2 Small-Cap Health Care Stocks Creating Investor Buzz
One industry that has been on fire over the past year has been health care. ETFs that track the industry are up between 20 and 30 percent during the past 12 months and show no signs of slowing down. Investors may be wondering if they’ve missed their opportunity to join the fun, but the answer is a resounding no. The two stocks mentioned below appear to be well-positioned for a bright future and one that offers investors a chance to generate substantial returns.
The first company that has recently caught my attention is Merus Labs International (NASDAQ:MSLI). The company appears to be catching on with investors, as the shares have rallied by more than 30 percent since September 17. Merus is a specialty pharmaceutical company that engages in the acquisition and licensing of branded prescription pharmaceutical products in the United States and Canada. The company is currently focused on acquiring medicines in five categories: branded generics, niche market pharmaceuticals, meds that are on-patent but at the maturity stage of product life cycle, products that haven’t met annual sales threshold for big pharma, and under-promoted products.
Merus has made several positive announcements over the past couple of weeks. On September 24, the company announced that it had successfully refinanced its debt obligation previously provided by PDL BioPharma. This refinancing will reduce the company’s interest rate by half and extend the debt maturity by one to three years. Since July 2012, Merus has been able to reduce its outstanding debt by approximately $15 million. The second positive announcement occurred on October 1, when the company announced that it regained compliance with the Nasdaq because it had maintained a share price of $1 for 10 consecutive trading days. Remaining on the Nasdaq will allow shareholders to continue receiving the fastest possible fills with the most amount of liquidity.