Life Healthcare gets boost from Alzheimer’s drug
South Africa’s second-largest private hospital group has reported strong results for its 2024 financial year, with earnings growth of nearly 60%, boosted by sales of its NeuraCeq® drug.
Life Healthcare released its results for the year ended 30 September 2024 on Tuesday, which revealed strong results for the healthcare provider.
Revenue from continuing operations grew by 12.7% to R25.52 billion, while operating profit rose by 18.86% to R2.90 billion.
Earnings per share from continuing operations grew by 58% to 137.8 cents. Earnings per share from discontinued and continuing operations grew by 1,696.72%.
This is because, in this financial year, Life Healthcare concluded the disposal of Alliance Medical Group (AMG) and distributed R8.8 billion to shareholders.
Therefore, a R2.8 billion once-off gain following the AMG disposal was recognised within these results. The total net gain recognised in the 2023 and 2024 financial year is R1.8 billion.
Life Healthcare’s paid patient days in acute hospitals grew by 1.6% in the year.
Another important development in this past financial year was that Life Healthcare concluded a transaction to sub-license one of Life Molecular Imaging’s (LMI) early-stage novel products for $36 million (R665 million).
One of LMI’s products, NeuraCeq®, proved very lucrative for Life Healthcare in these results.
Simply put, NeuraCeq® is a radioactive diagnostic agent that is administered to patients to help doctors diagnose Alzheimer’s disease and other causes of cognitive impairment.
Sales of this drug grew by close to 92% in the 2024 financial year, with the company crediting it as LMI’s key revenue driver.
The business generated more than 100% growth in commercial volumes and sales of NeuraCeq® in 2024 compared to the prior year, while NeuraCeq® volumes from ongoing clinical trials grew by 14.4%.
LMI’s revenue grew by 181.3% to R1.85 billion, driven by continued demand for its pipeline of radioisotopes in ongoing clinical trials, a greater contribution from commercial sales of NeuraCeq®, and the sublicensing of LMI’s early-stage novel products.
Life Healthcare declared a final cash dividend of 31 cents per share, an increase of 14.8% compared to 2023, and a special dividend of 70 cents per share.
Therefore, its total distributions for the year, including special dividends, amount to R10.6 billion.
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