Healthcare Stocks Are Outperforming General Market

Investing Divas
Nov 14, 2018 · 5 min read

Institutional investors’ focus on healthcare services has grown over the last few quarters. This could contribute to idea that the demand for healthcare goods and services are far less tied to economic growth than the other sectors within the market.

“Institutional investors have been learning from their experience and will likely be using those lessons as they inject hundreds of billions in capital into healthcare in the next five years. These new investments have the potential to drive structural shifts in ways that are more direct and proactive than have been used before,” according to the firm McKinsey and Co. “Private equity (PE) investors, for example, have begun to consolidate several markets, including ambulatory surgery, hospitalist staffing, and home health, undertaking more than $50 billion in total transactions.”

Over the past 30 days, the Health Care Select Sector SPDR ETF (XLV) has outperformed the S&P 500 Index (SPX), which recorded a loss of 3%. Furthermore, healthcare also ranks as the best-performing sector in the S&P 500 this year, gaining over 12%. With institutional investing accelerating as the sector outperforms the general market, numerous companies within the sector may stand capitalize on this growth.

Premier Health Group, Inc. (PHGRF) (PHGI) announced that as a part of its expansion plans it will enter the Pharmacy market via acquisition and/or launching a new Canada based pharmacy in H1–2019. Combined with Premier’s acquisition of HealthVue Medical Clinics, which uses proprietary technology to deliver quality healthcare through the combination of connected primary care clinics with telemedicine and artificial intelligence (AI), this may be the next phase of growth for the company. The company intends to provide additional updates on acquisitions in Q4–18 and Q1–19.

“It is our position that the emergence of technology such as the ability for patients to electronically send their prescription(s) to a pharmacy for fulfillment and pick up at a later time or delivery directly to them at home or work will result in increased patient and consumer enrollment in apps that offer this type of functionality,” said Dr. Essam Hamza, CEO of Premier.

Premier Health Group entered the primary care clinic and health care technology business via the HealthVue transaction. Premier obtained access to a group of four Greater Vancouver-based fully integrated, paperless and electronic-medical-record-based medical clinics with a 10-year history, 22 health care professionals and over 100,000 active patients.

Titan Pharmaceuticals (TTNP) will be hosting a live conference call at 4:15 p.m. EST on Wednesday, November 14, 2018 to discuss the company’s Q3 financial results as of Sep. 30, 2018. Titan focuses developing therapeutics based on its proprietary long-term, continuous drug delivery platform, ProNeura. Its lead product is Probuphine, a six-month buprenorphine implant for the maintenance treatment of opioid addiction, which the US FDA approved in May of 2016.

Last month, Knight Therapeutics Inc. (GUD.TO) announced the launch commercial availability of PROBUPHINE™ (buprenorphine hydrochloride subdermal implant), for management of opioid dependence. Knight has the exclusive right to distribute PROBUPHINE in Canada under a license agreement with Titan Pharmaceuticals.

“The approval of Probuphine by Health Canada earlier this year was a milestone and we look forward to supporting our partner Knight Therapeutics in this next phase,” said Titan President and CEO Sunil Bhonsle. “The commercial launch of Probuphine provides the Canadian medical community with a novel, long-term treatment alternative that can provide benefits to many patients suffering from this disease.”

Imprimis Pharmaceuticals, Inc. (IMMY) reported Q3 2018 results. Highlights included that revenues increased 66% year-over-year to $10.7 million which beat the analyst consensus estimate of $6.86 million by 56.55 percent. The net loss for the quarter also narrowed to 12 cents per share, a 50% increase over last year’s losses of 24 cents per share .

Imprimis owns a diversified portfolio of healthcare businesses including ImprimisRx and large equity positions in Eton Pharmaceuticals (ETON) which had its IPO earlier this month, Surface Pharmaceuticals, Melt Pharmaceuticals, Mayfield Pharmaceuticals and Radley Pharmaceuticals, companies founded as subsidiaries of Imprimis.

“We’re in the best operational place we’ve been in since the founding of the company in 2011. The initial public offering (IPO) of our former subsidiary, Eton Pharmaceuticals, which now trades on NASDAQ, is only the beginning of what we intend to achieve. Shareholders have embraced our diversification strategy — to build, own and generate potential cash flow through royalties from a diversified portfolio of healthcare businesses,” commented Mark L. Baum, CEO.

EyeGate Pharmaceuticals, Inc. (EYEG) announced top-line data from two of its studies. One evaluating the potential of its Ocular Bandage Gel (OBG) to help clinicians better manage patients with punctate epitheliopathies (PE) due to pathologies such as dry eye compared to rewetting drops and the potential of EyeGate’s Ocular Bandage Gel (OBG) to help clinicians better manage corneal epithelial defects following photorefractive keratectomy (PRK) surgery compared to current standard of care.

The company reported that OBG eye drops achieved a statistically significant improvement (p-value 0.05) in symptoms as quickly as day 7 and at day 28, with a realized 30% decrease from baseline vs. only 4% for the comparator group at day 28 in the PE study. Furthermore, in the PKR study both of the OBG dosing regimens outperformed the standard of care in the number of eyes healed at day 3 and day 4 post-surgery. Additionally, the maximum wound size was 67% and 49% smaller at day 2 post-surgery for the two OBG groups compared to the standard-of-care.

Randall J Olson, M.D., CEO said, “A product that achieves symptomology results as seen in this study is exactly what ophthalmologists want access to when treating patients. With the wound healing results demonstrated in the two PRK studies along with these results, there is potentially a huge opportunity for using OBG in the management of various ocular surface conditions.”

This Blog is an affiliate of Midam Ventures LLC. Pursuant to an agreement between MIDAM VENTURES, LLC and Premier Health Group Inc. MIDAM was hired for a period from 10/1/2018–4/1/2019 to publicly disseminate information about Premier Health Group Inc. Midam was paid $100,000 (CASH) & “500,000” shares of restricted common shares, they own zero shares that were purchased in the open market. Once the (6) six-month restriction is complete on 4/1/2018, Midam plans to sell the “500,000” shares of Premier Health Group Inc. that they hold currently in restricted form during the time the Website and/or Facebook and Twitter Information recommends that investors or visitors to the website purchase without further notice to you. Midam may buy or sell additional shares of Premier Health Group Inc. in the open market at any time, including before, during or after the Website and Information, provide public dissemination of favorable Information. Click here for full Midam disclaimer.

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