In order to assess share price performance among the Canadian public healthcare companies, I have selected a portfolio of 118 companies for the 2013 assessment. The portfolio has been split into three parts according to the closing share price on December 31, 2012: $1.00 or more (38 companies); $0.10 to $0.99 (53 companies); and less than $0.10 (27 companies).
In this blog, I am going to comment on the Q1 performance of the first group of companies with share prices of $1.00 or more to start 2013 (a subsequent blog will comment on the other two groups of companies in the sector).
• Advancers outnumbered decliners by 24 to 14
• Average and median share price increases were 12% and 3%, respectively
• Six companies had share price increases of 40% or more (3 companies in each of the Therapeutics and Devices & Diagnostics groups)
• Response Biomedical (227%): the share price increase was probably triggered by two new distribution agreements, the first on January 3 with Laboratory Supply Company, Inc. and the second on January 24 with Fisher HealthCare, part of Thermo Fisher Scientific
• Resverlogix (71%): the expectation of data from the Phase 2b ASSURE clinical trial was probably the key trigger for this share price
• TearLab (71%): although listed on the TSX, this company is virtually unknown in Canada and almost all trading occurs on NASDAQ; share price movement in Q1 2013 appears to be a continuation of a product sales-based bounce from a bottom in Q4 2011
• NeoVasc (63%): continued share price momentum also appears to be a key for this stock, which bounced off a September 2011 bottom and, starting September 2011, increasing sales appear to be moving it off a share price plateau
• Cangene (57%): the base for the Q1 movement may have been good financial results reported in December 2012, followed by approval of two products, VARIZIG and BAT, by the U.S. FDA in Q1 2013
• Cipher Pharmaceuticals (41%): Cipher had the largest share price increase in this group in 2012 at 291%; the key event in Q1 2013 was probably the release of 2012 financial results, which showed net income of $2.5 million ($0.10 per share) and a cash balance of $15.8 million at December 31, 2012
• One company had a share price decline of more than 40%
• Trimel Pharmaceuticals (-59%): the decline mostly occurred after the announcement on March 20 of a proposed equity financing
[The opinions expressed herein are the author’s own and are not to be construed as investment advice. The author and his immediate family members may have long or short positions in the shares of some companies mentioned in or assessed during the preparation of this blog and may buy, sell or hold such securities at any time. Past share price performance may not be an indicator of future share price performance. This blog and its contents do not consider the investment objectives, financial situation or particular needs of any particular person. Investors should obtain professional advice based on their own individual circumstances before making an investment decision.]