Top 3 Canadian Biotech Stocks in 2026

1. Bright Minds Biosciences (CSE:DRUG)

Year-on-year gain: 187.57 percent
Market cap: C$1.16 billion
Share price: C$115.66

Bright Minds Biosciences is developing novel serotonin agonists targeting neurocircuit abnormalities linked to neuropsychiatric disorders and epilepsy, designing next-generation treatments that aim to retain the therapeutic benefits of psychedelics while minimizing side effects.

Its lead candidate, BMB-101, a selective 5-HT2C receptor agonist, has shown encouraging preclinical efficacy by stopping seizures in an epilepsy mouse model, evaluated jointly with Firefly Neuroscience (NASDAQ:AIFF).

The company’s share price surged nearly 1,500 percent in October 2024 following H. Lundbeck’s acquisition announcement of a competitor focused on similar targets. Strengthening its epilepsy expertise, Bright Minds expanded its scientific advisory board in early 2025 by adding five leaders in the field.

Also in 2025, Bright Minds launched the BREAKTHROUGH study, an open-label Phase 2 trial evaluating BMB-101 in adults with absence epilepsy or developmental and epileptic encephalopathy.

Bright Minds reported positive top-line results from the trial in January.

The company subsequently closed an upsized US$175 million public offering to fund global registrational epilepsy trials and its new Phase 2a Prader-Willi syndrome program.

2. Eupraxia Pharmaceuticals (TSX:EPRX)

Year-on-year gain: 115.87 percent
Market cap: C$599.66 million
Share price: C$9.52

Eupraxia Pharmaceuticals is developing clinical candidates that employ its DiffuSphere technology, which delivers treatments to the targeted tissues.

Its current clinical candidates are EP‑104GI for eosinophilic esophagitis and EP‑104IAR for knee osteoarthritis. The firm is also evaluating DiffuSphere‑based formulations for additional inflammatory and oncology indications.

Eupraxia continued to advance the treatment through clinical trials in 2025 and released multiple rounds of positive data from its Phase 1b/2a trial cohorts. In March, the company reported that the highest‑dose cohorts in the Phase 1b/2a portion of its RESOLVE trial achieved near‑complete normalization of esophageal tissue, as well as clinical remission rates of about 76 percent at 24 weeks after a single dose of EP‑104GI.

Following a US$63.2 million equity raise in February, Eupraxia expects its cash runway to extend into the first half of 2028 as it heads toward Phase 2b top‑line data in Q3 of this year.

3. Sernova Biotherapeutics (TSXV:SVA)

Year-on-year gain: 8.82 percent
Market cap: C$60.85 million
Share price: C$0.19

Sernova Biotherapeutics is a clinical‑stage regenerative medicine company that is developing an implantable bio‑hybrid organ system called the Cell Pouch. With its partner Evotec (NASDAQ:EVO), the firm aims to functionally cure chronic diseases, including type 1 diabetes and certain thyroid and blood disorders.

In early 2026, Sernova raised C$7.1 million in new equity and convertible debt and said it plans to retire about C$17 million of obligations, materially de‑levering the balance sheet to extend its Cell Pouch development runway.