Health Check: Relax! Tariffs shape as the next Y2K as biotechs report ‘nothing to see here’

As with the infamous Y2K computer bug, tariffs are shaping up largely as an irrelevance for US-exposed ASX biotechs.

Snooze on! Those tariffs don't look too taxing after all. Pic via Getty.

• Companies including Cochlear and Telix affirm that tariffs are likely to be a ‘Y2K’ non-event

• Bell Potter says Trajan shares are worth double their current price

• Plucky Biotron lives another day after passing the hat

On the evening of December 31, 1999, your scribe was paid triple time to forego the overhyped end-of-millennium festivities and report on the unfolding Y2K computer virus.

Remember that one? It was meant to bring mayhem to corporate Australia and – indeed – the world at the stroke of midnight.

Early reports trickled in from New Zealand – two hours ahead time zone wise – with the resounding message ‘no problems here, bro’.

Shortly after the tick of midnight here, a slew of blue chips said the same.

From memory, your dutiful reporter was granted an early mark and caught the last dregs of the champers (or cheap lambrusco more likely).

This ‘fake Armageddon’ vibe sounds familiar as more life science companies report their take on the tariff Trump-pocalypse.

The message is ‘nothing to see here, move on’ – although no self-respecting management would admit they are truly in strife.

We’re not ‘tarrified’ of Trump tariffs, trumpets Telix

Late yesterday, Telix Pharmaceuticals (ASX:TLX) said it does not expect any "material impact" from the tariffs.

The company has an “extensive US-based manufacturing and distribution infrastructure, including third-party manufacturing sites and radiopharmacy partner networks”.

This is for production and delivery of its US Food and Drug Administration (FDA)-approved prostate cancer imaging agents, Illuccix and Gozellix.

“Due to the ‘just-in-time’ nature of radiopharmaceutical  products, such products are  generally manufactured … in close proximity to the point-of-care,” Telix says.

“This will continue to be the case for new products the company expects to launch in 2025.”

Telix also addresses the more amorphic issue of the “significant change” at the FDA, which others would describe as chaos.

“The agency continues to process applications and information requests,” Telix says.

Specifically, the FDA has not notified Telix of any changes to the timelines for its  approval applications for Pixclara or Zircaix .

No tariff curve ball for Curvebeam … or Cochlear

A supplier of AI-enabled medical imaging equipment, CurveBeam AI (ASX:CVB) this morning notes that it makes its goods in the US, with US partners accounting for 75% of the componentry.

As for the other 25%, “discussions with suppliers indicate that any impact will not be material".

Cochlear (ASX:COH)  reiterates its earlier utterances that it “will continue to be able to rely on a chapter of the US Harmonized Tariff Schedule that provides for duty-free importation on a range of products into the US, including hearing implants.”

The company will “continue to actively monitor and engage in the evolving  global landscape".

We would be worried if it wasn't.

Trajan's half-price sale

In its inaugural research report on Trajan Group (ASX:TRJ), Bell Potter values the scientific instruments maker at $1.50 a share – double its current valuation.

Trajan services the pharmaceutical sector – among others – which has been through a post-pandemic destocking phase.

The elevated inventories resulted in subdued December half earnings – depending on how you measure them – but Bell Potter contends the problem is in the rear-view mirror.

Trajan reported a 6% increase in revenue to a record $81 million.

“We assume Trajan can return to a consistent high-single-digit revenue and low-single-digits earnings growth profile,” Bell Potter says.

The firm opines that Trajan is trading at a 40%  discount to its nearest rival, the Swiss-based Tecan.

Trajan also is valued at 60% less than its key US peers.

The firm plugs in current year net earnings of $2.7 million, improving to $6 million in the 2025-26 year.

Biotron fights another day

Cash-strapped antiviral drug developer Biotron (ASX:BIT) has staved off insolvency by raising $1.27 million in a rights issue, having targeted $2.7 million.

The former pandemic-era hero said it had received $668,000 in subscriptions, with a further $606,000 from a shortfall facility.

The raising was partly underwritten.

The subscribers paid one third of a cent for their shares – a whopping 66% discount.

The funds will enable Biotron to seek a partner for its lead asset BIT-225, which is in early-stage trials for hepatitis B.

Biotron initially proposed a share purchase plan (SPP), but pivoted to the one-for-one rights issue.

At the time of announcing the SPP, Biotron said the board would appoint a voluntary administrator if the effort did not raise at least $500,000.

While we’re on it, pot stock Cann Group (ASX:CAN) has raised $712,000 in a private placement, while heart device maker Artrya (ASX:AYA) completed the second tranche of a placement that bought in $15 million.

At Stockhead, we tell it as it is. While Trajan and Artrya are Stockhead advertisers, they did not sponsor this article.

Originally published as Health Check: Relax! Tariffs shape as the next Y2K as biotechs report ‘nothing to see here’