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The Woodside Petroleum Limited (ASX: WPL) share price is down 0.49% after the company released its half year report to 30 June, 2020. At the time of writing, the Woodside share price is trading at $20.41.

What was in the announcement?

Woodside had operating revenue of US$1.91 billion in the first half of 2020. This was down from operating revenue of US$2.26 billion in the first half of 2019. The company produced 50.1 million barrels of oil in the first half of 2020.

Earnings before interest, tax, depreciation and amortisation (EBITDA) was US-$4.3 billion in the first half of 2020, this compared to positive EBITDA of US$1.46 billion in the first half of 2019.

Net profit after tax was US-$4.07 billion in the first half of 2020 compared to a positive net profit after tax of US$419 million in the first half of 2019.

Underlying net profit after tax, which excluded asset impairments and provisions for a loss generating contract, was US$303 million in the first half of 2020, compared to US$419 million in the first half of 2019.

Earnings per share for the first half of 2020 was US-$4.30 compared to 44.8 US cents in the first half of 2019.

The company declared an interim dividend of 26 US cents per share, representing 80% of underlying net profit after tax.

Woodside CEO, Peter Coleman, commented on the results, stating;

“I would rate the external conditions created by the COVID-19 pandemic and oversupply in global oil and gas markets as the most difficult I’ve seen in nearly four decades in the industry.”

Woodside began 2020 in a strong financial position, built over the previous two years as we prepared for a period of increased capital spending. This position has been consolidated through the first half thanks to the strong performance of our high-reliability, low-cost operations.

Our balance sheet strength and disciplined approach to capital management ensures we can deliver appropriate returns to shareholders. It also allows us to progress our existing strategic growth plans, and provides optionality to pursue the right external opportunities, should they arise.

Woodside’s operational performance during the first half was nothing short of outstanding. In February, we successfully weathered Tropical Cyclone Damien – the most severe storm ever to pass over our Western Australian facilities – with very limited impact on production.

In the immediate wake of Damien, we faced the emerging challenge of COVID-19, requiring us to take swift and decisive action to protect our workforce, communities and operations, and ensure safe and secure gas supplies to customers in Western Australia and overseas.

The record production achieved in the half is a credit to our people’s ongoing commitment to sustained operational excellence, helping Woodside deliver underlying net profit after tax of $303 million, despite the challenging market conditions.”

About the Woodside share price

Woodside is a petroleum exploration and production company and is Australia’s largest oil and gas producer. Woodside has assets in Australia and abroad, with its countries of operation including Senegal, Myanmar, Timor-Leste and Canada.

The Woodside share price is up 36.7% since its 52-week low of $14.93, however, it has fallen 40.79% since the beginning of the year. The Woodside share price is down 38.23% since this time last year.

More reading

• 5 things to watch on the ASX 200 on Thursday
• 5 things to watch on the ASX 200 on Tuesday
• ASX 200 Weekly Wrap: Surging commodity prices snap ASX 200’s losing streak
• 5 things to watch on the ASX 200 on Monday
• Worley share price jumps on contract win and is my key pick in the sector

Motley Fool contributor Chris Chitty has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Vection Technologies Ltd (ASX: VR1) share price rallied 50% after the company announced a partnership agreement. The Vection share price reached an intraday high of 5.4 cents before being sold down to its current price of 4.6 cents, at the time of writing.

Details on the Vection partnership agreement

Earlier today, Vection announced that the company has completed an Original Equipment Manufacturer (OEM) partnership agreement with integrated hardware solutions firm, JMC Group.

JMC is a global provider of integrated technology solutions and is an end-to-end partner with Dell Technologies Inc. The partnership with JMC will see Vection integrate its end-to-end software solutions to the global sales program at Dell.

Vection’s announcement noted that the partnership and integration between hardware and software for virtual reality is key to the development of automation. The company’s management noted that the partnership will play a critical role in bringing together disruptive software and hardware technology.

In addition, the partnership agreement will see the company collaborate with JMC on marketing activities for Vection’s software product suite.

What does Vection do?

Vection is an Australian-based software company that focuses on real-time technologies for industrial organisations.

The company boasts a software suite including its virtual reality platform, FrameS, its real-time 3D platform, Mindesk, and augmented reality software called Trainer Creator. According to Vection, the company’s solutions are aimed at helping industries transition into the fourth industrial revolution known as Industry 4.0. Industry 4.0 involves the automation of traditional manufacturing and industrial processes.

Despite a challenging trading environment induced by the COVID-19 pandemic, Vection recently released a solid quarter of cash receipts. The company reported cash receipts for the June 2020 quarter of $577,000 and also reported $2.8 million in cash receipts for FY20.

According to Vection, the company’s focus over the next six months is to expand its software-as-a-service (SaaS) solutions to the healthcare, education and automotive sectors. Vection also has an ambitious goal of achieving 50% growth in annual recurring revenue (ARR) by June 2022.

In addition to the company’s recent partnership with JMC, Vection also boasts OEM distribution with other notable companies including; Logitech, Hewlett-Packard, Intel and Volvo.

About the Vection share price

As mentioned, at the time of writing the Vection share price had been sold down from its intraday high and is now trading 27.8% higher for the day at a 4.6 cents. It is 130% higher in year-to-date trading.

More reading

• 4 quality ASX shares to buy in August
• Broker reveals its expectations for the Mesoblast FDA meeting
• Why the rise of electric vehicles could benefit ASX mining shares
• If an ASX share announces a demerger, here’s why you should listen
• The Atomos share price has raced 27% so far this week and is still gaining ground

Motley Fool contributor Nikhil Gangaram has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Are you aiming to make some additions to your portfolio in August? If you are, I would suggest you consider one of the four ASX shares listed below.

I believe all four have the potential to generate strong returns for investors over the 2020s. Here’s why I would buy them for the long term:

a2 Milk Company Ltd (ASX: A2M)

I believe a2 Milk Company would be a great ASX share to own. This is due to the insatiable appetite for its infant formula in China and its relatively modest market share in the lucrative market. In addition to this, the company is sitting on a mountain of cash and has just hired a new CEO with experience in mergers and acquisitions. I suspect it could accelerate its growth with acquisitions in the future.

Altium Limited (ASX: ALU)

Altium is an electronic design software provider which could have a very bright future ahead of it. This is due to its exposure to the Internet of Things and artificial intelligence booms. Global technology spending on both is expected to grow at a rapid rate over the next decade. This should lead to increasing demand for its award-winning software.

REA Group Limited (ASX: REA)

Another share to consider buying is REA Group. It is the owner and operator of the realestate.com.au website and several international equivalents. I believe it is a great buy and hold investment option due to the quality and strength of its business model and its positive long term outlook. And although market conditions are tough currently, I remain confident its growth will accelerate once the crisis passes.

Xero Limited (ASX: XRO)

Xero is a leading cloud-based business and accounting software provider. I think it could be a great long term option due to the quality of its product and the continued shift to online accounting. This year it surpassed 2 million subscribers, but this is still only a small portion of its massive global market opportunity. This gives Xero a significant runway for growth over the next decade.

More reading

• 2 ASX shares that every investor should own
• Is BetaShares Australia 200 ETF the best ASX ETF?
• Whatever happened to WAAAX shares?
• These ASX stocks could be the next reporting season heroes
• Top brokers name 3 ASX 200 shares to buy 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 and recommends Altium. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Xero. The Motley Fool Australia owns shares of A2 Milk. The Motley Fool Australia has recommended REA Group Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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It certainly has been an eventful week for the Mesoblast limited (ASX: MSB) share price.

After hitting a record high of $4.88 on Tuesday, the biotechnology company’s shares crashed as low as low as $3.06 on Wednesday.

On Thursday things are looking a lot better, with the Mesoblast share price up 8% to $3.32 in afternoon trade.

Why has the Mesoblast share price been so volatile?

This volatility has been caused by the company’s impending meeting with the Oncologic Drugs Advisory Committee (ODAC) this evening. That meeting is to discuss its remestemcel-L product candidate as a treatment for paediatric steroid-resistance acute graft versus host disease (paediatric SR-aGvHD).

This is a major event as the ODAC is a key player in the regulation of cancer drugs and plays a big role in whether a drug gets approval or not.

Ahead of that meeting the U.S. Food and Drug Administration (FDA) released a briefing document which cast doubts on whether or not it will receive approval from the regulator.

Is it game over?

This morning analysts at Lodge Partners have released a note discussing the FDA’s briefing note and their expectations for the meeting.

It commented: “There will be two sessions to discuss Mesoblast’s cellular therapy during the Oncologic Drugs Advisory Committee (AdCom) Meeting on Thursday, 13 August (US Eastern Time). While this is unusual, we note that where cellular therapies are concerned this seems to be the US Food and Drug Administration’s (FDA) standard practice now.”

This will involve a session on product characterisation in the morning and then a session on clinical trial evidence in the afternoon. And while its briefing notes have been quite harsh, the broker doesn’t appear to believe it is game over just yet.

Lodge Partners notes that the FDA’s issue is that it believes Mesoblast doesn’t have a reliable potency assay. It also goes hard on Mesoblast by raising the failed trials run by remestemcel-L’s previous owner, Osiris Therapeutics, which were negative.

In respect to the latter, the broker believes it should be “possible for Mesoblast to navigate the issues raised by the Osiris’ trials and those surrounding how the company defined the historical controls.”

However, it does have concerns with its product characterisation issues, which it feels the FDA has “something they can hold the company up on, if they want to.” Though, it notes that “Mesoblast has spent USD tens of millions, probably over USD100m, on manufacturing and you would expect them to have gotten it right.“

With any drug, efficacy will remain an incredibly important issue. The ODAC will ultimately be looking at data to see if it supports the efficacy of remestemcel-L in paediatric patients with steroid-refractory aGVHD.

Lodge Partners commented: “Appropriately argued by Mesoblast, we believe the AdCom panel for the clinical evidence session will vote that the available data DOES support the efficacy of remestemcel-L in pediatric patients with steroid-refractory aGVHD.”

Though, it has warned that the FDA could ask Mesoblast to conduct a further clinical trial to prove its efficacy.

Should you invest?

I would suggest investors keep their powder dry until the FDA has made its decision to approve remestemcel-L or not.

While the Mesoblast share price is likely to rocket higher if the ODAC meeting goes well, it could just as easily crash lower if things don’t go in the company’s favour.

More reading

• Down 37% in 2 days! Is the Mesoblast share price a buy?
• Why Mesoblast, Northern Star, SEEK, & WiseTech Global shares are sinking lower
• Is the CSL share price the best ASX biotech buy right now?
• ASX 200 rises 0.5%, Mesoblast plunges
• Mesoblast share price crashes 29% lower on FDA doubts

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Climate change is the catalyst for a global shift from internal combustion engine cars to electric vehicles. As a result, increased demand for materials needed to produce electric vehicles could reward investors in ASX mining shares over the long term.

The Australian Renewable Energy Agency (ARENA) and the Clean Energy Finance Corporation published an Australian Electric Vehicle Market Study which found electric vehicles were expected to match petrol vehicles on upfront price and range by mid 2020s.

Building electric vehicles

The materials needed to build electric vehicles include lithium, cobalt, rare earths, graphite, manganese, copper, aluminium, and nickel.

A battery pack in a Chevy Bolt, for example, would require 8% copper, 6% cobalt, 5% nickel, 5% manganese and 2% lithium.

As more electric vehicles are manufactured, demand for these resources could soar, potentially boosting mining company profits depending on operational efficiency.

ASX mining shares that could benefit

After some digging, here are the ASX mining shares that I think could benefit from a rising demand for electric vehicle materials.

Oz Minerals Limited (ASX: OZL) could gain from the increased demand for copper. It’s 2019 Annual and Sustainability Report states: “Short to medium term global copper demand is forecast to be higher than copper mine supply due to existing new uses of copper such as for electric vehicles. Increase in copper demand will increase the company’s cash flow position and enables the company to pursue its growth pipeline to create value across all stakeholders.”

Mining giant BHP Group Ltd (ASX: BHP) is could also be in to win from a surge in demand for copper. BHP is the world’s top copper producer as reported in February this year, with a 57.5% interest in Escondida copper mine in Atacama Desert in Chile.

Lynas Corporation Ltd (ASX:LYC) could gain from a higher demand for rare earths. The rare earths are “essential inputs” to​ high growth global manufacturing supply chains, including digital age technologies and green technologies such as electric vehicles and wind turbines, according to the ASX mining share.

Galaxy Resources Limited (ASX:GXY) has lithium assets that could benefit from the rise in electric cars. And South32 Ltd (ASX: S32) produces nickel. Lithium and nickel are key components in electric vehicle battery packs.

Foolish Takeaway

When electric vehicles match the cost of a standard internal combustion engine cost, we could see a dramatic surge in demand in Australia and globally. As a result, the materials required by manufacturers could increase the earnings of ASX mining shares. And an investment in mining companies in the supply chain could reward long-term investors looking to gain exposure to the electric vehicle industry.

More reading

• If an ASX share announces a demerger, here’s why you should listen
• The next battle facing these ASX stocks will come from within
• The BHP share price is up 10% in a month: Is it too late to invest?
• ASX gold miners on watch after gold price crashes lower
• Broker sees top returns for iron ore miners BHP and Rio

Motley Fool contributor Matthew Donald has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Mergers, demergers, acquisitions, stock splits… it’s all very exciting stuff. When an ASX share announces a fundamental change to its company structure, we investors are pretty much trained to sit up and listen. And fair enough too. Investing shouldn’t just be about sifting through annual reports or numbers on a spreadsheet. Investors are human too, and who doesn’t like a bit of drama every now and again. And that’s what mergers and demergers bring us. It’s the financial equivalent to a celebrity marriage (or divorce).

So let’s talk about demergers today.

Although demergers have been largely shunted off the table in 2020 thanks to the coronavirus pandemic, there were a few in the works last year. Notably, Woolworths Group Ltd (ASX: WOW) had plans last year to spin-off its Endeavour Drinks businesses (containing the BWS and Dan Murphy’s bottle shop chains as well as some pubs/hotels). I have a hunch that was behind the Woolworths share price climbing more than 24% in 2019.

But why would a demerger cause investors to destroy the buy button, and revalue a company as mature as Woolworths by almost a quarter higher?

Well, it’s because, in the past, most demergers have been raging successes, and investors know it.

Coles and Wesfarmers shares: a successful demerger

Take the recent demerger of Coles Group Ltd (ASX: COL) from its old parent company Wesfarmers Ltd (ASX: WES). Prior to November 2018, Coles was a wholly-owned subsidiary of Wesfarmers after the conglomerate bought it out back in 2007. But Wesfarmers decided to let Coles fly the nest and listed Coles shares at $12.49 on 20 November 2018. All existing Wesfarmers shareholders received one share of Coles for every Wesfarmers share owned. On the first day after Coles hit the boards, Wesfarmers shares were asking roughly $31.50.

Fast forward to today, and the Coles spin-off has been hailed as highly successful for Wesfarmers shareholders. Coles shares have raced almost 50% higher since they first flew the nest. Just today, in fact, Coles has clocked a new record high of $19.26 per share.

Meanwhile, Wesfarmers shares have also performed very well. They are also up close to 50% since November 2018 and are going for $47.31 at the time of writing.

And both of these companies have been paying substantial, fully franked dividends to shareholders along the way as well.

Coles and Wesfarmers isn’t the only recent demerger success story either. BHP Group Ltd (ASX: BHP) and South32 Ltd (ASX: S32) split up back in 2015 at the strong encouragement of shareholders. Both have performed well on their own since. Ditto with the old Fairfax Media (now part of Nine Entertainment Co Holdings Ltd (ASX: NEC)) and Domain Holdings Australia Ltd (ASX: DHG).

Foolish takeaway

All evidence points to a demerger being a potentially lucrative process to benefit from. I myself considered buying Wesfarmers shares before the Coles spin-off, but I decided against it as I thought Wesfarmers was too expensive at the time — in hindsight a foolish (and not the good kind of Foolish) decision. So next time an ASX company announces a demerger, be sure to pay attention.

More reading

• Why the rise of electric vehicles could benefit ASX mining shares
• Fiji Kava share price soars 90% on Blackmores subsidiary agreement, trade paused
• The next battle facing these ASX stocks will come from within
• Brokers have upgraded 3 ASX shares to the buy zone. Here’s why
• Coles shares vs Woolworths shares. Which is a better buy?

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of COLESGROUP DEF SET, Wesfarmers Limited, and Woolworths Limited. The Motley Fool Australia has recommended Nine Entertainment Co. Holdings Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Atomos Ltd (ASX: AMS) share price is up 27.4% since Friday’s closing bell. That far outpaces the 1.2% gain for the All Ordinaries Index (ASX: XAO) over that same time.

The global software and hardware technology company’s share price was savaged by the COVID-19 market selloff in February and March. From 25 February to its low on 19 March, the Atomos share price plunged 75%.

Since that low, Atomos shares have gained an impressive 80%. Although that’s not nearly enough to recoup its losses earlier in 2020. Year-to-date, the Atomos share price is still down 61%.

At its current share price of 54 cents per share, Atomos has a market cap of $117 million.

What does Atomos do?

Atomos is an Australian-based software and hardware technology company. It develops and markets products involved with video monitoring, processing and recording technologies.

Atomos was founded in 2010 after it created the world’s first video monitor-recorder. This enabled users to alter the quality of the editing and production output of their video camera at a lower cost. Today Atomos works with some of the biggest names of technology providers including Apple, Adobe, Sony, Canon, JVC Kenwood, Nikon, FUJIFILM and Panasonic.

What’s driving Atomos’ huge weekly share price gain?

Atomos released a business trading update on 30 July. While that saw the Atomos share price jump 5.6% higher on the day, it lost ground heading into last Friday, falling 12.5% from 31 July to 7 August.

There was no specific news out of Atomos that would drive its 28% share price rise this week. I expect investors are realising the shares may have been oversold earlier this year. That’s particularly relevant with the rapid rise of video streaming as much of the world shifts to working, shopping and socialising from home during the pandemic lockdowns.

In its 30 July update, Atomos did cite that the video market in July had started to open up and was showing positive signs. There may well be other positive signs emerging in the market that warrant this week’s share price gains.

The Atomos share price is likely also benefitting from the broader rally in technology shares. Overnight the tech-heavy Nasdaq Composite (INDEXNASDAQ: .IXIC) closed up 2.1%, less than 1% off its record high set last week.

More reading

• Atomos share price surges 5% despite 17% revenue slump

Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Atomos Ltd. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Although the market has bounced back strongly from its March low, a number of popular shares are still trading materially lower than their 52-week highs.

Two beaten down ASX shares which I think investors ought to consider buying are listed below. Here’s why they could prove to be bargain buys:

IDP Education Ltd (ASX: IEL)

The IDP Education share price has been sold off in 2020 and is down 45.7% from its 52-week high. As a leading provider of international student placement services and English language testing services, IDP Education’s business has been impacted greatly by the pandemic. While this is likely to lead to very soft results in FY 2020 and FY 2021, I expect the company to bounce back strongly once conditions return to normal.

Especially given how surveys on prospective students suggest that plans to continue pursuing a higher level of education remains the case for the majority of students. This deferral of volumes is expected to result in a build-up of the student pipeline when markets reopen. And with such a strong balance sheet following its equity raising, IDP Education looks better positioned than most to navigate these tough trading conditions.

Jumbo Interactive (ASX: JIN)

The Jumbo share price is down a massive 58% from its 52-week high. The online lottery ticket seller and operator of the Oz Lotteries website has come under pressure over the last 12 months due to its slowing growth and amended reseller agreement with Tabcorp Holdings Limited (ASX: TAH).

The slowdown in its growth is due management’s focus on investing in its growth. And the Tabcorp agreement may be on less favourable terms, but provides a lot of stability and allows management to focus on the international expansion of its Powered by Jumbo SaaS business. This business has enormous potential and is looking to win a slice of the US$303 billion global lottery market. Management notes that just 7% of this market is online at the moment, but is likely to make the shift in the future.

More reading

• Why I would buy ResMed and these ASX growth shares
• 3 mid cap ASX shares that could generate strong long term returns
• Leading brokers name 3 ASX shares to buy today
• 5 things to watch on the ASX 200 on Monday
• 3 stellar mid cap ASX shares to buy

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 Idp Education Pty Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. recommends Jumbo Interactive Limited. The Motley Fool Australia owns shares of and has recommended Jumbo Interactive Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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On Wednesday I looked at three ASX shares that brokers have given buy ratings to this week.

Unfortunately, not all shares are in favour with them right now. Three ASX shares that have just been given sell ratings by brokers are listed below.

Here’s why these brokers are bearish on them:

Commonwealth Bank of Australia (ASX: CBA)

According to a note out of Morgan Stanley, its analysts have retained their underperform rating and cut the price target on this banking giant’s shares to $62.00. This follows the release of a full year result which fell a touch short of Morgan Stanley’s expectations. And while it was pleasantly surprised by its credit quality, it remains concerned that this could deteriorate. In addition to this, the broker suspects that APRA could continue to place restrictions on dividend payments in 2021. In light of this, it continues to believe its shares are overvalued at the current level. The CBA share price is trading at $72.45 this afternoon.

Computershare Limited (ASX: CPU)

A note out of Citi reveals that its analysts have retained their sell rating and $12.00 price target on this share registry company’s shares following its results release. Although its result was in line with expectations, the broker believes its outlook remains weak due to a number of headwinds in the UK and United States. As a result, it holds firm with its sell rating. The Computershare share price is changing hands for $13.10 on Thursday.

Transurban Group (ASX: TCL)

Analysts at Credit Suisse have retained their underperform rating but lifted the price target on this toll road operator’s shares to $12.60. According to the note, Transurban’s full year result fell short of its forecasts due to weak toll prices and soft traffic volumes. Unfortunately for shareholders, the broker expects it to be a few years until Transurban’s dividend recovers to previous levels. Because of this and the tough trading conditions it is facing, it appears to believe its shares are overvalued at the current level. The Transurban share price is trading at $13.41 this afternoon.

More reading

• Telstra just announced its dividend! Are Telstra shares now a buy?
• Why AGL, Breville, CBA, & Telstra shares are dropping lower today
• ASX 200 drifts 0.1% lower, CBA reports solid FY20 result
• How did the CBA FY 2020 result compare with expectations?
• Fund managers have been buying these ASX shares

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of Transurban Group. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Osprey Medical Inc (ASX: OSP) share price is today surging higher after it was announced that the company has received European CE Marking approval for its core European product.

At the time of writing, the Osprey Medical share price is up 8.57% to 3.8 cents.

What Osprey Medical does

Osprey Medical aims to make heart imaging procedures safer for patients with poor kidney function. The company’s core technologies originated from research conducted by Dr David Kaye at Melbourne’s Baker Institute. Its proprietary dye reduction and monitoring technologies are designed to help physicians minimise dye usage and monitor the dose levels of dye real time throughout the procedure.

Osprey’s flagship product is its DyeVert system. The company recently announced a strategic alliance with US giant GE Healthcare to distribute the product.

What does the approval mean?

The CE Marking approval for its DyeVert Power XT device means the product can now be marketed and sold across Europe. Europe is a core market for Osprey and a significant player in the global power injector market. The DyeVert Power XT device is expected to form a core product in the portfolio that is being commercialised by GE Healthcare.

Osprey Medical president and CEO, Mike McCormick commented: “We are delighted to have received CE Mark approval for our Power XT device.”

“The approval was a critical building block in our European roll-out and the timing is perfect, following the strategic alliance formed with GE Healthcare in July,” he added.

Clinical and operations update

In addition to the CE market approval, an important peer-reviewed manuscript was published by Dr Carlo Briguori. This study further validates the effectiveness of Osprey’s DyeVert technology at improving patient outcomes and lowering hospital cost.

The Osprey Medical share price was also driven higher following an update on the partnership with GE Healthcare. Osprey has confirmed the agreement is expected to contribute materially to Osprey’s revenue over the 4-year contracted period. The deal also aids increased diversification for the company as it adds to the company’s sales outside the US. Under the agreement, Osprey’s products will be distributed across Europe, Russia, the Middle East, Africa, Central Asia and Turkey.

Foolish takeaway

The Osprey Medical share price has been on a tear since the announcement of its agreement with GE Healthcare and is currently up 280% since its lows in late July. However, the company is still suffering at the hands of COVID-19 and seeing material declines in sales revenues. Despite this, Osprey is still poised for growth, as the deal is forecast to add 40% in revenue by 2024.

More reading

• Osprey Medical inks new deal with GE Healthcare

Motley Fool contributor Daniel Ewing has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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