Health Check: An October gains-fest as ASX big caps don their hero capes

• Healthcare’s leading names defy the broader malaise with solid October gains
• Neurizon raises capital and buys back convertible notes
• Vitura denies liability for a $6.5 million cannabis advertising penalty

Healthcare’s big end of town has continued its impressive recovery, with the S&P/ASX 200 exponents surging 10% in the month of October.

The broader ASX200 stocks edged up 2.6% – believe it or not.

Donning their hero capes, ProMedicus (ASX:PME) shares surged an impressive 25%. But over the last year they have still lost one-quarter of their value.

CSL (ASX:CSL) and Cochlear (ASX:COH) shares both gained 14%.

CSL shares are 13% higher than a year ago – once again, hard to believe – but Cochlear shares still have lost half their value.

The most reliable of the life sciences Big Four, Resmed (ASX:RMD) shares surged 11% and capped off the month with solid quarterly numbers (see below).

The sector’s gains came despite Friday’s dramatic 4D Medical (ASX:4DX) sell off, which saw the shares slump 25% on no news.

Responding to an ASX ‘speeding ticket’, the company today attributed increased short selling as the likely reason.

On the latest numbers delayed by four trading days, short sellers account for 10.6% of 4D Medical’s register. This compares with almost nothing in March and a peak of 13.4% in early July.

At Wednesday’s AGM, 4D Medical’s remuneration report was soundly defeated, as was a proposal to issue incentive stock to founder and CEO Dr Andreas Fouras.

Outside of the ASX 200, conditions were gnarlier for drug developers. PYC Therapeutics (ASX:PYC) shares swooned 23% – admittedly after a nice 18-month run – while shares in the challenged Clinuvel Pharmaceuticals (ASX:CUV) lost 11%.

The ASX 200 healthcare gains follow a 1.8% increase in September, which compared with the broader index’s 4% decline.

Neurizon raises up to $6.3 million

Motor neurone disease (MND) drug developer Neurizon Therapeutics (ASX:NUZ) has launched a $4.3 million placement and hopes to bring in a further $2m by way of a share purchase plan (SPP).

The company will use US$915,750 ($1.31m) of the funds to buy out the remaining convertible notes on issue, held by specialist investor Obsidian Global.

Neurizon today said it had struck the placement at 6.8 cents per share, a 21% discount to last Wednesday’s frozen price.

The company’s board and management chipped in $150,000.

SPP subscribers can participate on the same terms, including one-for-one options. These are exercisable at 12 cents a share.

The company said it remained fully funded for the topline readout of its phase II/III trial for ALS, the most common form of motor neurone disease.

The study road tests Neurizon’s candidate NUZ-001.

This US-based study is under the auspices of a collective ALS trial platform called Healey.

Neurizon says the placement, SPP and notes redemption are part of a “broader capital management strategy to simplify Neurizon’s capital structure, strengthen its financial position, and preserve funding optionality for the continued development of NUZ-001”.

While the company retains the Obsidian facility, it has pledged not to draw down on it until at least April next year.

The company expects to announce the topline results in the June 2027 quarter.

We’re not on the hook, says Vitura

Medical cannabis house Vitura Health (ASX:VIT) has moved to distance itself from any liability relating to a $6.5m penalty against its acquired business CDA Clinics Qld Pty Ltd.

Federal Court Justice Berna Joan Collier found that the company advertised cannabidiol products extensively, thus breaching the Therapeutic Goods Act.

Vitura today noted that CDA Clinics Qld Pty Ltd entered into liquidation in January 2025 “and the pecuniary penalty will be a claim in that liquidation”.

Vitura says it is not liable for the pecuniary penalty, and the judgment “has no financial impact on Vitura or its other subsidiaries”.

The misconduct occurred between April 27 and July 30, 2021.

Then known as Cronos Australia, Vitura acquired CDA Health Pty Ltd— operator of CDA Clinics Qld Pty Ltd – in mid-December 2021.

“Senior individuals involved in the conduct at that time are no longer with the company,” Vitura said.

Queensland’s Department of Health and Aged Care lodged the proceedings in December 2023.

At the time, Vitura described CDA Clinics Qld as a dormant company without any assets or operations.

“The company was in the process of seeking to deregister CDA Clinics QLD, along with several other dormant companies in the group that are no longer required, when the proceedings were filed.”

Orthocell’s October sales surge

Orthocell (ASX:OCC) reports that October was the strongest month of US sales for its flagship nerve repair product, Remplir.

The company sold 92 Remplir units, generating $279,000 in revenue. The number is 84% higher than average monthly of sales of 50 units, across the whole quarter.

Orthocell says its groundwork in launching Remplir is “now translating into tangible revenue as [the company’s] commercial strategy gains traction.”

The result reflects “growing surgeon adoption, increasing repeat use, a broader base of actively selling distributor representatives and expanded hospital access across key US markets.”

Orthocell CEO Paul Anderson said while establishing a new medical technology in a large market takes time and sustained effort, “our focus remains on accelerating surgeon adoption, expanding hospital access and increasing product utilisation”.

Orthocell holds its AGM in Perth on Friday.

Nothing sleepy about Resmed’s numbers

Not for the first time, sleep health giant Resmed has exceeded investor expectations with its quarterly numbers.

Resmed on Friday reported September revenue of US$1.415 billion, compared with consensus expectations of US$1.393bn.

Net earnings came in US$506m, compared with the expected US$471m. Earnings per share (EPS) were US$2.91, compared with the consensus US$2.67/sh.

Management affirmed current-year revenue expectations of US$5.75-5.85bn, with EPS of US$12-12.25.

The company retained its 2026-27 guidance.

RBC Capital Markets says Resmed delivered strong revenue performance across all product categories.

“The one area of weakness was free cash flow, which declined 10% year on year,” the firm says.

“However, we expect the market to like the good revenue growth and gross margin expansion.”

Citi notes that Resmed’s outperformance mainly was in the US market.

“Gross margin expanded when the expectation had been for some decline.”

At Stockhead we tell it as it is. While Neurizon and Orthocell are Stockhead advertisers, the companies did not sponsor this article.

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