At the time of writing, the ASX healthcare stock is up 72% to 27.5 cents.

Why is this ASX healthcare stock jumping?

Investors have been fighting to get hold of the medical device company's shares after it made a major announcement.

According to the release, Universal Biosensors has received FDA 510(k) and CLIA Waiver approval for its Xprecia Prime Coagulation Analyzer as a Class II device.

The Xprecia Prime Coagulation Analyzer is Universal Biosensors' second generation, new and improved coagulation monitoring device. Xprecia Prime fits into your palm, is portable, accurate, and easy to use.

The company advised that this approval allows it to sell Xprecia Prime into health care professional settings such as hospitals, clinics, and doctor's offices in the USA.

'Historic moment'

The ASX healthcare stock's CEO, John Sharman, was delighted with the news. He said:

Approval to sell Xprecia Prime in the USA is a historic moment for UBI. It represents more than 10 years of research & development work and many millions of dollars of investment.

Sharman also highlights that this is the first time a coagulation device has been granted a CLIA Waiver. He adds:

This is the first time the FDA have granted a CLIA Waiver by Application to any coagulation device, and it is testament to the performance of Xprecia Prime. The number of PT/INR tests performed in clinics is the largest part of the USA market so to have won unrestricted access to all clinics and hospitals across the USA is a major achievement.

What now?

Sharman notes that the product has a huge addressable market and that revenue generation could be on way. He explains:

There are more than 6 million patients who take warfarin (coumadin) in the USA1 and more than 140 million2 PT/INR test strips are sold each year. This FDA approval represents the first opportunity in UBI's history to access the lucrative (and fully reimbursed) USA market.

Our expectation is Xprecia Prime will qualify under the existing reimbursement codes used by Medicare, Medicaid and USA Health insurers. UBI has a pipeline of sales and distribution contracts already in negotiation and now that we have FDA approval we expect to conclude some, if not all of these contracts, win market share and generate substantial revenue for the company.

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Shares in the biotech are swapping hands for 89 cents at the time of writing, up 0.57%. Shortly after the market open, the share price jumped to an intraday high thus far of 94 cents. This is 6.8% higher than yesterday's close.

Let's take a look at the news driving positive investor sentiment today.

What is impacting the Universal Biosensors share price?

Universal Biosensors informed ASX investors that it has signed a deal with IQ Science Limited. The deal will commercialise a new rapid COVID-19 test.

The SARS-CoV-2 N-protein detection test will use the company's electrochemical strip and device technology.

Initial internal validation work found the COVID-19 test can detect the virus within just 30 seconds.

Universal Biosensors has been working with IQ Science founder Dr Shalen Kumar on the technology for 6 months.

The licensing agreement is globally exclusive. Commercialisation fees will be paid either after the test gains regulatory approval, or when the test generates $1 million in sales.

Universal Biosensors will manage funding for the project and gaining all the regulatory approvals required to commercialise the test. If the test is not taken to the market within the next 5 years, the licence will become non-exclusive.

Management comment

Commenting on the COVID-19 test agreement, Universal Biosensors CEO John Sharman said:

The deal with IQ Science is an important breakthrough for UBI since it will be the first time our platform will use aptamers as a detection technique.

Aptamers are a next generation biorecognition element which when combined with our existing technology platform should allow us to detect and measure a large number of targets.

Based on what we know is available in the world today, a COVID-19 Test offering an accurate result within 30 seconds of the patient sample will be the first of its kind globally.

Universal Biosensors share price snapshot

The Universal Biosensors share price has surged by roughly 106% in the past 12 months. For perspective, the S&P/ASX 200 Index (ASX: XJO) is up by more than 11% over the same period.

The company has a market capitalisation of roughly $159 million based on its current share price.

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At the time of writing, Universal shares are up 7.32% to 66 cents.

What's driving the Universal share price higher?

Investors appear pleased with the company's latest update, with management hinting revenue is on track for 2021 targets.

According to this morning's release, Universal welcomed the first sales of its Sentia device and free Sulphur Dioxide (SO2) test strips into Europe. The products were sent to companies operating in France, Italy, Germany, Spain, Portugal and Switzerland.

Universal entered into a non-exclusive agreement with Vinventions SA to market and trial Sentia in France and Italy. In addition, the company made its first sales of Sentia to AZ3Oeno SL Enologia Viva for the Spain and Portugal markets. Universal noted that both distributors are seeking a more in-depth evaluation of Sentia's performance, before committing to new deals.

In Switzerland, Universal revealed it has completed its first sales and partnered with Swiss leading manufacturer, XC Oenologie Sarl. The distribution agreement is valid for a term of 3 years and contains minimum purchase volumes.

Management commentary

Universal Biosensors CEO, John Sharman hailed the company's progress, saying:

The launch of Sentia into the main European markets is a significant step forward for the company. Between Vinventions, AZ3Oeno and XC Oenologie Sarl, we have access to more than 26,000 wineries across Europe.

Universal first supplied Sentia products during March 2021 and given the global COVID 19 pandemic, lockdowns and associated difficulties, sales during the first three months has been excellent. Our business is forecasting to hit $1 million of sales before the end of September. There are currently 19 distributors trialling Sentia devices across Europe. We are confident that over the next few months additional distribution agreements and sales will be made in Europe.

XC Oenologie Sarl CEO, Xavier Chevallay went on to add:

I am excited to be bringing Sentia into the Swiss market. I'm confident its speed of results and ease of use will be well received. XC Oenologie Sarl, is proud to start this collaboration with UBI and looks forward to representing Sentia with which we have carried out very convincing tests.

Over the last 12 months, the Universal share price has rocketed by more than 200%, with 2021 performance above 50%.

The post Why the Universal Biosensors (ASX:UBI) share price is climbing 7% today appeared first on The Motley Fool Australia.

During the early afternoon trade, the medical diagnostics company's shares are swapping hands for 69 cents, down 1.4%. In comparison, the All Ordinaries Index (ASX: XAO) is sitting at 7,350 points, up 0.4%.

What did Universal Biosensors announce?

In today's statement, Universal Biosensors advised it has entered into an exclusive distribution agreement with Grapeworks NZ Limited.

The arrangement will see Universal Biosensors supply its wine testing platform device, Sentia for the New Zealand market. The deal will last for 5 years, provided initial and minimum annual purchase volumes are met. Furthermore, the contract will be subject to the usual customary conditions with attached renewal options available to both parties.

The latest agreement follows the company's progress in delivering its Sentia products across global markets since March 2021.

During the last couple of months, Universal Biosensors has secured distribution deals in Australia, the United States, New Zealand, Canada, Chile and South Africa. This has provided the company with access to over 14,000 wineries, reflecting strong demand for its product.

What did management say?

Universal Biosensors CEO John Sharman welcomed the outcome, saying:

Grapeworks is UBI's exclusive distribution partner for Sentia in Australia, so for them to extend our agreement to cover New Zealand's 500+ wineries demonstrate a strong financial commitment and belief in the future success of Sentia.

Grapeworks NZ managing director Malcolm Wilson went on to add:

Sentia has been well received by our Australian customers. We have been doing our due diligence on an expansion into New Zealand and believe that Sentia is a great product to spearhead our launch.

Universal Biosensors share price review

The Universal Biosensors share price has performed considerably well, gaining close to 240% over the past year. The company's shares recently reached a multi-year high of 84.5 cents earlier this month.

Based on the current share price, Universal Biosensors commands a market capitalisation of $119 million, with 177 million shares outstanding.

The post Universal Biosensors (ASX:UBI) share price falls despite positive update appeared first on The Motley Fool Australia.

Today's price movement comes after the company announced another deal to distribute one of its products – this one in South Africa.

Let's take a closer look at today's news and what it means for the Universal Biosensors share price.

What's up with the Universal Biosensors share price?

In a statement to the ASX, Universal Biosensors advised it has entered a nonexclusive agreement with Vicard SA for the distribution of its wine testing platform device, Sentia, in South Africa. The deal is for 3 years.

Vicard SA is an importer of products necessary for wine production into South Africa. It has been in operation for more than 20 years.

This is the third such deal for the Sentia product. The company recently announced distribution deals in Chile and the United States. The Universal Biosensors share price rose 6% on the former deal and fell on the latter.

Sentia is a portable, wine-testing device that delivers results in less than 60 seconds. The test measures the amount of free sulphur dioxide present in a wine product. Free sulphur dioxide needs to be present in wine for bacterial stability.

Management commentary

Universal Biosensors CEO John Sharman said:

Securing distribution in South Africa is another step forward in the commercialisation of Sentia globally. Vicard SA has 20 years of experience supplying high quality resources to the South African wine industry and there are 500 wineries which will now have the opportunity to experience Sentia.

Along with the current capability we believe the possibility of Sentia's future testing capability for glucose, fructose, malic acid and others will add significant value to the winemaking industry. We are negotiating terms with a number of key industry players around the world and look forward to reporting additional distribution partnerships in due course.

Vicard SA CEO Michael Fernandez added:

I am thrilled to be bringing Sentia to the South African wine industry. The initial reaction from my customers has been very positive and they understand the unique benefits the system offers.

Universal Biosensors share price

Over the past 12 months, the Universal Biosensors share price has increased 279%. In fact, just over the last month, the company's value has appreciated 28.6%. On 9 April, the share price went up 36% in one day after a medical-related update.

The Universal Biosensors share price has a market capitalisation of $127.8 million.

The post Universal Biosensors (ASX:UBI) share price dips despite latest update appeared first on The Motley Fool Australia.

What did Universal Biosensors announce?

Investors are driving the Universal Biosensors share price lower today. This comes despite the company's latest positive announcement.

According to this morning's release, Universal Biosensors advised it has signed a non-exclusive distribution agreement with Wine & Beer Supply.

Founded in 2015, Wine & Beer is a rapidly growing business that provides an array of products to beverage companies. This includes bottles, tasting glasses, carriers, shippers, corks, AND vineyard supplies in addition to other items used by winery, brewery, and cidery industries.

The new deal allows Wine & Beer Supply to provide distribution channels for Universal Biosensors' wine testing platform device, Sentia. This includes coverage over the eastern part of the United States. Importantly, this deal also sets up Sentia for a global launch.

Furthermore, the distribution agreement will run for a period of 3 years and contains standard renewal and termination options.

Management commentary

Universal Biosensors CEO, John Sharman welcomed the deal, saying:

Securing another distributor in the USA is a positive step in the commercialisation of Sentia globally. Wine & Beer Supply has a strong presence in the USA, particularly in the eastern half of the USA and will give Sentia greater access to the 11,500 wineries across the country.

Along with the current capability we believe the possibility of Sentia's future testing capability for Glucose, Fructose, Malic Acid and others will add significant value to the winemaking industry. We are negotiating terms with a number of key industry players around the world and look forward to reporting additional distribution partnerships in due course.

Wine & Beer Supply CEO, Dave Robertson added:

We are delighted to partner with Sentia in the United States. We have received positive feedback from our customers and believe Sentia will make a significant impact in the wine testing market in the USA.

About the Universal Biosensors share price

In the past 12 months, the Universal Biosensors share price has gained over 300%. The share price is also up more than 60% year-to-date. Additionally, the company's shares reached a multi-year high of 84.5 cents yesterday following another signed distribution agreement with a Singularity SpA.

On valuation grounds, the Universal Biosensors commands a market capitalisation of around $129.6 million, with 177.5 million shares outstanding.

The post Universal Biosensors (ASX:UBI) share price sinks despite new deal appeared first on The Motley Fool Australia.

The agreement will see Universal Biosensors' wine testing platform device distributed in Chile for the first time.

Today's news may herald another big day for the Universal Biosensors share price. It launched 9.6% higher yesterday following news the company made deals with Deakin University and the Swinburne University of Technology.

At the time of writing, the Universal Biosensors share price is 73 cents, up 6.6% from yesterday's closing price.

Let's look closer at today's release from the company.

Cheers for Chilean wine testing

The distribution agreement with Singularity for Universal Biosensors' wine testing platform device, Sentia, is for a 3-year term.

It will make Sentia available in Chile, the world's 8^th largest wine-producing country.

The Sentia analyzer is a handheld device that can measure the free sulphur dioxide in post-fermentation red and white wine in under a minute.

Universal Biosensors is working towards making more wine analysis tests available on the device.

Commentary from management

Universal Biosensors CEO John Sharman welcomed the agreement, saying:

The launch of Sentia into Chile is another positive step in the commercialisation of Sentia globally. Chile is the 8th largest wine producing country in the world and Singularity is part of a leading group with diverse expertise in point-of-use devices with connections across Chile's 200,000 hectares of vineyards.

The deal includes an initial commitment to purchase Sentia devices and strips which will be delivered over the course of the next few weeks.

Mr Sharman said the possibility of Sentia's future testing capability for glucose, fructose, malic acid and others would "add significant value" to the winemaking industry.

We are negotiating terms with a number of key industry players around the world and look forward to reporting additional distribution partnerships in due course.

Universal Biosensors share price snapshot

The Universal Biosensors share price has performed well on the ASX lately, with today's news bringing the latest boost.

It is currently up 51% year to date and has increased by a mammoth 294% over the past 12 months.

Universal Biosensors has a market capitalisation of around $120 million, with approximately 177 million shares outstanding.  

The post Why the Universal Biosensors (ASX:UBI) share price is up 6% today appeared first on The Motley Fool Australia.

The deals will see the commercialisation of Universal's Tn Antigen biosensor as well as the development of other biosensors using the company's electrochemical platform technology.

Let's look closer at the announcement made by the biotech company this morning.

What was announced?

The Universal Biosensors share price is having a stellar day after the company announced new agreements between it and Deakin University's Institute of Frontier Metals (DIFM) and Swinburne University of Technology.

Through the deals, Universal Biosensors aims to create a portable device that can sense and monitor cancer from a finger prick of blood.

The two universities have been working on the company's electrochemical biosensors and the Tn Antigen cancer biomarker for more than 5 years.

The agreement with DIFM will contract half of DIFM's Senior Fellow Dr Wren Green's time and resources.

The deal with Swinburne will contract 80% of Dr Saimon Moraes Silva's time. Dr Silva will be under the supervision of Swinburne's School Software and Electrical Engineering and Iverson Health Innovation Research Institute's Professor Simon Moulton.

Combined, the universities should charge the company no more than $300,000, according to the company's release.

Commentary from management

Universal Biosensor's CEO John Sharman commented on the agreements, saying:

The knowledge and resources of DIFM and Swinburne will help deliver [a portable device capable of identifying, staging and monitoring cancer] as well as fast track the development of other biosensors we are working on.

Universal Biosensors share price snapshot

The Universal Biosensors share price is having a good year so far on the ASX, with today's news just the latest boost.

It's currently up by nearly 45% year to date. It's also up a whopping 278% over the last 12 months.

The company has a market capitalisation of around $110 million, with approximately 177 million shares outstanding.

The post Here's why the Universal Biosensors (ASX:UBI) share price is soaring 10% appeared first on The Motley Fool Australia.

At the time of writing, shares in the medical diagnostics company are trading at 65 cents each, after shooting up to a 52-week high of 85 cents near the open. By comparison, the S&P/ASX All Ordinaries Index (ASX: XAO) is 0.28% lower.

Let's take a closer look at today's announcements and how they might affect the Universal Biosensors share price.

Cancer detection technology

In its first statement to the ASX, the company declared it "has entered into an exclusive licence and supply agreement with Lubris BioPharma LLC…" to commercialise a biosensor test that can detect and monitor cancer.

Universal said the Tn biosensor was jointly developed by Deakin University, Swinburne University of Technology and The University of Wollongong using technology supplied by Lubris.

The agreement between Universal Biosensors and Lubris will be global, exclusive, and perpetual, and covers all intellectual property rights, commercialisation, development and manufacturing rights.

Universal Biosensors will own all new intellectual property. The biosensor has already been clinically tested on 1,000 patients.

Speaking on this announcement, Universal Biosensors CEO John Sharman said:

To be able to identify and measure, then monitor the rate of a healthy human cell becoming a cancer cell from a handheld point-of-care biosensor device is an exciting prospect for UBI.

…the blood testing market for the monitoring of cancer remission patients annually is estimated at $17 billion. It would be wonderful if this initiative could improve the lives of many of the 131 million cancer remission patients around the world.

He added:

The next step to develop a commercial product is to ensure the Tn biosensor can be reproduced on our manufacturing line and measured reliably using patients' whole blood. Based on our initial feasibility we estimate this could take 3 years and cost between $5 – $7 million. UBI has $25 million of cash reserves and no debt.

Exclusive supply agreement

In its second statement that is shooting up the Universal Biosensors share price today, the company updated an exclusive, global supply agreement with Lubris.

Lubris will supply Universal Biosensors with an antifouling coating called Lubricin that, when applied to an electrochemical biosensor, can improve its detection power by 1 million times more. It can be used in many applications, including human health, veterinary science, wine testing, and environmental research.

According to Universal Biosensors, the supply agreement does not contain any specific minimum purchase requirements. However, if Universal Biosensors is unsuccessful in commercialising its product, the agreement will become non-exclusive.

Speaking on the supply agreement, Mr Sharman said:

The agreement for the supply of Lubricin for use on UBI's electrochemical biosensor platform is a generational advancement for UBI's technology.

Our strategy is to partner with companies that have developed biosensors in large markets which can be used on our hand-held platform technology. Our ambition is to develop a stable of revenue generating biosensor products capable of detecting analytes of interest in key industries,

Universal Biosensors share price snapshot

Including today massive increase, the Universal Biosensors share price has gained 261% over the past 12 months and is up 37% year-to-date. 

Universal Biosensors has a market capitalisation of $122.9 million.

The post Why the Universal Biosensors (ASX:UBI) share price is shooting 36% higher today appeared first on The Motley Fool Australia.

At the time of writing, the Universal Biosensors share price is up 1.96% trading at 52 cents.

The deal represents an interesting step towards diversified commercialisation for Universal Biosensors. The company is primarily a medical diagnostics company, focused on the research, development, and manufacture of in-vitro diagnostic test devices for consumer and professional point-of-care use.

The company produces technology that tests blood glucose levels, which has enabled it to expand into the viticulture market through its new wine testing platform, Sentia.

Sentia can accurately test the levels of glucose, fructose, malic acid and other monosaccharide carbohydrates in wine, which is already proving appealing for international winemakers.

Universal Biosensors meets Vine to Vintages

Universal Biosensors announced today it has entered into a nonexclusive distribution agreement with Canadian company Vines to Vintages Inc for the distribution of its wine testing platform device.

The agreement is for a three-year term and contains standard renewal and termination options available to both parties. The Canadian distribution agreement arrives two months after Universal Biosensors signed a US distribution deal with Enartis, with more than 7,000 potential customers.

The company outlined to shareholders in its 'Future of UBI' report in February that it planned to "move away from defining ourselves as an R&D company with long lead times and expensive research programs". Since then, the Universal Biosensors share price has risen by more than 10 cents.

What did management say?

Universal Biosensors CEO John Sharman welcomed the deal, saying:

The launch of Sentia into Canada is another positive step in the commercialisation of Sentia globally. Vines to Vintages is well represented in all of Canada's wine regions and has access to 700 wineries.

The deal includes an initial commitment to purchase Sentia devices and strips which will be delivered over the course of the next few weeks.

Mr Sharman said the possibility of Sentia's future testing capability for glucose, fructose, malic acid and others would add "significant value" to the winemaking industry.

We are negotiating terms with a number of key industry players around the world and look forward to reporting additional distribution partnerships in due course.

Universal Biosensors share price snapshot

The Universal Biosensors share price has increased more than 245% in the past year. It's up 28% this month, 19% this calendar year and 250% against the broader healthcare sector, although healthcare is hardly a sector Universal Biosensors is limited to anymore.

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What's driving the Universal share price higher?

The Universal share price is surging higher today after the medical diagnostics company announced its Canadian subsidiary, Hemostasis Reference Laboratory Inc (HRL), has signed a new deal with Bayer AG.

HRL provides laboratory testing services in the areas of coagulation. The company performs clinical trials, research studies, and compound analysis, as well as validation testing on equipment. HRL assists global diagnostic manufacturers, pharmaceutical and clinical researchers, and contract research organisations.

According to its release, Universal advised that the agreement will see its laboratory business provide specific services to Bayer, "relating to the performances of laboratory analysis of biological samples."

Management did not state the length of the contract, but did say it will be for an agreed period of time. HRL estimates the new partnership will generate CAD$1.3 million in additional revenue.

What did the CEO say?

Universal CEO Mr John Sharman commented on the strategic partnership, saying:

HRL is our laboratory service business in Canada and is an important asset in our blood testing business. We are looking to grow HRL and expand the client base over time. The contract with Bayer is a significant first step and we expect to be in a position to announce additional contracts with other customers over the course of the next six months.

How has the Universal share price performed in 2020?

This Universal share price has had a stellar year, gaining close to 150% over the past 12 months. The company's shares fell to an all-time low of 13 cents in March, before quickly rebounding.

Earlier this month, the Universal share price reached a multi-year high of 50 cents after the company announced its distribution agreement with Grapeworks.

Based on current share price levels, the company commands a market capitalisation of around $78 million.

The post Why the Universal (ASX:UBI) share price is on the run today appeared first on The Motley Fool Australia.

During mid-morning trade, shares in the medical diagnostics company reached an intraday high of 46 cents. However, the Universal share price has since retreated to 41 cents, up 5.1%.

Quick take on Universal

Universal is a specialist medical diagnostics company that focuses on the research, development, manufacture and commercialisation of diagnostic devices. Used by both consumers and professionals, these test systems can be adopted in an array of point-of-care (POC) settings.

According to Universal, the POC diagnostic market is worth US$15 billion a year.

What's driving the Universal share price higher?

According to its release, Universal advised that it entered in an exclusive licencing agreement with LifeScan Global Corporation. The agreement will see both parties work together to develop a device that is able to detect and monitor diabetes in animals.

Using LifeScan's technology, Universal aims to manufacture and sell a discrete single point measurement to monitor glucose. The device will include a biosensor, test strip and a meter for diabetes management.

Under the terms, standard customary conditions apply to both Universal and LifeScan. However, once the product is launched, if annual sales drop below US$10 million, the term of the contract will end.

Previously, LifeScan worked with Universal in commercialising and developing a diabetes strip and meter. To date, the company has sold more than 10 billion diabetes strips worldwide.

CEO commentary

Universal CEO Mr John Sharman spoke of the partnership, saying:

LifeScan paid UBI A$44.6 million in 2019 to buy out UBI's royalty stream which was based on the diabetes products developed using UBI technology. Our new deal with LifeScan means that we can use our existing know-how and combine it with the LifeScan technology to develop a new diabetes product for animals, which we will own.

Most if not all of the technology, know-how and manufacturing capability for diabetes strips and meters already exists at UBI and we expect to have a product available for sale within 18 – 24 months. Our ambition is to win a significant share of the animal diabetes market.

The post Why the Universal Biosensors (ASX:UBI) share price is up 5% today appeared first on The Motley Fool Australia.

Its high was short lived, however, with the Universal share price pulling back to 46.5 cents, down 5.1% at the time of writing. In comparison, the All Ordinaries Index has remained positive all day, treading at 6,908 points, up 06%.

Distribution agreement

The Universal share price has backflipped from its multi-year high, despite an upbeat announcement.

In today's release, Universal advised it has signed an exclusive distribution agreement with Grapeworks for the Australian market. The partnership will exist for 5 years, with standard renewal and termination options available to both parties.

Grapeworks provides beverage makers a range of winemaking, cider and brewing consumables and supplies. The company specialises in high-end bottle packaging and closures.

In other news today, Universal revealed it has launched a dedicated website page for its Sentia product, a digital wine analyser. The company anticipates this will support the sales and promotion of the new offering.

What did management say?

Commenting on the launch, Universal CEO John Sharman said:

The launch of Sentia represents UBI's first new product in almost 7 years and leverages UBI's core biosensor platform technology. We believe Sentia has the potential to change the way wine testing is performed globally.

Grapeworks is Australia's leading wine supply company offering a complete range of production equipment, winemaking, cider and brewing consumables and supplies. We are delighted to partner with Grapeworks who have shown their confidence in the future of Sentia with a first order for product worth more than $300,000.

Grapeworks managing director Malcom Wilson added:

Sentia offers a unique solution for winemakers and we are pleased to be Australia's exclusive distributor. We are excited by the prospect of selling Sentia and believe the future testing capability for glucose, fructose, and malic acid will add significant value to the winemaking industry in Australia and around the world.

About the Universal share price

The Universal share price has been a strong performer since the beginning of the year, rising 156%. Although lower at the time of writing, the Universal share price hit a multi-year high of 50 cents today.

Universal has a market capitalisation of $84.3 million.

The post Why the Universal (ASX:UBI) share price reached a multi-year high today appeared first on The Motley Fool Australia.

On the surface Nearmap Ltd (ASX: NEA) looks pricey. It has a market capitalisation of $250 million and reported a net loss of $7.1 million las year. However, the aerial mapping company is making progress on its US expansion strategy, which has incurred significant one-off costs that are responsible for last year's loss.

Meanwhile, annualised contract revenue increased 38% in Australia to $34.4 million in 2016. With gross margins of over 90% and further growth likely, I think this business alone is comfortably worth more than $250 million.

Nearmap finished financial year 2016 with a record number of sales leads in the US and so the company could generate significant revenue there in 2016. Given the US market is an order of magnitude larger than Australia, continued success stateside will make the current share price a thing of the past.

Cloud accounting business XERO FPO NZX (ASX: XRO) has a market capitalisation of over $2.5 billion and despite its size is one of the fastest organically growing companies on the ASX. Like Nearmap, Xero is loss-making as management is prioritising durable growth over near-term profitability.

Recently Xero announced some exciting product improvements at a conference in Brisbane. The software will soon be able to code invoices and match most bank reconciliations items automatically. This will save accountants and bookkeepers huge amounts of time and places Xero at the forefront of the accounting software industry.

Medical diagnostics company Universal Biosensors, Inc. (ASX: UBI) has a market capitalisation of $60 million. It has developed technology that improves accuracy, lowers cost and reduces required sample sizes in point-of-care blood testing.

Last week, the company announced that its partner Siemens had received FDA clearance to market the Xprecia Stride device in the US which utilises test strips manufactured by Universal. This is the second product using Universal's technology that has gained full US and European approval. The other is sold by Johnson & Johnson subsidiary Lifescan and is used by diabetics to monitor blood glucose levels.

Universal generates positive cash flows and is likely to receive a one-off payment from Lifescan in the next couple of years roughly equal to Universal's current market capitalisation. If this payment is triggered then Universal will no longer receive royalty fees from Lifescan, but by then Xprecia Stride revenues should be substantial.

The post 3 of my favourite growth stocks to buy today appeared first on The Motley Fool Australia.

Technology

L-Dex is Impedimed's first product and enables the early identification of lymphoedema, a condition that affects 20% to 30% of breast cancer survivors. Lymphoedema causes fluid to build up in the extremities and if left untreated can become a lifelong condition that deteriorates over time.

L-Dex works through Bioimpedance Spectroscopy (BIS), a patented platform technology that measures fluid and tissue composition quickly, accurately and non-invasively. Impedimed is hoping to use BIS to develop a new method for monitoring heart failure in the future.

Commercialisation

For now, the company is focused on commercialising L-Dex which gained full US regulatory approval in 2013 and is also approved for use in Australia.

Since 2015, Impedimed has been running a clinical trial to demonstrate the efficacy of L-Dex involving six prestigious US cancer centres. By the end of March this year, the company had signed up a further 17 cancer centres for lymphoedema surveillance programmes and is targeting 50 by the end of the year.

Despite this progress, the March quarterly report showed cash receipts of just $4.2 million for the first 9 months of the year and net operating outflows of $15.6 million. The company recently raised over $70 million of fresh capital and has a market capitalisation of over $400 million.

A layman's view

Biotechnology stocks are often considered risky bets because of the considerable time, money and uncertainty inherent in gaining regulatory approval. However, as the case of Impedimed demonstrates, even once approval is achieved it can be a long time before financial returns follow, if they do at all.

Three years after Impedimed first gained approval in the US, the company is a long way from profitability. Whilst today's news of a 13.1% increase in pricing sounds good, it is insignificant when annual sales are just a few million dollars per year.

It may be that Impedimed's technology is so good that over time its products become the gold standard for monitoring lymphoedema and heart failure. However, I think that even a scientific expert would struggle to make this judgement let alone a layman like myself, and so I won't buy shares in Impedimed anytime soon.

A better alternative?

Universal Biosensors, Inc. (ASX: UBI) is another biotechnology company which is at the commercialisation stage. It has two blood testing products on market and partnerships with industry heavyweights Siemens Ltd and Johnson & Johnson.

The company delivered revenues of $16.8 million last year, is rapidly approaching profitability and has a market capitalisation of just $50 million.

The post Does biotech Impedimed Limited have blockbuster potential? appeared first on The Motley Fool Australia.

The blood glucose test kit developer surged 15%, or 3 cents, to 23 cents after it posted a 135% jump in service fees to $2.3 million in the three months to end December 2014, when compared to the same period in 2013.

But the stock quickly gave ground to trade at 20.5 cents even though the latest result is ahead of what I, or the market, was expecting. In fact, group revenue for 2014 (its financial year is the same as the calendar year) is likely to come in around 15% ahead of my forecast of around $6.5 million.

Further, the fall in the Australian dollar against the greenback will likely give company earnings a welcome boost as a service fee is paid in US currency by LifeScan, which is a Johnson & Johnson subsidiary, for each test strip (a consumable that is used in the blood glucose testing device) sold.

Unfortunately for shareholders in Universal Biosensors, LifeScan has the option to pay a relatively modest lump sum of between two and three times of the service fee collected in the year LifeScan exercises this option. This option is only available once LifeScan has paid at least $US45 million in cumulative service fees, which could be as soon as the second half of 2016.

Universal Biosensors has guarded this information well and supporters of the stock got a very rude shock in May last year when management revealed details of the exit clause.

The stock has shed 60% of its value in the past 12 months and had been trading comfortably above $1 before 2012.

While there is usually a reshuffle of senior executives at life science companies after a significant destruction in share price – think QRxPharma Ltd. (ASX:QRX) and Alchemia Limited (ASX: ACL) – Universal Biosensors' board and senior executives are still steering the ship.

This, in my opinion, is the biggest barrier to a re-rating of the stock. Regardless of how many test strips LifeScan sells or the success of Universal Biosensors' blood coagulation testers (the next product line the company is trying to commercialise), it's difficult to see the stock surging higher without a board/management shakeup.

Until then, Universal Biosensors better hope it doesn't need to undertake a capital raising in this country. I am not sure if any fund manager will be answering that call.

The post What would it take to trigger a re-rating in Universal Biosensors, Inc.? appeared first on The Motley Fool Australia.

The €3 billion ($A4.4 billion) market cap French laboratory equipment company, bioMérieux, has given word that it intends to terminate its exclusive deal with the ASX market minnow that involved licensing LBT's automated culture plate streaker in the next 12 months.

There are a few lessons investors can draw from this unfortunate experience that can be applied to LBT's other product opportunity.

While striking a partnership with a large partner is an important milestone for any small aspiring ASX life science company, it doesn't necessarily lower the riskiness of the investment. It just shifts the risks – usually from product risk (i.e. whether the technology works) to sales/distribution risks.

Getting a handle on the latter is not always easy but keeping an eye on quarterly sales figures will give one an idea on whether the product is gaining market traction. Anyone following the LBT story will know the automated streaker is not gaining sufficient traction when compared with LBT management's initial expectations in 2007 when the licensing deal was struck.

This brings me to the next important point. Global companies have their own (and often complicated) agenda and you can always count on them to pursue that first. This is because these companies have multiple products that are consistently competing for scarce resources within the organisation.

If a new product is not making sufficient inroads, the issue of moral hazard will become a major risk factor.

LBT's experience is not unique. If anything, such issues arise fairly regularly. Biota had to launch legal action against GlaxoSmithKline, while Johnson & Johnson initially dragged its feet in marketing a blood glucose testing kit from Universal Biosensors, Inc. (ASX: UBI) because it cannibalised on sales of Johnson & Johnson's existing product.

LBT's share price crashed 50% to 5 cents to a seven-month low before recovering slightly to 5.5 cents in late morning trade. LBT has received around $A13 million in various payments from bioMérieux over the years and will continue to be paid royalties for 2015.

The $7 million market cap innovator has another product line it is trying to commercialise. It has struck a joint venture with Swiss lab instrument company Hettich to develop an intelligent imaging platform.

Let's hope this partnership is more enduring.

The post What investors can learn from LBT Innovations Limited's slump to a seven-month low appeared first on The Motley Fool Australia.