Positive Share Price Performance in Q1 2013 for the Canadian Healthcare Sector (Part 2)
April 17, 2013
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In this blog, I will focus on the Canadian public healthcare companies with share prices on December 31, 2012 between $0.10 and $0.99 (53 companies).
- Advancers outnumbered decliners by 28 to 25
- Average and median share price changes were 11% and 0%, respectively
- No company had a share price decline of more than 40%
- Eight companies had share price increases of 40% or more
- Northstar Healthcare (258%) – the share price had been slowly increasing from a bottom reached in November 2012, but no single event could account for the Q1 increase. It was probably a combination of an equity financing, new executive appointments, new surgeons utilizing the surgery center and good Q4 financial results.
- Stellar Biotechnologies (129%) – the Stellar share price steadily climbed from a November 2012 low. Stellar made preclinical and manufacturing progress with its immune-stimulating protein, KLH, and completed two private placements.
- SQI Diagnostics (73%) – at the risk of repeating myself, this share price climbed steadily from a December 2012 low. The major product announcement in Q1 was the rapid development of a Multiplex Heparin Immunogenicity Assay with partner Alorithme Pharma. SQI also announced that it had established a special committee to review strategic alternatives.
- Adherex Technologies (60%) – following its extraordinary Q4 share price performance, based on expectation and then release of preliminary Phase 2 eniluracil data, Adherex announced in Q1 that enrolment was complete and top line data would be released in either Q2 or Q3 2013.
- CRH Medical (59%) – another company whose share price climbed steadily from a December 2012 low, based probably on expectation and then announcement of increased revenues and profitability.
- ProMetic Life Sciences (47%) – the ProMetic share price climb started in early October 2012 with the announcement of agreements with Shenzhen Hepalink Pharmaceutical (China), including a substantial equity investment. This investment was completed early in Q1, followed by U.S. FDA approval of Octapharma’s Octaplas (a ProMetic resin is used in its manufacture).
- Theralase Technologies (46%) – the Theralase share price bottomed in December 2012 and the Q1 increase has been volatile on low trading volume.
- BioSyent (45%) – this share price has been climbing for almost two years now, probably on increasing sales and profitability.
The first 7 of these companies have moved up from share prices which were not only 2012 lows, but were all-time lows in 5 cases and 30-month lows in the other 2 cases. These companies come from all four of my product / service groupings: therapeutics, diagnostics & devices, services, and other healthcare products & services. The probable triggers for the share price movements include financial results, product data, partnerships and equity financings.
[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.]