Hydrix (ASX:HYD) came out of left field on investors’ radars on Thursday, posting gains just south of +80% after the company inked a deal with NYSE-listed Picard Medical to kick off development of the latter’s ‘Total Artificial Heart.’
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It was only two days ago Picard itself kicked off its TAH rollout, a product already ‘cleared’ by the FDA, which is being delivered by Picard subsidiary SynCardia. It is SynCardia that Hydrix has inked its deal with on Thursday.
The TAH product itself is described by Picard as an implant targeting patients with already-advanced heart degradation. According to the company, TAH “assumes the full functions of a failing or failed human heart.”
“With more than 2,100 implants performed at hospitals across 27 countries, the SynCardia Total Artificial Heart is the most widely used and extensively studied artificial heart in the world,” Picard wrote in a U.S.-market-facing release earlier this week.
So what’s Hydrix developing? SynCardia is developing a second-iteration TAH product called “The Emperor.” Ultimately, Hydrix is now sitting on a $2.5 million contract for completion in this calendar year. The company described this first $2.5M contract as an initial phase of a larger program on Thursday.
HotCopper users were net bullish on the news, with more than one forum user suggesting the market is overlooking Hydrix; for all intents and purposes, as far as this finance journalist’s day-by-day monitoring of markets goes, Hydrix is definitely one of the more obscure biotech stocks on the ASX.
But as 4DMedical (ASX:4DX) is currently evidencing, the biotech sector poses a vast opportunity when it comes to share price momentum.
HYD has a market cap below $7M; worth noting, today’s price momentum is on the back of $540K worth of trades, further evidencing the stock’s relative obscurity. 20.9M shares had traded hands compared to a 4Wavg of 233K.
HYD last traded at 2.3cps.
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