November 13, 2020
In this blog post, the Bloom Burton equity research team summarizes the performance of the Canadian healthcare sector during 3Q-2020 and provides commentary on select stock movements and overall market trends.
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 103 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).
Among the healthcare subsectors in Bloom Burton’s Canadian tracking universe, the best performing subsector was healthcare IT (5 companies: +83.9%), although the subsector contains only 5 companies and individual company outperformance can strongly skew the group’s return (CloudMD Software & Services Inc. up +223.1%). The worst performing subsector was therapeutics R&D (37 companies: +3.6%), although all subsectors had a positive return in the quarter (consumer health, 8 companies: +24.9%; medical devices, 17 companies: +20.4%; medical supplies, 4 companies: +20.3%; healthcare services, 16 companies: +17.3%; diagnostics, 4 companies: +13.9%; commercial therapeutics, 12 companies: +7.7%).
Notable Tier 1 advancers in the quarter were:
Notable Tier 1 decliners in the quarter were:
Notable advancers in the quarter include:
Notable decliners in the quarter include:
This Research Report is issued and approved for distribution by Bloom Burton Securities Inc. (“Bloom Burton”), a member of the Investment Industry Regulatory Organization of Canada.
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.
Company Specific Disclosures
1. Bloom Burton & Co. or its affiliates have provided investment banking services for 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., ESSA Pharma Inc., Greenbrook TMS Inc., Medicenna Therapeutics Corp., Trillium Therapeutics Inc., Aurinia Pharmaceuticals Inc. 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., Mimi’s Rock Corp., Newtopia Inc., Appili Therapeutics Inc., Avivagen Inc. and NeuPath Health Inc.
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.
6. The research analyst responsible for the report or recommendation has visited facilities operated by Aurinia Pharmaceuticals Inc., Correvio Pharma Corp., CRH Medical Corp., ESSA Pharma Inc., Greenbrook TMS Inc., HLS Therapeutics Inc., Knight Therapeutics Inc. and Trillium Therapeutics Inc. preceding the date of issuance of the research report or recommendation. No remuneration was received from, nor expenses paid by the companies in respect of the visits.