The coronavirus situation in Victoria seems to be worsening by the day. With a nightly curfew and even tighter lockdown laws taking effect at midnight tonight, the state appears to be under siege. Some ASX shares are actively playing a part in the fight against the virus and the treatment of patients. As the battle against the pandemic increasingly becomes a war, we take a look at two ASX shares involved in the fight against COVID-19.
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2 ASX shares fighting against coronavirus
Mesoblast Limited (ASX: MSB)
Mesoblast is a regenerative medicine company seeking to provide treatments for inflammatory illnesses. The company has a portfolio of phase 3 product candidates including remestemcel-L, which is being trialed in the treatment of severe acute respiratory distress syndrome (ARDS) due to COVID-19 infection.
Interim analysis of the phase 3 trial of remestemcel-L in COVID-19 patients is set for early September. The trial's first 90 patients will complete 30-day follow ups in August. After this, the Data Safety Monitoring Board will assess the interim data and determine whether the trial should proceed or stop early. There are currently no approved treatments for ARDS in COVID-19 patients, so if Mesoblast's treatment is approved it would be a first. With ARDS the primary cause of death in COVID-19 patients, demand for an effective treatment is high.
Remestemcel-L was originally developed to treat acute graft versus host disease (GVHD). An application for the use of the treatment in children with the disease is being assessed by the United States FDA (Food and Drug Administration). If approved, Mesoblast plans to launch in the US this year with product inventory in place.
Fisher & Paykel Healthcare Corp Ltd (ASX: FPH)
Fisher & Paykel Healthcare manufactures products used in respiratory and acute care. In the respiratory market since 1971, Fisher & Paykel Healthcare's products are now being used in the treatment of coronavirus patients. The company's respiratory humidifiers and consumables are directly involved in COVID-19 treatment. Fisher & Paykel has seen an increase in demand globally since the start of the pandemic and has ramped up production accordingly.
A weaker New Zealand dollar also contributed to Fisher & Paykel's strong result for the year ended 31 March 2020. Operating revenue increased 18% over the previous year to $1.26 billion. This increase was driven by demand for products to treat COVID-19 patients and strong hospital hardware sales throughout the year. Revenue grew 25% in the hospital group, which includes respiratory and acute care products. Sales of consumables were up 23% over the previous year. This added up to a 37% increase in net profit after tax, with a final dividend of 15.5 cents per share declared.
Foolish takeaway
These two ASX shares provide products and treatments used to combat the coronavirus in those afflicted. Until a vaccine is found, these ASX shares should see steady demand.
