January 24, 2017

Q4 and Annual Share Price Performance in 2016 - Part 2

Tier 1 Canadian Healthcare Companies – not a good year

In this blog, I am going to comment on the Q4 and 2016 annual performances of the group of 51 companies which ended 2016 in Tier 1 (there were 57 companies with share prices of $1.00 or more to start 2016).


Q4 2016 Performance

    • Decliners more than doubled the number of advancers by 36 to 15
    • Average and median share price changes were -3% and -9%. Without the +246% result for Neovasc, the average share price change would have been -8%, which is a more accurate reflection of the sector performance.
    • Four companies had share price increases of 40% or more
      • Neovasc (+246%) – the successful lawsuit by CardiAQ with damages assessed at US$91 million (under appeal) and no funds to pay the damages caused the share price to drop 88% in Q2; the sale of its tissue processing business and equity to Boston Scientific for US$75 million and some good clinical data triggered this share price bounce, although the share price was still down 63% for the year
      • Medicure (+63%) – reported improved profitable financial results
      • RepliCel Life Sciences (+46%) – announced the completion of a financing and reversed its share price decline from Q3
      • CRH Medical (+41%) – reported improved financial results
  • Five companies had share price declines of more than 40%
    • Valeant Pharmaceuticals (-40%) – continued the share price decline of prior quarters
    • Novadaq Technologies (-41%) – announced sales approaching US$80 million annualized, but still burning about US$9 million per quarter and cash down to about US$63 million at year end
    • DelMar Pharmaceuticals (-47%) – no negative news; continued share price decline from prior quarter may have been caused by concern about financing the planned Phase 3 GBM trial
    • Concordia International (-51%) – announced mixed financial results and continued its year-long share price decline
    • Trillium Therapeutics (-61%) – negative market response to mixed TTI-621 clinical data, which showed both responses and toxicity
  • Six companies were dropped from assessment in 2016
    • Stellar Biotechnologies – voluntary delisting
    • Prism Medical – acquired
    • Transition Therapeutics – acquired
    • Cynapsus Therapeutics – acquired
    • Nobilis Health – voluntary delisting
    • QHR Technologies – acquired


2016 Annual Summary


    • Decliners almost doubled the number of advancers by 33 to 18
    • Average and median share price changes were -16% and -20%
    • Six companies had share price increases of 40% or more
      • Medicure (+142%)
      • CohBar (+89%)
      • CRH Medical (+75%)
      • Helius Medical Technologies (+66%)
      • Theratechnologies (+44%)
      • Covalon Technologies (+41%)
  • Nineteen companies had share price declines of more than 40%
    • Bionik Laboratories (-44%)
    • Arbutus Biopharma (was Tekmira; -45%)
    • Novadaq Technologies (-47%)
    • Merus Labs (-49%)
    • Aptose Therapeutics Inc. (was Lorus; -50%)
    • Acasti (-50%)
    • ESSA Pharma (-54%)
    • Trillium Therapeutics (-56%)
    • OncoGenex (-59%)
    • Neovasc (-63%)
    • RepliCel Life Sciences (-63%)
    • Cardiome Pharma (-66%)
    • Titan Medical (-69%)
    • BELLUS Health (-72%)
    • TearLab (-72%)
    • Eyecarrot Innovations (-84%)
    • Valeant Pharmaceuticals (-86%)
    • ProNAi Therapeutics (-90%)
    • Concordia Healthcare (-95%)

In the Tier 1 group, only the Services subsector had a positive 2016 annual performance. The most damaging performance was the average share price decrease of 25% for the Therapeutics – Development subsector, where the 23 companies represent 45% of the Tier 1 companies.

In the following blogs, I will give a more detailed review of the Q4 and 2016 share price performance of the Tier 2 Canadian healthcare and the medical marijuana companies, as well as providing some thoughts on what might happen to the sector in 2017.


 [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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