Why the Painchek (ASX:PCK) share price lifted today

The Painchek (ASX: PCK) share price was up more than 4% at close of trade after the company released its quarterly report today.

| More on:
medical asx share price represented by doctor giving thumbs up

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

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.

Motley Fool contributor Daniel Ewing has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Share Market News

A happy young couple lie on a wooden deck using a skateboard for a pillow.
Share Gainers

These were the best-performing ASX 200 shares in March

These shares made their shareholders smile in March thanks to some very big gains.

Read more »

Businessman using a digital tablet with a graphical chart, symbolising the stock market.
Opinions

2 ASX shares I have been buying in 2024!

I’m a believer in the long-term outlook of these stocks.

Read more »

Stock market chart in green with a rising arrow symbolising a rising share price.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a massive day for the ASX 200, with a new all-time high recorded.

Read more »

A man sits thoughtfully on the couch with a laptop on his lap.
Technology Shares

This ASX tech stock rocketed 60% in March! Can it keep on delivering?

After soaring in March, the ASX tech stock is now up 169% since this time last year.

Read more »

Broker Notes

Brokers name 3 ASX shares to buy now

Here's why brokers are feeling bullish about these three shares this week.

Read more »

A young man clasps his hand to his head with his eyes closed and a pained expression on his face as he clasps a laptop computer in front of him, seemingly learning of bad news or a poor investment.
Share Fallers

Why Burgundy Diamond Mines, Clarity Pharmaceuticals, EML, and Zip are sinking today

These ASX shares are ending the week in the red. But why?

Read more »

A young women pumps her fists in excitement after seeing some good news on her laptop.
Share Gainers

Why Mesoblast, Newmont, Pilbara Minerals, and Platinum shares are jumping

These ASX shares are ending the week strongly. But why?

Read more »

a young boy dressed up in a business suit and tie has a cute grin and holds two fingers up.
Opinions

2 of my top ASX 200 shares to consider buying before April

I would happily exchange dollars for these two shares right now.

Read more »