ATB Capital Markets Institutional Investor Conference - Life Sciences

Highlights from the Life Sciences sector.

Kenric Tyghe

On January 13, 2022, ATB Capital Markets hosted the third day of its 10th Annual Institutional Investor Conference, which included two panel discussions and two fireside chats with Canadian Licensed Producers.

Canadian Born, Internationally Bound
With the market for licensed producers (LPs) experiencing intense market share volatility, consolidation, and continued price compression, the tone among the panelists was optimistic. Each company expects to continue successfully executing against its individual strategic initiatives through 2022, with an eye on reaching sustainable profitability. In this instance, product innovation, continued sales growth, and robust cost controls are top priorities. Market consolidation is expected to gradually continue through 2022, with some players exiting the industry and others merging. The attractive potential of international cannabis markets, often with superior margins, was recognized by participants, especially as positive regulatory developments across different jurisdictions are expected to happen over the coming years. 

Capital Allocation and the Strategic Vision
Our fireside chat with Sundial’s CEO Mr. Zachary George provided insight into the Company’s exposure to cultivation, manufacturing, and retail. 

Model Evolution Supports Margin Expansion
Valens CEO, Mr. Tyler Robson discussed the Company’s most recent acquisitions and the advantages of the Company’s asset-light approach to cultivation. According to Mr. Robson, 2022 will be a year focused on execution as Valens takes full advantage of its asset base and pursues further manufacturing efficiency and market share gains in Canada.

Retail and the Art of Data
In Canadian retail, competitive pricing and store saturation have increased competitive intensity. Our panelists discussed the potential for leveraging their access to data and strong capital positions to gain material advantages over smaller operators as the Canadian cannabis retail market consolidates.

Kenric Tyghe, 647-776-8249

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