Share Price Performance in Q3 2013 for the Canadian Healthcare Sector (Part 2): Extraordinarily positive results for the smaller cap public companies
October 17, 2013
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In this blog, I will focus on the Canadian public healthcare companies which started 2013 with share prices between $0.10 and $0.99 (53 companies). While the results for the larger companies covered in Part 1 of this blog were strong, the results for the smaller cap companies were even stronger. Some caution is needed as many of the share prices bounced off 2013 lows on low trading volumes and minor events.
- Two companies were removed from the list – Medicago was acquired and MethylGene (now Mirati Therapeutics) voluntarily delisted.
- Advancers almost doubled the number of decliners by 33 to 18.
- Average and median Q3 share price changes were +20% and +27%, respectively, versus -10% and -14% in Q2
- Average Q3 share price changes by subgroup
- Therapeutics: +36% vs. -7% in Q2 (20 companies)
- Diagnostics & Devices: +3% vs. -15% in Q2 (15 companies)
- Services: +36% vs. -9% in Q2 (5 companies)
- Others: +39% vs. -12% in Q2 (11 companies)
- Nineteen companies had Q3 share price increases of 40% or more. There are a number of possible reasons for these large share price movements, with some events and completions of financings, combined with bounces from share price lows.
- Welichem Biotech Inc. (WBI; 308%) – issuer bid at $0.85 when share price was about 10 cents
- ProMetic Life Sciences Inc. (PLI: 134%) – financing and product moving into the clinic
- Northstar Healthcare Inc. (NHC: 95%) – bounce off lows on restructuring and increased revenues
- Vigil Health Solutions Inc. (VGL: 92%) – increased sales and reached profitability
- Nuva Pharmaceuticals Corp. (NPH: 88%) – temporary bounce off a plateau
- Stellar Biotechnologies, Inc. (KLH: 85%) – completed financing and acquired preclinical product
- Cardiome Pharma Corp. (COM: 79%) – additional regulatory approvals and some new data
- Critical Outcome Technologies Inc. (COT: 72%) – financing completed
- BioSyent Inc. (RX: 70%) – increased revenues, positive cash flow and acquired a new product
- Medicure Inc. (MPH: 64%) – bounce within a trading range
- CRH Medical Corporation (CRH: 63%) – increased revenues and net income
- Spectral Diagnostics Inc. (SDI: 55%) – share price momentum during pivotal trial
- GLG Life Tech Corporation (GLG: 53%) – bounce after restructuring
- Adherex Technologies Inc. (AHX: 50%) – bounce while waiting for Phase 3 data
- Sirona Biochem Corp. (SBM: 48%) – financing and share price momentum
- QHR Technologies (QHR: 47%) – increased revenues and net income
- VentriPoint Diagnostics Ltd. (VPT: 46%) – bounce off a low
- BELLUS Health Inc. (BLU: 41%) – bounce and completed acquisition of Thallion
- Nightingale Informatix (NGH: 40%) – bounce and completed financing
- Four companies had Q3 share price declines of more than 40%.
- Allegiance Equity Corp. (ANQ; -47%) – continued share price slide on very low trading volumes
- Innovotech Inc. (IOT; -48%) – possibly concerns about low cash
- IBEX Technologies, Inc. (IBT; -50%) – expecting reduced purchases by a major customer
- Sophiris Bio (SHS; -68%) – financing priced at less than 50% of market price
- Decliners outnumbered advancers by 28 to 23
- Average and median share price increases were -11% and +29%, respectively
- Average share price changes by subgroup
- Therapeutics: +12%
- Diagnostics & Devices: 0%
- Services: +107% (influenced by 500% change for Northstar Healthcare)
- Others: +63% (influenced by 414% change for Stellar Biotechnologies)
- Fourteen companies had share price increases of 40% or more
- Eleven companies had share price declines of 40% or more
Third Tier Performance
The third tier of companies started 2013 with share prices below $0.10 (27 companies). During Q2, 2 companies were removed from this analysis (1 acquisition and 1 cease traded), followed by the removal of 6 more companies in Q3 (3 acquired, 1 CCAA, 2 unknown). Of the remaining 19 companies, 6 companies had share price increases of 40% or more in Q3. During the first 9 months of 2013, there were 10 companies with share price changes of 40% or more (7 positive, 3 negative).
[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.]