Which biotech stocks on the TSX and TSXV have performed the best so far this year? Here’s a look at three top Canadian biotech stocks.
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While not as large as the US biotech industry, the Canadian biotech market is still making a name for itself on the global stage in terms of size and opportunities.
In recent years, the global biotech sector has become a “real industry” that brought “spectacular” returns for mid-cap companies in 2020, according to Jessica Chutter, managing director and chairman of biotechnology investment banking with Morgan Stanley (NYSE:MS).
Much of the growth in biotech is attributable to technology advancements in drug research and development, said Chutter, who was speaking at a virtual event hosted by the Globe and Mail.
Also speaking during the event, Brian Bloom, co-founder, chairman and CEO of Toronto-based investment firm Bloom Burton & Co., said Canada accounts for approximately 3 percent of the biotech sector’s global market capitalization. Bloom noted that Canadian biotech companies raised an impressive US$3.2 billion in financing for 2020. That’s out of more than US$110 billion globally.
Unsurprisingly, many Canadian biotech stocks have performed well against that backdrop, and have continued that solid performance into 2021 — in fact, analysts expect this year to be another period of stellar growth for the biotech industry, including in Canada.
Below the Investing News Network profiles the three top Canadian biotech stocks on the TSX and TSXV. Yearly performance and share price data for the companies was compiled on July 14, 2021, using TradingView’s stock screener. All top Canadian biotech stocks listed had market caps between C$10 million and C$500 million at that time.
1. Advanced Proteome Therapeutics (TSXV:APC)
Current share price: C$0.405; year-to-date gain: 170 percent
First on this list of top Canadian biotech stocks is Advanced Proteome Therapeutics. The company is developing anti-cancer therapeutics, and is also commercializing a technology platform that is intended for the chemical modification of protein therapeutics.
Advanced Proteome recently raised C$1.5 million in a private placement. In late June, the company signed an exclusive worldwide license agreement with Eli Lilly and Company (NYSE:LLY) to develop and commercialize prexasertib, a clinically advanced selective inhibitor targeting DNA damage response kinases CHK1 and CHK2; it has shown complete responses in a proportion of patients across multiple cancers in Phase 2 studies. Shares reached a year-to-date high of C$0.51 on April 12.
2. Telo Genomics (TSXV:TELO)
Current share price: C$0.46; yearly gain: 70.37 percent
Canadian biotech stock Telo Genomics is developing predictive technological products based on a telomere analysis platform, and is using diagnostic and prognostic applications that allow for personalized treatment plans for patients with specific conditions. These products include solutions with liquid biopsies and related technologies in oncology and neurological diseases.
Telo Genomics has conducted several clinical studies in collaboration with the Mayo Clinic to validate its Telo-MM tests for multiple myeloma. In April, it co-authored a paper published in the Scientific Journal; it demonstrates that the company’s TeloView technology was able to identify high-risk versus low-risk smoldering myeloma patients in a large longitudinal prospective multiple myeloma clinical study.
Telo Genomics’ management team believes the study shows the potential to move the TeloView tests toward commercialization. Shares reached a year-to-date high of C$1.44 on February 10.
3. Microbix Biosystems (TSX:MBX)
Current share price: C$0.54; yearly gain: 27.06 percent
Microbix Biosystems is a manufacturer of viral and bacterial antigens and reagents for the global diagnostics industry. The antigens produced by Microbix have been used for research purposes, as calibrators for medical devices, as immunodiagnostic assays and more.
In April, Microbix received a C$4.25 million order from a procurement authority representing the province of Ontario for its viral transport medium DxTM, a test sample collection device used for PCR testing for the COVID-19 virus. That same month, the company announced a collaboration agreement with SpeeDx, a developer of innovative molecular diagnostics solutions. Under the agreement, Microbix will be exclusive developer of quality assessment products to facilitate the registration and commercialization of SpeeDx diagnostic assays.
The company’s share price reached a year-to-date high of C$0.72 on April 26.
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Securities Disclosure: I, Melissa Pistilli, hold no direct investment interest in any company mentioned in this article.