Admedus Revisited

Financial Results for 2015
I have followed this fledgling biotech company since February 2013, when the shares were trading at 2.2 cents a share following a 2 cent capital raising. Two and a half years later, after another three capital raisings and a high of 18.15 cents, the share price is back to 8.9 cents at close today. It may still be a micro-cap stock, but it has a macro ambition to be a global diversified healthcare company, and in the last 12 months has made solid gains to meeting this objective.

Two days ago Admedus announced 4th quarter and full year financial results for 2015, a year of outstanding expansion in the distribution of CardioCel, the leading product used for the repair of cardiac defects. I consider that the financial results are reassuring, given the demands for funding to launch production, and to set-up a global distribution network to supply 90 centres world-wide. So-far 2600 patients have been implanted, and the sales revenue for the year was a creditable $2.57 million.

Some important results from the report:

  • The capital raising in March 2015 with an issue at 7 cents per share raised $28 million, which has more than covered the net cash burn of $22.2 million.
  •  There was a closing cash balance of $24 million sufficient for the coming year.
  •  Admedus has a reliable business marketing infusion equipment to the hospital market in Australia and New Zealand, which underlies the Income for the group in the past year of $11.4 million.
  •  Admedus is continuing to fund the promising research work of Professor Ian Frazer on vaccines for the treatment of HSV2 and HPV virus infections.

Technical analysis

Admedus trending higher

Admedus trending higher

This is a 12 month daily candlestick chart for Admedus (AHZ) which shows a clear change in trend. This transition became apparent on the 7th June this year and continues intact to the present. The closing price for the week was 8.9 cents.

There is a resistance level at about 9.8 cents, which is the next target price.

If penetrated, the next resistance level to be encountered would be at 13.8 cents.

Categories: Chart Analyses, Company review

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