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Artrya (ASX:AYA) is the latest Aussie biotech stock to score an FDA approval and consequent rewarding share price jump from traders and investors.
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Being approved is Artrya’s coronary imaging software platform ‘Salix’, called Salix Coronary Anatomy (SCA) in full. Not to overstate the obvious, but we’re talking about an ‘AI activated’ (of course it’s AI) computer program – not a drug.
According to Artrya, Salix is a breakthrough in the assessment of coronary artery disease – the first in 50 years. This statement is hard to fact-check, if it’s checkable at all.
Still, the market has been liking the news. Perhaps because Artrya is in truth a software company more than a biotech company, it’s somewhat more illiquid than some of the other more-exciting biotech stocks of late.
But at the same time, it’s already been a solid bet for Aussie shareholders.
The company’s 1Y returns are up +200%, at the time of writing.
Those gains might have already been priced in an FDA approval. But for now, the company is keen to see SCA launch across a series of U.S. hospitals.
“Salix Coronary Anatomy (SCA) delivers a non-invasive, point-of-care assessment within 10 minutes of a coronary computed tomography angiogram (CCTA) scan being taken, enabling physicians to quickly identify, analyse, and edit the extent and type of arterial plaque,” Artrya wrote on Friday.
Further upward price catalysts are more likely to emerge from the tranche of Salix products the company wants to continue pushing out, per CEO Mathew Regan.
“Our strategic approach to securing FDA clearance for Salix Coronary Anatomy has provided us with valuable insights into the FDA process, which we will leverage to expedite the clearance for our upcoming product submissions, starting with Salix Coronary Plaque and then Salix Coronary Flow,” Regan said.
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It’s always a bit dark to point this kind of thing out, but after all, it’s the biotech sector we’re looking at – fundamental to Artrya’s valuation is that coronary artery disease is the world’s leading cause of death.
AYA last sold at 89cps through Friday morning trade.
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