January 22, 2015
Q4 2014 Share Price Performance (Part 2)
No momentum in Q4 2014 for the smaller companies in the Canadian Healthcare Sector (Part 2)
In this blog, I am going to comment on the Q4 and yearly 2014 share price performance of the group of Canadian healthcare companies which had share prices of between $0.10 and $0.99 to start 2014.
Q4 Results
- Decliners outnumbered advancers by 33 to 26
- Average and median share price changes were 0% and -4%, respectively
- Six companies had a share price increase of 40% or more
- CRH Medical (+202%) – announced the acquisition of GAA, a provider of anesthesiology services to gastroenterologists in the southeastern U.S.
- Patient Home Monitoring (+100%) – expectation of one or more acquisitions; one LOI was announced in early Q4
- Theralase Technologies (+97%) – announced preclinical data on its photodynamic cancer therapeutics
- Trimel Pharmaceuticals (+84%) – completed the sale of U.S. / Mexico rights for NATESTO to Endo International
- Cynapsus Therapeutics (+67%) – expectation and announcement of positive Phase 2 data for lead drug candidate
- Trillium Therapeutics (+40%) – share consolidation, NASDAQ listing and additional preclinical data on its lead drug candidate
- Seven companies had a share price decline of more than 40%
- Amorfix Life Sciences (-41%) – continued share price decline from Q3 and termination of Biogen-Idec deal
- Nightingale Informatix (-42%) – no negative news but continued share price decline from prior quarters
- Pivotal Therapeutics (-44%) – no negative news but reversed its Q3 share price bounce
- CardioGenics (-54%) – no negative news but continued 2014 share price decline
- Sunshine Biopharma (-57%) – no negative news but declined on sporadic trading volumes
- Diamedica (-81%) – cancelled financing, announced mixed Phase 2 data and restructuring
Q4 2014 Overview of Tier 2 Companies in the Canadian healthcare industry
Q4 2014 Overview of Tier 2 Company Share Price Performance (%)
2014 Yearly Summary
- Decliners outnumbered advancers by 33 to 26
- Average and median share price changes were +26% and -8%, respectively
- More than half the companies in this group had share price changes of 40% or more in 2014
- Sixteen companies had share price increases of 40% or more, seven of which were in the Therapeutics – Development sector
- Fifteen companies had a share price decline of more than 40%, four of which were in the Therapeutics – Development sector
2014 Annual Performance Overview of Tier 2 Companies in the Canadian healthcare industry
Annual Overview of 2014 Tier 2 Company Share Price Performance (%)
Conclusions
Overall, Q4 2014 share price performance reflects the loss of momentum in the sector which first appeared in Q3. This can be illustrated by the following table looking at the quarterly +40% / -40% ratio for both the senior and junior companies and the sector overall.
Among the senior group of companies, investors chased the Therapeutics – Commercial companies which were looking for products to acquire. While the growth of this group slowed substantially in Q3 and Q4, the 8 companies in this group (excluding Nordion, which was acquired) still had an average share price increase of +143% in 2014, with 5 companies having share price increases over 40%.
In the junior group of companies, it was the Therapeutics – Development companies which had surged in the first half of 2014. The junior group had an average share price increase of 26% during 2014 but no sub-group dramatically outperformed or underperformed over the entire year.
[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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