January 29, 2021
In this blog post, the Bloom Burton equity research team summarizes the performance of the Canadian healthcare sector during 4Q-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; digital health; 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 114 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).
The 114 Canadian healthcare companies included in Bloom Burton’s 4Q-2020 blog were collectively up 23.1% in the quarter, outperforming the S&P/TSX Composite Index (+8.1%) and in line with the S&P/TSX Venture Composite Index (+23.8%). The broader market rally the last three quarters was driven by governmental fiscal stimulus programs in response to the pandemic, progress on the development of Covid-19 treatments/ vaccines, buzz around digital health and use of psychedelics in the treatment of psychological disorders, and the outcome of the U.S. presidential election. Collectively, Canadian healthcare stocks performed especially well this quarter due to several companies experiencing large, event-driven positive swings (Mind Medicine Inc. +394.0%; Hemostemix Inc. +337.5%; Vaxil Bio Inc. +140.0%; Sernova Corp. +139.3%; Revive Therapeutics Ltd. +138.5%; Titan Medical Inc. +130.9%).
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:
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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.
Company Specific Disclosures
1. Bloom Burton & Co. or its affiliates have provided investment banking services for Xenon Pharmaceuticals Inc., HLS Therapeutics Inc., Greenbrook TMS Inc., and Mimi’s Rock Corp. 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., Appili Therapeutics Inc., MindBeacon Holdings Inc., Field Trip Health Inc., Newtopia 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, Bellus Health, Essa Pharma, Greenbrook TMS, Hamilton Thorne, HLS Therapeutics, Medicenna Therapeutics, Newtopia, Repare Therapeutics, Trillium Therapeutics, Xenon Pharmaceuticals and Zymeworks 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.