The Painchek Ltd (ASX: PCK) share price climbed today after the company provided the market with a positive quarterly update for December 2020.
Shares in the small cap healthcare company were trading 4.2% higher at 7.4 cents on close of trade today.
What is driving the Painchek share price
In today's release, the company reported continued growth in its aged care and initial entry into the hospital, home care and disability markets during the quarter ended 31 December.
In its core aged care market segment, Painchek delivered sales growth of 7% from the prior quarter. And with its global licences covering 71,318 beds, year on year (YoY) growth is up 123%. The company reported its domestic sales now reflect more than 30% of Australia's domestic aged care market share.
As a result, Painchek now has 884 aged care clients, up 133% YoY, and the forward looking revenue equates to more than $3 million annualised recurring revenue.
However it was not all smooth sailing for the company, with several large provider agreements delayed as a result of COVID-19 disruptions. Paincheck said these discussions have since been resumed in January.
Management comments
Painchek CEO Philip Daffas welcomed the update, saying:
While 2020 was challenging for many businesses, we successfully continued to deliver with significant sales growth. This included pivoting to a fully digital sales and delivery model that met the immediate needs of our clients, as well as establishing a new cost-effective global go-to-market model.
About the company
PainChek develops and commercialises medical device applications. This is aimed specifically at automating intelligent pain assessment of individuals who are unable to communicate their pain with carers (such as people in aged care facilities).
In particular, the company is involved in the provision of pain management and better medication for residents living with dementia and other communication difficulties. Painchek has already obtained regulatory clearance in Australia and Europe.
