The Cross-Border Biotech Blog

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

Q3 2012 in Canadian Healthcare Financing: Slow As Expected

The third quarter has always been the slowest for financing public Canadian healthcare companies and 2012 followed this pattern. Gross proceeds of equity and convertible debt financings closed in Q3 totaled only $69 million. Only three companies closed financings over $10 million in Q3 2012:

  • Trimel Pharmaceuticals       $13.2 million (equity – announced in Q2);
  • Centric Health                          $27.5 million (convertible debt); and
  • Resverlogix                               $25.0 million (debt).

During the first 9 months of 2012, decliners outnumbered gainers by 61 to 37 and 43% of the companies had share price changes of 40% or more in a group of 98 Canadian healthcare companies being assessed for share price performance. A good flow of positive product and company news has been balanced by negative news from some of the well-known companies in the sector, including Aeterna Zentaris, Cardiome Pharma, Theratechnologies and Nordion.

The Canadian sector has also not had that major perception-changing event in 2012, such as a licensing deal by a Canadian company with a major pharma partner and a big dollar up-front payment. While the timing of licensing deals and acquisitions is not predictable, companies expecting to report late stage clinical data in Q4 include:

  • Allon Therapeutics – pivotal clinical trial evaluating davunetide for PSP; and
  • Trimel Pharmaceuticals – Phase 3 clinical trial evaluating CompleoTRT™ in patients with male hypogonadism.

[The data in this post was compiled for the upcoming Q3 2012 Canadian Healthcare Review, co-authored by myself and Ross Marshall, Senior Vice President, The Equicom Group Inc., a wholly-owned subsidiary of TMX Group Inc.]

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