ASX healthcare shares Starpharma Holdings Ltd (ASX: SPL) and Mesoblast Ltd (ASX: MSB) are outgunning their peers today after the companies released positive news for shareholders.
The Starpharma share price is up 3.41% to 9.1 cents after the company released its preliminary financial report for FY24.
Meantime, Mesoblast shares are up 2.08% to 98 cents on news of the resolution of a class action lawsuit.
By comparison, the S&P/ASX 200 Health Care Index (ASX: XHJ) is down 0.13% while the S&P/ASX All Ordinaries Index (ASX: XAO) is up 0.32%.
Let's take a look at the news sending these two ASX healthcare shares higher on Thursday.
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2 ASX healthcare shares outshining their peers on Thursday
Starpharma shares lift on improved financial results
Starpharma reported revenue from continuing operations of $9,756,000 in FY24, a 132% improvement on the prior corresponding period (pcp) of FY23. Adjusted revenue was down 24% pcp to $3,203,000.
The adjusted revenue removes non-recurring revenue of $6,553,000 relating to the settlement and termination of the VivaGel BV license and supply agreement with Mundipharma in August 2023.
Overall, the ASX biotech recorded an $8,165,000 loss from continuing operations after tax, down 48%, and an adjusted loss of $14,718,000, down 6%.
Starpharma CEO Cheryl Maley said the company had achieved several important milestones during FY24.
This included reporting results from multiple clinical studies, advancing key projects in its pipeline, and forming new partnerships, all of which would contribute to the biotech's continued growth, she said.
Maley directly addressed shareholders' concerns regarding the ASX healthcare share's price.
She commented:
We are aware of the challenges we face with our underperforming share price and small market capitalisation.
Everyone at Starpharma is committed to realising our strategic imperatives – maximising DEP asset value, accelerating early asset development, and building long-term sustainability – and we are taking the necessary steps to achieve them.
We are confident that reaching these goals will help to increase shareholder value, and we look forward to sharing our progress with our shareholders as it unfolds.
Maley said the company had sufficient capital to support its objectives, with $23.4 million in cash at the bank as of 30 June.
She said the completion of several clinical programs had reduced research and development costs and added, "Shareholders should know that we are focusing on increasing revenue, with a number of opportunities on the horizon".
The ASX healthcare share tumbled 67.74% over the course of FY24.
Mesoblast shares rise on lawsuit resolution
Mesoblast announced that the consolidated shareholder class action, filed in the Federal Court of Australia in 2022, had been resolved and was now awaiting the court's formal approval.
The biotech said the settlement would be fully covered by its insurers and included no admission of liability.
In a short statement, the company said:
The settlement will have no impact on Mesoblast's cashflow or financial results.
The class action involved shareholders alleging Mesoblast misled the market about the potential applications of its remestemcel-L drug.
Last month, Mesoblast announced that the United States Food and Drug Administration (FDA) had accepted its Biologics License Application (BLA) resubmission for remestemcel-L in the treatment of children with steroid-refractory acute graft versus host disease.
Mesoblast anticipates a decision from the FDA on or before 7 January next year.
The ASX healthcare share has rocketed 215% in the year to date.
