Tag: Motley Fool

February may be the shortest month of the year, but it’s also a good time to take a look at your share portfolio.

With the Christmas period fading into the distance and brokers back at work, February is a good time to consider how your portfolio is positioned to perform over the coming year. It may be time to shed ASX shares where the outlook is no longer positive or add promising ASX shares to your portfolio.

To help you do that, we’ve taken a look at 4 ASX shares that brokers have recently rated as buys. 

ALS Limited (ASX: ALQ) 

Goldman Sachs slapped a buy rating on ALS last week thanks to a favourable backdrop for industrial performance. ALS provides testing and inspection services to the mining industry, as well as equipment maintenance and quality assurance to the food and pharmaceutical industries. The ALS share price is currently $11.09, up 14.8% from a year ago.

ALS reported a decline in revenue of 8.9% in 1H FY21, with total revenue of $838.8 million for the half. This was attributed to the COVID-19 pandemic, with significant improvement reported in the second quarter. Nonetheless, the drop in revenue flowed through to profits which dropped by 48.1% to $70.3 million. 

Improved performance is expected in the current half as earnings recovery is driven by a healthy macro and commodity pricing backdrop. ALS says its diversified portfolio of businesses and geographies have proven resilient during the pandemic, with its model leveraged to align cost base with client demand.

The ALS share price has remained largely flat since it delivered its first-half results in November despite healthy commodities pricing. Goldman Sachs views ALS as a clear beneficiary of a tightening mining services market and expects its minerals segment to drive an uplift in consensus estimates. 

Carsales.Com Ltd (ASX: CAR)

Carsales.Com is the company behind the carsales.com.au website, the largest online automotive, motorcycle, and marine classifieds business in Australia. The company is due to release its results for the half-year ended 31 December 2020 next week.

2020 was a challenging year for the company. Immediate cost-saving measures were implemented as the pandemic took hold in line with reduced levels of customer activity. Net profit after tax fell 9% in FY20, but there have been tailwinds as customers embrace online shopping and show a preference for car usage due to concerns about using public transport. The Carsales share price tanked (along with most of the ASX) in March last year but is currently trading almost 12% up from where it was a year ago. 

Goldman Sachs put a buy rating on Carsales earlier this month citing its underperformance since the announcement of vaccine efficiency. The broker acknowledges that the used car market’s sustainability is a key focus, but maintains an optimistic outlook, believing Carsales can deliver growth in earnings per share (EPS) of around 14%.

This will be driven by improving new car sales, the non-repeat of COVID-related dealer concessions, and ongoing cost discipline supporting margins. Exposure to international growth markets, including Korea, is also expected to drive increases in earnings. 

Nearmap Ltd (ASX: NEA)

Nearmap shares took a tumble this week thanks to a report by short-seller J Capital. The Nearmap share price is nonetheless still up 13% from this time last year.

J Capital says Nearmap’s US business is suffering from competitive pressures. The short seller warned Nearmap could be dependent on capital raisings to fund operating losses in the US.

But a fortnight ago, Goldman Sachs upgraded Nearmap to a buy rating, citing the strong economic recovery expected for the US and Nearmap’s “market-leading” technology capabilities. J Capital, however, says Nearmap’s technology is not best in class, with a key competitor in the US having a better camera system. 

Nearmap’s business is based on the capture of aerial images sold as a subscription service to businesses and government. Operating in the US, Australia, and New Zealand, Nearmap’s images are combined with artificial intelligence to deliver insights and location intelligence to users across various industries.

Despite rating Nearmap a buy, Goldman Sachs has downgraded its earnings forecasts due to more modest US growth forecasts and updated foreign exchange forecasts. Nonetheless, the broker says the impact of COVID on sales cycles should ease through 2021 and that Nearmap’s competitive advantages appear undiminished. 

Megaport Limited (ASX: MP1) 

Megaport is another ASX technology share with a recent buy rating. The company is a network-as-a-service provider that provides bandwidth to connect to cloud services and data centres.

Currently sitting above $14, the Megaport share price is up nearly 30% over the past year. In the first half of FY21, Megaport increased its annualised revenue 11% to $75 million, with revenue for the half up 39% from 1H FY20.

The company is benefitting from the acceleration of migration to public cloud infrastructure. Customers are choosing to move to public cloud infrastructure as COVID-19 forces them to confront the difficulties of managing on-premise infrastructure. Incremental revenues are expected to accelerate in 2021 as companies action long-term plans to migrate to the cloud. 

Goldman Sachs rated Megaport a buy in January, noting that the number of services per customer continues to rise. Megaport is continuing to expand its product suite, broadening the services provided to customers. The more services customers use, the less likely they are to churn, resulting in improved customer lifetime value.

Megaport maintains a healthy cash position with $144 million in cash at the end of 2020. The focus in 2H FY21 is on revenue growth and achieving earnings before interest, tax, depreciation and amortisation (EBITDA) breakeven on an exit run-rate basis. 

Foolish takeaway

These 4 ASX shares all have recent buy ratings indicating they may be undervalued. If so, share prices should increase over the long term.

Investors seeking long term capital appreciation often look to undervalued shares, as well as those with long term growth prospects. While you should always do your own research before committing to buy ASX shares, these 4 ASX shares may warrant further exploration. 

More reading

• ASX 200 down 0.3%: Crown CEO hasn’t resigned, Mirvac update, Nearmap remains halted
• Is HyperOne listed on the ASX?
• 2 ASX tech shares to buy for cloud computing exposure
• Nearmap (ASX:NEA) share price sinks 7% on scathing short seller attack
• ASX 200 rises 0.5%, CBA reports, Crown deemed unsuitable for Sydney

Kate O’Brien has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends MEGAPORT FPO. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Nearmap Ltd. The Motley Fool Australia has recommended carsales.com Limited, MEGAPORT FPO, and Nearmap Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post Why brokers rate these 4 ASX shares a buy this month appeared first on The Motley Fool Australia.

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Genworth Mortgage Insurance Australia Ltd (ASX: GMA) shares are tumbling lower today after the company released its financial results for the full year ending 31 December 2020 (FY20). At the time of writing, the Genworth share price has fallen 5.65% lower to $2.67.

Why is the Genworth share price sinking?

The Genworth share price is on the slide today after the business reported an underlying net loss after tax of $104.3 million for FY20. This compares to a $97 million net profit after tax during FY19.

The company experienced an underwriting loss of $234 million for the period. The FY19 underwriting result was $42.1 million.

Genworth reported it would not be declaring an interim or final dividend due to the uncertainty surrounding coronavirus and the current economic environment. The board advised that it remains committed to resuming dividend payments when appropriate.

Genworth maintained a cash and investment portfolio worth $3.4 billion as at 31 December 2020.

The company’s net-earned premium was higher for the period, totalling $312 million in FY20 compared to $298.2 million in FY19. Gross written premium jumped 29.7% from $433.2 million in FY19 to $561.7 million in FY20.

CEO comments

Addressing the company’s losses, Genworth Chief Executive Officer and Managing Director Ms Pauline Blight-Johnston said:

Genworth’s FY20 results were materially impacted by the effects of COVID-19 on the economy. While the business achieved strong toppling volume growth in Gross Written Premium (GWP), our Statutory and Underlying net profit after tax (NPAT) losses were affected by an increase in reserving to reflect anticipated future claims outcomes arising from the economic impacts of COVID-19.

Ms Blight-Johnston added:

Importantly, Genworth remains in a strong capital position, able to withstand a wide range of future claims and outcomes.

Genworth share price snapshot

Genworth provides lenders mortgage insurance (LMI) as well as capital and risk management solutions in Australia.

Over the past 12-months, the Genworth share price has fallen by around 30% after being hammered in the March 2020 bear market.

Based on the current Genworth share price, the company commands a market capitalisation of around $1.2 billion.

More reading

• The Genworth Mortgage (ASX:GMA) share price smashed 14% higher today

Motley Fool contributor Gretchen Kennedy 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.

The post Why the Genworth (ASX:GMA) share price is tumbling 6% today appeared first on The Motley Fool Australia.

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At lunch on Friday, the S&P/ASX 200 Index (ASX: XJO) looks set to end the week with a decline. The benchmark index is currently down 0.3% to 6,830.8 points.

Here’s what is happening on the market today:

Crown CEO not resigning

The Crown Resorts Ltd (ASX: CWN) share price is trading lower today after advising that, contrary to media reports, its CEO, Ken Barton, has not handed in his resignation. However, the company has noted that the two parties are continuing to consider Mr Barton’s position following the Bergin report. One person that is leaving the company is Director Andrew Demetriou. He has resigned as a Director of Crown and as Chairman of Crown Melbourne.

Mirvac half year update

The Mirvac Group (ASX: MGR) share price is trading lower today following the release of its half year results. For the six months ended 31 December, the property company reported a statutory profit of $396 million. This was down 35% on the prior corresponding period. Mirvac declared an interim distribution of 4.8 cents per share, which was a touch short of what analysts at Morgans were forecasting.

Nearmap to respond to short seller attack on Monday

The Nearmap Ltd (ASX: NEA) share price will remain in a trading halt today as it prepares its response to a short seller attack. Hong Kong-based J Capital alleges that Nearmap is struggling in the U.S. market and using accounting tricks to hide this. The aerial imagery technology and location data company also advised that it will bring forward the release of its half year results and release them with its response.

Best and worst ASX 200 performers

The best performer on the ASX 200 on Friday has been the REA Group Limited (ASX: REA) share price with a 2% gain. This morning Morgan Stanley retained its overweight rating and lifted its price target on its shares to $175.00. The worst performer has been the Eagers Automotive Ltd (ASX: APE) share price with a 5.5% decline on no news.

More reading

• Mirvac (ASX:MGR) share price slides on half-year results
• 5 things to watch on the ASX 200 on Friday
• 3 ASX 200 gold miners paying dividends
• ASX 200 drops slightly, Telstra rises, AMP sinks
• What’s with the Xero (ASX:XRO) share price drop today?

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 Nearmap Ltd. The Motley Fool Australia has recommended Crown Resorts Limited, Nearmap Ltd., and REA Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post ASX 200 down 0.3%: Crown CEO hasn’t resigned, Mirvac update, Nearmap remains halted appeared first on The Motley Fool Australia.

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In late morning trade the S&P/ASX 200 Index (ASX: XJO) is on course to end the week with a decline. At the time of writing, the benchmark index is down 0.2% to 6,836.4 points.

Four ASX shares that are not letting that hold them back are listed below. Here’s why they are storming higher:

Novonix Ltd (ASX: NVX)

The Novonix share price has jumped 7% to $2.88. Investors have been buying the battery materials company’s shares after it announced the extension of its sponsorship of Prof. Mark Obrovac’s lab at Dalhousie University. This will be through a new research agreement under the Natural Sciences and Engineering Research Council (NSERC) of Canada’s Alliance Grants Program. Novonix will have first rights to intellectual property developed from this agreement.

Recce Pharmaceuticals Ltd (ASX: RCE)

The Recce share price is up 6% to $1.09 after reporting encouraging results from its COVID-19 studies. According to the release, the results from RECCE 327 (R327) are demonstrating encouraging virucidal activity against the SARS-CoV2 virus (COVID-19) with a positive safety profile. These findings are based on independent tests conducted by the CSIRO/Doherty Institute.

Singular Health Group Ltd (ASX: SHG)

The Singular Health share price has rocketed 92.5% higher to 38.5 cents following its successful IPO. The 3D medical imaging company’s shares hit the ASX boards this morning after raising $6 million at 20 cents per share. The company’s proprietary software and technology has been designed to improve the collection of medical data to inform better health decisions.

Starpharma Holdings Limited (ASX: SPL)

The Starpharma share price is up 4.5% to $2.13. Investors have been buying the biotech company’s shares after it signed a research agreement with global pharmaceutical giant Merck & Co. (MSD). The agreement will see MSD conduct a preclinical research evaluation of dendrimer-based Antibody Drug Conjugates (ADCs) utilising Starpharma’s proprietary DEP technology.

More reading

• Why the Recce Pharmaceuticals (ASX:RCE) share price is rocketing 10% higher
• Here’s why the Starpharma (ASX:SPL) share price just stormed to a record high
• Singular Health (ASX:SHG) shares arrive on the ASX
• Why Douugh, Macquarie, Starpharma, & Suncorp shares are storming higher
• Why the Starpharma (ASX:SPL) share price hit a record high today

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

The post Why Novonix, Recce, Singular Health, & Starpharma shares are storming higher appeared first on The Motley Fool Australia.

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Mirvac Group (ASX: MGR) shares are falling in early trade despite the company announcing a 10% increase in operating profit. At the time of writing, the Mirvac share price has slipped 0.87% to $2.34.

Why is the Mirvac share price falling?

Mirvac today released its half-year results for the period ended 31 December 2020 (1H 2021). The Aussie real estate investment trust’s (REIT) operating profit jumped 10% to $276 million.

However, the Mirvac share price is on the slide after the company reported total statutory profit of $396 million, down from $613 million in December 2019. Mirvac declared a half-year distribution of $188 million or 4.8 cents per stapled security.

The company also provided full-year earnings per share (EPS) guidance. Mirvac expects operating EPS of between 13.1 to 13.5 cents with distribution guidance of 9.6 to 9.8 cents for the full year.

Mirvac CEO and Managing Director Susan Lloyd-Hurwitz noted the ongoing disruptions from the coronavirus pandemic. Ms Lloyd-Hurwitz expects the vaccine roll-out to boost confidence and the economy, with a “reactivation” of cities and urban areas.

Mirvac’s office portfolio remains long weighted-average lease expiry (WALE) with low capex and minimal exposure to small tenants. All of those factors have helped to make the portfolio resilient despite widespread restrictions.

The Aussie REIT reported a 97% rent collection rate from its office portfolio. Mirvac’s office occupancy sat at 96% with a WALE of 6.7 years.

The Mirvac share price has fallen 29.3% over the past 12 months after falling sharply during the March 2020 bear market.

Today, Mirvac also provided updates across its other major portfolio segments. Industrial rent collection was at 100% with 99.7% occupancy and 7.3-year WALE.

Retail rent collection was subdued at 84% with 98.4% occupancy as COVID-19 restrictions continue to impact retailers.

The REIT also opened its first build-to-rent (BTR) operation in Sydney Olympic Park with 48% of leases signed as at 9 February 2021.

In the residential portfolio, Mirvac settled 1,076 residential lots during the period. These included sites across Sydney, Brisbane, Melbourne, and Perth among others.

Foolish takeaway

The Mirvac share price is edging lower in early trade after this morning’s update from the Aussie REIT. The S&P/ASX 200 Index (ASX: XJO) has also edged lower to start the day’s trade.

More reading

• 5 things to watch on the ASX 200 on Friday
• 3 ASX 200 gold miners paying dividends
• ASX 200 drops slightly, Telstra rises, AMP sinks
• What’s with the Xero (ASX:XRO) share price drop today?
• 2 ASX 200 shares that keep growing their dividends

Motley Fool contributor Ken Hall 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.

The post Mirvac (ASX:MGR) share price slides on half-year results appeared first on The Motley Fool Australia.

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The Kelly Partners Group Holdings Ltd (ASX: KPG) released a positive set of results today for the first half of the 2021 financial year. But despite the news, trading in the Kelly Partners share price remains unbudged late morning, and currently remains at the starters gate price of $2.10.

We’ll look at the past months’ share price action below, but first a look at the company’s latest results.

What results did Kelly Partners report?

In this morning’s ASX release, Kelly Partners reported revenue of $24.8 million. That’s an increase of 5.8% from the $23.5 million in the first half of FY20. It attributed the rise to annualised revenue contributions from acquisitions the group completed in FY20.

Underlying earnings before interest, tax, depreciation and amortisation (EBITDA) of $9.6 million was up 16.8% from the previous corresponding half year. And cash flow from operations increased by 41.8% to $8.1 million.

The company also reported its underlying NPATA* earnings per share (EPS) were 6.24 cents per share. It credited the 55.7% lift in EPS to the company’s share buybacks along with the growth in the underlying attributed NPATA.

(*NPATA is adjusted for amortisation of customer relationship intangible assets acquired.)

Ordinary dividends per share (DPS) of 2.66  were up 10% from the first half of the 2020 financial year.

Commenting on the first-half results, CEO Brett Kelly said:

Kelly Partners is a strongly defensive annuity style revenue business growing at c.15% p.a. since IPO three years ago.

Our strategy is to be focused on tax and accounting services to private business owners with an addressable market in excess of $12.0 billion ensures that we feel confident that there is still very substantial growth ahead. The 1H21 performance of our businesses is pleasing and has improved significantly on 1H20.

Looking ahead, Kelly added:

We expect to continue to grow our earnings. We have and continue to prepare the business for the current economic environment and the business remains well positioned and well capitalised over the medium term to execute its five-year growth plan.

In other forward guidance, Kelly Partners forecast an increase in its FY21 dividend to 5.32 cents. That’s up 10% from the 4.84cents for FY20. Cautioning that COVID-19 remains a wild card, it also stated its intention to maintain the dividend payout ratio of 50–70% of underlying NPATA.

Kelly Partners share price snapshot

2021 has been a bit of a slog for the Kelly Partners share price, down 4.1%. That compares to a 2.4% gain on the All Ordinaries Index (ASX: XAO).

But go back a bit further, and Kelly Partners’ shares have hugely outperformed. Over the past 12 months, shares are up 139%. And the share price has surged a remarkable 250% since the 23 March lows.

More reading

• Why the Recce Pharmaceuticals (ASX:RCE) share price is rocketing 10% higher
• Here’s why the Ava Risk (ASX:AVA) share price is surging today
• Botanix (ASX:BOT) share price falls despite big tax refund
• Here’s why the Starpharma (ASX:SPL) share price just stormed to a record high
• Why the Imugene (ASX:IMU) share price is lifting 5% higher

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. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post What’s with the Kelly Partners (ASX:KPG) share price today? appeared first on The Motley Fool Australia.

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The Recce Pharmaceuticals Ltd (ASX: RCE) share price has been on fire on Friday morning.

At the time of writing, the drug discovery and development company’s shares are up over 10% to $1.14.

This means the Recce share price is now up 180% over the last 12 months.

Why is the Recce share price rocketing higher today?

Investors have been buying Recce shares this morning following the release of an update on its COVID-19 anti-viral screening program.

According to the release, the results from RECCE 327 (R327) are demonstrating encouraging virucidal activity against the SARS-CoV2 virus (COVID-19) with a positive safety profile.

These findings are based on independent tests conducted by the CSIRO/Doherty Institute as part of its program.

The company notes that R327 showed a reduction in SARS-CoV-2 viral genome numbers at 4,000 parts per million (ppm) and the virus was no longer detectable by viral titration.

In addition to this, the company advised that a leading contract research organisation in the United States is expanding its in-vivo studies of RECCE compounds against SARS-CoV-2 in ferrets to include emerging UK and South African variant strains of the virus. These studies continue to progress well with results on-track within the present quarter.

R327 was originally developed for the treatment of blood infections and sepsis derived from E. coli and S. aureus bacteria.

What now?

Management advised that it is delighted by the results but warned that further testing must be completed before R327 is confirmed as being active against the SARS-CoV-2 virus.

The company’s Non-Executive Chairman, Dr. John Prendergast, commented, “We continue to be encouraged by the results from the antiviral SARS-CoV-2 screening program as it reinforces our belief in the potential of R327 against COVID-19 including emerging variant strains. We would like to thank the Doherty Institute for performing the experiments and look forward to coming studies.”

More reading

• Here’s why the Ava Risk (ASX:AVA) share price is surging today
• Botanix (ASX:BOT) share price falls despite big tax refund
• Here’s why the Starpharma (ASX:SPL) share price just stormed to a record high
• Why the Imugene (ASX:IMU) share price is lifting 5% higher
• Singular Health (ASX:SHG) shares arrive on the ASX

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post Why the Recce Pharmaceuticals (ASX:RCE) share price is rocketing 10% higher appeared first on The Motley Fool Australia.

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The Ava Risk Group Ltd (ASX: AVA) share price is lifting today following the positive announcement of a multi-base air force contract.

During mid-morning trade, the Ava share price shot up to an intraday high of 64 cents. However, shares in the risk management services and technologies company have since retraced to 61 cents, up 3.39%.

What did Ava announce?

The Ava share price is firmly in the green today after the company announced a major new contract award.

In its release today, Ava advised that it has successfully completed a comprehensive site acceptance testing using its Aura Ai sensing product. The evaluation and testing program took place at a major airbase within an undisclosed large Asian country.

In addition to the positive news, Ava revealed that it has further secured another contract with the same client. It noted that it has received instructions to deploy its security systems to 15 sites across selected major air force bases.

Ava highlighted that it has purchase orders of more than $0.7 million for multi-site security upgrades at 4 locations. The company stated that deployment at the initial sites is expected to start during the third quarter of FY21. The orders for the remaining 11 sites are anticipated to be undertaken during Q4 FY21 and into FY22.

CEO commentary

Ava Group CEO Rob Broomfield reaffirmed the company’s strengths:

Following a comprehensive evaluation and testing program and a competitive tender and trial process, our strong track record of providing world class security and assurance technologies has been reinforced by this large contract award with a highly respected defence end user.

How has the Ava share price performed?

Over the past 12 months, the Ava share price has performed strongly, gaining close to 350%. The company’s share registered a multi-year low of 8 cents in March, before storming to a peak of 78.5 cents in December.

More reading

• Here’s why the Ava Risk (ASX:AVA) share price shot up 11% today
• ASX stock of the day: AVA Risk Group (ASX:AVA) share price rockets 30%

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Botanix Pharmaceuticals Ltd (ASX: BOT) shares are edging lower today despite the company reporting it has received a research and development (R&D) tax refund. At the time of writing, the Botanix share price has fallen 3.45% lower to 14 cents.

What did Botanix Pharmaceuticals report?

In this morning’s ASX release, Botanix reported it has received an R&D Tax Incentive refund of $6.87 million. The company had $19.2 million in cash as at 31 December.

Botanix stated that the tax refund alongside positive data from its BTX 1801 antimicrobial Phase 2a study places it in a strong position for clinical programs and corporate development in the 2021 calendar year.

The federal government provides the R&D Tax Incentive to support companies in their research and development programs. Companies can receive refunds of up to 43.5% of eligible R&D expenditure.

Commenting on the tax refund, Vince Ippolito, president and executive chair, said:

The receipt of the R&D refund provides the company with a strong financial position and funding flexibility across our product development pipeline. Following the announcement of our successful BTX 1801 study data last week, Botanix is well positioned to execute on our dermatology and antimicrobial programs and extend our leading position in synthetic cannabinoid research and development.

Botanix Pharmaceuticals share price and company snapshot

Botanix Pharmaceuticals is a clinical-stage cannabinoid therapeutics company. It focuses on developing safe and effective topical treatments for serious skin conditions. The company has an exclusive license to use a proprietary drug delivery system, Permetrex, for direct skin delivery of active pharmaceuticals in all skin diseases.

Botanix shares listed on the ASX in January 1985. The company has a current market capitalisation of $141 million.

Year to date, the Botanix share price is up 7.7% and has surged around 600% from its 30 March lows.

Over the past 12 months, Botanix shares have gained 55%. By comparison, the All Ordinaries Index (ASX: XAO) is down 1% over the past calendar year.

More reading

• Why the Botanix (ASX:BOT) share price is rocketing 31% higher today
• Why the Botanix (ASX:BOT) share price is flying 6%
• Why the Botanix (ASX:BOT) share price rocketed 22% to a record high today

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. 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 Starpharma Holdings Limited (ASX: SPL) share price has continued its positive run on Friday and charged higher again.

In fact, at the time of writing, the dendrimer products developer’s shares are up 4% to a record high of $2.13.

This latest gain means the Starpharma share price is now up an impressive 38% since the start of the year.

Why is the Starpharma share price charging higher today?

Investors have been buying Starpharma shares this morning following the release of a positive announcement.

According to the release, the company has signed a research agreement with global pharmaceutical giant Merck & Co. (MSD).

MSD. is one of the world’s largest pharmaceutical companies, generating US$48 billion in revenue in 2020.

What is the agreement?

The agreement will see MSD conduct a preclinical research evaluation of dendrimer based Antibody Drug Conjugates (ADCs) utilising Starpharma’s proprietary DEP technology.

Starpharma’s CEO, Dr Jackie Fairley, commented: “MSD is a recognised leader in oncology, and we are delighted to have signed this new Research Agreement in such an innovative and valuable area.”

The release explains that DEP ADCs exploit the unique potential of Starpharma’s DEP technology to provide enhanced characteristics to ADCs. This includes greater homogeneity, site specific attachment, and higher drug antibody ratio (DAR) than conventional ADC approaches.

It is worth noting that Starpharma has previously demonstrated the significant advantages conveyed by DEP ADCs in multiple preclinical studies. This includes with its DEP HER-2 ADC study, which showed significant tumour regression and 100% survival, outperforming Herceptin & Kadcyla in a human ovarian cancer model.

Furthermore, this won’t be the first potential product of its kind. The company notes that its DEP technology has already yielded four clinical stage oncology products. This includes one under development by another pharmaceutical giant, AstraZeneca.

If these developments are successful, it could bode well for the Starpharma share price in the coming years.

More reading

• Why Douugh, Macquarie, Starpharma, & Suncorp shares are storming higher
• Why the Starpharma (ASX:SPL) share price hit a record high today
• Starpharma (ASX:SPL) share price dips on quarterly update

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

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