2-for1 Sale
The S&P/TSX Index slipped 16 points on April 4. The index is now down 6.4% in 2018. A slew of less-than-stellar economic news also served to increase anxiety among investors. Statistics Canada reported that GDP inched down 0.1% in the month of January, and home sales and prices have been in a dramatic year-over-year slide.
In addition, the blockchain and cannabis mania has come to a screeching halt. This leaves investors on the hunt for growth in a precarious position. Where should they turn? Today we’re going to look at three stocks in the intriguing health sector that should pique the interest of those looking for the possibility of explosive long-term gains.
Zymeworks Inc.
Zymeworks Inc. (TSX:ZYME)(NYSE:ZYME) is a biopharmaceutical company in the clinical stage; the company is focused primarily on cancer treatment. Zymeworks stock rose 3.29% on April 4, surging 50% in 2018 thus far. In its most recent fourth-quarter report, the company announced that ZW49 would be the first product candidate selected for clinical development using the Zymelink platform acquired in 2016.
Its leading product, ZW25, is in phase 1 of clinical trials for breast cancer. Raymond James analysis projected that ZW25 has the potential to compete with Herceptin and Perjeta in the U.S., which brought in billions in revenue in 2017. Zymeworks stock is down 19.8% year over year and could still be a bargain given its long-term promise.
Jamieson Wellness Inc.
Jamieson Wellness Inc. (TSX:JWEL) is a Toronto-based company that specializes in sports nutrition and specialty supplements. Jamieson stock has climbed 2.9% in 2018 as of close on April 4. The company reported a net loss in 2017, but is inching close to profitability for the first time since its public listing. Jamieson showed promise in 2017 as revenue jumped 21.1% to $300.6 million and adjusted EBITDA climbed 31.4% to $61.5 million. Jamieson also offers a solid quarterly dividend of $0.08 per share, thereby representing a 1% dividend yield.
Jamieson projects 2018 revenue to hit between $325 million and $335 million and adjusted diluted earnings per share to reach $0.83 to $0.87. The supplements market is expected to be buoyed by an aging population in the West and its high disposable wealth in the coming decades. According to Grand View Research Inc., the global dietary supplements market is expected to reach $278.4 billion by 2024, representing a compound annual growth rate (CAGR) of about 9.5%.
Cardiome Pharma Corp.
Cardiome Pharma Corp. (TSX:COM)(NASDAQ:COM) is a Vancouver-based specialty pharmaceutical company. Shares of Cardiome rose 4.58% on April 4 and have climbed 48.6% in 2018 so far. However, the stock has plunged 29% year over year.
Selling, general and administrative expenses rose to $10.4 million in the fourth quarter due to an expansion of its workforce in Europe and the launch of Xydalba, which treats Acute Bacterial Skin and Skin Structure Infections, and Zevtera/Mabelio, an antibiotic for the treatment of community and hospital acquired pneumonia. The launch of Xydalba and the recognition of sales revenue from the latter has the potential to return positive cash flow to Cardiome in 2018. It is an attractive speculative buy in April.
