Biotechnology and medical device group Sirtex Medical (ASX: SRX) has received a very welcome boost over the last two days, with shares climbing a total of 24% since the market closed on Tuesday.
The company reported its 38th consecutive quarter of growth in dose sales of its SIR – spheres microspheres, which is a radiation treatment that targets liver cancer from the inside. Dose sales, compared to the prior corresponding quarter, climbed an impressive 18.7% for the three months ending 31 December, 2013.
Pleasingly, dose sales grew in all regions, including a 23.7% increase in the Americas and 18.2% gain in the Asia Pacific, while Europe the Middle East and Africa achieved growth of 5.9%.
Investors rejoiced following the announcement, sending shares soaring over 16% on Wednesday to close at $13.24. On Thursday shares rose a further 7% and achieved a fresh all-time high of $14.19. The gains came as a relief for shareholders who had watched their shares fall 10% in what proved to be a volatile 2013.
Although the company itself remains confident that they can continue to deliver strong growth in future quarters, Canaccord analyst Matthijs Smith has warned investors not to take this as a guarantee of future performance. He said: "Going on quarter-by-quarter sales is really dangerous… there are so many factors that drive it."
While many oncologists view Sirtex's treatment as a last resort, the biotechnology group will aim to change their views when it reports on its eight-year trial at the end of 2014.
Foolish takeaway
Having now reported 38 consecutive quarters of dose sales growth, it should continue to deliver through 2014. Furthermore, a falling Australian dollar should help boost revenues given that many of its sales are in the Americas.
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