Innovative cancer treatment business Sirtex Medical Limited (ASX: SRX) slightly disappointed the market last week after reporting dose sales of its SIR-spheres treatment grew just 15.7% over the prior corresponding half.
The company was coming off a strong comparative period and the undoubted highlight from the overall result was an especially strong performance in its core North American market that delivered dose sales growth of 18.8%, while Europe and Asia disappointed with single-digit growth below expectations.
The company also enjoyed the twin benefits of a plunging Aussie dollar and price increases over the period to produce a whopping 47% increase in interim profit to $23.9 million.
However, the stock was sold off on the result presumably because the total dose sales growth of 15.7% meant prior guidance from the CEO for full year growth of at least 19.7% looks a tough ask, unless the company produces a stellar second half.
However, the CEO Gilman Wong must still be confident of some exceptional growth over the current period having reaffirmed dose sales growth guidance at February's results announcement.
One big boost for the sales push is the publication of positive news around the clinical benefits of the company's products in the prestigious Journal of Clinical Oncology. Sirtex believes the endorsement in a world-leading medical journal should assist sales efforts into the second half of the financial year.
Several analysts also remain bullish on the business including broker Wilson HTM, which slapped a $46.50 price target on the stock and stated that potential catalysts ahead include the SARAH clinical trial results and dose sales price growth.
Another stock rocketing higher today in the biotech space is regenerative medicine specialist Mesoblast limited (ASX: MSB).
Its big price moves coming on the back of a positive announcement regarding trial results for one of its regenerative medicine products used in children suffering from acute Graft Versus Host Disease (aGVHD). It has also just launched its GVHD regenerative medicine product for commercial sale in Japan.
