The pharmaceutical industry is a lucrative sector for investors looking to profit. With the global demand for healthcare rising, investing in the best pharmaceutical stocks in Canada could be a wise decision. But with so many options, how do you know which stocks to invest in?
This article will explore the Canadian pharmaceutical industry and highlight some of the best pharmaceutical stocks to invest in. We’ll examine the current market trends, analyze the performance of different companies, and provide insights into what makes a pharmaceutical stock a good investment.
Whether you’re new to investing or a seasoned pro, read on to discover how you can capitalize on the growth potential of the Canadian pharmaceutical industry.
Why invest in Canadian Pharmaceuticals?
There are several reasons why investing in Canadian pharmaceuticals could be a good investment:
Robust R&D capabilities: Canadian pharmaceutical companies are known for their intense research and development capabilities. Many Canadian universities and research institutions have partnered with the industry to develop new therapies and drugs, leading to a pipeline of innovative products.
Robust regulatory environment: The Canadian pharmaceutical industry is regulated by Health Canada, known for its stringent regulatory standards. This provides investors with a degree of comfort regarding product safety and efficacy.
Global presence: Many Canadian pharmaceutical companies have a global presence and operate in multiple international markets, diversifying their revenue streams and reducing exposure to any particular market.
Demographic trends: Canada’s aging population drives demand for healthcare products and services, including pharmaceuticals. This demographic trend is expected to continue, providing a long-term growth opportunity for the industry.
Potential for mergers and acquisitions: The pharmaceutical industry is known for mergers and acquisitions activity, and Canadian companies could be attractive targets for larger global pharmaceutical companies looking to expand their product portfolios or geographic footprint.
These companies are actively developing drugs to fight diseases, even coronavirus pandemics. Several biotech stocks are listed on the Toronto Stock Exchange (TSX Venture Exchange) and the Canadian Securities Exchange. These returns are possible because pharmaceutical companies develop products that people need. These medicines treat or prevent diseases such as cancer, diabetes, heart disease, Alzheimer’s, Parkinson’s and Alzheimer’s, and constantly invest in research and development to bring new medicines to market.
The Best Pharmaceutical Stocks in Canada
Here are ten company stocks that trade on Canadian exchanges and offer exposure to pharmaceutical manufacturing and distribution in Canada, along with brief explanations for why they could be suitable investments. As you’d expect, there are several cannabis stocks on this list, as they invest in cannabis-based pharmaceuticals and supply medical cannabis.
Apotex Inc. (private)
Apotex is a privately held pharmaceutical company based in Canada. It is one of the largest generic drug manufacturers in the world, with operations in over 45 countries.
Aurora Cannabis Inc. (ACB.TO)
Aurora is a Canadian cannabis company that produces and distributes medical cannabis products. The company has a global presence and operates in the medical and recreational cannabis markets.
Bausch Health Companies Inc. (BHC.TO)
Bausch Health is a multinational specialty pharmaceutical company that develops, manufactures, and markets a range of pharmaceutical products, including dermatology, eye health, and gastroenterology.
Cipher Pharmaceuticals Inc. (CPH.TO)
Cipher is a specialty pharmaceutical company that focuses on developing and commercializing novel dermatology products.
Cronos Group Inc. (CRON.TO)
Cronos is a Canadian cannabis company that produces and distributes medical cannabis products. The company has a global presence and operates in the medical and recreational cannabis markets.
Canopy Growth Corporation (WEED.TO)
Canopy Growth is a Canadian cannabis company that produces and distributes medical cannabis products. The company has a global presence and operates in the medical and recreational cannabis markets.
Knight Therapeutics Inc. (GUD.TO)
Knight Therapeutics is a Canadian specialty pharmaceutical company that acquires and commercializes innovative prescription drugs in Canada and internationally.
Pfizer Canada Inc. (private)
Pfizer is a multinational pharmaceutical company operating in Canada through its subsidiary, Pfizer Canada. The company develops, manufactures, and markets pharmaceutical products, including vaccines, oncology, and rare disease products.
ProMetic Life Sciences Inc. (PLI.TO)
ProMetic is a Canadian biopharmaceutical company that develops and commercializes novel therapies for various diseases, including fibrosis and cancer.
Tilray Inc. (TLRY.TO)
Tilray is a Canadian cannabis company that produces and distributes medical cannabis products. The company has a global presence and operates in the medical and recreational cannabis markets.
The company is better known as a manufacturer of Tylenol and Band-Aid but also has a large and profitable pharmaceutical division. The company, founded in Montevideo, Uruguay, in 1988, is an established drug and medical device company developing medically registered and approved herbal cannabinoid products developed by Sandoz, one of the world’s largest manufacturers and distributors of cannabinoids and other cannabinoids. In addition, Sandoz produces most injectable medicines used in Canada and a wide range of medical and surgical products.
How to Invest in Pharma Stocks in Canada:
To buy pharmaceutical stocks in Canada, you can follow these general steps:
Choose a brokerage firm: Select one that offers access to Canadian stock markets. Many options are available, including traditional, online, and discount brokerages.
Open a brokerage account: Once you have chosen a brokerage firm, you must open one. The process typically involves filling out an application, providing identification documents, and funding the account with cash or securities.
Research pharmaceutical companies: Research companies listed on Canadian stock exchanges to identify potential investment opportunities. Look for companies with solid financials, a robust pipeline of products, and a competitive advantage in the industry.
Place an order: Once you have identified a pharmaceutical stock to invest in, place an order with your brokerage firm. For example, you can place a market order, which executes the trade at the prevailing market price, or a limit order, which sets a specific price at which you want to buy the stock.
Monitor your investment: Keep an eye on your investment and monitor the performance of the pharmaceutical stock. Stay up-to-date with news and events that could impact the company and the industry.
It’s important to remember that investing in pharmaceutical stocks comes with risks, including market volatility, regulatory challenges, and competition from other companies.
What’s the largest drug company in Canada?
The largest drug company in Canada is Apotex Inc., a privately held Canadian pharmaceutical company that produces and distributes a wide range of generic and branded pharmaceutical products.
Apotex was founded in 1974 and has grown to become one of the largest generic drug manufacturers in the world, with operations in over 45 countries.
Will You Invest in Canadian Pharma?
Investing in Canadian pharmaceuticals could be an attractive option for diversifying their portfolio and gaining exposure to the healthcare sector.
Canada’s strong R&D capabilities, robust regulatory environment, global presence, and demographic trends provide a conducive environment for growth and innovation in the pharmaceutical industry.
With many well-established and innovative companies operating in the country, Canadian pharmaceuticals offer investors an opportunity to invest in a dynamic and evolving industry poised for growth in the years ahead.
However, as with any investment, it is vital to conduct thorough research, assess the risks, and consult a financial advisor before making investment decisions.
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