The S&P/ASX 200 Index (ASX: XJO) is starting the week on a positive note. At the time of writing, the benchmark index is up 0.35% to 8,260.2 points.
Four ASX shares that have failed to follow the market higher today are listed below. Here's why they are falling:
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AVITA Medical Inc (ASX: AVH)
The AVITA Medical share price is down 6% to $2.35. This appears to have been driven by a combination of weakness in the healthcare sector and a broker note out of Morgans. In respect to the latter, the broker has downgraded this medical device company's shares to a speculative buy rating (from add) and slashed the price target on them to $3.76 (from $4.36). The broker made the move in response to the company's quarterly update. It highlights that its costs were higher than expected, which meant a larger cash burn than forecast. As a result, it is starting to have concerns over the state of the company's balance sheet. Though, it is still positive on its longer term growth outlook.
Botanix Pharmaceuticals Ltd (ASX: BOT)
The Botanix Pharmaceuticals share price was down 16% to 39 cents before being paused from trade. It is unclear what has driven this decline. However, it is worth noting that US President Donald Trump plans to sign an executive order to cut American prescription prices to the level paid by other high-income countries. According to Reuters, Trump has suggested that this could mean cuts of 30% to 80%. Botanix's Sofdra 12.45% topical gel reportedly costs around US$1,043 for a supply of 40.2 millilitres.
Brainchip Holdings Ltd (ASX: BRN)
The Brainchip share price is down 4% to 23 cents. This semiconductor company's shares have been very volatile recently and have been bouncing around. Though, the underlying trend has been down since the start of the year, with its shares down over 40% year to date. Investors appear to be doubting that there's ever going to be meaningful revenue generation after years of false dawns. In addition, let's not forget that Brainchip is competing with companies that could swallow them up for less than a monthly R&D budget if they really thought they were onto something with their products.
National Australia Bank Ltd (ASX: NAB)
The NAB share price is down 2.5% to $35.58. This has been driven by the banking giant's shares going ex-dividend this morning. When a share trades ex-dividend, it means the rights to an upcoming dividend payment are settled and new buyers won't be entitled to receive it on pay day. As a result, a share price tends to drop to reflect this. Last week, NAB declared a fully franked 85 cents per share. This will be paid to eligible shareholders on 2 July.
