November 12, 2019

Q3 2019 Share Price Performance

Healthcare Stocks – Choppy Stalling Pattern Continues

In this blog post, the Bloom Burton equity research team summarizes the performance of the Canadian healthcare sector during 3Q-2019, and provides commentary on select stock movements and overall market trends. Inclusion Criteria

Our analysis includes all Canadian publicly-listed healthcare companies, defined as companies that are Canadian headquartered and/or listed on Canadian exchanges, with an enterprise value (EV) of C$10 MM or greater. Our definition of healthcare includes companies operating in the following areas: therapeutic R&D; commercial therapeutics; healthcare services; healthcare IT; medical devices; medical supplies; diagnostics; and consumer health. We do not include medical cannabis producers (unless they are developing cannabis-based products under the traditional drug development regulatory process) or companies that operate long term care facilities. Based on these criteria we identified 87 companies.

We classify companies as “Tier 1” and “Tier 2” based on their EV – Tier 1 companies are those with EV of >C$100 MM and Tier 2 are those with EV of <C$100 MM (for a complete listing of companies included in Tiers 1 and 2 of Bloom Burton’s “blog universe”, please see Appendix 1 at the end of the blog).

3Q-2019 Performance 

  • The 87 Canadian healthcare companies included in Bloom Burton’s 3Q-2019 blog were collectively down -5.7% in 3Q-2019, underperforming the S&P/TSX Composite Index (+1.7%) and coming in just below the S&P/TSX Venture Composite Index (-4.6%). The disappointing third quarter performance followed similar weakness in 2Q-2019 (Bloom Burton’s 2Q-2019 blog were collectively down -5.6%; S&P/TSX Composite Index up +1.7%; S&P/TSX Venture Composite Index down -6.6%).
  • Since the sector’s most recent high during 3Q-2018, there have been three down quarters (4Q-2018, 2Q-2019 and 3Q-2019), and only one up (1Q-2019). However, the return in 1Q-2019 was particularly strong (Bloom Burton’s 1Q-2019 blog stocks were up +18.4%), rebounding from a lousy 4Q-2018 in lock-step with the broader markets (S&P/TSX Composite Index up +12.4%; S&P/TSX Venture Composite Index up +12.5% in 1Q-2019) thus highlighting the volatility of the sector, amplified by the generally small cap nature of Canadian healthcare, in particular.
  • During 3Q-2019, the broader markets continued to be weighed down by trade tensions between the U.S. and China and concerns over global recession risk. The technology and healthcare sectors were hit particularly hard due to sector-specific factors including expectations of weaker quarterly earnings (due to trade tensions) and the anticipation that drug pricing regulation will dominate the U.S. 2020 presidential election cycle.
  • Among Canadian healthcare companies, smaller Tier 2 companies performed worse than larger Tier 1 companies in the third quarter (down -8.3% vs -0.8% respectively), mostly due to the  “risk off” investor sentiment which has dominated much of 2019 following the end of the first quarter.
  • The performance of Canadian healthcare stocks largely follows that of healthcare stocks south of the border where the NBI performed worse than the NYSE Pharmaceutical Index (DRG) in 3Q-2019 (-8.8% vs -1.9% respectively), and both underperformed the broader U.S. markets (S&P 500 Index up +1.2%; NASDAQ Composite -0.1%). While the large cap pharma companies that make up the DRG continue to face headwinds related to identifying new sources of growth to replace aging blockbuster drugs, they tend to be more stable in volatile markets than biotech companies that make up the NBI.
  • Among the healthcare subsectors in Bloom Burton’s Canadian tracking universe, the best performing subsectors were veterinary (2 companies: +33.6%) and consumer health (6 companies: +10.2%), while the worst performing subsectors were diagnostics (2 companies: – 48.9%) and medical supplies (4 companies: – 26.6%). However, these subsectors contained only a small pool of companies so extreme stock price appreciations/depreciations in a few companies skewed their performance.

CompanyEV (C$ MM)Market Cap (C$ MM)Subsector
Tier 1
Bausch Health Companies Inc.40,615.010,190.9Commercial Therapeutics
Advanz Pharma Corp. 2,246.8 778.2Commercial Therapeutics
Jamieson Wellness Inc.1093.3905.5Consumer Health
Akumin Inc.836.2280.3Healthcare Services
Medical Facilities Corp.629.8249.8Healthcare Services
Zymeworks Inc.613.61,289.1Therapeutic R&D
HLS Therapeutics Inc.486.4461.4Commercial Therapeutics
Aurinia Pharmaceuticals Inc.477.5649.2Therapeutic R&D
Theratechnologies Inc.462.2440.9Commercial Therapeutics
Knight Therapeutics Inc.459.51,010.1Commercial Therapeutics
CRH Medical Corp.454.8292.5Healthcare Services
Novelion Therapeutics Inc.425.918.8Commercial Therapeutics
Viemed Healthcare Inc.374.1344.9Healthcare Services
Resverlogix Corp.347.0140.3Therapeutic R&D
BELLUS Health Inc.331.6472.6Therapeutic R&D
Xenon Pharmaceuticals Inc.190.3307.5Therapeutic R&D
ProMetic Life Sciences Inc.188.5320.8Therapeutic R&D
Acasti Pharma Inc.170.7209.5Therapeutic R&D
Arbutus Biopharma Corp.162.2114.8Therapeutic R&D
IMV Inc.145.4163.0Therapeutic R&D
Correvio Pharma Corp.141.8107.4Commercial Therapeutics
Hamilton Thorne Ltd.136.1134.0Medical Supplies
Milestone Pharmaceuticals Inc.135.2604.7Therapeutic R&D
Nuvo Pharmaceuticals Inc.131.65.5Commercial Therapeutics
Helix BioPharma Corp.128.5151.2Therapeutic R&D
Eastwood Bio-Medical Canada Inc.123.337.6Consumer Health
Centric Health Corp.121.625.9Healthcare Services
Greenbrook TMS Inc.112.6131.4Healthcare Services
Profound Medical Corp.110.7128.0Medical Devices
Fennec Pharmaceuticals Inc.107.5129.2Therapeutic R&D
Tier 2
Antibe Therapeutics Inc.93.8106.8Therapeutic R&D
Protech Home Medical Corp.92.071.0Healthcare Services
Sirona Biochem Corp.88.092.9Therapeutic R&D
Intelgenx Technologies Corp.85.682.0Therapeutic R&D
Spectral Medical Inc.85.088.1Therapeutic R&D
Aptose Biosciences Inc.82.0153.0Therapeutic R&D
Opsens Inc.76.085.6Medical Devices
Medexus Pharmaceuticals Inc.72.960.3Commercial Therapeutics
Cardiol Therapeutics Inc.68.781.0Therapeutic R&D
Zomedica Pharmaceuticals Corp.67.459.4Veterinary
BioSyent Inc.64.482.6Commercial Therapeutics
Arch Biopartners Inc.60.258.4Therapeutic R&D
Covalon Technologies Ltd.58.459.4Medical Supplies
ProMIS Neurosciences Inc.56.558.8Therapeutic R&D
TSO3 Inc.51.939.8Medical Devices
Tetra Bio-Pharma Inc.48.160.2Therapeutic R&D
Cipher Pharmaceuticals Inc.48.037.7Commercial Therapeutics
Mimi's Rock Corp.41.730.7Consumer Health
Acerus Pharmaceuticals Corp.40.727.4Commercial Therapeutics
VBI Vaccines Inc.40.4111.2Therapeutic R&D
Sernova Corp.40.350.2Medical Devices
Medicenna Therapeutics Corp.39.040.3Therapeutic R&D
Helius Medical Technologies Inc.37.856.6Medical Devices
Neovasc Inc.35.237.6Medical Devices
TearLab Corp.34.20.8Diagnostic
Theralase Technologies Inc.33.849.0Medical Devices
InMed Pharmaceuticals Inc.30.849.1Therapeutic R&D
Titan Medical Inc.30.143.6Medical Devices
Ceapro Inc.29.828.6Consumer Health
Eastgate Biotech Corp.28.131.9Consumer Health
NervGen Pharma Corp.27.724.4Therapeutic R&D
ImmunoPrecise Antibodies Ltd.27.227.1Medical Supplies
ESSA Pharma Inc.25.560.2Therapeutic R&D
SQI Diagnostics Inc.25.425.0Medical Devices
Relay Medical Corp.24.50.5Healthcare IT
Medicure Inc.24.467.5Commercial Therapeutics
Avivagen Inc.23.520.9Veterinary
Aurora Spine Corp.23.218.5Medical Devices
Apteryx Imaging Inc.23.215.8Healthcare IT
Devonian Health Group Inc.21.912.9Commercial Therapeutics
StageZero Life Sciences Ltd.20.419.0Diagnostic
Imaging Dynamics Company Ltd.19.75.2Medical Devices
Quest PharmaTech Inc.19.618.4Therapeutic R&D
CTT Pharmaceutical Holdings Inc.18.18.5Therapeutic R&D
Kalytera Therapeutics Inc.15.417.8Therapeutic R&D
Medx Health Corp.15.314.8Medical Devices
MedMira Inc.14.86.6Healthcare Services
Crescita Therapeutics Inc.13.618.7Consumer Health
Aeterna Zentaris Inc.13.027.5Commercial Therapeutics
biOasis Technologies Inc.12.914.5Therapeutic R&D
NanoSphere Health Sciences Inc.12.321.8Therapeutic R&D
Aequus Pharmaceuticals Inc.11.48.1Commercial Therapeutics
iCo Therapeutics Inc.11.415.8Therapeutic R&D
Kane Biotech Inc.10.911.3Therapeutic R&D
Bionik Laboratories Corp.10.89.2Medical Devices
BriaCell Therapeutics Corp.10.09.6Therapeutic R&D

*2Q-2019, 1Q-2019 and FY 2018 values were based on an analysis of 93 companies (30 Tier 1 and 63 Tier 2) that fit the inclusion criteria. 

3Q-2019 Healthcare Stock Performance (%) By Sector:

Tier 1 Company Performance

  • Overall, we included 30 companies in our Tier 1 analysis with EV of $100 MM or greater, which collectively had a 3Q-2019 return of -0.8%.
  • The number of Tier 1 advancers (8) was lower than the number of decliners (22) this quarter.

Notable Tier 1 advancers in the quarter include:

  • Helix Biopharma – The stock rose +332.1% during 3Q-2019, after the company announced it had submitted an IND application for its lead anti-tumour drug, L-DOS47, in prostate cancer, and following the closing of a $7.0 MM private placement.
  • Acasti Pharma – The stock finished 3Q-2019 up +69.2%. In July, the company responded to unusual trading activity which had caused a spike in the share price, stating it was not aware of any new corporate developments that would account for the increased price or trading volume. We believe that, although delayed, Acasti may be riding on the coattails of Amarin’s (NASDAQ:AMRN) positive REDUCE-IT results reported in September 2018 since both companies are focused on omega-3 therapeutics (Amarin – on the market; Acasti – phase 3 with results expected by the end of 2019).

Notable Tier 1 decliners in the quarter include:

  • Resverlogix – The stock was down -78.4% during 3Q-2018, following the announcement of topline results from the BETonMACE phase 3 trial for apabetalone, which did not meet the primary endpoint.
  • Eastwood Bio-Medical Canada – The stock finished 3Q-2019 down -41.0%, continuing the stock price weakness that began in April, when IIROC and the TSX Venture Exchange requested that the company clarify its reported quarterly revenue increases.

Tier 2 Company Performance

  • Overall, we included 57 companies in our Tier 2 analysis (with EV of less than $100 MM), which as a group had a 3Q-2019 return of -8.3%.
  • The number of advancers (17) was lower than the number of decliners (35) this quarter.

Notable advancers in the quarter include:

  • Eastgate Biotech Corp. – The stock was up +98.3% in 3Q-2019, in anticipation, and following the announcement of, the approval to initiate a phase 3 clinical trial of Insugin for the treatment of type 2 diabetes.
  • Zomedica Pharmaceuticals – The stock was up +81.5% in 3Q-2019, following the announcement of new hires to the management team and board of directors, and presentation at several investor conferences.
  • iCo Therapeutics – The stock appreciated +75.0% in the quarter, in anticipation of a potential new partner coming onboard for ICO-008 (for bullous pemphigoid) during bankruptcy proceedings for current ICO-008 partner, Immune Pharma.
  • CTT Pharmaceutical Holdings – The stock was up +50.7% in 3Q-2019 due to volatility resulting from low trading volume.

Notable decliners in the quarter include:

  • Aeterna Zentaris – The stock finished 3Q-2019 down -63.8%, continuing the slide from 2Q-2019, following a series of corporate updates, director changes and the announcement of a $5 MM stock offering.
  • StageZero Life Sciences – The stock was down -60.0% in 3Q-2019, following an announcement that the company was expanding its salesforce with a collaboration with Coastal Medical, a $3.7 MM private placement, a corporate update and an investor presentation.
  • VBI Vaccines – The stock was down -55.1% during 3Q-2019, following the reporting of topline results from PROTECT, the pivotal phase 3 study of Sci-B-Vac, its hepatitis B vaccine.
  • Titan Medical – The stock finished 3Q-2019 down -54.5%, after the company announced a stock offering.
  • Theralase Technologies – The stock finished 3Q-2019 down -50.0%, after it announced a $17.3 MM stock offering.
  • Covalon Technologies – The stock was down -47.1% in 3Q-2019, after the company provided a corporate update, which provided news on several fronts, including that a former sales executive in Saudi Arabia was potentially involved in theft of Covalon’s intellectual property.
  • Bionik Laboratories – The stock was down -46.4% in 3Q-2019 due to volatility resulting from low trading volume.


CompanyEV (C$ MM)Market Cap (C$ MM)Subsector
Tier 1
Bausch Health Companies Inc. 40,780.4 13,673.9 Commercial Therapeutics
Advanz Pharma Corp. 2,220.3 176.1Commercial Therapeutics
Jamieson Wellness Inc. 1,090.9 1,002.0 Consumer Health
Zymeworks Inc.991.9 2,321.9 Therapeutic R&D
Akumin Inc.836.2339.4Healthcare Services
Medical Facilities Corp.621.1149.3Healthcare Services
HLS Therapeutics Inc.521.2792.0Commercial Therapeutics
Aurinia Pharmaceuticals Inc.474.0 2,815.9 Therapeutic R&D
Theratechnologies Inc.455.1327.8Commercial Therapeutics
Knight Therapeutics Inc.453.4 1,028.1 Commercial Therapeutics
CRH Medical Corp.437.1321.8Healthcare Services
Milestone Pharmaceuticals Inc.424.8508.5Therapeutic R&D
Viemed Healthcare Inc.377.7308.6Healthcare Services
Resverlogix Corp.347.0259.2Therapeutic R&D
Liminal BioSciences Inc.305.2255.5Therapeutic R&D
BELLUS Health Inc.264.3543.3Therapeutic R&D
Xenon Pharmaceuticals Inc.214.4439.8Therapeutic R&D
Acasti Pharma Inc.181.3273.0Therapeutic R&D
Arbutus Biopharma Corp.178.1223.9Therapeutic R&D
Correvio Pharma Corp.157.127.3Commercial Therapeutics
IMV Inc.151.4190.9Therapeutic R&D
Hamilton Thorne Ltd.148.2132.4Medical Supplies
Greenbrook Tms Inc.142.9102.2Healthcare Services
Helix BioPharma Corp.128.8167.4Therapeutic R&D
Nuvo Pharmaceuticals Inc.126.15.5Commercial Therapeutics
Eastwood Bio-Medical Canada Inc.123.452.0Consumer Health
Centric Health Corp.121.844.3Healthcare Services
Aptose Biosciences Inc.115.2544.1Therapeutic R&D
Profound Medical Corp.110.7174.8Medical Devices
Fennec Pharmaceuticals Inc.110.1166.7Therapeutic R&D
Tier 2
Antibe Therapeutics Inc.95.5126.5Therapeutic R&D
Protech Home Medical Corp.92.081.1Healthcare Services
Sirona Biochem Corp.88.096.4Therapeutic R&D
Intelgenx Technologies Corp.87.957.0Therapeutic R&D
Spectral Medical Inc.85.9162.6Therapeutic R&D
Opsens Inc.78.180.3Medical Devices Inc.75.3118.2Healthcare Services
Medexus Pharmaceuticals Inc.72.955.3Commercial Therapeutics
Zomedica Pharmaceuticals Corp.72.047.0Veterinary
Cardiol Therapeutics Inc.71.1118.5Therapeutic R&D
BioSyent Inc.64.882.8Commercial Therapeutics
Arch Biopartners Inc.60.257.7Therapeutic R&D
ProMIS Neurosciences Inc.58.446.2Therapeutic R&D
Covalon Technologies Ltd.58.451.4Medical Supplies
Rapid Dose Therapeutics Corp.55.929.6Consumer Health
Venus Concept Inc.54.9180.8Medical Devices
Tetra Bio-Pharma Inc.51.597.2Therapeutic R&D
Neovasc Inc.46.553.9Medical Devices
Cipher Pharmaceuticals Inc.46.140.4Commercial Therapeutics
Helius Medical Technologies Inc.45.538.6Medical Devices
Acerus Pharmaceuticals Corp.43.820.9Commercial Therapeutics
Titan Medical Inc.43.225.3Medical Devices
Sernova Corp.40.332.7Medical Devices
Medicenna Therapeutics Corp.38.3116.0Therapeutic R&D
Novoheart Holdings Inc.37.993.5Healthcare Services
TearLab Corp.37.30.6Diagnostic
Lexagene Holdings Inc.36.975.4Diagnostic
Eastgate Biotech Corp.35.320.3Consumer Health
InMed Pharmaceuticals Inc.34.840.5Therapeutic R&D
Edesa Biotech Inc.33.739.9Therapeutic R&D
Medicure Inc.32.365.1Commercial Therapeutics
ImmunoPrecise Antibodies Ltd.32.032.6Medical Supplies
KDA Group Inc.31.427.7Healthcare Services
Microbix Biosystems Inc.30.423.8Medical Supplies
NervGen Pharma Corp.29.941.0Therapeutic R&D
Ceapro Inc.29.524.7Consumer Health
Mimi's Rock Corp.28.119.5Consumer Health
ESSA Pharma Inc.25.5129.8Therapeutic R&D
Appili Therapeutics Inc.25.513.0Therapeutic R&D
SQI Diagnostics Inc.25.417.0Medical Devices
Avivagen Inc.23.520.6Veterinary
Apteryx Imaging Inc.23.314.1Healthcare IT
Aurora Spine Corp.23.111.5Medical Devices
Devonian Health Group Inc.22.18.5Commercial Therapeutics
StageZero Life Sciences Ltd.21.411.2Diagnostic
CVR Medical Corp.20.323.1Diagnostic
Theralase Technologies Inc.19.869.5Medical Devices
Quest PharmaTech Inc.19.620.9Therapeutic R&D
Kalytera Therapeutics Inc.18.523.1Therapeutic R&D
CTT Pharmaceutical Holdings Inc.18.15.5Therapeutic R&D
PreveCeutical Medical Inc.16.811.9Therapeutic R&D
Medx Health Corp.15.518.7Medical Devices
BioMark Diagnostics Inc.15.416.6Diagnostic
Valeo Pharma Inc.15.322.1Commercial Therapeutics
MedMira Inc.15.16.6Diagnostic
biOasis Technologies Inc.13.915.9Therapeutic R&D
Crescita Therapeutics Inc.12.419.5Consumer Health
NanoSphere Health Sciences Inc.12.36.5Therapeutic R&D
iCo Therapeutics Inc.12.112.3Therapeutic R&D
Kane Biotech Inc.11.914.2Therapeutic R&D
Aequus Pharmaceuticals Inc.11.87.5Commercial Therapeutics
Hemostemix Inc.10.82.3Therapeutic R&D
BriaCell Therapeutics Corp.10.67.2Therapeutic R&D
Aeterna Zentaris Inc.10.323.8Commercial Therapeutics
Telo Genomics Corp.10.22.8Diagnostic
Trillium Therapeutics Inc.9.837.3Therapeutic R&D
Aquarius Surgical Technologies Inc.9.76.8Medical Devices


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This Research Report is provided for informational purposes only and is not an offer to sell or the solicitation of an offer to buy any of the securities discussed herein in any jurisdiction where such offer or solicitation would be prohibited. The securities mentioned in this Research Report may not be suitable for all types of investors. This Research Report does not take into account the investment objectives, financial situation or specific needs of any particular investor. Recipients of this Research Report should not rely solely on the investment recommendations contained herein and should contact their own professional advisors to determine if an investment is suitable for them.

The information contained in this Research Report is prepared from sources believed to be reliable but Bloom Burton makes no representations or warranties, express or implied, with respect to the accuracy, correctness or completeness of such information. All opinions and estimates contained in this Research Report constitute Bloom Burton’s judgment as of the date of this Research Report and are subject to change without notice.  Past performance is not necessarily indicative of future results and no representation or warranty is made regarding future performance of the securities mentioned in this Research Report. Bloom Burton accepts no liability whatsoever for any direct or consequential loss arising from any use or reliance on this Research Report or the information contained herein. This Research Report may not be reproduced, distributed or published, in whole or in part, without the express permission of Bloom Burton.

1. Bloom Burton & Co. or its affiliates have provided investment banking services for HLS Therapeutics Inc., Medexus Pharmaceuticals Inc.,  Nuvo Pharmaceuticals Inc. and Xenon Pharmaceuticals Inc. during the 12 months preceding the date of issuance of the research report or recommendation. 

2. Bloom Burton has managed an offering of Antibe Therapeutics Inc., Avivagen Inc.,  Bellus Health Inc., ESSA Pharma Inc., Greenbrook TMS Inc., Hamilton Thorne Ltd., HLS Therapeutics Inc., Medicenna Therapeutics Corp., Resverlogix Corp. and Titan Medical Inc. during the 12 preceding the date of issuance of the research report or recommendation.

3. Bloom Burton & Co. and its affiliates collectively beneficially own more than 1% of the outstanding common shares of Nuvo Pharmaceuticals Inc. and Mimi’s Rock Corp., respectively.

4. The research analyst responsible for the report or recommendation or any individuals directly involved in the preparation of the report hold or are short the securities of Aurinia Pharmaceuticals Inc., Xenon Pharmaceuticals Inc., Hamilton Thorne Ltd., Bellus Health Inc., Trillium Therapeutics Inc., ESSA Pharma Inc., Correvio Pharma Corp. and Greenbrook TMS Inc. directly or through derivatives.

5. The research analyst responsible for this report or recommendation may hold securities discussed in the report indirectly through Bloom Burton Canadian Healthcare Fund, LP which is indirectly affiliated with Bloom Burton & Co.