Singapore’s most traded primary-listed stocks that represent medical equipment manufacturing, biotech and pharmaceuticals all generated gains in the 2020 year to 15 May, averaging 37% gains: Biolidics (+80%), iX Biopharma (+13%) and Hyphens Pharma (+17%).
By comparison, this genre of Healthcare stocks generated 2% median gains across Asia Pacific, and flat median returns across the globe. The Singapore trio also average lower debt-to-asset ratios than their regional and global peers.
A top 250 stock by market value, Biolidics has ranked just outside the top 50 stocks by turnover in the 2020 year to 15 May. Since announcing the launch of its rapid test kit for COVID-19 on 30 March, turnover participation in the stock has soared 50-Fold.
Both iX Biopharma and Hyphens Pharma have expanded e-commerce operations, with the former reporting exceptional demand for its LumeniX and RestoriX nutraceutical products less than three weeks into the opening of flagship stores on JD Worldwide and Tmall Global.
A key part of the Healthcare Sector, global stocks with a medical equipment manufacturing, biotech and pharmaceutical focus, have defended their 2019 returns in 2020, with flat median returns in the 2020 year through to 15 May. This Healthcare Sector genre is associated with big household names such as Johnson & Johnson, Pfizer and Roche Holding AG. Moderna Inc, which has been working on a potential vaccine against COVID-19 since January, is within the top 40 medical equipment manufacturing, biotech and pharmaceutical stocks by market value.
Across the region, medical equipment manufacturing, biotech and pharmaceuticals stocks have marginally outpaced their global peers with 2% median total returns over the 19 weeks. While such stocks can maintain comparatively smaller market value, for the purpose of this report, stocks with a market value of less than S$10 million are omitted from the analysis. In Singapore, there are three primary-listings that represent the group: Biolidics, iX Biopharma and Hyphens Pharma. The comparative total returns of the 3 stocks are illustrated below.
Singapore’s Medical Equipment Manufacturing, Biotech and Pharmaceutical Stocks
Listed on Catalist, Biolidics, iX Biopharma and Hyphens Pharma rank outside Singapore’s 200 largest stocks by market value, however have all ranked within Singapore’s top 200 stocks by average daily turnover in the 2020 year to 15 May.
The average and median market capitalisation of Biolidics, iX Biopharma and Hyphens Pharma is S$118 million and S$115 million respectively as of the 15 May. This compares to a median market capitalisation of S$220 million for the more than 2,000 medical equipment manufacturing, biotech and pharmaceuticals stocks listed across the globe. At the same time, the Singapore trio also maintain lower debt to asset ratios as there regional and global peers.
The key segment of Healthcare stocks also command higher than average valuations. Across the region and the globe, medical equipment manufacturing, biotech and pharmaceuticals stocks maintain a median Price-to-Book ratio of 3x with median Price-to-Earnings ratios between 25x and 30x.
On 18 May, Singapore's non-oil domestic exports was reported to grow 9.7% YoY in April, easing from a 17.6% rise in March. This was the third straight month of growth as sales of non-electronics products continuing to gain. Pharmaceutical exports, which are typically volatile, were up 174% YoY in April, following 49% YoY growth in March and 24% growth in February.
Biolidics Daily Trading Turnover Up 50-Fold in QTD
Biolidics (SGX:8YY) has led the Catalist-listed trio of Medical Equipment Manufacturing, Biotech and Pharmaceutical stocks, in the 2020 year to 15 May returns with an 80% total return. For the first quarter of 2020, average daily turnover of Biolidics was less than S$200,000. From 1 April through to 15 May, average daily turnover of Biolidics had soared to more than S$10 million.
The catalyst for the surge in participation was the announcement that Biolidics had launched its rapid test kit for the COVID-19 and had entered into a manufacturer agreement with a diagnostic kit manufacturer to customise and manufacture the rapid test kits.
Furthermore, with time of the essence, the first batch of Biolidics’ rapid test kits was expected to be available in April 2020 (click here for more). Biolidics has since released multiple announcements on distribution partners in addition to updates on processes with relevant authorities.
iX Biopharma Stores on JD.com and Tmall Global
iX Biopharma (SGX:42C) is a specialty pharmaceutical company with expertise in drug delivery systems that has developed a proprietary sublingual wafer delivery, WaferiX. Since releasing its Financial Statements for its 2HFY20 (ended 31 Dec, click here for more) the company has made a number of announcements on it products including:
- 6 April - the opening of the Entity flagship store on JD Worldwide, JD.com’s cross-border e-commerce platform (click here for more).
- 13 April - opening of Entity’s new flagship store on Tmall Global, Alibaba Group’s cross-border B2C e-commerce platform (click here for more).
- 27 April - entered into a licensing agreement with Yiling Pharmaceutical Ltd for the licensing, supply and distribution of Wafesil, a sublingual sildenafil wafer for the treatment of male erectile dysfunction, in China (click here for more).
- 29 April – agreement with Cannatrek to supply Xativa, the world’s first freeze-dried sublingual medicinal cannabis wafer, to the Australian market (click here for more).
On 4 May, iX Biopharma announced it had seen exceptional demand for its LumeniX and RestoriX nutraceutical products less than three weeks into the opening of Entity flagship stores on JD Worldwide and Tmall Global. The company noted the initial stock of LumeniX has sold out on both of Entity’s Tmall Global and JD Worldwide stores, and RestoriX is sold out on its JD Worldwide store, ahead of initial forecasts provided by its marketing agencies in China. The company also provided an update on the impact of COVID-19 on business operations on 8 May (click here for more).
Hyphens Pharma Reports 1QFY20 Revenue & Profit Growth
Hyphens Pharma (SGX:1J5) released a 1QFY20 results briefing on 14 May (click here for more) noting its 1QFY20 (ended 31 Mar) revenue increased 16% YoY to S$31.4 million with quarterly profit up 49% YoY to S$2.1 million.
The results briefing also highlighted a digital theme with new websites, and dermatological products under the Ceradan brand, health supplement products under the Ocean Health brand and the Stérimar nasal sprays were available on digital platforms Shopee, Qoo10, Lazada and redmart.
As part of the measures introduced by Singapore’s Multi-Ministry Taskforce, the company also noted that most physical workplace premises had been closed and only essential services that support daily needs remain open with safe-distancing measures in place. However, Pan-Malayan Pharmaceuticals Pte Ltd, a wholly-owned subsidiary, had obtained approval for an exemption from suspension of business activities during the circuit breaker period as the medical wholesale and distribution business is considered as part of the essential supply chain to support healthcare services.
More Medical Equipment Manufacturing, Biotech and Pharmaceutical Stocks
Singapore also lists Tianjin Zhong Xin Pharma Co, a secondary listing, in addition to three stocks with market capitalisation below S$10 million: QT Vascular, Pharmesis International and Nutryfarm International. Also note for the purpose of this report Medical Equipment Manufacturing does not include Medical supplies such as rubber gloves, which will be covered in a separate Market Update.
The iEdge SG All Healthcare Index has gained 16% in the 2020 year through to 15 May.