AUS
NZ
UK
CA
USA
FRA
GER
ESP
ITA
NLD
PRT
SWE
GRC
IND
POL
BRA
ZAF
RUS
CHN
UAE
Source: janews, Shutterstock
Summary
- SunLink Health surged 151 per cent, while Can-Fite jumped over 43 per cent on Tuesday.
- SunLink received a significant sum of money in Covid relief during the lockdown last year.
- Can-Fite Biopharma clinched a US$42.7-million deal with Ewopharma for distribution rights.
SunLink Health Systems Inc. (NYSE:SSY) and Can-Fite Biopharma Ltd. (NYSE:CANF) were the most searched stocks on Canada Tuesday, and they may have been the prized catch for Canadian investors, given their enormous rally on the indices.
The Atlanta-based SunLink Health surged 151 per cent, while Can-Fite Biopharma jumped over 43 per cent, with some 196 million and 174 million stocks, respectively, traded during the session.
SunLink runs an 84-bed community hospital in the south-eastern US, as well as provides medical products and services. It had recently announced a US$2 million investment in Trace Regional Hospital.
Although its business does not look so great, it has been a beneficiary of millions of dollars in government’s Covid assistance during the pandemic last year. It also stands to receive another tranche of aid from the Biden administration as part of the stimulus package sanctioned last week.
Its market value would be around US$13 million, based on its latest share price of US$4.85 at the close. SunLink has an adjusted book value of around US$17 million - US$25 million.
Pic Credit: Pixabay.
Growth Prospects Of The Stocks
Analysts say that SunLink Health Systems may trade at a US$20-million valuation in the next two to three years at 50 per cent gain. It is also likely to receive additional government aid for covid, which will boost its book value.
Conversely, stocks of the Israeli-headquartered Can-Fite skyrocketed close on the heels of its US$42.7 million deal with Ewopharma. The agreement provides Ewopharma the distribution rights for two Can-Fite drugs.
The company also received an upfront payment of US$2.25 million from Ewopharma, with the possibility of earning up to US$40 million from milestones and royalties.
One of the drugs is Piclidenoson, used in the treatment of psoriasis. The second drug is called Namodenoson, used in treating liver diseases, including hepatocellular carcinoma and nonalcoholic steatohepatitis ailments. The deal gives Ewopharma distribution rights in Central Eastern Europe.
Also, the agreement provides for further extension of rights for these two drugs if Can-Fite finds new uses for treatments. The news of the deal has apparently raised interest in the stock.
