The Canadian Press
Globe editors have posted this research report with permission of Mackie Research Capital Corp. This should not be construed as an endorsement of the report's recommendations. For more on The Globe's disclaimers please read here. The following is excerpted from the report:
With the TSX down almost 7.4 per cent year to date, we think the following companies are our most compelling investment opportunities in the following sectors.
Our two top picks are Knight Therapeutics and Intellipharmaceutics. We have been cautious on the sector as per our last two industry notes primarily due to drug pricing concerns and valuations - the sector is correcting just as we predicted. Hence, we believe investors should take a more defensive stance and focus on names with a strong balance sheet (Knight Therapeutics) or that have multiple product launches expected (Intellipharmaceutics). We have seen a spectacular decline in share prices of VRX and CXR in the last few weeks, and this could be the start of a "bear market" in terms of Canadian specialty pharma companies access to capital.
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