Humans witnessed the fourth industrial revolution when they discovered how to alter life on a cellular level. This science empowered them to revolutionize the pharmaceutical industry and transform the economy. Genetic engineering and biotechnology allow scientists to use living beings to create valuable products – either too expensive or too tricky to make using conventional techniques. The recent years have seen the remarkable growth of several industries that aim to produce food, drugs, and raw materials for other factories by employing the techniques of biotechnology. Especially in the current COVID-19 era, the general public has realized that pharmaceuticals and medicine are lucrative disciplines that warrant our attention. With several incurable diseases wreaking havoc worldwide, such as cancer, AIDS, dementia, and the latest entrant in this list – the COVID-19, it is evident that this field has a broad scope. Furthermore, the need for vaccines for all the viral and infectious diseases that outbreak regularly cannot be denied. This has also led to a sharp rise in the prices of several Biotech stocks.
However, we must keep in mind that Biotech stocks provide large financial profits only if a product is proven effective and safe. On the other hand, Biotech stocks carry risks because some products in development may never see the light of day.
7 Canadian Biotech Stocks You Should Invest In
For all the Canadian investors looking to profit while providing the world with benefits, here are 7 Biotech stocks that meet your goals.
Cipher Pharmaceuticals Inc. (TSX:CPH)
Cipher Pharmaceuticals Inc. (TSX:CPH) is a specialty pharmaceutical firm with a large and diverse commercial and early-stage product portfolio, including Dermatology Products, Hospital Acute Care Products, and Out-Licensed Products. Cipher purchases medicines that address unmet medical needs, oversees the clinical research and regulatory approval process, and sells them directly in Canada and indirectly in the United States and South America.
The company saw a 30% increase in total revenue while the basic EPS increased by 450%. Presently, the company holds more than $15.6 (CDN$19.9) million in cash. The EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) grew by 40% in the second quarter of 2021. Its most successful products, including Epuris and Absorica, grew in revenue by 63% and 25%, respectively.
Currently, trading at $2.22 as of February 20, 2022 (12:24 pm), the stocks hold a promising future. Furthermore, an excellent P/E ratio of 10.40 makes this stock a stable investment with large financial profitability.
BriaCell Therapeutics Corp. (TSX:BCT)
Immunotherapies have risen to the top of the cancer treatment list because they employ the body’s immune system to kill cancer cells, have greater safety and efficacy than contemporary methods like chemotherapy, and lower chances of cancer recurrence. BriaCell Therapeutics Corp.’s (TSX:BCT) aim is to develop innovative immunotherapies to fight cancer to improve women’s lives with breast cancer who have limited treatment alternatives.
BriaCell is collaborating with Incyte Corp. on Phase I/IIa clinical trial of Bria-IMT, its lead candidate, with Incyte drugs INCMGA00012 and Epacadostat as part of a Combination Study in advanced breast cancer. The combination study is marked on ClinicalTrials.gov under the identifier code NCT03328026. Furthermore, BriaCell has been chosen to present at the 2022 Annual Meeting of the American Association for Cancer Research (AACR) dated April 8-13, 2022.
The earnings for BriaCell Therapeutics Corp. increased by 25.4% in the past year. The year-to-date gain stood at 78.93%. Trading at $10.13 as of February 21, 2022, at 2:56 am, the stock holds excellent growth potential making it the best time to invest.
MustGrow Biologics Corp. (CSE:MGRO)
MustGrow Biologics is a biotechnology firm focusing on offering natural, science-based biological solutions to replace synthetic chemicals used in high-value crops, including fruits and vegetables. This Biotech company produces natural biopesticides, biofumigants, and bioherbicides that positively impact soil health and the environment. These products can potentially disrupt the current global agriculture pesticide market, which is projected to be worth US$65 billion per year.
MustGrow had previously announced separate collaboration agreements with Sumitomo Corporation and Bayer to assess MustGrow’s technology’s efficacy and economic potential. MustGrow has reported successful postharvest applications like disease control and sprout inhibition in stored potatoes. Even third-party laboratories acknowledged the product’s performance, stating: “The MustGrow experimental treatments provide control of both sprouting and Fusarium dry rot in stored potatoes. With pressure globally on chlorpropham as a sprout control for table potatoes, this treatment shows considerable promise as a single treatment to manage several major storage issues.“
Analysts forecast revenue growth of 59.8% in the next 1 to 3 years. Trading at $3.94 as of February 21, 2022 (3:01 am), the company holds great potential. Furthermore, an excellent trade volume of 219,177 makes it an ideal time to invest in MustGrow Biologics.
Rapid Dose Therapeutics (CSE:DOSE)
Rapid Dose Therapeutics, or RDT, is a life sciences firm based in Canada that develops breakthrough patented medication delivery systems to improve patient outcomes. The company was founded in response to a recognized need to take medicine delivery to a new level. The pharmaceutical and healthcare manufacturing industries rely on RDT for product development, production, and consultation.
On October 17, 2018, Canada legalized cannabis and cannabis-based products, resulting in creating a new consumer market. On October 1, 2021, Rapid Dose Therapeutics received a cannabis sales license from Health Canada, further expanding the company’s market.
Rapid Dose Therapeutics Corp. and McMaster University received the final installment of the Collaborative Research and Development grant valued at $120,000 from the Natural Sciences and Engineering Research Council (NSERC) of Canada on December 22, 2021, for the ongoing development of an orally administered COVID-19 vaccine candidate.
As of February 21, 2022 (3:09 am), the stocks for this company are trading at $0.25. Even though it is a penny stock (cheap stock), analysts speculate a high return on investment if the market sees an upward trajectory.
Sernova Corp. (TSX.V:SVA)
Sernova is a regenerative medicine firm developing innovative therapies with multibillion-dollar market potential for each of its clinical indications. This Biotech company focuses on researching and developing its proprietary technologies, namely Regenerative medicine, Cell Pouch System, and Immune Protection technology.
On January 27, 2022, Sernova released a peer-reviewed paper demonstrating favourable preclinical safety and efficacy indicators for its novel Cell Pouch System therapeutic approach for Thyroid disease treatment. Sernova also presented at the Canaccord Genuity Virtual MedTech, Diagnostics, and Digital Health & Services Forum on November 18th, 2021, at 10:00 am ET.
Sernova and Dr. Mark Poznansky, Director of the Vaccine and Immunotherapy Center at Massachusetts General Hospital, will collaborate on the initiative, with JDRF providing $150,000 in funding support.
The company’s earnings report shows that its assets grew from $5,725,524 in 2020 to $29,820,344 in 2021, increasing by about 420.8%. Trading at $1.56 as of February 21, 2022 (5:14 am), the future for this company seems bright. A shiny market cap of 409,129,123 certainly makes investing in this company safe and profitable.
Theratechnologies Inc. (TSX:TH)
Headquartered in Montreal, Quebec, Canada, Theratechnologies was founded in 1993. It employs 165 people in Canada and the United States. Theratechnologies commercializes two drugs in HIV: Trogarzo® (ibalizumab-uiyk) injection and EGRIFTA SV® (tesamorelin for injection). Theratechnologies Inc.’s research programs focus on Hepatology, Oncology, and HIV. This biotech company focuses on AIDS and HIV, and it will become increasingly relevant in the future. Furthermore, CQDM, the Canadian Cancer Society, and Theratechnologies granted UQAM $1.7 million to develop a new therapy targeting the most aggressive form of breast cancer.
Theratechnologies saw a 54.14% increase in gross margin while the revenue per employee stood at 807,320. The current market cap of this company stands at 367,169,527. Analysts predict the probability of immense growth in this company’s stocks within the coming five years.
As of February 21, 2022 (5:51 am), the company is trading its stocks at $3.86. Therefore, it is an optimum time to invest in this company and make a considerable profit.
Incyte Corporation (NASDAQ:INCY)
Incyte focuses on the discovery and development of small-molecular drugs. Jakafi, the company’s blockbuster drug, is partnered with Novartis and treats two forms of rare blood cancers and graft versus host disease. Apart from treating cancer, the company’s primary focus is Oncology and Dermatology.
Incyte (Nasdaq:INCY) is to present at the virtual Cowen 42nd Annual Health Care Conference on Monday, March 7, 2022, at 9:50 a.m. ET. Incyte leads several clinical studies on diverse topics, including Targeted therapy, Immuno-Oncology, and Autoimmunity. Jakafi, Pemazyre, Monjuvi, Iclusig are among the approved drugs from Incyte used in the treatment of cancer.
In Q4 2021, overall product and royalty revenues were $813 million (+20%), while in FY 2021, total product and royalty revenues were $2.891 billion (+17%). Jakafi ® (ruxolitinib) net product revenues were $592 million (+15%) in Q4 2021 and $2.135 billion (+10%) in FY 2021, while Jakafi is projected to produce $2.3 to $2.4 billion for 2022. Trading at $68.53 as of February 21, 2022 (6:01 am) is the best time to invest in this company.
Why You Should Invest in Canadian Biotech Stocks
Small-scale companies that focus on groundbreaking inventions might go from having low market capitalizations to being valued hundreds of millions of dollars almost overnight. The success of any company depends directly on the success of its products. The COVID-19 pandemic has proved that curing diseases can be a lucrative business, and investors will flock to any stock that shows the potential for a significant breakthrough. However, while investing in biotechnology stocks, it’s easy for investors to get caught up in the excellent potential for capital gains. Investors may also become engrossed in the tale of a small biotech company that has the potential to revolutionize its field if its products are successful. However, as great as these goods may appear, determining the likelihood of a drug’s success can be difficult.
Keeping these facts in mind, we believe that Biotech stocks are high-risk, high-reward stocks. However, with health being a basic necessity and several kidney diseases, eye diseases, and neurodegenerative diseases, apart from other complex ones, still being incurable, the future for the Biotech industry looks promising.
The Bottom Line
The next big threat to humanity is biochemical warfare; the Biotech industry is growing at a blistering pace. Stock analysts predict that the world will see a significant spike in the growth and expansion of the Biotechnology industry in the coming few years. Hence, the share price for successful Biotech companies is bound to go up, making it an optimum time to invest in this sector.
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Canadian Biotech Stocks
Microbion Corporation Appoints Robert A. Gillam Chairman of the Microbions Board of Directors Microbion announced that Robert A. Gillam would join the company as Chairman with immediate effect, replacing Karim Lalji as the Chairman of the Board. Cybin received final approval to begin trading on NYSE American on August 5. In addition, Cybin Inc., a biotechnology company focused on developing psychedelic therapeutics, announced that it had received permission to list its common stock on the New York Stock Exchange (NYSE American).
The Daily Trend Analysis of Canadian Biotech Stocks for Long-Term Investors Weekly Trend Analysis of Canadian Mining Companies For long-term investors, we offer weekly Trend Analysis of Canadian Gold Mines. As the activities of COVID-19 in Canada continue to monitor critical epidemiological indicators, monitor trends and identify emerging issues, including understanding the impact of circulating virus variants, we continue to track critical epidemiological indicators, monitor trends and identify emerging issues. In the final days of 2020, the leading Canadian biotech company is completing its validation study that revealed the detection of the entire Covid-19 antibody test.
The company’s Phase 3B trial has been confirmed with early results and is expected to be finished by the end of 2021, which will result in the only FDA-approved treatment for patients with septic shock on the market. The company also has a flagship program for metastatic breast cancer and advanced pancreatic cancer. The share price was negative until the last week of December, after the company announced that it would present its lead virus formulation Reolysin Pelareorep at the Gastrointestinal Cancer Symposium 2020 in January.
The company recently completed a public financing round that added $97 million to its strong balance sheet. The company is a specialized biotechnology company that takes a unique approach in the industry by using natural insights to develop novel immunotherapies to treat cancer.
The company’s products combat diseases such as lymphoma, myeloma and other blood cancers. In addition, the company has agreed with Merck on combination therapy with Keytruda for ovarian cancer, and recent activist activity by Sarissa Capital Management has helped drive biotech shares up 18% in the past month. Trillium went public 13 years ago and has made a name for itself in the industry.
Exelixis recently announced several business development agreements to achieve this goal, including a license from Aurigene for its promising early-stage cancer medicine XL102. FDA approvals can help biotech stocks breakthrough and reward shareholders. Firstly, companies can sell research and intellectual property (IP) rights to therapies much more cheaply than if another developer were willing to take over the parts.
The company recently reported positive results from a late-stage study of an experimental flu vaccine called Nanoflu. As a result, Exelixis plans to seek Food and Drug Administration (FDA) approval for the product. Analysts estimate that the vaccine could generate annual sales of up to $1.7 billion if approved.
Clinical drug company Bellus Health was one of the top biotech stocks in 2018 and maintained its rapid pace in 2019, regaining a combined 39.7 percent over the past two years. Last year biotechnology stocks represented by the IShares Nasdaq Biotechnology ETF (IBB) had a total return of 14.1%, compared to Russell 1000’s total return of 38.3% on June 3, 2021. The Oral Release Drug Aximiris XR aims to deliver oxycodone hydrochloride in a method less susceptible to manipulation and abuse than the cousin OxyContin. In December, the stock rose when it was announced that the US Food and Drug Administration (FDA) was reviewing the drug.
That is, while biotech stocks remained stable for consumer-goods companies, they continued to march upward, drumming up approval results, study data, and critical conference presentations. As a result, shares in the sector have surged to record highs and fallen on every piece of information.
The S & P 500 lost 26.7% in the first three months of 2020, while the iShares Nasdaq Biotechnology Index ETF, a fund that tracks US biotechnology and pharmaceutical companies, lost 15.6%. Over the past year, however, the fund has outperformed the index with a yield of 10.5% and a return on equity of 31.6%. Biotechnology stocks are companies that research and manufacture biotechnological products such as pharmaceuticals, vaccines, biofuels, genetically modified crops, biocatalysts and much more.
As dozens of companies rush to develop viable vaccines, the sector’s shares are experiencing a surge in volatility as investors queue to buy the proper racehorse. At least now, the stake in companies seeking effective COVID-19 treatments and vaccines has attracted increased interest. However, whoever wins and a vaccine is approved, other companies will have to fight to be the first to see share prices fall.
Biotechnology and pharmaceutical stocks are a solid choice in these uncertain times. While the economy is hibernating to limit the spread of COVID-19, drug manufacturers and biotech companies are working on new treatments.
Drug discovery and development is a complex and expensive endeavour of pharmaceutical companies, academic scientists and governments. Nevertheless, scientific advances have opened up possibilities for treating and preventing diseases imagined in the past. As a result, a complex path of discovery, commercialization, and partnership has become standard practice for advancing drug candidates through the development pipeline.
The COVID-19 pandemic has opened up an enormous opportunity for biotechnologists to develop potential treatments and vaccines. Some of the best biotech stocks to buy boast a strong pipeline of successful drugs already on the market. In the biotechnology sector, Resverlogix shares and the company’s shares are two of the most promising rising stars.
Many Canadian biotech stocks have performed well against this backdrop, and analysts expect to continue in 2021. The Investing News Network has tracked five of Canada’s leading biotech stocks on the TSX (TSXV). All five shares’ annual performance and price data were compiled from 6—January 2021 with the TradingViews Stock Screener.
Resverlogix (RVX) $18.385 million $1.809 The company operates late-stage clinical biotechnology. Knight Therapeutics (GUD) $67.105 million $0.19 The Toronto-based specialty pharmaceutical company operates in specialty pharmaceutical companies in Canada. Theratechnologies (TH) $43.99 million $45.77 Therapechnologies Inc. is a biopharmaceutical company that sells prescription products in the United States, Europe and Canada.