July 12, 2017
Q2 Share Price Performance in 2017 - Part 2
Overall, Tier 1 Canadian Healthcare Companies had a negative performance driven by one group of companies. In this article, I am going to comment on the Q2 and H1 performance of the group of 53 companies with share prices of $1.00 or more to start 2017.
Q2 2017 Summary
- Decliners almost doubled the number of advancers by 35 to 18
- Average and median share price changes were -6.6% and -6.5%, respectively
- Five companies had share price increases of 40% or more:
- Fennec Pharmaceuticals Inc. (+96%) – the share price has more than doubled from a financing priced at US$4.00 per share, on expectation of clinical data and regulatory filings for sodium thiosulfate used to prevent platinum-induced ototoxicity in pediatric cancer patients
- Valeant Pharmaceuticals Intl Inc. (+53%) – bounce from a share price bottom helped by the sale of some assets
- Novadaq Technologies Inc. (+48%) – Stryker agreed to acquire Novadaq for US$11.75 per share in cash
- Cardiome Pharma Corp. (+45%) – 2017 bounce from a share price bottom accelerated in Q2
- Theratechnologies Inc. (+40%) – 2017 share price increase continued with good sales of EGRIFTA and expectation of events for its next product
- Five companies had share price declines of more than 40%
- TearLab Corp. (-43%) – continued a long share price decline; announced a Q1 net loss but had some improved financial and operating parameters
- DelMar Pharmaceuticals Inc. (-45%; U.S. listing only) – continued a long share price decline; did complete a financing but pivotal data is 2 years away
- Crictical Outcome Technologies Inc. (-63%) – continued a long share price decline
- AEterna Zentaris Inc. (-68%) – announced that the Phase 3 clinical study of Zoptrex™ (zoptarelin doxorubicin) did not achieve its primary clinical endpoint
- ESSA Pharma Inc. (-83%) – data presented at ASCO and need for higher dosing of EPI-506 did not meet market expectations
- The reasons for share price changes of more than 40% included a mix of important announcements, continuation of trends from prior quarters and bounces from chart bottoms.
- The major reason for the Tier 1 decline was due to a -17% decline in the average share price of companies in the Therapeutics – Development group, with 18 of 22 companies in this category having share price declines
Tier 1 Companies Q2, 2017
H1 2017 Summary
- Decliners outnumbered advancers by 30 to 23
- Average and median share price changes were +1.5% and -10.5%, respectively
- Seven companies had share price increases of 40% or more
- Theratechnologies Inc. (+213%)
- Fennec Pharmaceuticals Inc. (+207%)
- Aurinia Pharmaceuticals Inc. (+181%)
- Novadaq Technologies Inc. (+62%)
- Cardiome Pharma Corp. (+56%)
- Arbutus Biopharma Corp. (+47%; U.S. listing only)
- Merus Labs International Inc. (+41%)
- Seven companies had share price declines of more than 40%
- Ceapro Inc. (-46%)
- Xenon Pharmaceuticals Inc. (-59%; U.S. listing only)
- TearLab Corp. (-65%)
- Critical Outcome Technologies Inc. (-67%)
- Aralex Pharmaceuticals Inc. (-70%)
- AEterna Zentaris Inc. (-73%)
- ESSA Pharma Inc. (-76%)
If the top 3 performers in the group are dropped from the analysis, the average share price change drops from +1.5% to -10.4%, much closer to the median which would only drop from -10.5% to -10.7%
In the next blog, I will asses the Q2 and H1 2017 share price performances of the Tier 2 Canadian healthcare companies and report on the performance of the marijuana sector.
[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. Past share price performance may not be an indicator of future share price performance. This blog does 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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