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The Sonic Healthcare Limited (ASX: SHL) share price has jumped out of the starting blocks on Friday.

Sonic Healthcare shares are now exchanging hands at $42.96, after reaching a new record high of $43.43 in early trade.

Let’s investigate further.

What’s up with the Sonic Healthcare share price today?

The Sonic Healthcare share price has been on the move since the company reported its FY21 earnings on 23 August.

Since then, the company’s shares have increased from $41.65 to the current quote price, which is a 3.15% climb.

In its FY21 earnings report, Sonic recognised a 28% year on year increase in revenue to almost $9 billion, whereas it recorded an 81% increase in EBITDA from the same time last year.

This growth occurred alongside EBITDA margins improving by over 9% in FY21, underscored by a strong performance in the company’s ANZ, USA and European markets.

In addition, it grew net profit by about 150% over the year to $1.3 billion. Consequently, the company raised its FY21 dividend by 7% to 91 cents per share.

Despite the growth in FY21, management was hesitant on providing FY22 guidance, due to uncertainties around Covid-19 testing volumes as we walk through the coming periods.

There is no market sensitive information for the company today. Therefore, it stands to reason that investors are driving the Sonic Healthcare share price higher on the back of its well-rounded FY21 performance.

Sonic Healthcare share price snapshot

The Sonic Healthcare share price has posted a year to date return of 34%, extending the previous 12 month’s gain of 30%.

In addition, Sonic shares are 7% in the green over the last month.

These results have lagged the S&P/ASX 200 index (ASX: XJO)’s climb of about 25% over the past year.

The post Sonic Healthcare (ASX:SHL) share price hits record high at $43.43 appeared first on The Motley Fool Australia.

More reading

• Top brokers name 3 ASX shares to buy today
• Sonic Healthcare (ASX:SHL) dividend rises 7%, share price falls after FY21 results
• ASX 200 rises, NIB plummets, Sonic drops
• 2 ASX COVID-19 shares reporting big growth
• Why Ampol, NIB, Redbubble, & Sonic shares are dropping

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 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 Weebit Nano Ltd (ASX: WBT) share price is under pressure today after the company released its full-year results for FY21.

At the time of writing, shares in the computer chip developer are trading for $2.64 – down 4%. For context, the ASX All Ordinaries Index (ASX: XAO) is 0.12% lower.

Let’s take a closer look at today’s news.

Weebit Nano share price slumps as R&D expenses jump 3,400%

Here are some of the highlights from the Weebit Nano results:

• Nil revenue for the period, which is the same as the prior corresponding period (pcp). The company cites being in the “research and development stage” of its operations as to why this is the case.
• Losses before tax of $11.3 million – up 180% on the pcp. This was driven by a 3,400% jump in R&D expenses to $5.3 million, a 378% rise in sales and marketing expenses to $1.3 million, and a 23% lift in general and administrative expenses to $4.6 million.
• Basic loss per share of 10.1 cents – up 77.2% on the pcp. Tangible assets per share are 17.19 cents. This is 328% higher than the pcp.
• Net operating cash outflow of about $7 million.

What happened in FY21 for Weebit Nano?

The biggest story of the financial year overall and that affecting the Weebit Nano share price was the COVID-19 pandemic.

CEO Coby Hanoch conceded the pandemic had an adverse impact on the company in 20/21. He said:

…Ongoing COVID-19 restrictions and lockdowns have slightly delayed our original development and commercial timelines. Travel restrictions have prevented our engineers from being able to work alongside [development partner] Leti in the fab, as well as hindered our ability to have face-to-face meetings with potential customers and production partners. In June, we had our first international face-to-face meetings in more than a year, and hope these will increase in FY22 as vaccines are rolled out and restrictions continue to ease.

Besides the coronavirus, other major stories that affected the Weebit Nano share price included a capital raise via a share purchase plan and an important step in the commercialisation of its ReRam chips.

What else did management say?

Hanoch also had the following to say:

Weebit Nano made substantial progress towards first commercialisation and productisation over the past year, despite dealing with challenging operating conditions. In FY21, we achieved key technical milestones within both the embedded and discrete markets, broadened our development partnership with Leti, advanced negotiations with potential customers and partners, and were included in the S&P/ASX All Technology Index and the S&P/ASX All Ordinaries Index.

Weebit enters FY22 well funded to execute its commercialisation program, including securing first commercial agreements, transferring its technology to a production fab, technology qualification, and progressing the development of a solution for the discrete memory market.

What’s next for Weebit Nano?

In what may be significant for the Weebit Nano share price going forward, the company says it is on the “cusp of commercialisation”. It expects to announce revenue in this financial year.

Hanoch says the company’s products will “address the growing global demand for faster and more efficient memory technology for use in almost every application – everything from smartphones and consumer products through to cars, IoT and artificial intelligence”.

Weebit Nano share price snapshot

Over the past 12 months, the Weebit Nano share price has increased by around 380%. Year-to-date, however, it is down 0.38%.

Weebit Nano has a market capitalisation of around $340 million.

The post Weebit Nano (ASX:WBT) share price falls as losses accelerate 180% appeared first on The Motley Fool Australia.

More reading

• BHP (ASX:BHP) share price flat despite rebound in iron ore prices
• Why the Mineral Resources (ASX:MIN) share price has beaten the ASX 200 in the last year
• What has happened to the Baby Bunting (ASX:BBN) share price this year?
• ASX 200 midday update: Wesfarmers’ $2.3bn capital return, Appen & Pilbara Minerals fall
• Secos (ASX:SES) share price soars 6% on FY21 earnings 

Motley Fool contributor Marc Sidarous 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 has largely been range bound between $44-45 following a devastating 15% selloff last week.

Shares in the iron ore major have struggled to find any momentum despite an improvement in iron ore prices.

According to Fastmarkets MB, seaborne iron ore prices were up on Thursday 26 August, amid an uptrend in Chinese futures. Benchmark iron ore prices increased US$4.26 per tonne to US$152.92/tonne.

Iron ore price showing signs of life

Iron ore prices have tipped higher this week following signs of resilient demand and accommodative policies from China.

According to Bloomberg, China’s central bank chief vowed to “stabilise the supply of credit and boost the amount of money supporting smaller businesses and the real economy, after both credit and economic growth slowed in July”.

This statement comes after new credit growth expanded at its slowest pace since February 2020, driven by a slowdown in government stimulus, tighter rules for property development finance and the delta variant taking a hit on the broader economy.

Commodity markets have responded positively to China’s view of increasing the amount of credit and strengthening the growth in total credit.

While an uptick in iron ore prices typically spells good news for the BHP share price, it looks like the damage has already been done. Prices have fallen more than 30% from record peaks in May.

What’s next for the BHP share price?

The BHP share price will go ex-dividend on Thursday 2 September for a final dividend of US$2 per share (~A$2.76).

At today’s prices, the final dividend represents a yield of approximately 6.16%.

Investors should keep an eye out for the BHP share price when it goes ex-dividend, given Rio Tinto Limited (ASX: RIO)’s ex-dividend performance.

The Rio Tinto share price tumbled 6.88% on 12 August from $129.14 to $120.26 after trading ex-dividend.

Its share price decline was greater than the fully franked interim dividend of 760.06 cents per share.

The post BHP (ASX:BHP) share price flat despite rebound in iron ore prices appeared first on The Motley Fool Australia.

More reading

• BHP (ASX:BHP) share price lifts despite credit downgrade risk
• BHP (ASX:BHP) share price free falls in August, analysts say iron ore pressures will persist
• How do BHP (ASX:BHP) earnings compare to Woodside Petroleum’s?
• Pilbara Minerals (ASX:PLS) share price bounces back, up 8% on Monday
• What’s moving the ASX 200 Index (ASX:XJO) on Monday?

Motley Fool contributor Kerry Sun has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has 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 Mineral Resources Limited (ASX: MIN) share price has been on fire in 2021. Shares in the Aussie lithium and iron ore miner are up 76% in the past 12 months and outperforming the S&P/ASX 200 Index (ASX: XJO).

Here’s what’s driving this ASX share higher in the year to date.

Why the Mineral Resources share price has beaten the ASX 200 in the last year

Let’s start with the Aussie benchmark index. The ASX 200 index is up 22% in the past 12 months and sitting at more than 7,400 points right now.

Those are some strong gains from the broad market index. However, the Mineral Resources share price has more than tripled those gains in the last year.

As with any resources share, it pays to look at the commodity prices to help explain share price moves. Both lithium and iron ore prices have been surging higher since November 2020.

Iron ore prices climbed 95% to a peak of US$229.50 per tonne on 12 May 2021, while lithium carbonate prices are up 137% to 92,500 Chinese Yuan per tonne.

There has been a steep iron ore price decline since mid-July which has been reflected in the Mineral Resources share price in the last month or so. That’s largely been driven by concerns about a regulatory crackdown in China and the country reducing imports to drive its steel industry.

Shares in the Aussie resources group have fallen 14.6% in the past month but are still outperforming the benchmark ASX 200 index over the past 12 months.

The Aussie resources group reported its full-year earnings on August 11 and posted a 230% increase in underlying net profit after tax to $1,103 million. Group revenue rocketed 76% to $3,734 million as the company announced a 175 cents per share final dividend for shareholders.

Foolish takeaway

At the time of writing, the Mineral Resources share price is down 1.47%, trading at $52.12. It has a price to earnings (P/E) ratio of 7.8 times with a dividend yield of 5.25%.

The post Why the Mineral Resources (ASX:MIN) share price has beaten the ASX 200 in the last year appeared first on The Motley Fool Australia.

More reading

• The Mineral Resources (ASX:MIN) share price is now trading on a 5.35% fully franked dividend yield
• ASX 200 Weekly Wrap: Miners drag ASX back to earth
• August hasn’t been a great month for the Mineral Resources (ASX:MIN) share price
• These were the worst performing ASX 200 shares last week
• What’s going on with ASX lithium shares today?

Motley Fool contributor Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia 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 share price of ASX infant products retailer Baby Bunting Group Ltd (ASX:BBN) has been a solid performer so far this year.

The company’s shares have risen by about 12% in 2021, increasing from $4.84 to $5.32 at the time of writing.

However, just looking at the year-to-date movement in shares doesn’t tell the full story. The Baby Bunting share price has been volatile in 2021, with lockdowns in various parts of the country continuing to cause disruptions.

Company background

Baby Bunting is a leading Australian nursery retailer, stocking a wide range of baby and infant products.

It has grown from a single store in suburban Melbourne in the 1970s to become a major national brand. It now has at least 50 superstores located across the country and more than 700 employees.

Recent financials

Baby Bunting recently released its FY21 full-year results on 13 August. The company reported a 15.6% year-on-year jump in total sales (to $468.4 million). In addition, proforma net profit after tax (NPAT) surged 34.8% higher (to $26 million).

The result was underpinned by strong growth in online sales, which helped to offset some of the disruptions caused by lockdowns. Online sales grew by 54.4%, and made up 19.4% of total sales for the year.

After the results were released, the Baby Bunting share price sunk 10%.

Baby Bunting didn’t provide any firm outlook for FY22, citing continued uncertainty around the trajectory of the COVID-19 pandemic. Despite this, Baby Bunting CEO and managing director Matt Spencer struck an upbeat tone on the company’s near-term outlook.

He stated: “While the new financial year has started with some disruptions from ongoing lockdowns, our experience has been that any short-term sales impact is recovered quickly once lockdowns have eased.

“While FY22 may have more surprises, our operating strength in our category and our transformation plans should see us well placed in the period ahead.”

Movement in the Baby Bunting share price

Despite these reassurances from the company, the Baby Bunting share price fell sharply following the release of its full-year results. Shares are now down about 10% since its results were announced.

This continues a downward trend in the Baby Bunting share price that started back in late April. After surging to a new 52-week high of $6.65 on 26 April 2021, it has now fallen by 20%.

Today, Baby Bunting shares are changing hands for $5.32 — down 1.39% on yesterday’s closing price.

While the shift towards online sales in FY21 is a positive trend, lockdowns and social restrictions are still hurting retailers.

As an example, Baby Bunting reported comparable-store sales as of 12 August 2021 (a day prior to the company’s results release) was down 6.4% year-to-date. This could be a reflection of the strict lockdown restrictions still imposed across Australia’s two most populous cities.

Shareholders will be hoping for some good news on lockdown restrictions easing – and that this might arrest the fall in the Baby Bunting share price.

The post What has happened to the Baby Bunting (ASX:BBN) share price this year? appeared first on The Motley Fool Australia.

More reading

• Top brokers name 3 ASX shares to buy next week
• Leading brokers name 3 ASX shares to buy today
• Baby Bunting (ASX:BBN) share price hit by broker downgrades
• The ASX reporting wrap-up: Baby Bunting, the week ahead
• Why Baby Bunting, Galan Lithium, Suncorp, & Vulcan shares are sinking

Motley Fool contributor Rhys Brock owns shares of Baby Bunting. 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 Baby Bunting. 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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At lunch on Friday, the S&P/ASX 200 Index (ASX: XJO) is off its lows but still trading lower. The benchmark index is currently down 0.1% to 7,484.4 points.

Here’s what is happening on the ASX 200 today:

Wesfarmers delivers strong growth and $2.3bn capital return

The Wesfarmers Ltd (ASX: WES) share price is sinking on Friday following the release of its full year results. While the conglomerate delivered strong profit growth in FY 2021 and announced a proposed $2.3 billion capital return to shareholders, its FY 2022 trading update appears to have spooked investors. Management revealed that Bunnings sales are down 4.7% financial year to date, whereas combined Kmart and Target sales are down 14.3%.

Pilbara Minerals shares fall

The Pilbara Minerals Ltd (ASX: PLS) share price is under pressure today after investors responded negatively to its full year results. Although the lithium miner doubled sales in FY 2021, it still recorded a statutory net loss after tax of $51.4 million. Also potentially weighing on its shares is its costs guidance for FY 2022 and FY 2023. Management expects higher unit cash operating costs due to elevated strip ratios, Pilgan production ramp up, and the restart of the Ngungaju operation. In response, Ord Minnett downgraded its shares to a hold rating with a reduced price target of $2.40.

NEXTDC share price tumbles

It has been a disappointing day for the NEXTDC Ltd (ASX: NXT) share price. The data centre operator’s shares are tumbling lower despite a record result in FY 2021. NEXTDC reported a 23% lift in revenue to $246.1 million and a 29% increase in EBITDA to $134.5 million. Looking ahead, management has guided to revenue growth of 16% to 20% and EBITDA growth of 19% to 23% in FY 2022.

Best and worst ASX 200 performers

The best performer on the ASX 200 has been the Clinuvel Pharmaceuticals Limited (ASX: CUV) share price with a 15% gain. This appears to be a delayed reaction to its full year results release on Thursday morning. The worst performer has been the Appen Ltd (ASX: APX) share price with a 7.5% decline. This morning the team at Credit Suisse responded to yesterday’s half year update by retaining their neutral rating but slashing their price target down to $11.00.

The post ASX 200 midday update: Wesfarmers’ $2.3bn capital return, Appen & Pilbara Minerals fall appeared first on The Motley Fool Australia.

More reading

• The Wesfarmers (ASX:WES) dividend has jumped by 17%
• What you need to know about Wesfarmers (ASX:WES) $2.3bn capital return
• NextDC (ASX:NXT) share price on watch after record FY21 performance
• Wesfarmers (ASX:WES) share price on watch after strong profit growth and $2.3bn capital return
• 5 things to watch on the ASX 200 on Friday

Motley Fool contributor James Mickleboro owns shares of NEXTDC Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Appen Ltd. The Motley Fool Australia owns shares of and has recommended Appen Ltd and Wesfarmers Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Secos Group Ltd (ASX: SES) share price is lifting after the company released its earnings for the financial year 2021 (FY21).

Right now, the Secos share price is trading at 34 cents, up 6.25% on its previous closing price.  

Secos share price jumps on $2.5 million profit

Here’s how the producer of sustainable packaging performed over FY21:

• Net profit after tax of $2.5 million, up 318% on FY20’s $1.1 million loss
• $30.8 million of revenue, a 43% increase of that of FY20
• No dividend

The company reported $30 million worth of sales, with year-on-year sales growth of 126.6%.

The company’s traditional film business saw weaker sales due to COVID-19 impacts on demand and a line breakdown in January which was resolved in March. 

Secos’ compostable resins, films, and bags recorded double-digit growth. Its compostable bags segment grew well as a result of councils implementing household ‘food organics garden organics’ (FOGO) programs and demand for dog waste bags.

Secos ended the period with $11.3 million of cash and no debt.

What happened in FY21 for Secos?

FY21 was a busy period for Secos. The company increased its film and bag production capacity at its plant in China and installed more equipment at its operation in Malaysia.

It also increased its asset utilisation rates in its current compostable operations and added more compostable resin capacity at its Malaysian bio-resin plant. Finally, it secured a new facility in Malaysia to meet the demands of an expanding compostable market.

Secos also completed a $15 million placement in FY21. The funds were to go towards equipment and working capital to expand its biopolymer capacity in Malaysia and China.

In July 2020, Secos announced Woolworths (ASX: WOW) was to stock its products in 82 select stores. 

Secos also entered into a supply contract with Jewett-Cameron Trading Company Limited to supply its dog waste bags to big-box retail stores in the Americas. 

What did management say?

Secos chair Richard Tegoni commented on the results, saying:

​​The momentum to solve the world’s plastic waste crisis is building and has resulted in strong demand for compostable packaging and products globally. SECOS has delivered vastly improved results in 2021 but most importantly… has established itself as one of the key global participants in the bioplastics and environmental packaging space…

The company’s excellent results were achieved despite very difficult global trading conditions hampered by COVID-19 restrictions and the impact the virus has had on the world economies generally. During the year, SECOS experienced significant worldwide shipping challenges. However, SECOS staff managed its supply chain well and maintained strong customer service levels to deliver on its growth targets.

What’s next for Secos?

Here’s what those interested in the Secos share price might want to keep an eye on in FY22:

Secos has already announced some news that might boost its bottom line in FY22. 

In July, Secos announced Woolworths will stock some of Secos’ products in 203 of its stores.

Additionally, the company’s council business has continued to expand. 

Secos expects more growth in biopolymer resin and film sales in FY22. The growth is expected to be delivered through new opportunities and expanded manufacturing capacity. 

It will also work on growing its MyEco branded products’ market share in both Australia and the United States. 

Finally, the company recently announced it has invested in a new Australian Research and Development centre for bio-based products. 

Secos share price snapshot

The Secos share price has gained 61% in 2021. It is also 142% higher than it was this time last year.

The post Secos (ASX:SES) share price soars 6% on FY21 earnings  appeared first on The Motley Fool Australia.

More reading

• Leading brokers give their verdict on the A2 Milk (ASX:A2M) share price
• Immutep (ASX:IMM) share price jumps 5% on Chinese patent grant
• MGC Pharmaceuticals (ASX:MXC) share price rockets 40% on supply deal
• Why the Dreadnought (ASX:DRE) share price is rocketing 7% today
• The Wesfarmers (ASX:WES) dividend has jumped by 17%

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. owns shares of and has recommended SECOS Group 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 A2 Milk Company Ltd (ASX: A2M) share price is under pressure again on Friday.

At the time of writing, the struggling infant formula company’s shares are down 2% to $5.91.

This means A2 Milk’s shares are now down almost 50% since the start of the year.

Is the weakness in the A2 Milk share price a buying opportunity?

Brokers have been running the rule over the company’s full year results and have given their opinion on whether there’s an investment opportunity here.

One broker that wasn’t impressed with its result was Macquarie Group Ltd (ASX: MQG). This morning the broker retained its underperform rating and cut its price target down to $5.40.

Based on the current A2 Milk share price, this implies potential downside of almost 9%.

Macquarie is expecting another tough year in FY 2022 and has downgraded its near term earnings estimates materially to reflect a softer revenue and margin recovery.

A bullish broker

The bulls at Bell Potter disagree and believe the A2 Milk share price is still in the buy zone.

According to the note, the broker has retained its buy rating but cut its price target to $7.70. This implies potential upside of 30% over the next 12 months for its shares.

The broker commented: “Our Buy rating remains unchanged. Sell-in rates materially lagged sell-out rates in 2H21, implying steps to reduce channel inventories have been effective. As revenues more closely align to point of sale trends we would expect top line growth to return, which could well be complemented by internalising supply chain costs in FY23-25e.”

Surprisingly, Bell Potter isn’t alone. The team at Citi has actually upgraded A2 Milk’s shares to a buy rating and increased their price target on them to $7.20.

Its analysts were pleased with the company’s inventory position and brand health in the key China market. Citi believes the latter may be an indication that the A2 Milk brand is much stronger and resilient than previously thought.

Time will tell which broker has made the correct call.

The post Leading brokers give their verdict on the A2 Milk (ASX:A2M) share price appeared first on The Motley Fool Australia.

More reading

• The ASX reporting wrap-up: A2 Milk, Woolworths, Appen
• ASX 200 drops, A2 Milk sinks, Appen plummets
• Here are the 3 heaviest trading ASX 200 shares this Thursday
• Why A2 Milk, Appen, Jumbo, & Link shares are sinking
• Own A2 Milk (ASX:A2M) shares? Here’s what the company has planned for FY22

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 A2 Milk. 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 Immutep Ltd (ASX: IMM) share price has stepped into the green from the opening of trade on Friday.

Immutep shares are on the move as the company announced it had been granted a Chinese patent on one of its antibody molecules.

Let’s investigate further.

A bit of background to set the scene

Immutep advised that Chinese health authorities had granted the company a new patent on Friday. The company was awarded the approval to develop its “LAG-3 immunotherapeutic products”.

In humans, the “lymphocyte activation gene-3”, also known as LAG-3, acts like an “immune checkpoint” in the internal highways of our body. That means it is important to regulate our immune system so that it only destroys the foreign and nasty cells inside of us. And not our own.

Immutep has developed a “therapeutic antagonist antibody” called IMP701 to target this LAG-3 molecule. It claims that IMP701 “removes the brakes” that prevent our immune system from “responding to and killing cancer cells”.

To achieve this result in humans, Immutep has teamed up with global healthcare giant Novartis AG to further develop the IMP701 antibody.

Together, the pair have created a compound called LAG525, a “humanised form” of IMP701 which is currently being investigated in three separate clinical trials.

What did Immutep announce?

From today’s announcement, the patent is particularly “directed to” LAG525. This covers how the antibody is made, and its application in treating illnesses.

In fact, the patent was granted under the specific heading of “Antibody molecules to LAG-3 and uses thereof” from the Chinese Patent Office, to demonstrate this point.

As such, the approval follows the “corresponding” Australian, US, European and Japanese patents that have been previously granted on this molecule from 2018 to 2020.

Obtaining patent approval effectively protects the company’s compound, and prevents others from making similar copies. Therefore, it stands to reason that Immutep has gained some competitive advantage with the grant of this patent.

Investors seem to think so too, driving the Immutep share price around 5% higher from the market open on Friday.

Immutep shares are now exchanging hands at 52 cents apiece, down from their intraday high of 54 cents each.

Immutep share price snapshot

The Immutep share price has posted a year to date gain of 27%. This extends the previous 12 month’s gain of 171%.

Immutep shares have also climbed around 9% in the green over the last month. Moreover, in the last week, the Immutep share price is up 16%.

These results have outpaced the S&P/ASX 200 index (ASX: XJO)’s return of about 25% over the past year.

The post Immutep (ASX:IMM) share price jumps 5% on Chinese patent grant appeared first on The Motley Fool Australia.

More reading

• Why the Immutep (ASX:IMM) share price is charging higher today
• Capital keeps flowing into ASX Biotech shares in 2021

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 MGC Pharmaceuticals Ltd (ASX: MXC) share price has bolted more than 40% higher in morning trade today.   

Investors are bidding shares in the pharmaceutical company higher after it released an announcement earlier today. At the time of writing, MGC shares are swapping hands for 5.5 cents, up 41%.

Let’s take a look at what MGC Pharmaceuticals announced.

MGC Pharma share price bolts on US supply agreement

Earlier today, MGC Pharma informed shareholders the company has entered a binding, 3-year US supply and distribution agreement.

The agreement with US-based company, AMC Holdings Inc (AMC), includes a minimum supply order of US$24million.

A range of MGC’s phytomedicine products is included in the agreement, namely; CannEpil, CogniCann, and CimetrA.

Under the agreement, AMC will act as a licenced distributor and undertake all marketing activities in the US. In addition, the company will also manage the importing and warehousing of MGC Pharma’s products.

In addition to supply, AMC will also be responsible for coordinating relevant clinical trial processes for MGC Pharma’s products.  

The agreement also outlines a minimum US$3 million of sales in Year 1.

Additionally, MGC Pharma can terminate the agreement if AMC fails to secure regulatory approval for at least 1 of the listed MGC products by 30 September 2021.

What did management say?

MGC Pharmaceuticals’ management highlighted the importance of the company’s milestone of expanding into the US. 

Co-founder and managing director Roby Zomer commented:

This is an important milestone agreement for MGC Pharma, as it provides MGC access to the largest healthcare market in the world. We look forward to working with our new partners at AMC and utilising their expertise and network to widen patient access to MGC’s phytomedicine products.

Snapshot of the MGC Pharmaceuticals share price

The MGC Pharma share price has had an extremely volatile year thus far. Shares in the company bolted to record highs earlier in the year after listing on the London Stock Exchange (LSE).

Since then, the MGC Pharmaceuticals share price has whittled away from its highs throughout the year.

At the time of writing, MGC shares are trading 41% higher for the day. The MGC Pharmaceuticals share price was up more than 50% earlier today, after hitting an intra-day high of 6 cents per share.

Including today’s bullish price action, shares in MGC are trading around 118% higher year to date.

The post MGC Pharmaceuticals (ASX:MXC) share price rockets 40% on supply deal appeared first on The Motley Fool Australia.

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Motley Fool contributor Nikhil Gangaram has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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