ASX Health Stocks: Here’s why AHI shares jumped 40pc on ASX, and more than 100pc on Nasdaq
ASX healthcare software stock Advanced Health Intelligence sprinted to a 40 per cent gain on Thursday morning after a US triumph overnight.
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Healthcare software company Advanced Health Intelligence (ASX:AHI) surged by as much 40 per cent on Thursday morning after its Nasdaq-listed American Depositary Shares (ADS) doubled overnight.
The company has released a statement saying it believes the massive price hike was due to the announcement made yesterday on the ASX regarding its expansion into the Middle East.
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As we reported Wednesday, AHI signed a letter of intent (LOI) with UAE-based e-script medicine management company, Pharmak Pharmacy.
Under the deal, Pharmak will integrate the AHI Biometric Health Assessment (BHA) software to deliver the e-script solution to all current and future Pharmak partners, which include health insurers, government, and healthcare professionals in the Middle East.
Pharmak expects to achieve a minimum e-script order volume in 2024 of 100,000 e-scripts a month in the UAE, and a further 100,000 e-scripts a month in Saudi Arabia.
The average e-script value in the UAE is AED550 (around $US150). In Saudi, that value is SAR350.00 ($US93.40).
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The partnership comes at a time when the Middle East region is extremely vocal regarding its intention to invest heavily in the digitisation of healthcare and population screening, with Saudi Arabia reportedly allocating $US50.3 billion to healthcare and social development.
AHI shares have almost tripled over the past month as it embarked on a series of cap-raising initiatives.
The company undertook a $5 million private placement, and announced that it would raise up to $10 million under a convertible note facility.
AHI also said it had redeemed $1.75 million of the convertible notes on issuance, paying the relevant note holders an early repayment fee of 10 per cent of the amount repaid.
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Avecho’s CBD capsules pass test
Avecho Biotechnology (ASX:AVE) says its CBD soft-gel capsules have passed the two-year stability milestone in ongoing stability trials.
At the end of two years, Avecho’s CBD remained at 99.5 per cent of the original label claim, supporting a future two-year shelf life.
The two-year stability milestone is an essential requirement for a future pharmaceutical TGA/FDA registration.
CBDs are usually susceptible to degradation from a number of external sources, including oxygen, light, heat and pH, which can make long-term pharmaceutical stability difficult.
Furthermore, specific cannabinoids such as the non-psychoactive CBD, can be converted into psychoactive cannabinoids, such as tetrayhydrocannabinol (THC).
A CBD product with significant chemical degradation, or interconversion to additional cannabinoids, would be unable to be registered as a pharmaceutical medicine.
This content first appeared on stockhead.com.au
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Originally published as ASX Health Stocks: Here’s why AHI shares jumped 40pc on ASX, and more than 100pc on Nasdaq