Healthcare shares delivered a mixed week, with strong gains at AVITA Medical, Australian Clinical Labs and CSL despite very different company results.
Investors also weighed new US approvals, clinical trial progress, funding needs and rising sales across the sector.
- AVITA Medical rose 26.24% after a study found its wound product cut product costs by 70%.
- Australian Clinical Labs gained 25.96% despite a 0.7% revenue fall and a $332 million goodwill write-down.
- CSL climbed 23.30% even as restructuring charges produced a US$2.6 billion statutory loss.
- Pro Medicus and Dimerix secured major contracts and partnerships, while several smaller companies faced funding pressure.
- FDA approvals and trial progress supported OncoSil, ImpediMed, Mesoblast and Radiopharm Theranostics.
AVITA Medical (ASX:AVH) was the week’s strongest mover, rising 26.24% after a study found its PermeaDerm wound product cut product costs by 70% compared with donated human skin. Australian Clinical Labs (ASX:ACL) followed with a 25.96% gain. Its revenue fell slightly, but lower costs lifted underlying profit. CSL (ASX:CSL) rose 23.30% despite a US$2.6 billion statutory loss caused mainly by restructuring costs and asset write-downs.
Results split the market
AVITA’s study gave investors a clear commercial reason to buy. Hospitals could spend less on wound treatment, while patients had similar healing results. The study covered 40 patients across 11 US burn centres. The company still needs to turn those findings into wider product use.
At Australian Clinical Labs, revenue fell because of Medicare fee cuts and weaker market conditions. The company protected profit by controlling costs and improving margins. Its final dividend increased to 9.25 cents a share. The result was steady rather than strong, so investors will watch whether margins hold in FY27 as wages and other costs rise.
CSL’s result was more difficult to read. Sales increased 2% to US$15.8 billion, but US$7.1 billion in impairments and other restructuring charges pushed the reported result into a large loss. These charges reduce accounting profit, but do not represent the same cash payment as normal operating costs. The company kept its dividend, while underlying NPATA fell 4% to US$3.1 billion.
Devices and diagnostics gain ground
Pro Medicus (ASX:PME) rose 7.12% after winning new imaging contracts worth A$407 million during FY26. A separate seven-year, A$25 million deal with Valley Health will bring its cloud imaging system to hospitals in Virginia and West Virginia. The share price moved higher after reopening, showing that buying continued after the initial gap.
OncoSil Medical (ASX:OSL) received US approval for its device for a rare bile duct cancer. The company plans a US launch in the second half of FY27, but initial use will be limited to five centres under a required follow-up study. Its shares fell 9.45% for the week and traded well below the reopening price, suggesting early buyers sold as the market considered the slow launch.
ImpediMed (ASX:IPD) also won FDA clearance, allowing its SOZO platform to assess the risk of muscle loss in cancer and chronic disease patients. The shares fell 16.67%, showing that approval alone did not bring sustained buying. Investors may want proof that hospitals will pay for the new feature when the software update arrives in the second quarter of FY27.
Drug developers balance progress with cash needs
Dimerix (ASX:DXB) rose 5.08% after receiving a US$10 million upfront payment from Everest Medicines for DMX-200 in Asian markets. The company also took full control of the US trial application for DMX-652, with a Phase 2 kidney injury study planned for the second half of 2026. Recce Pharmaceuticals (ASX:RCE) added an active comparison group to its Phase 3 diabetic foot infection trial, giving regulators a direct test against existing antibiotics.
Other companies moved on clinical and regulatory news. Mesoblast (ASX:MSB) completed treatment of 350 patients in its pivotal trial for chronic lower back pain, with results due in mid-2027. Radiopharm Theranostics (ASX:RAD) will meet the FDA on 1 October to discuss its Phase 3 trial plan. Prescient Therapeutics (ASX:PTX) expanded its Phase 2a trial but still fell 11.63%. The company raised $9.8 million, yet small drug developers remain dependent on future capital raises and trial results.
Funding also shaped the weaker performers. Memphasys (ASX:MEM) secured Vietnam registration and a 600-cartridge order for its fertility system, but fell 14.29%. Xenitra (ASX:XEN) signed a three-year, A$5 million medical nutrition procurement deal, while its shares fell 14.29% and moved further below the reopening price. The announcements improve sales prospects, but investors still need evidence of repeat orders and cash generation.
Bottom Line?
The next stage for the sector will depend on scheduled events rather than headline announcements. Investors will look for Radiopharm Theranostics’ FDA meeting on 1 October 2026, Dimerix’s planned DMX-652 Phase 2 trial in the second half of 2026, OncoSil’s US launch in the second half of FY27 and Mesoblast’s trial results in mid-2027. Profitable companies such as EBOS Group, Medibank and Cogstate enter this period with stronger operating results, while smaller developers must show that new funding can support clinical work without excessive dilution.
Questions in the middle?
- Can AVITA Medical convert its lower-cost wound product into wider hospital adoption after the study results?
- Will CSL’s restructuring improve underlying profit, or will further asset write-downs affect future results?
- Can Dimerix fund its planned trials while turning regional licensing deals into recurring income?