October 21, 2016

Q3 2016 - Share Price Performance - Part 2

Tier 1 Canadian Healthcare Companies – a very healthy bounce back

In this blog, I am going to comment on the Q3 and 9-month performances of the group of 54 companies with share prices of $1.00 or more to start 2016 (Stellar Biotechnologies, Prism Medical and Transition Therapeutics dropped from assessment).

 

  • Advancers outnumbered decliners by 32 to 22
  • Average and median share price changes were +9% and +2%
  • Ten companies had share price increases of 40% or more
    • Cynapsus Therapeutics (+145%) – announced that a definitive agreement has been signed under which Sunovion will acquire Cynapsus for US$40.50 per share in cash
    • Aquinox Pharmaceuticals (+81%) – initiated dosing in a Phase 3 clinical trial of AQX-1125 for the treatment of interstitial cystitis/bladder pain syndrome and completed a financing with gross proceeds of US$75.4 million
    • Resverlogix (+75%) – the share price bounce does not appear to be related to any specific news
    • Trillium Therapeutics (+70%) – announced that the U.S. FDA has provided clearance to initiate a Phase 1 clinical trial of its lead drug candidate, TTI-621, in solid tumors and mycosis fungoides
    • Covalon Technologies (+67%) – announced two contracts to supply products to Ministry of Health facilities in Saudi Arabia
    • QHR Technologies (+60%) – announced a definitive agreement under which Loblaw will acquire all of the outstanding common shares for $3.10 in cash per share
    • Nobilis Health (+54%) – the share price climbed steadily throughout the quarter, in which an acquisition was announced
    • Eyecarrot Innovations (+52%) – there was light trading volume and no news to trigger the share price increase
    • TSO3 (+49%) – announced that the U.S. FDA cleared expanded indications for use of its STERIZONE VP4 Sterilizer
    • QLT (+45%) – the share price movement appears to be related to movement of the Aegerion share price; QLT and Aegerion agreed to merge in June
  • Four companies had share price declines of more than 40%
    • RepliCel Life Sciences (-48%) – continuation of an extended share price decline
    • OncoGenex (-50%) – announced that, after the final analysis, the AFFINITY Phase 3 trial of custirsen in men with CRPC did not meet the primary clinical endpoint
    • Titan Medical (-59%) – the share price decline appears to be related to financial concerns, although the company did complete a financing at the end of the quarter
    • Concordia International (-79%) – continued a year-long share price decline

The positive share price performance of the sector in Q3 appears to be a result of positive news from several companies combined with bounces from June-July lows. The 9-month performance is almost back to break-even after the negative and volatile performance in Q1.
2016 9-Month Summary

  • Decliners slightly outnumbered advancers by 29 to 25
  • Average and median share price changes were -5% and -4%
  • Nine companies had share price increases of 40% or more
    • Cynapsus Therapeutics (+145%)
    • QHR Technologies (+137%)
    • CohBar (+88%)
    • Covalon Technologies (+63%)
    • DelMar Pharmaceuticals (+61%)
    • Theratechnologies (+55%)
    • Medical Facilities (+52%)
    • TSO3 (+50%)
    • Medicure (+49%)
  • Thirteen companies had share price declines of more than 40%
    • ESSA Pharma (-41%)
    • Merus Labs (-42%)
    • OncoGenex (-58%)
    • TearLab (-60%)
    • Cardiome Pharma (-63%)
    • Titan Medical (-66%)
    • BELLUS Health (-73%)
    • RepliCel Life Sciences (-75%)
    • Valeant Pharmaceuticals (-77%)
    • Eyecarrot Innovations (-82%)
    • ProNAi Therapeutics (-88%)
    • Neovasc (-89%)
    • Concordia Healthcare (-90%)

 

 [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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