Capital markets performance......re as a contributing factor to BNC share price over the past fiscal year. See second paragraph in the "Letter to Shareholders" in 2011 annual report (I will not bother repeating the paragraph). And, I do take the points cited in this paragraph, from an Ernst & Young report, as valid considerations.
However, being curious I wanted to see if the biotech sector (as a whole) was -61% like BNC's results since last AGM (less a day) Note: Nov. 9, 2010 sp at $1.64 -
.64 as at Nov. 8, 2011). Or, an even $dollar loss to make it real simple to calculate...
Now, difficult to obtain a comparative index in Canada as the broader S&P/TSX HC index for Canada includes Valeant and hence not a fair comparison (and, index is up over 20% Yr/Yr as at Sep 30-11, the latest returns I could obtain).
Looked next at the U.S. market. Based on a recent report by Burrill (link attached) and only looking at "small caps" results listed on page 49 of report...index was -11.4% yr/yr as at Sep 30-11. Mkt caps of the stocks listed ranged from $130 mil - $343 mil and all traded on Nasdaq and most trading between $1.40 and $3.78 (with two exceptions).
Nothing conclusive per my above quick analysis. However, two factors not mentioned were also key contributors to BNC's -61% performance result since last AGM (one a fact/ the other an opinion), namely:
1) share price dilution from offering, and
2) lack of meaningful communication and useful support so market can better understand and appreciate the value ofBNC's pipeline, products and VMC. Note: BNC shares are still "sold" not "bought" (besides purchases by fellow Stockhouse BNC followers).
I am all ears now knowing... The Company's primary goal is to develop and commercialize products that advance human or animal health and increase shareholder value.
rg