Allied Healthcare Group (ASX:AHZ) shares jumped over 12% today as the market continued to recognise the prospects for its CardioCel product for the treatment of congenital heart disease and value within the group.
The shares have gained almost 18% in the last five trading sessions and has gone up to $0.045 today compared with $0.02 in early January this year.
The company currently has revenue from Allied Medical, which sells medical equipment in Australasia and revenue is growing.
At the time of its latest quarterly, it generated over $5.4M in revenue to date this financial year, up 8% for the year to date and indicating continued strong growth in revenue.
During the quarter Allied also filed its 510(NYSE:K) marketing approval submission with the U.S Food and Drug Administration for CardioCel heart patch.
CardioCel continues to be used in patients to treat and repair congenital heart defects via the Authorised Prescriber Scheme in Australia.
Also, surgeons based in Melbourne and Brisbane have now been approved to use CardioCel in patients. This was supported by additional data from the Phase II extension study which showed patients progressing well 4 years after receiving CardioCel, with these patients showing no signs of calcification, a unique feature of the CardioCel product.
Allied is expecting additional early access approvals at key centres in Australia and full regulatory approval of CardioCel in at least one jurisdiction this year.
Over the last quarter Allied also announced positive results from its regenerative tissue franchise in the areas of hernia repair, pelvic floor repair and stem cell seeding.
These results complement the existing work with CardioCel and show the potential for Allied to build a strong pipeline of products in the regenerative tissue area.
Allied Healthcare has 3 separate companies and businesses; Coridon, Allied Medical and Celxcel.
Coridon is a company focused on developing next generation DNA vaccines and was founded by Professor Ian Frazer, Australian of the Year 2006. Prof Frazer is well recognised for his groundbreaking research that led to Merck & Co.'s highly successful cervical cancer vaccine, Gardasil®.
Andrew Forrest, of Fortescue Minerals is one of the top 20 shareholders of Allied Healthcare Group.
Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX "Small and Mid-cap" stocks with distribution in Australia, UK, North America and Hong Kong / China.