Investing in Canadian healthcare looks increasingly attractive heading into 2026. Total health spending in Canada is now approaching roughly $399 billion and is projected to account for about 12.7% of GDP, supported by ongoing post-pandemic investment and rising demand for services.
Advances in artificial intelligence and semiconductor technology have allowed healthcare companies to build better medical equipment, improve diagnostic accuracy, imaging efficiency, and clinical workflow productivity. Canada’s biotech and medtech industries are expanding as well, with analysts expecting strong growth for domestic biotech through 2030, creating more opportunities for established companies and emerging innovators.
At the same time, early-stage funding has tightened, which challenges smaller firms even as larger players continue to increase acquisition activity and scale new technologies. Below we outline the key risks and opportunities in healthcare investing and highlight the Canadian stocks best positioned to capture this momentum.
Related: List of stocks in the Canadian healthcare sector
What are healthcare stocks?
Healthcare stocks are publicly traded companies within the broader market sector of healthcare. The industry is broad and can include:
- Healthcare facilities
- Pharmacies
- Medical device and equipment manufacturers
- Pharmaceutical companies and drugmakers
- Telehealth and telemedicine companies
- Digital platforms and apps designed for healthcare
- Senior living and retirement facilities
- Healthcare REITs
- Health insurance companies
Healthcare is a $300 billion market sector that makes up roughly 12.7% of Canada’s GDP. And though many healthcare facilities in Canada are publicly funded, many more are private tech companies and startups that are merging advances in medical science with developments in technology to create new solutions to common health problems.
Top healthcare stocks in Canada
Many hospitals and medical facilities in Canada aren’t publicly traded companies. But Canadian investors still have plenty of healthcare stocks to choose from. Below are some of the top healthcare stocks in Canada.
| Healthcare Stocks | Description |
| WELL Health Technologies (TSX: WELL) | Digital healthcare company with the largest chain of outpatient clinics in Canada |
| Knight Therapeutics (TSX: GUD) | Specialty pharma company focused on acquiring branded medicines in Canada and Latin America |
| Chartwell Retirement Residences (TSX: CSH.UN) | Larger owner of senior living facilities in Canada |
WELL Health Technologies
WELL Health Technologies (TSX: WELL) is a young digital healthcare company that owns the largest chain of outpatient medical clinics in Canada. The company’s telehealth services and digital platforms help set it apart from more traditional healthcare providers.
In a nutshell, WELL Health Technologies wants to digitize Canada’s healthcare sector. Their stated goal is to “leverage technology that empowers practitioners and their patients globally.” More specifically, WELL is using telehealth and virtual care to reduce wait times in clinics and ease overburdened facilities that are too often understaffed. This includes providing practitioners with advanced digital platforms that can store Electronic Medical Records (EMR) safely and make billing management easier.
The company focuses heavily on acquisitions. Their strategy is to acquire primary health clinics, digital healthcare companies, and EMR service providers, which can then join their network of growing providers. Right now, WELL digital platforms support over 2,100 healthcare providers, 82 WELL clinics, and 21,000 practitioners, together servicing over 4.6 million annualized patient visits.
Over the past 12 months, WELL Health Technologies Corp. has demonstrated robust financial and stock performance. In the third quarter of 2024, the company achieved record revenue of CAD 251.7 million, marking a 27% increase compared to the same period in 2023. This growth was primarily driven by a 23% organic increase.
WELL Health’s shares have shown significant appreciation. Over the past year, the stock has increased by approximately 42.84%, reflecting investor confidence in the company’s strategic direction and financial health.
Knight Therapeutics
Knight Therapeutics (TSX: GUD) is a Montreal-based specialty pharmaceutical company that acquires, in-licenses, and commercializes branded medicines across Canada and Latin America. Its portfolio spans oncology, women’s health, neurology, and other specialty areas, supported by major product acquisitions such as the Paladin and Sumitomo portfolios.
The company has posted strong growth in recent years. Knight generated record 2024 revenue of about CAD 371 million, up roughly 13% year-over-year, and continued that momentum through 2025. For the first nine months of 2025, revenue reached CAD 319 million, with Q3 sales rising 32% to CAD 121.5 million. Adjusted EBITDA also improved, driven by strong performance in promoted products and expanded distribution across Latin America.
Knight has raised its 2025 outlook, now targeting CAD 430–440 million in revenue and higher EBITDA margins as new launches such as Jornay PM in Canada and Minjuvi and Pemazyre in key Latin American markets gain traction. The company was also recognized on The Globe and Mail’s list of Canada’s Top Growing Companies for 2025, highlighting its strong multi-year expansion.
Overall, Knight remains a steadily growing mid-cap pharma company with a diversified portfolio, improving profitability, and a strengthening commercial footprint across the Americas.
Chartwell Retirement Residences
Chartwell Retirement Residences (TSX: CSH.UN) remains Canada’s largest senior housing operator, offering retirement and long-term care across four provinces. The REIT continues to benefit from strong demographic tailwinds as Canada’s aging population drives sustained demand for modern senior living.
The trust has delivered strong performance, with the stock up roughly 25% over the past year and now trading near $20. Its market cap sits above $6 billion, and it offers a steady monthly dividend yield of about 3%. Financial momentum remains solid: in Q3 2025, same-property occupancy climbed to roughly 93%, helping boost adjusted NOI by more than 15% and funds from operations by over 30% year over year.
Chartwell is also expanding its portfolio aggressively. It has completed over $1 billion in acquisitions in 2025 and committed another $700 million to future deals. The REIT’s long-term plan targets occupancy above 95% by 2028, annual rate increases above 4%, and a $2 billion investment program funded partly by selling $1 billion in non-core assets. With strong demand and limited new supply, management expects cash-flow growth to continue, supporting the REIT’s income-focused appeal and long-term upside.
What are the risks of healthcare stocks?
Healthcare stocks aren’t extremely volatile, meaning we don’t typically associate them with intense price movements, either drastically up or down. But they do have risks that are unique to the healthcare industry.
For one, healthcare companies face heavy regulation from Health Canada. This is especially true for drugmakers and pharmaceutical companies. Often these companies must go through numerous clinical trials before they can release new drugs, and it’s not uncommon for a company to abandon research after failing to secure regulatory approval.
On top of that, there’s also the risk of litigation: consumers can sue the company if health conditions worsen after drugs and medicines are used.
Some of the companies discussed above also have unique risks, mainly because they crossover with other market sectors. WELL Health Technologies, for instance, is a tech company, which makes them vulnerable to investor sentiment in the tech space.
The same can be said about real estate investment trusts (REIT)s that specialize in healthcare: when the real estate industry performs poorly, these stocks can take a hit, even if the healthcare industry is booming.
Are healthcare stocks right for you?
Notwithstanding the risks, healthcare stocks are generally considered defensive or safe stocks. Because healthcare is an essential service, we can expect these companies to generate relatively stable earnings regardless of economic conditions or trends in the stock market.
That doesn’t mean healthcare stocks are immune to price volatility or market downturns. Healthcare companies that crossover with the tech industry (one of the most volatile sectors) will be less stable than, say, senior living facilities.
But given the importance of healthcare in Canada, these companies are safer investments than more aggressive types of stocks.