Health Care Roundup: Market Talk

The latest Market Talks covering the Health Care sector. Published exclusively on Dow Jones Newswires at 4:20 ET, 12:20 ET and 16:50 ET.

1155 ET – Canopy Growth has been blowing through far less cash after exiting its BioSteel business, but John Zamparo of CIBC says debt still weighs heavily on the cannabis company. In a report, the analyst says even by approaching positive Ebitda territory early next year, the improvement doesn’t address Canopy’s large and growing debt load. “Even if Canopy manages a 5% Ebitda margin, that still implies an annual free cash flow loss of more than $75 million because of interest charges,” he says. Instead, Zamparo thinks that only an equity issuance over the next few years can help solve the issue, “and recent examples of this in the cannabis space point to challenging times for equity holders.” (adriano.marchese@wsj.com)