Q85 Medical and Other Health Care Services

Slash company tax rate, CSL urges

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Original article by Joanna Mather
The Australian Financial Review – Page: 6 : 16-Jun-15

CSL’s CFO Gordon Naylor says the blood products group does not intend to reduce its manufacturing presence in Australia. However, he has conceded that CSL would have seriously considered building a $A500m plant in Australia if the nation’s 30 per cent corporate tax rate had been more competitive. CSL opted to build the facility in Switzerland, which has a company tax rate of 18 per cent. CSL has suggested that Australia adopt a tax rate of 10 per cent for advanced manufacturers.

CORPORATES
CSL LIMITED – ASX CSL, CORPORATE TAX ASSOCIATION, MINERALS COUNCIL OF AUSTRALIA, ORGANISATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT

GenesisCare in no rush over billion-dollar IPO

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Original article by Simon Evans
The Australian Financial Review – Page: 13 : 12-Jun-15

Private equity-owned GenesisCare operates 25 cancer treatment facilities in Australia, and is keen to pursue growth domestically and internationally. MD Dan Collins says the group is considering a range of options, including an IPO, although he says GenesisCare is in no hurry to list on the sharemarket. GenesisCare posted EBITDA of $A46.4m in 2013-14, with revenue of $242.5m for the financial year.

CORPORATES
GENESIS CARE PTY LTD, KOHLBERG KRAVIS ROBERTS AND COMPANY, KKR AND COMPANY LP, THE ROYAL AUSTRALIAN AND NEW ZEALAND COLLEGE OF RADIOLOGISTS, GREENSTONE LIMITED, HOLLARD INSURANCE GROUP, GREAT BRITAIN. NATIONAL HEALTH SERVICE, UBS HOLDINGS PTY LTD, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, RAMSAY HEALTH CARE LIMITED – ASX RHC

Diabetes trial success

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Original article by Tim Binsted
The Australian Financial Review – Page: 22 : 9-Jun-15

Listed biotechnology group Mesoblast has reported encouraging results from the phase two trial of a treatment for diabetic nephropathy. CEO Silviu Itescu says nearly two million people had the diabetes-related kidney disease in 2013. The clinical trial found that the stem cell-based treatment showed that participants had improved kidney function and experienced no adverse side-effects.

CORPORATES
MESOBLAST LIMITED – ASX MSB, AMERICAN DIABETES ASSOCIATION, CELGENE INCORPORATED, SIRTEX MEDICAL LIMITED – ASX SRX

Virtus shares drop 20pc on profit downgrade

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Original article by Yolanda Redrup
The Australian Financial Review – Page: 16 : 3-Jun-15

Australian-listed IVF group Virtus Health has slightly downgraded its net profit forecast for 2014-15. The group indicated in February 2015 that its market share was 45.6 per cent, but it advised on 2 June that bulk-billing providers in New South Wales have eroded its market share. Virtus shares closed 19.92 per cent lower at $A6.11.

CORPORATES
VIRTUS HEALTH LIMITED – ASX VRT, PRIMARY HEALTH CARE LIMITED – ASX PRY, QUADRANT PRIVATE EQUITY PTY LTD

Cochlear looks to new CEO for kick-start

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Original article by Tim Binsted
The Australian Financial Review – Page: 15 & 20 : 27-May-15

Australian-listed Cochlear has advised that the head of its North American division, Chris Smith, will succeed CEO Chris Roberts in September 2015. Roberts has been CEO since 2004, and Cochlear has indicated that it wants to place more emphasis on lifting sales and revenue under Smith. He will join Cochlear in the role of deputy CEO on 1 July. Cochlear shares closed 1.4 per cent higher at $A88.66 on 26 May.

CORPORATES
COCHLEAR LIMITED – ASX COH, RESMED INCORPORATED – ASX RMD, MACQUARIE GROUP LIMITED – ASX MQG, NUCLEUS GROUP, SEEK LIMITED – ASX SEK, ATLASSIAN SOFTWARE SYSTEMS PTY LTD, AUSTRALIAN MANUFACTURING WORKERS’ UNION

‘Unsolicited offers’ for Healthscope arm

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Original article by Tim Binsted
The Australian Financial Review – Page: 21 : 26-May-15

The pathology division of Healthscope boasts a market share of about 13 per cent, but its EBITDA for the first half of 2014-15 fell by 23 per cent to $A9.3m. Factors such as competition in the sector and a reduction in Medicare fees have also affected revenue. Healthscope CEO Robert Cooke says the group is often is approached about selling parts of its business but stresses that a sale process for the pathology unit is not underway.

CORPORATES
HEALTHSCOPE LIMITED – ASX HSO, SONIC HEALTHCARE LIMITED – ASX SHL, PRIMARY HEALTH CARE LIMITED – ASX PRY, CLSA AUSTRALIA PTY LTD, CRESCENT CAPITAL PARTNERS LIMITED, AUSTRALIA. DEPT OF HUMAN SERVICES. MEDICARE AUSTRALIA, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION

US breast rebuilding venture AirXpanders to float on ASX

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Original article by Sally Rose
The Australian Financial Review – Page: 22 : 25-May-15

US-based AirXpanders hopes to raise $A31.9m in an Australian IPO by issuing CHESS Depository Interests at $A0.50 apiece. Proceeds of the IPO will be used to finance the commercialisation of its Aeroform medical technology for women who elect to undergo breast reconstruction surgery following a mastectomy. The technology has been approved for use in Australia and Europe.

CORPORATES
AIRXPANDERS INCORPORATED – ASX AXP, CANACCORD GENUITY (AUSTRALIA) LIMITED, GBS VENTURE PARTNERS LIMITED

Medical cannabis start-up set to raise capital through ASX listing

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Original article by Sally Rose
The Australian Financial Review – Page: 23 : 18-May-15

MGC Global is seeking up to $A3m in an Australian IPO, and it will have a market capitalisation of about $A9.5m if the offer is fully subscribed. Israel-based MGC has proposed a backdoor listing via gold explorer Erin Resources, and it aims to commence the production of cannabinoid resin. Several other medical marijuana companies have previously listed on the Australian sharemarket.

CORPORATES
ERIN RESOURCES LIMITED – ASX ERI, MGC GLOBAL, PHYTOTECH MEDICAL LIMITED – ASX PYL, VERONA CAPITAL PTY LTD, CANN PHARMACEUTICALS

ResMed falls 18pc as trial boosts patients’ risk of dying

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Original article by Jessica Gardner
The Australian Financial Review – Page: 15 & 20 : 15-May-15

Wilson HTM has changed its recommendation on ResMed from "buy" to "sell" after clinical trials of a sleep apnoea device showed that patients with a heart condition were at greater risk of death when using it. The results of the clinical trial prompted ResMed’s Australian-listed shares to close $A1.52 lower at $A6.73 on 14 May 2015. ResMed notes that the ventilation machine used in the clinical trial accounted for just seven per cent of its revenue in the last financial year.

CORPORATES
RESMED INCORPORATED – ASX RMD, WILSON HTM INVESTMENT GROUP LIMITED – ASX WIG, CREDIT SUISSE (AUSTRALIA) LIMITED, DEUTSCHE BANK AG, UBS HOLDINGS PTY LTD

Mesoblast takes US cancer giant Celgene as latest partner

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Original article by Jessica Gardner
The Australian Financial Review – Page: 17 : 14-Apr-15

Shares in Mesoblast rose by 24 per cent to $A3.99 on 13 April 2015, after US-based Celgene acquired a stake of around 4.5 per cent in the listed biotechnology group. Celgene paid $A58.5m for 15.3 million shares in Mesoblast, which specialises in the development of stem cell treatments for a range of medical conditions. Celgene will also have first right of refusal to license some of Mesoblast’s products

CORPORATES
MESOBLAST LIMITED – ASX MSB, CELGENE INCORPORATED, TEVA PHARMACEUTICAL INDUSTRIES LIMITED, LODGE PARTNERS PTY LTD