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: Negative results for the smaller cap public companies (Part 2)

Wayne Schnarr - seriousFollowing on from Part 1 of my analysis of the share price performance in Q2 2013, this blog will focus on the Canadian public healthcare companies which started 2013 with share prices between $0.10 and $0.99 (53 companies).

Q2 Performance

  • Decliners more than doubled the number of advancers by 36 to 17
  • Average and median Q2 share price changes were -10% and -14%, respectively, versus 11% and 0% in Q1
  • Average Q2 share price changes by subgroup
    • Therapeutics: -7% vs. -3% in Q1 (22 companies)
    • Diagnostics & Devices: -15% vs. +12% in Q1 (15 companies)
    • Services: -9% vs. +47% in Q1 (5 companies)
    • Others: -12% vs. +22% in Q1 (11 companies)
  • Three companies had Q2 share price increases of 40% or more
    • Zecotek Photonics (72%) – Zecotek is developing photonics technology which can be used in medical imaging and other fields. The share price appeared to move on completion of a financing plus progression of its legal action against Saint-Gobain and Philips for patent infringement.
    • Immunotec (57%) – the increase, on low trading volumes, appears to be related to a management change
    • Medicago (54%) – the increase was steady throughout the quarter based on a flow of preclinical and clinical data on its vaccine candidates
  • Four companies had Q2 share price declines of more than 40%. Only one of these companies actually had a negative announcement, with Adherex Technologies reporting that the FDA strongly recommended that Adherex consider a larger, more complex eniluracil Phase 3 clinical trial.

H1 Performance

  • Decliners almost doubled advancers by 36 to 19
  • Average and median share price increases were 0% and -12%, respectively
  • Average share price changes by subgroup
    • Therapeutics: -10%
    • Diagnostics & Devices: -7%
    • Services: +31%
    • Others: +11%
  • Eight companies had share price increases of 40% or more
  • Five companies had  share price declines of more than 40%

Third Tier Performance

The third tier of companies started 2013 with share prices below $0.10. During Q2, the acquisition of Victhom Human Bionics was completed and PharmaGap was cease traded. Of the remaining 25 companies, 15 companies had Q2 share price changes of 40% or more (6 positive, 9 negative). The +89% share price change of one of these companies, Thallion Pharmaceuticals, was triggered by its agreement to be acquired by BELLUS Health.

[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.]

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