These 3 ASX Medtech stocks reported solid sales this morning

Nick Sundich, January 30, 2023

Today is the second last day that ASX companies can lodge their quarterly cash flow reports. The companies with the best results today were all ASX medtech stocks.

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ASX medtech stocks Somnomed and Alcidion record strong sales growth

Two ASX medtech stocks that recorded strong sales growth figures were SomnoMed (ASX:SOM) and Alcidion (ASX:ALC).

Addressing the former company first, SomnoMed provides treatments for sleep-related breathing disorders and has treated over 760,000 people globally. In 2Q23, it recorded $21.4m in revenue, up 17% compared to 2Q22, taking its FY23 revenue to date to the $40m mark.

The result caused the company to upgrade its FY23 revenue guidance to 15-20% ahead of FY22. It reiterated previous EBITDA guidance of >$2m and has a healthy $16.9m cash balance.

Alcidion recorded strong growth in cash receipts

Turning to fellow medtech stock Alcidion, this company provides informatics software to medical clinicians, helping them make better healthcare decisions. It recorded $16.8m in 2Q23, a figure it claims is the second highest quarter ever for the company.

Comparing this figure with previous quarters is difficult because sales tend to be highly seasonable. But the company’s $18.8m in cash receipts was up 15% from the same period last year.

The ASX’s best medtech stock continues to deliver

The leader among ASX medtech stocks is no doubt Pro Medicus (ASX:PME). The $6.8bn company’s Visage radiology software enables radiologists to view reports and large image files, particularly X-rays and other scans, from mobile devices.

Because the company is profitable, it does not have to submit quarterly reports, so this was not the news out of the company today. Instead, it announced a major deal for Visage with Samaritan Health Services. Over the next 8 years, Visage will be rolled out and used in Samaritan hospitals. The company says the deal is worth A$12m and offers potential future upside to that.

Pro Medicus (ASX:PME) share price chart, log scale (Source: TradingView)

Pro Medicus has not only been one of the best ASX medtech stocks of the last decade, but one of the best performing ASX companies in general, rising exponentially ever since it first acquired the Visage platform.