These Canadian Biotech Stocks Are Quietly Changing the Face of Healthcare

Canadians on the hunt for growth should look to exciting biotech stocks like Fennec Pharmaceuticals Inc. (TSX:FRX) and others.

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The S&P/TSX Composite Index moved up 56 points on Tuesday, July 11. Meanwhile, the S&P/TSX Capped Health Care Index was up roughly half a percentage point after the same trading session. Today, I want to zero in on the fastest-growing sub-sector in the healthcare space: biotechnology. These Canadian biotech stocks have the potential to be rock stars in your portfolio in the months and years ahead.

Grand View Research recently valued the global biotechnology market at US$1.22 trillion in 2022. The report projects that this market will grow to US$3.21 trillion by 2030. That would represent a compound annual growth rate (CAGR) of 12% over the forecast period from 2023 through to 2030. Investors should be attracted to the growth potential in this subsector.

This Canadian biotech stock has nicely rewarded its shareholders

BELLUS Health (TSX:BLU) is the first Canadian biotech stock I’d look to target as we approach the midway point in July 2023. This Laval-based clinical-stage biopharmaceutical company develops therapeutics for the treatment of refractory chronic cough (RCC) and other cough hypersensitivity indications.

Shares of this Canadian biotech stock surged after it was announced that it would be acquired by British multinational GSK for US$2 billion. In the deal, GSK won access to camlipixant, a drug designed to treat adults with RCC that is undergoing phase III clinical trials. This Canadian biotech stock was far enough along to attract a major buyer in the healthcare space.

The acquisition means that BELLUS Health is now exiting the public arena. However, there are still biotech stocks available that could similarly reward Canadian shareholders in the months and years ahead.

Why I’m looking to ride the wave in this red-hot healthcare stock

Oncolytics Biotech (TSX:ONC) is a San Diego-based development-stage biopharmaceutical company focused on the discovery and development of pharmaceutical products for the treatment of cancer. Shares of this biotech stock have surged 74% month over month as of close on Tuesday, July 11. The stock is up 92% so far in 2023.

This company released its first-quarter fiscal 2023 earnings on May 5. Oncolytics president and chief executive officer Matt Coffey said that the company’s “core programs in breast and pancreatic cancer are moving towards registrational studies with compelling clinical data.” Looking forward, Oncolytics expects preclinical data from the combination of pelareorep and chimeric antigen receptor CAR T cell therapy in the second quarter of fiscal 2023.

Shares of this Canadian biotech stock are trading in very favourable value territory compared to its industry peers. Oncolytics also boasts a very strong balance sheet at the time of this writing.

One more Canadian biotech stock to snatch up today

Fennec Pharmaceuticals (TSX:FRX) is the third and final Canadian biotech stock I’d look to snatch up in the early summer of 2023. This North Carolina-based biotech biopharmaceutical company is worth your attention in July. Its shares have increased 0.5% over the past month. The biotech stock is still down 14% so far in 2023.

In the first quarter of fiscal 2023, the company reported net sales of $1.7 million. Meanwhile, research and development (R&D) expenses dropped by $1.4 compared to the previous year. Fennec boasted about the success of PEDMARK, a prescription medicine used to decrease the risk of hearing loss in children one month of age or older. The drug is geared up for expansion into Europe, which should power the company’s overall earnings growth in the quarters to come.

This biotech stock is trading in very attractive value territory compared to its industry peers. Fennec’s earnings are well positioned for huge earnings growth going forward.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Ambrose O'Callaghan has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

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