AUS
NZ
UK
CA
USA
IND
Federal Budget 2021 proposes new spending in the healthcare sector. This comes after the Canadian government has already spent billions on the pandemic. As per reports, it has spent around C$ 3.4 billion on COVID-19 vaccine research, given C$ 4.6 billion to provinces and territories to address healthcare priorities, and expended over C$ 9 billion on procuring vaccines.
In this light, let’s take note of some key numbers of two healthcare stocks – Bausch Health Companies Inc (TSX:BHC) and Sienna Senior Living Inc. (TSX:SIA).
©Kalkine Group 2020
Bausch Health Companies Inc (TSX:BHC)
A major player in Canada’s healthcare industry, Bausch Health has a market cap of over C$ 13 billion. The multinational pharma and medical device company records a price-to-book (P/B) ratio of 19.606, as per TMX.
Bausch Health stock’s three-month return is over nine per cent, while its year-to-date (YTD) growth is nearly 40 per cent.
Earlier in April, Bausch + Lomb and Novaliq GmbH announced promising data from the phase 3 trial of NOV03, a drug (eye drop) developed to treat dry eye disease. Around a week earlier to this event, Bausch + Lomb’s ophthalmic viscosurgical device got approval from FDA for its use in ophthalmic surgery. In March 2021, Bausch announced the sale of its equity interest in Amoun Pharmaceutical Company to ADQ.
Bausch Health clocked a revenue of C$ 2.213 billion in Q4 2020, while its net loss stood at C$ 153 million. On an annual level, the company’s revenue was C$ 8.027 billion and its net loss was C$ 560 million in 2020.
Sienna Senior Living Inc (TSX:SIA)
Sienna Senior Living is known for providing long-term care to elderlies in Ontario province. It has a market cap of C$ 972 million, and its trending stock holds P/B ratio of 2.175.
The healthcare stock rose by nearly 20 per cent in the last six months and by about 23 per cent in the last one year.
Sienna took the lead in aiding the rollout of Canada’s vaccination program by forming a task force for vaccinating its residents in British Colombia and Ontario. They also hired more people as full-time staff members to make sure care continuity is not disrupted in wake of the COVID-19 pandemic.
Sienna’s revenue marginally dropped by 0.2 per cent YoY to C$ 168.8 million in Q4 2020. It also recorded a net loss of C$8.7 million in the last quarter of 2020.
The above constitutes a preliminary view and any interest in stocks should be evaluated further from investment point of view.
