Biotech is a dynamic industry that is driving scientific advancements and innovation in healthcare. In Canada, the biotech industry is home to companies pursuing cutting-edge therapies and medical technologies.
According to Grandview Research, the global biotech market is expected to grow at a CAGR of 13.96 percent between 2024 and 2030 to reach a value of US$3.08 trillion.
Data on Canadian biotech stocks was collected on January 14, 2024, using TradingView’s stock screener. Only companies with market capitalizations of over C$50 million at that time were considered. Companies on the TSX, TSXV and CSE were considered, but no TSXV-listed stocks made the list this time. Read on to learn what’s been driving these biotech firms.
1. Bright Minds Biosciences (CSE:DRUG)
Year-on-year gain: 2,131 percent
Market cap: C$391.38 million
Share price: C$56.00
Bright Minds Biosciences is focused on developing novel treatments for neuropsychiatric disorders and pain. Its portfolio consists of serotonin agonists designed to target neurocircuit abnormalities that make disorders like epilepsy, post-traumatic stress disorder and depression difficult to treat.
The company’s drugs have been designed to potentially retain the powerful therapeutic aspects of psychedelic and other serotonergic compounds, while minimizing the side effects, thereby creating superior drugs to first-generation compounds such as psilocybin.
Bright Minds is in Phase 2 clinical trials of its candidate BMB-101 in patients with classic absence epilepsy and developmental epileptic encephalopathy.
On October 15, the company’s stock price surged nearly 1,500 percent in a single session. While Bright Minds didn’t have news of its own, the move was likely influenced by global pharmaceutical company Lundbeck’s announcement of intention to acquire Longboard Pharmaceuticals, which has a similar drug candidate. Bright Minds closed a non-brokered private placement that included participation from a group of healthcare investors on November 4, 2024.
2. ME Therapeutics Holdings (CSE:METX)
Year-on-year gain: 369.42 percent
Market cap: C$95.72 million
Share price: C$5.68
ME Therapeutics Holdings is a biotechnology company focused on developing cancer-fighting drug candidates that can increase the efficacy of current immuno-oncology drugs by targeting suppressive myeloid cells, which have been found to hinder the effectiveness of existing immuno-oncology treatments. Immuno-oncology is a relatively new area of cancer drug research and has shown promising results when used to treat cancer with low survival rates.
In December 2023, the company shared research done in collaboration with Dr. Kenneth Harder at the University of British Columbia suggesting ME Therapeutics’ antibody, h1B11-12, successfully blocks a protein that fuels breast and colon cancer growth (G-CSF). Trial planning efforts are ongoing, and the company expects development of a cell line for future production of the drug to be finished in the latter half of 2025.
In addition, the company is part of an ongoing collaborative effort to develop therapeutic MRNA delivery methods to myeloid cells with NanoVation Therapeutics, a biotech company that develops customized nucleic acid and lipid nanoparticle technologies to empower genetic medicine. The collaboration has already resulted in two new MRNA formulations, for which testing began on October 4.
3. Medicenna (TSX:MDNA)
Year-on-year gain: 217.07 percent
Market cap: C$104.81 million
Share price: C$1.30
Medicenna is a clinical-stage immuno-oncology company specializing in the development of innovative therapies for patients with challenging unmet needs. Its focus is on creating novel, highly selective versions of cytokines — small proteins that play a crucial role in regulating immune responses — such as IL-2, IL-4 and IL-13, which it refers to as ‘Superkines’ and ’empowered superkines.’
Interleukins, which Medicenna says are at the core of its therapies, are groups of cytokines. The company’s interleukins are engineered to fuse with specific molecules to optimize their function. Its therapies treat solid tumors, which have a low response rate to conventional cancer treatments, and autoimmune and neuroinflammatory diseases.
Medicenna’s lead candidate, MDNA11, has demonstrated therapeutic activity and an acceptable safety profile during clinical trials of monotherapy dose escalation in treating patients with advanced solid tumors.
On December 5, the company shared a clinical update for its Phase 1/2 ABILITY-1 study, which is testing MDNA11 in combination with Merck’s KEYTRUDA, revealing one patient in the study had a complete response after receiving eight weeks of treatment.
4. Cardiol Therapeutics (TSX:CRDL)
Year-on-year gain: 27.86 percent
Market cap: C$149.33 million
Share price: C$1.79
Cardiol Therapeutics is a biopharma company developing innovative treatments for inflammation and fibrosis in cardiovascular conditions. Its research is concentrated on pericarditis, which is inflammation of the membrane surrounding the heart; myocarditis, or inflammation of the heart muscle; and heart failure.
Cardiol currently has two drug candidates in its pipeline. CardiolRx, the company’s lead candidate, received an orphan drug destination in February 2024.
Cardol shared the results of its Phase 2 open-label pilot study of CardiolRx in patients with symptomatic recurrent pericarditis at the American Heart Association Scientific Sessions in November 2024. Findings indicated that CardiolRx significantly reduced pericardial pain in patients, with most experiencing relief within 5 days, and that the benefits were sustained over the extended 26 week study. The treatment also lowered inflammation and prevented recurring episodes, leading to a significant decrease in pericarditis occurrences.
The biotech company is also developing CRD-38, a drug formulation of cannabidiol that is administered subcutaneously for treating heart failure.
Securities Disclosure: I, Meagen Seatter, hold no direct investment interest in any company mentioned in this article.