ASX healthcare sector rises nearly four percent
The ASX healthcare sector has risen 3.58% over the past five days, outperforming the broader market, which has fallen 0.17%. According to Scott Power, a senior analyst at Morgans Financial, the sector is showing resilience to global geopolitical tensions and macroeconomic concerns.
Scott Power observed that the US Federal Reserve has increased interest rates, and rates are expected to continue rising, which may negatively impact equities. However, the historically weak month of September is nearly over, and the remainder of the year typically sees stronger performance.
ASX Healthcare Sector Performance
The ASX healthcare sector has experienced a turbulent September, with two of the three weeks so far showing gains, indicating a potential recovery after a long period of underperformance. In August, the sector saw a significant 18.83% surge, making it the top performer for that month.
Morgans’ healthcare team has released research analyzing the recent FY26 full-year reporting season, which confirmed that the sector’s fundamental backdrop is improving. However, the broker noted that the days of a sector-wide rerating are over, and margin delivery and cash flow mattered more than revenue growth.
The broker flagged that almost every “earnings beat this season came from cost-out rather than volume, with sector revenue growth stuck in the low single digits”. CSL, the sector’s biggest stock, has a savings program that targets ~US$550 million by FY28 and then stops.
Morgans believes that ProMedicus, ResMed, and Sigma Healthcare have the clearest FY28 revenue growth. The broker also noted that the Australian dollar is the single biggest earnings swing factor of the season, cutting reported numbers across various stocks, including Nanosonics, PolyNovo, and Ansell. Additionally, the broker highlighted that diagnostics operator Healius needs a $24.4m overshoot just to hold EBIT near $30m, while hearing implant maker Cochlear is already recycling half of its $40m back into reinvestment.
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EBR Systems and Telix Pharmaceuticals
EBR Systems is taking steps to update commercial labelling for its WiSE wireless cardiac pacing system to increase the visibility of echo-induced pacing risk and the measures used for mitigation. The company plans to submit a Changes Being Effected (CBE) Premarket Approval (PMA) supplement to the US Food and Drug Administration (FDA) in Q4 2026.
Telix Pharmaceuticals has received FDA approval for Pixclara, its new imaging agent for glioma, a type of brain cancer.
Pixclara is the first and only FDA-approved radiopharmaceutical diagnostic for brain cancer, and its main clinical use is helping doctors distinguish between a recurring or growing tumour and scarring left behind by treatment. The FDA approval is the third for Telix, joining its prostate cancer diagnostics Illuccix and Gozellix. It is also known as TLX’s brand name for floretyrosine F 18 (18F-FET), an amino acid positron emission tomography (PET) imaging agent used to detect brain cancer.
Telix continues to advance its therapeutic candidates, including TLX591-Tx for prostate cancer and TLX250-Tx for kidney cancer.
Morgans has a buy rating on EBR Systems with a 12-month price target of $1.95. The company expects FDA approval of its new manufacturing facility in Santa Clara, California, by year-end, and the FDA has initiated its pre-approval inspection of the facility.
Therapeutic Candidates
Telix is developing TLX101-Tx, an investigational glioblastoma therapy that targets the same LAT1 biology as Pixclara. The company’s theranostic pairing thesis is reinforced by the development of Pixclara and TLX101-Tx.
