- Healthcare continues to evolve with advancements in medicine and technology
- The Toronto Stock Exchange (TSX) offers investors exposure to a diverse range of companies involved in different facets of the healthcare industry
- The health care industry’s potential for growth, innovation, and positive social impact makes it an exciting area for investors to explore
As the healthcare industry continues to evolve with advancements in medicine and technology, investing in healthcare stocks has become an attractive option for many investors. In Canada, the Toronto Stock Exchange (TSX) offers a range of healthcare stocks that provide exposure to this rapidly growing sector.
Let’s explore some of the top TSX healthcare stocks for potential investment opportunities.
1. Sienna Senior Living Inc. (TSX:SIA)
Sienna Senior Living (market cap: C$833.0 million) is one of Canada’s largest owners and operators of senior living communities.
With an aging population, the demand for senior care services is expected to grow significantly in the coming years. Sienna Senior Living operates retirement and long-term care homes, providing a range of healthcare services tailored to seniors’ needs. As the demand for senior-centric facilities rises, Sienna Senior Living has significant growth potential.
The company announced a dividend of $0.078 per common share for July 2023, representing $0.936 per common share on an annualized basis.
SIA stock is showing signs of a comeback. While it is sitting 17.2 per cent lower than it was in August 2022, it has risen 3.8 per cent year to date.
Sienna Senior Living Inc. opened trading at C$11.32 per share.
Source: Sienna Senior Living Inc.
2. Knight Therapeutics Inc. (TSX:GUD)
Knight Therapeutics (market cap: C$515.0 million) is a specialty pharmaceutical company that acquires, licenses, develops and markets innovative prescription and over-the-counter products.
The company focuses on partnering with global pharmaceutical companies to bring novel treatments to patients in Canada and other international markets. Knight Therapeutics’ pipeline includes products in various therapeutic areas, such as neurology, rare diseases and pediatrics.
Knight recently announced its intent to conduct a normal course issuer bid and purchase, from time to time over the next 12 months, up to 5,999,524 common shares, which is 10 per cent of its public float of 59,995,245 common shares.
GUD stock is down 7.3 per cent year to date but is up 2.5 per cent over the past three months.
Knight Therapeutics opened at C$4.80 per share.
3. Bausch Health Companies Inc. (TSX:BHC)
Formerly known as Valeant Pharmaceuticals, Bausch Health Companies (market cap: C$6.1 billion) is a multinational pharmaceutical company that focuses on prescription drugs, over-the-counter products and medical devices.
The company’s portfolio includes dermatology, gastrointestinal disorders, eye health, and neurology products. Bausch Health has a rather robust pipeline and significant global market presence, making it a potentially appealing choice for healthcare investors.
Bausch is facing a class action lawsuit, accused of making materially false and/or misleading statements, with allegations of failure to disclose material adverse facts about its business, operations, and prospects.
BHC stock is on the rise, up 46.7 per cent year to date, 88.9 per cent higher than one year ago.
Bausch Health Companies Inc. opened trading at C$12.47 per share.
Source: Bausch + Lomb Corp.
4. Canopy Growth Corp. (TSX:WEED)
Canopy Growth (market cap: C$463 million) is a cannabis producer and distributor, making it a prominent player in the emerging medical cannabis sector.
The company has a diversified product portfolio that includes oils, dried flowers, and soft gel capsules. With its strong international presence and strategic partnerships, Canopy Growth remains well-positioned to capitalize on the global cannabis market’s potential growth.
The company recently launched gummies through its medical cannabis division, Spectrum Therapeutics and Wana Brands.
Wana is a Colorado-based edibles company focused on vegan, terpene-enhanced products informed by the cutting edge of cannabis science. It boasts a more than 10-year history and ranks as the No. 1 cannabis edibles brand in North America by market share.
Canopy is also fending off a class action lawsuit, WEED stock is down 83.7 per cent since this time last year, but it has climbed 9.0 per cent over the past week.
Canopy Growth Corp. opened trading at $0.60 per share.
5. Northland Power Inc. (TSX:NPI)
While not purely belonging to the health care sector, Northland Power (market cap: C$6.4 billion) deserves mention because of its focus on renewable energy, which has a direct impact on the health and well-being of our planet.
As a leading renewable power producer, Northland Power is involved in wind, solar, and thermal energy projects across Canada and abroad. Its commitment to sustainable energy makes it an enticing investment option for those interested in supporting environmentally friendly initiatives.
Northland Power Inc. stock chart – Aug 2013 to Aug 2023.
NPI stock has taken a hit lately, down 42.2 per cent in a year, but could be headed toward a dip in share value before climbing closer to its range near C$50 a share two years ago.
Northland Power Inc. opened trading at C$24.51 per share.
Honourable mentions
Vancouver-based WELL Health Technologies Corp. (TSX:WELL) is a digital healthcare company. Its practitioner enablement platform offers digital healthcare solutions for medical clinics and healthcare practitioners worldwide.
Operating out of Toronto, MCI Onehealth (TSX:DRDR) is a healthcare technology company focused on empowering patients and doctors with advanced technologies and data-driven clinical insights to increase access, improve quality and reduce healthcare costs.
Jamieson Wellness (TSX:JWEL) is a health and wellness company. The Toronto company is a manufacturer, distributor, and marketer of quality natural health products.
Source: Jaimeson Wellness.
Conclusion
Investing in healthcare stocks on the TSX can offer investors exposure to a diverse range of companies involved in different facets of the healthcare industry.
While the mentioned stocks are some of the top players in the sector, it is essential for an investor to conduct deep due diligence and consult with a financial advisor before making any investment decisions.
The healthcare industry’s potential for growth, innovation, and positive social impact makes it an exciting area for investors to explore.
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