Canadian stock prices fell as investor worries about a possible recession grew in response to the central bank’s aggressive interest rate hikes. The Toronto Stock Exchange’s S&P/TSX Composite Index ended September down nearly 7.5%. These downturns, however, provide opportunities to invest in industries and companies that are bound to remain resilient to economic shocks.
S&P/TSX Composite Index Chart by TradingView
The healthcare sector is one of the industries that is recovering rapidly and advances in drug research and development are yielding dramatic results. Canada is a world leader in biotechnology, with the government helping to develop a strong and competitive biomanufacturing and life sciences sector, making it a global investment opportunity in terms of size and scope. opportunities. The Canadian government has committed to investing C$2.2 billion in the biotechnology and life sciences sector over seven years starting in 2021.
Despite the difficult macroeconomic environment, some Canadian biotechnology stocks have performed well this year and continue to post strong financial results. Below are five top Canadian biotech stocks to consider.
NurExone Biological Ltd. (TSXV: NRX)
NurExone is an Israeli biotechnology company focused on the development and commercialization of extracellular vesicle (EV) biological technology for the treatment of traumatic central nervous system (CNS) injuries. The company aims to revolutionize the treatment of spinal cord injury (SCI) globally. Over the past few months, NurExone has shown stability and resilience in its stock price, even reaching highs in early October when the majority of the market was in the red. The hope that NurExone offers the millions of IBS patients worldwide is just one reason to consider them for your portfolio, but their impressive stock market performance along with recently announced major developments in R&D and on the partnership side should not be ignored either. Plus, if that wasn’t enough, NurExone was recently named an emerging leader in the treatment of exosome-based spinal cord injury in a recent report covered by BarChart.
Hemostemix inc. (TSXV:HEM)
Hemostemix, a Canadian clinical-stage biotechnology company founded in 2006, specializes in autologous stem cell therapy and holds 91 patents in five patent families. The company develops, manufactures and sells blood-derived cell therapies derived from the patient’s own blood, a relatively non-invasive source of therapeutic cells. Angiogenic Cellular Precursor (ACP-01), the company’s lead product, is currently in a Phase 2 clinical trial in Canada and the United States for the treatment of critical limb ischemia, peripheral artery disease, angina pectoris, ischemic cardiomyopathy and dilated cardiomyopathy.
Hemostemix is also developing other cellular products, such as Neural Cellular Precursor (NCP-01) for the treatment of Amyotrophic Lateral Sclerosis (ALS), Alzheimer’s disease and Parkinson’s disease and Bone Cellular Precursor (BCP- 01) to treat indications such as bone fractures, broken bones and surgical procedures.
Sirona Biochem (TSXV: SBM)
Sirona, founded in 2009, is a biotechnology company that uses its proprietary carbohydrate-binding technology platform to develop diabetes therapies, skin depigmentants, cosmetic anti-aging agents, biological ingredients and vaccine antigens against diabetes. cancer. Sirona Biochem acquired TFChem in 2011 to work on improving the pharmaceutical properties of carbohydrate-based molecules. The company currently licenses its cosmetic and pharmaceutical compounds to various pharmaceutical companies around the world. Sirona’s product portfolio includes diabetes therapeutics, anti-inflammatories, anti-infectives, cosmeceuticals and biological ingredients such as inducers and adjuvants for biological development and preservation.
Sirona announced on June 13 an exclusive worldwide licensing agreement with Allergan Aesthetics, an AbbVie (NYSE: ABBV) company, to develop and commercialize topical skin care treatments based on active ingredients derived from TFC-1067 of Sirona and related patents.
Microbix Biosystems Inc. (TSX:MBX)
Microbix is a life sciences company that creates and sells proprietary biological and technological solutions for human health and well-being. The company produces a wide range of critical biological materials for the global diagnostics industry, including immunoassay antigens and Quality Assessment and Proficiency Testing (QAPsTM) products that support proficiency testing clinical laboratory, test development and validation, and clinical laboratory workflows. Other proprietary products developed by the company include Viral Transport Medium (DxTM) to stabilize patient samples for laboratory testing and Kinlytic Urokinase, a biological thrombolytic drug used to treat blood clots.
Microbix’s biological expertise in developing innovative and proprietary technologies has gained wide acceptance in the long-term market as demand continues to increase. As a result, Microbix experienced a significant financial turnaround in 2021 and continues to record profitable quarters with revenue growing double digits year over year.
Ceapro inc. (TSXV: CZO)
Ceapro is a growth-stage biotechnology company focused on the development and commercialization of “active ingredients” derived from oats and other renewable plant resources for the health and cosmetics industries. The company promotes the use of its extracts in human and animal cosmeceuticals, nutraceuticals and therapeutics. The Company operates in two segments: active ingredient product technology industry and cosmeceutical industry. In the areas of active ingredients, biopharmaceuticals and drug delivery solutions, the company has extensive expertise in natural product chemistry, microbiology, biochemistry, immunology and process engineering. Ceapro’s patented process technology, Pressurized Gas eXpanded (PGX), can be used to generate novel high-value biopolymers and biocomposite structures with micro or nanoscale characteristics. Additionally, the company supplies ingredients to well-known personal care and cosmetic companies around the world.
Conclusion
Rising oil prices, energy crises and inflation continue to weigh on growth sectors such as utilities, technology and energy, putting pressure on the main market index. However, the outlook for the biotechnology sector looks stable and promising, and the companies listed here have the potential to provide handsome returns on investment in a complex economic environment.
