PainChek Share Price Up 13% As Healthcare Sector Soars
Mobile medical app developer Painchek Ltd [ASX:PCK] has seen its share price jump 13.24% today, up 0.9 cents to trade at 7.7 cents per share.
The jump in share price come on the back of a milestone achievement announced this morning.
Under a $5 million grant agreement with the federal government, PainChek has met an important 25,000-licensed bed milestone.
The milestone will trigger a $1.25 million payment to PCK from the Australian Federal Government, which will be recognised as revenue in March 2020.
An AI to tell us when we’re in pain
PCK develops application software that automates intelligent pain assessments of individuals who are unable to communicate their pain with carers.
The app is involved in the provision of pain management and better medication for residents living with dementia and other communication difficulties.
Back in April 2019, PCK entered into an agreement with the federal government to rollout PCK’s proprietary technology in Australian residential aged care centres.
According to the announcement made this morning:
‘This government initiative is specifically funding the use of PainChek for residents living with dementia or cognitive impairment, which represents a significant subset of the 200,000 residents in the Australian Residential Aged Care market.’
The company aims to provide access to PainChek technology for 100,000 aged care residents living with dementia and cognitive impairment in 2020.
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Australia’s healthcare sector weathering the storm
As markets around the globe continue to take a battering from COVID-19 fears, I’ve been searching for stocks that could prosper during this time.
In times of a global health pandemic, an obvious place of sanctuary for investors is healthcare providers.
Australian healthcare sector (blue) versus the ASX 200 (orange) and Australian financial sector (teal)
The graph above shows just how well the Aussie healthcare sector [ASX:XHJ] on the ASX has performed over the past year.
Compared to the overall ASX 200 and the financial sector (the largest sector on the ASX), the XHJ has smashed the other two out of the park — and has returned a 27% return over the last 12 months.
While markets remain uneasy, the XHJ could provide a great shelter the weather the storm.
Some of Australia’s small-cap biotech stocks have seen their share price rise during the current global pandemic.
However, these stocks are risky by nature and losses can often outweigh gains.
If you’re looking to make a buck during the global coronavirus panic, or just looking to protect your wealth, make sure you check out our Coronavirus Portfolio.
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For Money Morning