
• The Elixir Energy (ASX:EXR) share price is down 15% in 2 weeks. What’s happening?
• 2 more of the best ASX shares to buy in November according to this top broker
• Paradigm (ASX:PAR) share price shoots 30% higher on FDA update

The author Zach Bristow has no positions 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 Bubs Australia Ltd (ASX: BUB) share price is in the red this morning amid news of the company’s latest appointment.

Bubs announced it has appointed a new managing director for its Greater China subsidiary. The company has also been given ordinary membership to the Infant Nutrition Council and several of its management team have been promoted.

At the time of writing, the Bubs Australia share price is 56 cents. That’s 3.45% lower than it was at its previous close.

That also brings its gains for this week so far back down to 8%, following the stock’s 7% rise yesterday.

For context, the S&P/ASX 200 Index (ASX: XJO) is up 0.9% this morning. Meanwhile, the All Ordinaries Index (ASX: XAO) has gained 0.8% so far.

While today’s news from Bubs Australia is marked non-price sensitive, it’s likely drawn the attention of many market watchers. Let’s take a closer look.

Bubs’ latest appointment and promotions

The Bubs share price is down after Dylan Lu was appointed as managing director of Bubs’ Greater China subsidiary.

Lu has 23 years of relevant experience. His most recent role was as vice president of marketing and e-commerce at the A2 Milk Company Ltd (ASX: A2M).

He also helped set up Hershey Co‘s (NYSE: HSY) e-commerce business and has worked with numerous international companies doing business in China.

On Lu’s appointment, Bubs’ chair Dennis Lin commented:

Dylan is eminently qualified to lead our China subsidiary, Bubs (Shanghai) Trading Co. Ltd, and cross-functional team in-market. This senior executive appointment serves to underscore the maturity and depth of talent at Bubs as we add international bench strength to our leadership team.

While it’s unlikely today’s news has moved the Bubs share price directly, it could inspire more optimism for Bubs’ Chinese operations.

On top of Lu’s appointment, Bubs also announced a number of internal promotions this morning.

The company’s former general manager of marketing, Vivian Zurlo, has stepped up to become Bubs’ chief marketing and innovation officer of global markets.

Additionally, Richard Paine, who was previously Bubs’ general manager, has been promoted to the role of chief manufacturing officer of quality, dairy, and nutritionals.  

Bubs’ founder and CEO Kristy Carr said of the new appointments:

Vivian and Richard… have proven to be major contributors to maintaining marketing momentum and innovation, manufacturing excellence and supply chain resilience, that stands us in good stead to deliver our future global growth aspirations.

Finally, Bubs’ trading arm, Infant Food Co Ltd, is now an ordinary member of the Infant Nutrition Council. It had previously been an associate member.

Carr said the membership is an opportunity for Bubs to shape the council’s direction in Australia alongside its industry peers.

Bubs share price snapshot

The Bubs share price has struggled on the ASX lately. However, it seems to be inching closer to the long-term green.

Right now, the company’s stock is trading for 4.2% less than it was at the start of 2021. It is also 11% lower than it was this time last year.

The post Bubs (ASX:BUB) share price dips amid China MD appointment appeared first on The Motley Fool Australia.

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Motley Fool contributor Brooke Cooper 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 A2 Milk and BUBS AUST 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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It was a mixed bag of results for ASX healthcare shares as we walked through October, as some names came in red hot, whilst others missed the mark completely.

After a sharp downturn in late September, where it lost around 7% in just one week, the S&P/ASX 200 Health Care Index (XHJ) rebounded 4% and began climbing northwards once more.

Within this group lies a subset of individual companies that gave back handsomely to shareholders last month.

Here are four of the standouts from the ASX healthcare basket for the month of October.

Healthia Ltd (ASX: HLA)

Shares in healthcare group Healthia soared 13% in October towards their 52-week high, closing the month at $2.05 per share.

Driving this upside was positive catalysts from the company’s acquisition of the Back in Motion physiotherapy franchise, which settled during the month.

This strategic acquisition gives Healthia exposure to a suite of physiotherapy clinics across Australia and New Zealand, thereby strengthening its Allied Health portfolio.

Healthia provided another update at month’s end confirming it had acquired a further 18 Back in Motion clinics, thereby bringing the total number of clinics acquired to 32 – half of the company’s 64 physio clinics in total.

Investors sent Healthia shares flying on the news, bidding prices higher after coming off a low of $1.78 mid-month.

From this point, Healthia shares jumped over 15%, to finish October, and finished yesterday’s session in the green at $2.02.

Ramsay Health Care Limited (ASX: RHC)

Global hospital giant Ramsay Healthcare had a turbulent month, however, came out on top as we rolled over into November.

Shares in the ASX healthcare behemoth jumped 4% from month start to end, however, came off a low of $65.94 at the midpoint to accelerate northwards at a rapid pace.

Investors piled in and added another $5.28 per share in a number of days for Ramsay, as state governments in NSW and Victoria began to roll back COVID-19 restrictions that were limiting hospital patient turnover.

News of the restrictions easing sent Ramsay shares soaring in the days afterwards, as investors appeared to regain confidence in the hospital specialist once again.

This came off a solid first quarter performance on the chart for Ramsay, where it also gained another $6.80 or 11% per share in the three months ending 30 September 2021.

Ramsay shares are set to open the session at $71.85 after inching a further 1% higher in yesterday’s trade.

Aroa Biosurgery Ltd (ASX: ARX)

Shares in soft tissue regeneration company Aroa Biosurgery were another takeout from the ASX healthcare basket last month.

After a wild ride, the wound care and tissue reconstruction specialist finished the month in the green, posting a solid 6.25% gain to close out October.

However, at one point, Aroa shares were trading around 15% higher at $1.22, after the company released its preliminary half year results.

It was a robust half for the Aroa, hallmarked by a contract extension for its Myriad products. This decision enables around 1,500 hospitals and healthcare systems access to its Myriad segment.

Aroa shares jumped on news of the company’s performance and contract extension, with investors securing their position in the company’s growth engine in numbers.

After another day in the green, Aroa shares finished the session 1.8% higher at $1.125 yesterday.

Rhythm Biosciences Ltd (ASX: RHY)

Shares in medical diagnostics company Rhythm Biosciences were star performers last month, claiming a 33.5% gain for its shareholders to bite into.

It was all systems go for Rhythm in October, as investors bid up its share price in rapid succession towards the back end of the month.

Perhaps they were seeking to own a piece of a company making significant advancements in the field of medical diagnostics – like with its ColoSTAT testing technology.

ColoSTAT is the company’s low-cost blood test for the early detection of colorectal cancer.

Rhythm claims this disruptive technology is significantly cheaper and easier to administer than the current standard of care.

And oh my, is Rhythm projecting some serious numbers for its growth outlook in this segment.

The company forecasts a total addressable ‘screening value’ of US$38 billion and a total addressable market of over 770 million people in its market projections for ColoSTAT.

In fact, Rhythm reckons that it can even reach up to a billion people if the standard screening age is lowered to 45 years old.

Rhythm expects it will derive first revenues from the product in late 2022 and is currently working on building out its pipeline of other cancer diagnostics.

For now, it is set to open the session at $1.70 after climbing a further 1.5% into the green yesterday.

Honourable mentions include Volpara Health Technologies Ltd (ASX: VHT) who was up around 10% but fell sharply in the last week of October; and Impedimed Limited (ASX: IPD), which climbed 7 cents per share to post a new 52-week high of 19 cents.

The post These were the best performing ASX healthcare shares in October appeared first on The Motley Fool Australia.

More reading

• 2 impressive ASX shares that could be buys in November 2021
• Here’s why the Rhythm Biosciences share price (ASX:RHY) is jumping higher today
• Why is the Rhythm Biosciences (ASX:RHY) share price up 11% on Monday?
• Why is the Rhythm (ASX:RHY) share price climbing 10% today?
• Ramsay (ASX:RHC) share price finishes higher as COVID surgery restrictions ease

The author Zach Bristow has no positions in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended VOLPARA FPO NZ. The Motley Fool Australia owns shares of and has recommended VOLPARA FPO NZ. The Motley Fool Australia has recommended HEALTHIA FPO and Ramsay Health Care 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 Elixir Energy Ltd (ASX: EXR) share price has been struggling recently. While shares in the exploration and development company are still leaps and bounds above their value at the start of the year, the wheels have fallen off in the last fortnight.

Unfortunately for shareholders, the Elixir Energy share price has shaved off 15.62% in the last 2 weeks of trade. As a result, the current price is pinned at 27 cents per share, at the time of writing.

What’s weighing on the Elixir Energy share price?

Prior to the descending share price, Elixir was enjoying a run of positive sentiment from the market. The last announcement to hit the market before the beginning of the sell-off related to its hydrogen project in Mongolia.

According to the update, the project was progressing as Elixir entered into a memorandum of understanding with Mongolia’s Ministry of Energy to investigate the hydrogen project’s potential future. Since then, the company has released 2 more price-sensitive announcements, which have been met with selling pressure.

On 27 October, Elixir Energy updated the market with data from its assessment of the Nomgon 6 well in Mongolia. The testing indicated the presence of methane. Among other results, this data will be fed into construction of Elixir’s first long-term pilot production program.

From there, Elixir Energy released its annual general meeting presentation the following day. Other than outlining the company’s achievements to date, the presentation highlighted a forward trajectory. Namely, the oil and gas explorer is expecting its 2022 to involve drilling, pilot programs, infilling seismic grid, developing plans, and hydrogen.

Quarterly numbers

Finally, the last announcement released was Elixir’s quarterly report for the period ending 30 September 2021. In the report, the explorer highlights the ongoing energy shortage as a positive sign for the company’s prospects. However, investors might have taken notice of the cash burn.

Due to its operations still being in the exploratory stage, Elixir Energy reported zero revenue for the period. As a result, the company’s net cash from operating activities was an outflow of $331,000 during the quarter. Although, Elixir still holds $30.9 million in cash and cash equivalents.

While the Elixir share price has weakened recently, it is still up 116% year to date.

The post The Elixir Energy (ASX:EXR) share price is down 15% in 2 weeks. What’s happening? appeared first on The Motley Fool Australia.

More reading

• Elixir Energy (ASX:EXR) share price lifts 5% on hydrogen update

Motley Fool contributor Mitchell Lawler 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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If you’re looking for a few new additions to your portfolio in November, then look no further.

Analysts at Morgans have picked out a number of ASX shares that they class as their best ideas for the month.

The first two I looked at can be found here. Whereas below are two more that the broker rates highly in November:

Sonic Healthcare Limited (ASX: SHL)

The first ASX share to look at is this healthcare company. Morgans is positive on Sonic due partly to its belief that COVID-19 testing demand will remain strong for the foreseeable future. In addition, it likes the company due to its strong balance sheet. It feels this gives it opportunities to make earnings accretive acquisitions.

It explained: “We see COVID-19 testing continuing into the foreseeable future, with growth potential in COVID serology testing. SHL’s global base business is increasingly resilient, benefitting from geographical diversity. Strong B/S (gearing 21.6x; A$1.3bn headroom) opening the door to acquisitions, contracts and JVs.”

Morgans has an add rating and $45.98 price target on Sonic’s shares.

Woodside Petroleum Limited (ASX: WPL)

Another ASX share that the broker is a fan of is Woodside. It believes the energy producer is well-positioned to benefit greatly from the transformative merger with the petroleum assets of BHP Group Ltd (ASX: BHP).

Morgans commented: “We believe WPL has benefited from being in the right place, at the right time. With: 1) BHP/WPL having an existing relationship, 2) BHP eager to boost its ESG profile, and 3) WPL being a quality operator (safe hands which is important for BHP). From an economic standpoint we think WPL is clearly getting the better of the deal, with synergies not baked into deal metrics and BHP willing to accept a discount. The deal is transformative, lifting WPL into being a top 10 global E&P with +2 billion barrels of 2P reserves, with EBITDA of US$4.7bnpa and growth options.”

The broker currently has an add rating and lofty $29.65 price target on Woodside’s shares.

The post 2 more of the best ASX shares to buy in November according to this top broker appeared first on The Motley Fool Australia.

More reading

• Here are 2 ASX dividend shares that could provide steady passive income
• 5 things to watch on the ASX 200 on Wednesday
• How did the Woodside Petroleum (ASX:WPL) share price perform in October?
• 5 things to watch on the ASX 200 on Tuesday
• 5 things to watch on the ASX 200 on Monday

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. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Sonic Healthcare 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 Paradigm Biopharmaceuticals Ltd (ASX: PAR) share price has returned from its trading halt and is charging higher on Wednesday.

At the time of writing, the biopharmaceutical company’s shares are up 30% to $2.69.

Why is the Paradigm share price charging higher?

The catalyst for the rise in the Paradigm share price today is the release of a positive update relating to its investigational new drug (IND) application to proceed with a phase 3 trial.

This trial aims to evaluate injectable pentosan polysulfate sodium (PPS/Zilosul) for the treatment of pain associated with knee osteoarthritis.

According to the release, the US Food and Drug Administration (FDA) has cleared Paradigm’s IND application, allowing the company to commence with the trial.

This will no doubt come as a big relief to shareholders. In June and September, Paradigm received feedback from the FDA requesting further information relating to the trial. This cast a few doubts on whether it would ultimately be approved.

However, today’s release notes that FDA advised that the company’s responses sufficiently addressed its questions.

What’s next?

Central ethics committee approval has also been received and the company is now focused on site initiation in the US. Patients are expected to begin screening in both the US and Australia during the current quarter.

In addition to commencing in the US and Australia, Paradigm is also entitled to commence clinical trials in EU member countries. As a result, the company now has a clear harmonised path to global approval of Zilosul.

Ten sites in Europe and the United Kingdom have been identified and are expected to be initiated during the first half of 2022.

This is a big positive given its huge market opportunity. Paradigm highlights that osteoarthritis affects more than 72 million people in the US, EU, Canada and Australia. This number is expected to increase meaningfully in the future due to ageing populations.

Paradigm’s CEO and Interim Chair, Paul Rennie,  said: “The opening of the Trial in the USA – the largest global pharmaceutical market, is a major milestone for the Company. This milestone represents a substantial de-risking of the Company’s lead clinical program and is a testament to the Company’s expertise, commitment and determination. As the Company progresses with the Trial, we expect there will be increasing interest from the pharmaceutical industry in the commercial value of this potential blockbuster therapeutic.”

The post Paradigm (ASX:PAR) share price shoots 30% higher on FDA update appeared first on The Motley Fool Australia.

More reading

• Why the Paradigm (ASX:PAR) share price is pushing higher today

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. 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 BHP Group Ltd (ASX: BHP) share price is pushing higher on Wednesday morning.

At the time of writing, the mining giant’s shares are up almost 1% to $35.82.

Why is the BHP share price rising?

The BHP share price is rising today after a potentially positive update offset further weakness in iron ore prices.

In respect to the latter, according to CommSec, the spot iron ore price fell US$6.85 or 6.6% during overnight trade to US$96.45 a tonne.

As for the former, BHP released an update on its pursuit of Noront Resources.

According to the release, the company is currently in discussions with Wyloo Metals regarding its potential support of BHP’s C$0.75 per share offer to acquire Noront Resources. This offer is being recommended by the Noront Board.

Wyloo Metals, which is controlled by Fortescue Metals Group Limited (ASX: FMG) Chair Twiggy Forrest and owns a 37% stake in Noront, has been battling BHP for control over the Canadian miner.

Both businesses appear to be attracted to Noront Resources due to its controlling interest of major discoveries in the Ring of Fire. This is an emerging multi-metals area located in the James Bay Lowlands of Northern Ontario, Canada.

No real details have been provided regarding what the discussions entail. However, BHP revealed that the two parties are considering a mutually beneficial arrangement.

BHP commented: “BHP and Wyloo Metals have engaged in initial conversations and are considering a mutually beneficial arrangement regarding the acquisition of Noront by BHP. There is no assurance that any agreement will be reached between BHP and Wyloo Metals.”

The post BHP (ASX:BHP) share price rises amid Noront Resources takeover 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. 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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