Shares in the biotechnology company are up 4.1%, trading at 50 cents at the time of writing.

Let's look at what might be impacting the Cynata share price today.

What did the company announce?

Cynata advised it was entering a manufacturing services agreement with the Wisconsin-based Fujifilm Cellular Dynamics (FCDI).

The agreement will enable FCDI to manufacture stem cell technology for Cynata to use in clinical trials and potential commercialisation. These stem cells are derived from induced pluripotent stem cells.

Cynata is an Australian-based company that is developing therapies to treat human disease using its Cymerus therapeutic stem cell technology. This includes its lead product CYP-001, which is at the planning stage for a phase 2 clinical trial.

FCDI is a global developer of human-induced pluripotent stem cell technologies.

What did management say?

Commenting on the agreement, Cynata chief operating officer Dr Killian Kelly said:

Ultimately, we foresee FCDI manufacturing product for our growing pipeline of clinical trials in high value indications and potentially for commercial use.

This provides a turn-key manufacturing solution that our future corporate partners may avail themselves of.

Importantly, FCDI has also confirmed a strong commitment to our relationship by agreeing to extending the voluntary escrow over their shares in Cynata.

Cynata initially flagged the deal to the market in September.

Now the deal is sealed, the companies will set up a manufacturing process for the Cymerus stem cell technology at the FCDI's US base.

Cynata share price snapshot

The Cynata share price has plummeted this year, down nearly 28% since January.

In contrast, the S&P/ASX 200 Index (ASX: XJO) is returning nearly 12% this year to date.

The company's shares have lifted more than 11% in the past five days alone.

The company has a market capitalisation of around $71 million based on the current share price.

The post Here's why the Cynata (ASX:CYP) share price is rising today appeared first on The Motley Fool Australia.

The healthcare sector is made up of many different industries — from hospital providers, to medical device makers, to pharmaceutical companies. There are a wide variety of ASX healthcare shares, with nearly 200 healthcare companies listed on the ASX. These range from behemoths like CSL Limited (ASX: CSL) to small-cap experimental healthcare companies. 

We take a look at how 4 ASX healthcare companies performed last year, and what they might be focusing on as we enter 2021. 

Cynata Therapeutics Ltd (ASX: CYP)

Cynata Therapeutics is a stem cell and regenerative medicine company that has developed a therapeutic stem cell platform technology called Cymerus. Cymerus technology allows for the manufacture of Mesenchymal stem cells (MSCs) at a commercial scale.

MSCs have the ability to reduce inflammation, enhance clearance of pathogens, and stimulate tissue repair. They are at the forefront of a new generation of treatments being investigated to treat diseases including osteoarthritis, Crohn's disease, and heart disease. As the most widely studied type of adult stem cells, there are currently over 850 clinical trials in progress using MSCs. The ability to achieve economic manufacture of MSCs at commercial scale has the potential to open a wide range of therapeutic and manufacturing possibilities for Cynata. 

In 2020, Cynata significantly advanced its leadership position in regenerative medicine and emerged in a robust position to progress key clinical trials with the lifting of pandemic restrictions. The company has a broad pipeline of clinical developments plans. Its phase 3 osteoarthritis trial commenced in November 2020 and a clinical trial treating intensive care patients with COVID-19 in Australia is open for enrolment.

In addition, Cynata is focused on developing clinical programs for new priority targets of idiopathic pulmonary fibrosis, renal transplantation, and diabetic foot ulcers, leveraging encouraging preclinical data. 

At the time of writing, the Cynata share price is sitting at 68 cents per share, with a current market capitalisation of $94.22 million.

Polynovo Ltd (ASX: PNV)

Polynovo develops medical devices using its patented bioabsorbable polymer technology, NovoSorb. The Novosorb polymer technology originated from the CSIRO and is driving Polynovo's next generation of novel medical devices currently in development. These devices are set to bring clinical advances to multiple surgical applications including hernia repair and breast reconstruction.  Novosorb BTM is the first product commercialised by Polynovo. First used in Adelaide in 2013, Novosorb BTM is an implantable wound dressing that can be integrated into the body as it heals. 

Novosorb BTM works to regenerate the dermis, providing a scaffold which blood vessels can migrate into. This allows new cells to regenerate and repopulate the structure before the product dissolves away. The only synthetic product in its space, sales of Novosorb BTM increased 104% in FY20 thanks to strong performance in the US, Australia, New Zealand and the DACH region in Europe (Austria, Germany, and Switzerland). According to the company, COVID-19 has a minimal impact on sales, with an active digital marketing program proving effective.

Polynovo is now in the process of building a hernia device manufacturing facility, with plans to enter the US market in FY22. At the time of writing, Polynovo's share price is $3.57 and the company commands a current market cap of $2.43 billion.

Starpharma Holdings Limited (ASX: SPL)

Starpharma is a biopharmaceutical company which develops products based on proprietary polymers called dendrimers. Dendrimers are man-made nanoscale compounds that can be used both to enhance existing health products and as entirely new products.

Starpharma's proprietary drug delivery platform, DEP, is being used to improve pharmaceuticals, reduce toxicities, and enhance performance. There are numerous programs underway to develop DEP versions of existing drugs, particularly in the area of anti-cancer therapies. DEP partnerships include programs with world leading pharmaceutical companies, which have the potential to generate significant future royalties. 

Starpharma employs a partnering strategy in which sector-leading partners are identified to advance products to market. According to the company, this approach ensures Starpharma can remain focused on its core competencies whilst maximising the opportunities for commercialisation of its technology.

Currently, Starpharma has a number of clinical trials underway, with a trial of its Viraleze product commencing in January 2021. Viraleze is an antiviral nasal spray which has been shown to stop COVID-19 infection in laboratory studies. According to the company, the broad antiviral activity of Viraleze means the product could have an important role in future pandemics. 

The Starpharma share price is currently sitting at $1.52, giving the company a market cap of $621.20 million.

Althea Group Holdings Ltd (ASX: AGH)

Althea is in the medical marijuana game, distributing pharmaceutical grade medical marijuana products. Althea offers a free online service which simplifies the process for accessing medicinal cannabis for patients, professionals, and pharmacies. The Althea Concierge app provides healthcare professionals with access to patient treatment plans and information on dosing specific to the Althea product supplied.

During FY20 Althea continued to deliver strong results despite the impact of COVID-19 restrictions. Althea ended the 2020 financial year with 7,294 patients, more than seven times the number of patients it had at the end of the 2019 financial year. 

It is estimated the Australian medicinal marijuana market grew 3x in 2020, closing the year with almost 30,000 active patients. Althea closed the calendar year with more than 10,000 patients, meaning it holds significant market share in Australia.

Althea is also making progress in the UK, exporting its first UK shipment of medical cannabis products in FY20 and opening MyAccess clinics. In Canada, Althea has entered the manufacturing game with its Peak Processing Solutions facility. The facility aims to take advantage of Canada's Cannabis 2.0 legislation, which made cannabis containing edibles and concentrates legal. 

At the time of writing, the Althea share price is 45 cents per share, with a market cap of $111.66 million.

The post Are these 4 ASX medical shares set for a healthy 2021? appeared first on The Motley Fool Australia.

Cynata is trialling the use of its Cymerus MSC technology in COVID-19 patients with respiratory distress. The study will be conducted in New South Wales with 12 patients to receive Cymerus MSC infusions. Efficacy of the treatment will be assessed according to levels of oxygen in the blood as well as safety and tolerability. 

The Cynata share price has since pulled back slightly to 92 cents per share, up 11.59% on yesterday's close.

What does Cynata Therapeutics do? 

Cynata Therapeutics is a stem cell and regenerative medicine company. It is focused on the development of therapies using its proprietary therapeutic stem cell platform technology, Cymerus. Cymerus is able to achieve economic manufacture of cell therapy products, including mesenchymal stem cells (MSCs), at a commercial scale, without the limitation of multiple donors. 

MSCs are primarily found in the bone marrow and remain dormant until called upon to promote healing within the body. They age as we age, and their number and effectiveness decreases over time. MSCs are at the forefront of a new generation of treatments being investigated for use in treating diseases including osteoarthritis, heart disease, and Crohn's disease. Cynata's Cymerus technology allows cells for therapeutic use to be produced in virtually limitless quantities. 

COVID-19 treatment 

Cynata is now conducting a clinical trial into the use of Cymerus MSCs in the treatment of coronavirus. The trial forms part of a broader clinical development strategy for the Cymerus MSC product to be trialled in COVID-19 patients in other countries.

Commenting on the trial, Cynata's CEO Ross MacDonald said:

Our substantial pre-clinical database in relevant disease models, together with the urgent need for more effective treatments for critically ill patients with COVID-19 patients, allowed us to accelerate planning….we are pleased to be able to move so quickly to further investigate the potential benefits our MSCs could have to treat patients in dire need during this global pandemic.

Cymerus MSCs have demonstrated promising pre-clinical trial results in several conditions that can arise from severe COVID-19 infection, including acute respiratory distress syndrome. Cynata plans to advance Cymerus MSCs into phase 2 trials for severe complications arising from COVID-19 as well as graft versus host disease. A phase 3 trial is planned for osteoarthritis.

The utility of the technology has also been demonstrated in preclinical models of asthma, diabetic wounds, heart attack, sepsis, and acute respiratory distress syndrome. 

Foolish takeaway 

Cynata joins Mesoblast Limited (ASX: MSB) in trialling treatments for COVID-19. The focus on this new clinical development area is a logical step based on the current global environment and Cynata's solid pre-clinical foundations in respiratory and related diseases. 

The Cynata share price is currently trading at 92 cents per share, putting its market cap at just over $100 million.

The post Cynata Therapeutics share price jumps 14% on COVID-19 trial appeared first on The Motley Fool Australia.

Four shares that have managed to avoid the selloff today are listed below. Here's why they are pushing higher:

The Cynata Therapeutics Ltd (ASX: CYP) share price is up over 3% to 77.5 cents. Earlier this week the biotech company advised that its the current Phase 2 trial plans remain on track and it currently has no logistic or supply chain issues arising from the COVID-19 outbreak. Cynata also revealed that it is in discussions with international pharmaceutical companies about the potential of its Cymerus MSCs to be a useful adjunct in the management of patients with serious and ongoing issues associated with the COVID-19 infection.

The Fluence Corporation Ltd (ASX: FLC) share price has jumped 6.5% to 32 cents. This morning the water treatment company announced that it has entered into a new strategic market segment and new province. This follows the sale of its Aspiral product to Beijing China Railway Science New Technology Co for a project involving the Chinese Railway System in Inner Mongolia.

The Food Revolution Group Ltd (ASX: FOD) share price has stormed 6.5% higher to 8.1 cents. This morning the food and handwash company announced that it has delivered its first batch of hand sanitiser to the market. Food Revolution advised that it has prioritised delivery of hand sanitiser products to hospitals, school colleges and pharmacies, but has received strong demand from the major supermarket chains.

The Fortescue Metals Group Limited (ASX: FMG) share price is up 3.5% to $9.11. Overnight iron ore prices avoided the market selloff and remained steady. This appears to be down to hopes that a massive Chinese stimulus package will support demand and high prices for the steel making ingredient in 2020.

The post Why Cynata, Fluence, Food Revolution, & Fortescue are pushing higher appeared first on The Motley Fool Australia.

The clinical-stage biotechnology company's shares finished the day 5% higher at $1.20.

This stretches its year to date gain to almost 15%.

Why did the Cynata share price surge higher on Tuesday?

The catalyst for Cynata's gain was news that the cell therapeutics specialist has received a ~$1.9 million R&D Tax Incentive Refund for the 2018/2019 financial year.

This refund increases the company's cash position, which stood at $9.2 million at the end of the September quarter.

Management advised that it will allow further resources to be invested towards its robust and substantial Phase 2 clinical trial programs for the critical limb ischemia and osteoarthritis products. It will also support the anticipated Phase 2 trial for CYP-001 in graft-versus-host disease to be conducted by Japan's Fujifilm.

Why is the Cynata share price already up 15% in 2020?

With no other news out of the company so far this year, I suspect that some investors have been taking advantage of a pullback in its share price over the last few months and buying shares.

Cynata's shares fell heavily over the latter part of last year following the collapse of takeover talks between it and Sumitomo Dainippon Pharma Co.

The company received an indicative, non-binding and conditional proposal from Sumitomo on June 20 regarding a possible acquisition of all its shares at a price of $2.00 per share in cash by way of a scheme of arrangement.

However, on October 17 the two parties withdrew from discussions after being unable to reach an agreement on terms.

Today's gain means that Cynata's shares are now trading back at the level pre-takeover offer. But that could change if its Phase 2 clinical trial programs are a success.

Both the critical limb ischemia and osteoarthritis trials are scheduled to take place during the first half of calendar year 2020 and could be worth watching out for.

The post Why this small cap biotech ASX share zoomed higher on Tuesday appeared first on The Motley Fool Australia.

Cynata Therapeutics is a Australian stem cell and regenerative medicine company. After today's moves it is valued at approximately $115 million.

Why have Cynata shares moved?

Today's gains can be attributed to the company releasing some positive data on the preclinical drug trial results of its Cymerus treatment. Cynata hopes Cymerus will be used in the effective treatment of sepsis (sometimes called 'blood poisoning'), a life-threatening disease that arises from the body's response to harm or infection. The company noted that sepsis is "a major medical challenge and the most common cause of death in hospital intensive care units."

The company noted that in its trials, Cymerus mesenchymal stem cells successfully increased blood oxygen levels, improved lung health and decreased inflammation. The trials were co-funded by and conducted in partnership with the Royal College of Surgeons in Ireland.

Cynata's Chief Operating Officer Dr Kilian Kelly described the trial results as "highly encouraging" and stated: 

We believe the data can support progression to a clinical trial in patients with sepsis. These latest results build on our broad preclinical database across a range of commercial opportunities, including asthma, heart disease and diabetes complications.

Cynata shares have fallen steeply since reaching their 52-week high back in late July of this year. Even after today's share price moves, CYP shares are still trading toward the lower end of the company's 52-week range ($0.94–1.87) and just shy of its year-to-date low.

The post Why the Cynata Therapeutics share price is up 10% today appeared first on The Motley Fool Australia.

Its shares were down as much as 15% at one stage before rebounding slightly.

Unfortunately, this sizeable decline has wiped out the majority of Cynata's gains in 2019.

Why did the Cynata share price crash lower today?

Investors have been hitting the sell button today after the clinical-stage biotechnology company provided an update on its takeover discussions with Sumitomo Dainippon Pharma Co.

In June Sumitomo made an indicative, non-binding and conditional proposal of $2.00 per share in cash for Cynata.

However, according to today's update, Cynata has been unable to reach an agreement on terms to its satisfaction. As a result, the two parties have now withdrawn from takeover discussions.

Considering Cynata's shares were trading at $1.48 as of yesterday's close, some 26% lower than the proposed takeover offer, it appears as though many investors weren't convinced a deal would be made. So this news may not have come as a big surprise.

What now?

Management advised that it will continue to focus on progressing its Phase 2 clinical trial programs in osteoarthritis and critical limb ischemia, and in graft-versus-host disease with partner Fujifilm.

Furthermore, it is actively engaged in commercial discussions with parties that are interested in partnering with the company to develop its unique Cymerus therapeutic mesenchymal stem cell (MSC) technology.

Elsewhere on the market today, the WiseTech Global Ltd (ASX: WTC) share price has also fallen heavily. Its shares were down over 10% before being placed in a trading halt following a short seller attack.

And the Zip Co Ltd (ASX: Z1P) share price has also fallen 10% due to profit taking and a bearish note out of UBS. It has concerns over how credit-worthy buy now pay later users are. The broker also took aim at Afterpay Touch Group Ltd (ASX: APT) as well, suggesting its shares could drop as low as $17.25.

The post Why the Cynata share price crashed 15% lower today appeared first on The Motley Fool Australia.

Four shares that have climbed more than most today are listed below. Here's why they are ending the week with a bang:

The Cynata Therapeutics Ltd (ASX: CYP) share price is up 12.5% to $1.80 after the clinical-stage stem cell and regenerative medicine company revealed that it has received a takeover approach. According to the release, Cynata has received an indicative, non-binding and conditional proposal from Sumitomo Dainippon Pharma regarding a possible acquisition at a price of $2.00 cash per share by way of a scheme of arrangement.

The Medical Developments International Ltd (ASX: MVP) share price is up 3% to $5.96 after the healthcare company provided an update on its Penthrox pain management product. According to the release, the company recently met with the U.S. FDA. As result, it expects to be in a position to address in full, all the clinical hold issues during the first quarter of 2020.

The National Australia Bank Ltd (ASX: NAB) share price is up almost 2.5% to $27.56. Investors have been buying the banking giant's shares today following the appointment of its new chief executive officer. According to the release, NAB has appointed veteran banking executive Ross McEwan as its new leader. Mr McEwan was previously the chief executive officer of the Royal Bank of Scotland.

The Resolute Mining Limited (ASX: RSG) share price has charged 6.5% higher to $1.73 thanks to another rise in the gold price overnight. The precious metal hit a two-week high overnight after U.S. rate cut bets increased following comments from a member of the Federal Reserve. Resolute isn't the only gold miner on the charge. At the time of writing the S&P/ASX All Ords Gold index is up a massive 4%.

The post Why Cynata, Medical Developments International, NAB, & Resolute charged higher appeared first on The Motley Fool Australia.

The S&P/ASX SMALL ORDINARIES (Index:^AXSO) (ASX:XSO) index rallied 0.8% compared to the 0.7% gain in the S&P/ASX 200 (Index:^AXJO) (ASX:XJO) during morning trade.

The Cynata Therapeutics Ltd (ASX: CYP) share price, Telix Pharmaceuticals Ltd (ASX: TLX) share price and Silver Lake Resources Limited. (ASX: SLR) share price are leading the market minnows higher at the time of writing.

Why small caps are outperforming

Small caps are in a sweet spot. Low interest rates lift valuations for the sector more than large caps. The jump in the Aussie also helps small companies more as they tend to sell their wares domestically but pay for supplies in US dollars.

The Aussie jumped 0.9% to US70.73 cents and looks poised to attempt to break above US71 cents in the short-term after comments from two US Federal Reserve board members lifted expectations that the central bank would slash the Fed Fund Rate by 50 basis points, or 0.5 percentage points.

That is a big and rare move. The Fed, as with the Reserve Bank of Australia (RBA), tend to move rates in blocks of 25 basis points. The last time the Fed made a greater than 25-point move was during the darkest moment of the GFC in 2008.

The market was pricing in around a 36% chance of a 50-point cut but this jumped to nearly 70% following comments by Fed members John Williams and Richard Clarida.

Rising odds for a 50 basis point rate cut

John Williams said it pays for the Fed to move quickly when it has so much stimulus at its disposal while Clarida said the Fed might have to act early and not wait "until things get so bad", reported the Australian Financial Review.

Such a large cut is likely to put pressure on other central banks, including ours, to make deeper cuts than what most economists are forecasting.

It could also send alarm bells ringing as 50-point cut is typically used only in emergencies. Strength in equity markets indicate that investors don't think we are facing a crisis and a bigger than normal reaction by the Fed could prompt many to wonder if things are worse than they appear.

We could be in for a "buy the rumour, sell the fact" moment for the share market. Stocks could outperform for the next two weeks ahead of the Fed meeting and suffer a sell-off on the central bank's decision.

Central banks should be calming markets. In this case, we could get the opposite effect.

The post ASX small caps outperform on the Aussie dollar strength and rate cut bets appeared first on The Motley Fool Australia.

At the time of writing the clinical-stage stem cell and regenerative medicine company's shares are up 15.5% to $1.85.

This means the Cynata share price has now gained a remarkable 48% since the start of the month.

Why is the Cynata share price on fire today?

This morning the company's shares returned from a trading halt which was requested so that it could respond to an ASX Price Query which was received after the market close on Tuesday.

That ASX Price Query was triggered by a change in the price of the company's shares from a low of $1.23 to a high of $1.60 over the five trading days to July 16.

According to today's release, although the company doesn't believe it was the cause of the rise, it revealed that it has received an indicative, non-binding and conditional proposal from Sumitomo Dainippon Pharma regarding a possible acquisition at a price of $2.00 cash per share by way of a scheme of arrangement.

The release advises that the Cynata board has decided to grant non-exclusive due diligence access to Sumitomo Dainippon Pharma.

It also revealed that it has engage with other parties in relation to making a proposal, but these discussions have now ceased.

Management advised that the ongoing negotiations between Cynata and Sumitomo Dainippon Pharma are incomplete and any entry by the parties into binding transaction documents remains subject to a number of conditions.

As such, it warned that there is no certainty that an agreement will be reached or that the proposal will be implemented. It advised shareholders to take no action at this stage.

Elsewhere in the healthcare sector, the Ellex Medical Lasers Ltd (ASX: ELX) share price has crashed lower following the resignation of its CEO and the CSL Limited (ASX: CSL) share price has edged higher on the back of no news.

The post Cynata Therapeutics share price rockets higher on takeover news appeared first on The Motley Fool Australia.

In fact, three shares at the small end of the market have posted particularly strong gains today. Here's why they are surging higher:

The Cynata Therapeutics Ltd (ASX: CYP) share price is up 4% to $1.04 after the biotechnology company announced the completion of the clinical study report for its Phase 1 clinical trial of CYP-001 for the treatment of steroid-resistant acute graft versus host disease (GvHD). A copy of this report has now been provided to Fujifilm, which has 90 days to decide whether it wishes to exercise its license option. The phase 1 clinical trial delivered strong results with 13 out of 15 patients showing an improvement in GvHD severity by a least one grade compared to the baseline.

The Donaco International Ltd (ASX: DNA) share price has stormed 13.5% higher to 5 cents despite there being no meaningful news out of the casino and resort operator. In fact, the only bit of news out of Donaco today was that Perpetual Limited (ASX: PPT) has been selling shares, cutting its stake in the company down from 13.5% to 7.7%. The company's shares have been extremely volatile this week after it announced a strategic review to consider ways to unlock the value of its assets and provide value to shareholders.

The Paradigm Biopharmaceuticals Ltd (ASX: PAR) share price has jumped 15% to $1.52 after announcing that it has met the primary endpoint of its phase 2B randomised double-blind placebo-controlled clinical trial. The trial was designed to evaluate the effects of injectable pentosan polysulfate sodium (iPPS) on knee pain in subjects with knee osteoarthritis and subchondral bone marrow edema lesions (BMELs) as assessed by the Knee injury and Osteoarthritis Outcome Score Pain subscale. According to the release, 46.2% of subjects receiving iPPS showed a greater than 50% reduction in pain from baseline compared to 22.5% of subjects receiving a placebo.

The post These small cap ASX shares are surging higher today appeared first on The Motley Fool Australia.

With that in mind, here are 5 stocks that I think are "must-haves" for any portfolio. These are all market leading, established companies with a track record of success. However, all 5 of them still offer exciting growth opportunities for investors.

Challenger Ltd (ASX: CGF)

Challenger provides exposure to the financial and superannuation sectors, while also benefitting from Australia's shifting age demographics. Like many developed nations, Australia has an ageing population – the Australian Government's Institute of Health and Welfare projects that by 2057 22% of the population, or 8.8 million people, will be aged 65 and over.

As more Australians live into old age, they will have to make decisions about how to manage their finances. This is where Challenger comes in. The company specialises in selling annuities, which are financial products that provide a steady source of income for retirees cashing out their super funds.

Cochlear Limited (ASX: COH)

Healthcare is another way to profit from an ageing population, as well as providing diversification benefits to your portfolio. Investments in healthcare companies can be good defensive plays in times of market turbulence, as people's basic need for healthcare remains even in economic downturns. Plus, the specialised skills and knowledge required of successful healthcare companies generally mean that they have well-diversified products and significant economic moats.

Cochlear claims that nearly 1 in 3 people over the age of 65 suffer from a hearing impairment, but global market penetration for hearing implants is still only 5%. This means that even a company as established as Cochlear, that last year generated revenues of almost $1.4 billion, still has plenty of room to grow.

Altium Limited (ASX: ALU)

A portfolio wouldn't be complete without some exposure to the technology sector. There are plenty of growth options in the tech space, like data warehousing specialists Nextdc Ltd (ASX: NXT), AI and data analytics company Appen Ltd (ASX: APX) or cloud-based logistics software developer WiseTech Global Ltd (ASX: WTC).

But my pick of the bunch would still be Altium. The company produces printed circuit boards, an integral component to almost all electronic devices. Its client list includes global tech giants Dell, Microsoft, NASA, and SIEMENS.

Altium has 30 years of R&D investment under its belt and a proven track record of success. The company surprised the market with its FY18 results, where it reported NPAT growth of 34% to $37.5 million against revenues of $140.2 million.

REA Group Limited (ASX: REA)

REA Group operates the leading property websites realestate.com.au and realcommercial.com.au. As it is a pure play online retailer, an investment in REA Group provides additional exposure to the digital technology space.

However, more importantly, REA Group provides diversification benefits through its positive correlation with movements in the Australian property market. When the property market is booming, properties will be listed more frequently on REA's websites, boosting the company's revenues.

ResMed Inc (CHESS) (ASX: RMD)

I believe building a portfolio around healthcare stocks is a great strategy for long-term growth, but you have to choose wisely. The healthcare sector can deliver market-beating long-term returns for shareholders, but it can also be a difficult industry for new companies to break into. Before companies are able to commercialise a treatment, they have to invest significant capital into research and clinical trials in order to prove its efficacy.

So while there are plenty of new up-and-coming healthcare and biotech companies listed on the ASX, like Cynata Therapeutics Ltd (ASX: CYP), or Opthea Ltd (ASX: OPT), I'd prefer to build my portfolio around companies that have a proven ability to generate revenues.

This is why I'd choose ResMed. It is a healthcare company that specialises in the treatment of sleep apnoea and other chronic respiratory diseases. For the 3 months ended 30 September 2018, ResMed generated a little over $588 million in revenues. Net income for the quarter was almost $106 million, an uplift of 23% against the same quarter in the prior year.

The post 5 ASX shares to build a portfolio around appeared first on The Motley Fool Australia.

According to the release, the Federal Court of Australia has today made orders approving the scheme of arrangement under which Grand Pharma Sphere, an entity owned by CDH Genetech and China Grand Pharmaceutical and Healthcare Holdings, will acquire all the shares in Sirtex for $33.60 per share.

The next step for Sirtex will be lodging a copy of the Court order with the Australian Securities and Investments Commission tomorrow, after which the scheme will become effective.

Then what happens?

Management expects the company's shares to be suspended from the close of trade on Thursday.

After which, Sirtex shareholders on the share register on the scheme record date (Monday September 17) will be entitled to receive the cash consideration of $33.60 per share. This will then be paid on the implementation date, which is currently expected to be Thursday September 20.

What should you do with the funds?

If you're looking to reinvest these funds back into similar areas of the market then there are two shares that I think are worth considering right now.

Cynata Therapeutics Ltd (ASX: CYP) is a stem cell research company which I think has a bright future ahead of it. Its impressive Cymerus technology can source all of its cells from a single adult donor. Management believes this will increase clinical predictability and cut down on manufacturing costs. It also makes it a more commercially scalable stem cell technology.

Mayne Pharma Group Ltd (ASX: MYX) could be worth considering after the pharmaceutical company advised that the price deflation in the generic drugs market had finally eased. I believe improving market conditions and new product launches put the company in a strong position to return to growth this year.

The post Federal Court approves Sirtex Medical Limited (ASX:SRX) takeover: Where I would reinvest these funds appeared first on The Motley Fool Australia.

Three small cap shares on the rise on Monday are listed below:

The AuMake International Ltd (ASX: AU8) share price has climbed 5.5% higher to 28.5 cents after the daigou company announced an exclusive sales agreement with Anhui Tiantong Renhe Culture Communication to distribute both AuMake owned brand and exclusive products via its network of TV shopping channels within China. According to the release, AuMake will initially work with JiaJia Shopping, which has a viewership of approximately 385 million people and forecast sales of 1.5 billion RMB in FY 2018.

The Cynata Therapeutics Ltd (ASX: CYP) share price has pushed over 2% higher to $1.38. This morning the stem cell and regenerative medicine company announced that it has participated in a pre-development meeting with the Japan Pharmaceuticals and Medical Devices Agency (PMDA). This meeting was held to discuss the regulatory approval path for Cynata's proprietary Cymerus mesenchymal stem cell products in Japan. The meeting and further engagement with the PMDA will facilitate planning for a clinical development program in Japan. I think Cynata is one to watch closely this financial year after a very promising FY 2018.

The iSignthis Ltd (ASX: ISX) share price has risen 6% to 18 cents after announcing that it has contracted a major merchant in the MCC 6211 category (equities/brokers/market makers/FX/CFD) in Australia. According to the release, the new merchant has a gross processed turnover volume of over AU$200 million and was most recently a National Australia Bank Ltd (ASX: NAB) customer. The merchant is expected to come onstream and contribute to revenues within 6 weeks. This could be a big positive for the global leader in AML RegTech and transactional banking.

The post These 3 small cap shares are on the rise on Monday appeared first on The Motley Fool Australia.

In its FY18 results released earlier this month, CSL announced that it had exceeded its own guidance, delivering full year net profit of $1.73 billion, an uplift of 29% on the prior year. The company expects continued growth and margin expansion into FY19 and forecast net profit for next year to be in the range of $1.88 billion to $1.95 billion. 

The CSL share price is up almost 60% this calendar year and shows no sign of stopping in its steady march higher. The company's share price was at $224.43 when the market closed on Friday afternoon.

Long term investors have been rewarded handsomely for their faith in the biotech company: those who bought CSL 5 years ago would have seen their holdings more than triple in value by now. 

Needless to say, getting in early with a company like CSL can bring rich rewards. Here are three small cap biotech firms listed on the ASX that may grow into the next CSL. 

1. Cynata Therapeutics Ltd (ASX: CYP) 

Cynata is an Australian stem cell research company. It has developed its own proprietary technology called Cymerus based on research conducted at the University of Wisconsin-Madison. The technology seeks to address a number of issues affecting commercial stem cell production, including difficulties harvesting stem cells from adult donors.  

Cynata's Cymerus technology, while still in its clinical trial phase, can source all of its cells from a single adult donor. It claims that this will increase clinical predictability and cut down on manufacturing costs. It also makes it a more commercially scalable stem cell technology. 

Revenues from ordinary activities for FY18 were $1.5 million, slightly down on the $1.8 million in FY17. Cynata posted a net loss of $4.5 million for FY18, which was pretty flat against FY18. Cynata shares were valued at $1.295 when the market closed on Friday afternoon, meaning they are up over 100% this calendar year.     

1. Opthea Ltd (ASX: OPT) 

Headquartered in Canada, Opthea is a biotechnology company specialising in the treatment of eye conditions. It owns a portfolio of IP developed to treat age-related macular degeneration, which Opthea claims is the leading cause of blindness in the Western world. The company is also developing treatments for blindness related to diabetes. 

The company is in the late stages of its clinical trial processes, and has recently dosed patients to test the safety and efficacy of these treatments in humans. If results of the trial are positive, Opthea could wind up with a medical product that meets rising global demand. 

The Opthea share price is down about 16% for this calendar year, although it has made a significant recovery since hitting a 12 month low of 41.5 cents late May. It now trades at 59 cents per share. 

1. Nanosonics Ltd. (ASX: NAN)  

Significantly larger by market cap than the other two companies on this list, Nanosonics specialises in the development of high level disinfection for medical ultrasound probes. Ultrasound is widely used in many different branches of medicine, including oncology, cardiology, gynaecology, and obstetrics. 

Nanosonics has developed its own proprietary device called trophon, which is an automated solution for ultrasound probe disinfection. This technology aims to meet growing global demand for better disinfection tools in response to stricter medical practice guidelines in many countries. Nanosonics now operates in North America, Canada, the UK and across Europe. 

Earlier than anticipated regulatory approval of its trophon2 technology – while good news for the company in the long run – hurt revenues in FY18. Nanosonics stated that many of its clients were running down their inventories of the trophon or delaying new purchases until the official launch of trophon2. Consequently, annual revenues for FY18 were down 10% against FY17 levels. 

The market showed faith in Nanosonics, with its share price gaining 6% over the last week to reach $3.71 on Friday afternoon. Overall this calendar year the Nanosonics share price is up over 30%.     

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This is especially the case at the small end of the market where a number of companies are aiming to disrupt the status quo. While these shares may not necessarily be ready for investment, I think they are more than deserving of a spot on your watchlist.

Here's why I like them:

CogState Limited (ASX: CGS)

CogState is an exciting small-cap share which provides cognitive function testing services that help large pharmaceutical companies measure the effectiveness of potential new treatments for common cognitive ailments. The company has a decent balance sheet with no debt, a track record of growth, and is close to becoming consistently profitable.

Cynata Therapeutics Ltd (ASX: CYP)

Cynata is a stem cell and regenerative medicine company which is behind the Cymerus technology and CYP-001 mesenchymal stem cell product. Its impressive Cymerus technology is able to produce an unlimited number of high quality stem cells at a low cost. These stem cells can then be used to treat numerous diseases including Graft versus Host Disease and cardiovascular disease. CYP-001 was recently granted Orphan Drug Designation by the U.S. FDA and delivered positive trial data from its Phase 1 clinical trial.

Volpara Health Technologies Ltd (ASX: VHT)

Volpara is a medical technology company which specialises in breast imaging analytics and analysis software. It has been growing its recurring revenues at an explosive rate thanks to the rapid adoption of the technology in the United States. At the last count, its software handled 3.2% of all women screened for breast cancer in the country. Management appears confident that the growing demand will lead to even more market share gains in FY 2019 and is targeting a share of 9%.

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Thanks to technological advancements and the expected growth in demand for healthcare services over the next couple of decades, I feel it is a great place to look for future blue chips.

While not all of them may be ready for investment, three small cap healthcare shares which I think are worth keeping an eye on are listed below. Here's why I like them:

Bionomics Ltd (ASX: BNO)

Bionomics is an Adelaide-based biotechnology company with a pipeline of promising drugs. The main one, in my opinion, is its BNC210 product. Last month the company announced a Phase 2 trial of the drug for the treatment of agitation in the elderly. Management believes that agitation in elderly patients is a major unmet clinical problem, which occurs both in the acute setting in hospitalised patients and chronically in nursing home residents. Considering current options include benzodiazepines and antipsychotics, which can have severe adverse effects in the elderly including sedation, stroke and sudden death, BNC210 may fill a significant unmet clinical need. It might be a touch too soon to invest, but it is certainly worth keeping on your watchlist.

Cynata Therapeutics Ltd (ASX: CYP)

This stem cell and regenerative medicine company's shares have been on a tear over the last 12 months and have deservedly risen over 110%. When I recommended Cynata about a year ago, I talked about how impressed I was with its Cymerus technology and the promising CYP-001 mesenchymal stem cell product. Since then there have been positive developments that make CYP-001 even more attractive. These include it being granted Orphan Drug Designation by the U.S. FDA and the release of positive trial data from its Phase 1 clinical trial. I think this makes it one to watch.

Volpara Health Technologies Ltd (ASX: VHT)

Volpara is a breast imaging analytics and analysis product specialist which has been growing its annual recurring revenue at an impressive rate in FY 2018. The catalyst for this was the company's market share gains in the United States. According to its most recent update, Volpara's software now handles 3.2% of all women screened in the United States for breast cancer. With demand for its software growing strongly, management is targeting a 9% share of the market in FY 2019. This could lead to further top line growth. Though it is worth noting that it is a high-risk investment option due to its lofty valuation.

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At the small end of the market there have been some especially strong gains.

Three that caught my eye are listed below:

The Cynata Therapeutics Ltd (ASX: CYP) share price is up almost 5% to $1.19 after the stem cell and regenerative medicine company made a positive announcement related to its Cymerus mesenchymal stem cell technology. According to the release, the company has received a notice of allowance from the European Patent Office for a patent application covering Cymerus. This is another positive for the company and gives it a comprehensive patent portfolio that protects its unique and proprietary IP. I think Cynata is a quality company on the rise and one to watch.

The Lifestyle Communities Limited (ASX: LIC) share price has climbed 3% to $5.16 after the retirement community provider released an update on its settlements. According to the release, the company has upgraded its settlement guidance for FY 2018 to between 310 and 320 from between 260 and 290. This increase was partly down to the company gaining access to the Bittern site ahead of expectations. Last week I revealed that Goldman Sachs had picked out Lifestyle Communities as a company that could upgrade guidance this month. The broker was spot on.

The Spookfish Ltd (ASX: SFI) share price has risen almost 4.5% to 4.8 cents after the geospatial imagery company advised that the U.S. Federal Aviation Authority (FAA) had approved the final stage of the Supplemental Type Certification (STC) programme for the Spookfish camera system. According to the release, this is a major milestone for the company and will enable additional large-scale manufacturing and simple delivery to the United States. The news hasn't had any impact on the share price of rival Nearmap Ltd (ASX: NEA) which is up over 1% today.

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Fifteen years later those same shares have increased in value by over 1,200% and recently traded as high as $159.62.

While only time will tell whether the biotech shares listed below can have similar success, I think they are well worth keeping a close eye on.

Botanix Pharmaceuticals Ltd (ASX: BOT)

In February this dermatology company raised $15 million through a placement of shares at an issue price of 11 cents per share. The funds raised are to be used to accelerate clinical development of its lead acne product, BTX 1503, and progress other key pipeline products. I think BTX 1503 is a very exciting product and have been impressed with its early results. It uses a synthetic cannabidiol to treat moderate to severe acne and, importantly, does not come with the horrific side effects that existing products have. The acne prescription market is expected to be worth up to US$4.5 billion this year, meaning this drug could have significant potential if its trials are a success.

Cynata Therapeutics Ltd (ASX: CYP)

Through its impressive Cymerus technology, Cynata Therapeutics is able to produce an unlimited number of high quality and consistent stem cells at a low cost. These stem cells can then be used to treat a number of diseases including Graft versus Host Disease (GvHD) through it lead CYP-001 mesenchymal stem cell (MSC) product. The market opportunity for this treatment alone is estimated to be US$300 million a year. Pleasingly, the company advised recently that CYP-001 has been granted Orphan Drug Designation by the United Stated Food and Drug Administration.

Telix Pharmaceuticals Ltd (ASX: TLX)

Telix is a clinical-stage biopharmaceutical company focused on the development of diagnostic and therapeutic products based on targeted radiopharmaceuticals. Its CEO, Dr Christian Behrenbruch, is very respected in the industry and has a solid track record of success in the field. This morning the company advised that its joint venture with Kyzeo Imaging has entered into a material contract with US-listed Endocyte in relation to providing imaging technology for Endocyte's phase III trial of Lu-PSMA-617. This is just one of a number of positive developments ongoing or in the pipeline, making it one to watch in my opinion.

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Four shares that have defied the market today are listed below. Here's why they have climbed higher:

The AGL Energy Ltd (ASX: AGL) share price is up 2% to $21.62. The energy producer and seller has come under significant selling pressure over the last 12 months and is within a whisker of a 52-week low. I suspect that bargain hunters may be swooping in today. Especially given its status as a risk-off option.

The Cynata Therapeutics Ltd (ASX: CYP) share price is up 6% to $1.43 after the regenerative medicine company announced that the U.S. Food and Drug Administration has granted Cynata Orphan Drug Designation for CYP-001 for the treatment of acute graft versus host disease. This designation is given to treatments of diseases or conditions that affect fewer than 200,000 people in the USA. Once a product has been granted this designation, the sponsor or manufacturer can take advantage of special and commercially significant incentives including exclusivity, tax credits, and the waiver of FDA fees.

The Jatenergy Ltd (ASX: JAT) share price has jumped 4% to 25 cents after the fledgling infant formula company announced that it has entered into a distribution agreement with China's Jiangsu Jbingo International Co. Ltd. The agreement will see Jbingo distribute all the company's products, including its 51%-owned Golden Koala range of milk powders throughout China online and offline.

The MMA Offshore Ltd (ASX: MRM) share price has risen 6.5% to 24.5 cents after announcing new contract awards. According to the release, ConocoPhillips has awarded MMA a number of vessel contracts of up to 10 months duration for a multi-vessel marine spread to support drilling and shutdown operations at Bayu-Undan in the Timor Sea. In addition to this, the company has secured a one-year deal with a major independent crude oil and natural gas producer to support a development project in offshore Ivory Coast.

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