The S&P/ASX 200 Index (ASX: XJO) has risen by 4.67% since last Friday's close (6 November) to 6,466 points. Global investors have snapped up pandemic-hit shares after Pfizer Inc. (NYSE: PFE) indicated that its COVID-19 vaccine had proved more than 90% effective in its trial.
A breakthrough COVID-19 vaccine
On Monday, the American drug maker Pfizer and its German partner BioNTech SE (NASDAQ: BNTX) released positive results from the clinical trial of their COVID-19 vaccine, BNT162b2. Pfizer's chair and CEO Dr. Albert Bourla commented:
Today is a great day for science and humanity. The first set of results from our Phase 3 COVID-19 vaccine trial provides the initial evidence of our vaccine's ability to prevent COVID-19.
Acting Victorian chief health officer Professor Allan Cheng commented that while the Pfizer vaccine was good news, there was "very little detail about what the results actually are," as they have not been published in a peer-reviewed medical journal (as quoted by The Guardian).
Despite the lack of detail, investors are starting to look at the healthcare sector again. Here are 2 ASX healthcare shares that have gained traction since the anouncement.
Mayne Pharma Group (ASX: MYX)
Mayne Pharma is a specialty pharmaceutical company focused on applying its expertise in drug delivery to commercialise pharmaceutical products. The company's flagship product TOLSURA is used for the treatment of infectious pulmonary and extrapulmonary diseases.
In its FY20 results presentation in August, Mayne Pharma reported revenue of $457 million and underlying earnings before interest, taxes, depreciation and amortisation (EBITDA) of $95 million, including a non-cash intangible asset impairment of $99 million.
Meanwhile, the company reported that TOLSURA sales grew by 460% in the fourth quarter year over year, due to the COVID-19 pandemic. Mayne expects the sales of TOLSURA to accelerate in FY21.
The Mayne share price has gone up 6.66% since last Friday's close, valuing the company at a market capitalisation of $537 million.
Medical Developments International Ltd (ASX: MVP)
This Australian healthcare company manufactures and distributes pharmaceutical drugs and medical equipment and has a market capitalisation of $419 million. The Medical Developments share price has risen by 14% since last Friday.
According to its FY20 report, Medical Development International grew sales by 61%, an all-time record, with Australian sales up by 43% and North American sales up by 88%.
Finally, the company's management team has also indicated their intention to replicate the success of the respiratory business internationally. This is achieved by buying back the European distribution rights to its Penthrox methoxyflurane inhaler from Mundipharma for 3 million euros.
Penthrox is the company's pain relief product and is approved throughout Europe, with 568 European Union organisations buying the product. The company has indicated it is focused on taking a more direct role in the commercialisation of Penthrox by building a direct in-market presence in Europe.
