The Cross-Border Biotech Blog

Biotechnology, Health and Business in Canada, the United States and Worldwide

Share Price Performance in Q2 2013 for the Canadian Healthcare Sector: Relatively flat for the larger cap public companies (Part 1)

Wayne Schnarr - seriousIn order to assess share price performance among the Canadian public healthcare companies, I started with 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 (now only 25 companies; Victhom acquired and PharmaGap cease traded in Q2).

In this blog, I am going to comment on the Q2 and H1 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).

Q2 Performance

  • Decliners outnumbered advancers by 20 to 18
  • Average and median Q2 share price changes were +2% and -1%, respectively, versus +12% and +3% in Q1
  • Average share price changes by subgroup
    • Therapeutics: +2% vs. +3% in Q1 (17 companies)
    • Diagnostics & Devices: +2% vs. +36% in Q1 (9 companies)
    • Services: +4% vs. +9% in Q1 (9 companies)
    • Others: -2% vs. no change in Q1 (3 companies)
  • Five companies had share price increases of 40% or more
    • Transition Therapeutics (+63%) – announced positive results from a clinical study of Type 2 diabetes drug candidate TT-401, followed by Eli Lilly exercising its option to assume all development and commercialization rights
    • TearLab (+59%): a repeat performer from Q1 (this company is virtually unknown in Canada and almost all trading occurs on NASDAQ); share price movement in Q2 2013 appears to be a continuation of a product sales-based bounce from a bottom in Q4 2011
    • CML Healthcare (+45%) – entered into an agreement to be acquired for $10.75 per share in cash by LifeLabs Inc. (the lab services division spun out from MDS in 2006)
    • Patheon (+43%) – the change was probably triggered by improved financial performance including the new Banner gelatine capsule business; the company expects 2013 revenues to be about $1 billion
    • Novadaq Technologies (+41%) – the change appeared to be triggered by the sequence of new clinical data, improved financial results and a major financing
  • Two companies had  share price declines of more than 40%
    • QLT (-49%) – the share price drop resulted from a special distribution of US$200 million in cash to shareholders (US$3.91 per share)
    • Resverlogix (-92%) – after being a + 40% performer in Q1, Resverlogix crashed on the failure to meet the primary clinical endpoint in its Phase 2b ASSURE clinical trial of RVX208

H1 Performance

  • Decliners outnumbered advancers by 20 to 18
  • Average and median share price increases were 13% and 4%, respectively
  • Average share price changes by subgroup
    • Therapeutics: +1%
    • Diagnostics & Devices: +37%
    • Services: +14%
    • Others: -2%
  • Nine companies had share price increases of 40% or more
  • Five companies had  share price declines of more than 40%

[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.]

About these ads

One response to “Share Price Performance in Q2 2013 for the Canadian Healthcare Sector: Relatively flat for the larger cap public companies (Part 1)

  1. Pingback: Share Price Performance in Q2 2013 for the Canadian Healthcare Sector: Negative results for the smaller cap public companies (Part 2) | The Cross-Border Biotech Blog

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

Follow

Get every new post delivered to your Inbox.

Join 130 other followers