The S&P/TSX Capped Health Care Index moved up 1.9% in yesterday’s trading session. Health care stocks have proven to be some of the most explosive options available to growth-oriented investors. Only the technology sector was able to outpace health care over the course of the 2010s. Today, I want to take a quick snapshot of two health care stocks that have been throttled in recent weeks. Should you look to buy the dip? Let’s jump in.
Knight Therapeutics (TSX:GUD) is a Montreal-based specialty pharmaceutical company that develops, acquires, in-licenses, out-licenses, markets, and distributes pharmaceutical and consumer health products, and medical devices in Canada and around the world. Its shares have plunged 15% in 2023.
In fiscal 2022, this company delivered revenue growth of 21% year-over-year to $293,563. Meanwhile, adjusted EBITDA jumped 42% to $54,032. It is still early days for Knight Therapeutics, but it has suffered a series of earnings disappointments. That makes it a very risky proposition for Canadian investors right now.
HLS Therapeutics (TSX:HLS) is a Toronto-based specialty pharmaceutical company that operates in Canada, the United States, and around the world. Its shares have plummeted 39% so far in 2023.
The company reported promising success for Vascepa, a prescription medicine meant to reduce the risk of heart attacks in users. Net revenue for this drug increased 67% year-over-year to $12.3 million. Meanwhile, Vascepa prescription volumes jumped 85% year-over-year in 2022. Moreover, 3,300 physicians have prescribed Vascepa – up 92% compared to the previous year.
Shares of this health care stock are trading in very attractive territory compared to its industry peers. Meanwhile, it is on track for very strong earnings growth. This is a health care stock I’m looking to buy on the dip as we come to the final days of March.
