These Canadian Biotech Stocks Are Quietly Changing the Face of Healthcare

Canadian biotech stock BELLUS Health has been snatched from the public market. However, these two biopharma growth stocks also have the capacity to change healthcare.

| More on:
Workers use a microscope to do medical research in a modern laboratory.

Source: Getty Images

Early investors in Canadian biotech stock BELLUS Health (TSX:BLU) could be ecstatic right now after a fine 75.5% rally in BLU stock year to date. The bullish run was ensued after global pharmaceuticals giant GSK offered to acquire all BELLUS stock at US$14.75, or a 103% premium to BLU stock’s previous market price. The transaction received a 99.99% vote by BLU shareholders on June 16, 2023.

A promising clinical-stage Canadian biotech stock has been snatched from the public market. BELLUS Health is developing a potential best-in-class refractory chronic cough therapy, camlipixant, that has reached the final (phase three) testing stage. BLU stock investors could realize up to 847% in returns over a five-year holding period. BELLUS stock has finally handsomely rewarded its faithful investors, despite its struggle to recover from a 2020 drop. Buyouts similar to the BELLUS-GSK deal usually happen when a target company is developing a healthcare solution with significant potential to change lives.

That said, we still have several Canadian small-cap biotech stocks whose research teams are working tirelessly to change the face of healthcare. Two Canada-based biotech stocks come to mind. Let’s have a look.

AbCellera Biologics

AbCellera Biologics (NASDAQ:ABCL) is a biotech development company that’s using artificial intelligence (AI) to discover antibodies that may be used to treat or cure several health conditions. The Vancouver-based Canadian biotech firm has extensively partnered with emerging biotech firms and well-established pharmaceutical companies. It leverages its proprietary data science-optimized platform to help partners develop medicines faster than ever before.

Banking on a strong balance sheet, the company has committed $401 million to a $701 million co-investment partnership with the government of Canada and British Columbia to strengthen drug development capabilities and help change the face of Canadian healthcare.

ABCL stock trades down 88% off from its highs recorded at its initial public offering (IPO) in late 2020. AbCellera Biologics’s revenue generation has gone down in 2023 because the emergency-use authorization from the U.S. Food and Drug Administration (FDA) on a partnered COVID-19 treatment, bebtelovimab, expired in 2022. However, the biotech stock could be getting ripe for bottom fishing.

The company saw a 20% jump in the number of partnered program starts to 101, and it increased its discovery partners by 14% year over year to 41 during the first quarter of 2023. Its revenue opportunity set is growing.   

Insiders at AbCellera acquired 167,500 shares in ABCL stock worth more than US$1.1 million during the past three months. They seem confident of the company’s potential to grow revenue and influence how medicines are developed and commercialized in North America.

  • We just revealed five stocks as “best buys” this month … join Stock Advisor Canada to find out if Enbridge made the list!

Xenon Pharmaceuticals

Xenon Pharmaceuticals (NASDAQ:XENE) is a British Columbia, Canada-based neurology-focused biotech stock. The clinical-stage biopharmaceutical firm is developing an epilepsy drug program, the XEN1101, that has reached the final (phase three) trial stages and could be commercialized soon to change patient lives.

Although several antiseizure medications are available, the company sees a significant unmet medical need in up to 50% of American patients that have difficulty controlling seizures or have severe refractory epilepsy.

The company is well funded with nearly US$690 million in cash, cash equivalence, and marketable securities on March 31, 2023. The assets could fund the company’s activities well in 2026, including the completion of the current phase three epilepsy drug trials.

XENE stock has produced 397% in returns to investors over the past five years. The Canada-based biotech stock has quietly changed some investors’ lives already.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Brian Paradza has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends AbCellera Biologics. The Motley Fool has a disclosure policy.

More on Tech Stocks

money goes up and down in balance
Tech Stocks

1 “Magnificent 7” Stock I’d Buy Over Nvidia Right Now

Here's why Meta Platforms stock is a better choice for Canadian investors compared to Nvidia in November 2024.

Read more »

A data center engineer works on a laptop at a server farm.
Tech Stocks

3 No-Brainer Data Centre Stocks to Buy With $500 Right Now

Data centres are going to be a huge growth opportunity in the next decade. And these are the top buys.

Read more »

The virtual button with the letters AI in a circle hovering above a keyboard, about to be clicked by a cursor.
Tech Stocks

Is OpenText Stock a Buy, Sell, or Hold for 2025?

OpenText stock has fallen in the last few years, but that could mean this top tech stock remains an undervalued…

Read more »

AI microchip
Tech Stocks

Celestica Stock: Buy, Sell, or Hold?

Celestica's stock price has rallied 950% in the last five years. Will the AI boom send it even higher in…

Read more »

data analyze research
Tech Stocks

2 Ridiculously Cheap Growth Stocks to Buy Hand Over Fist in 2024

Well Health Technologies is a cheap growth stock to buy for its record-breaking results, massive revenue growth, and profitability.

Read more »

A worker uses a double monitor computer screen in an office.
Tech Stocks

4 Reasons to Buy Kinaxis Stock Like There’s No Tomorrow

Kinaxis stock has a strong past. But there is even more to look forward to from this top tech stock.

Read more »

The letters AI glowing on a circuit board processor.
Tech Stocks

The Future of AI: Best Canadian Stocks to Buy Now

Here are two of the best AI-focused stocks in Canada that you can consider adding to your portfolio before it’s…

Read more »

TFSA (Tax-Free Savings Account) on wooden blocks and Canadian one hundred dollar bills.
Tech Stocks

2 TFSA Stocks to Buy Right Now With $7,000

Are you looking for growth stocks that can help you maximize the tax-free withdrawals of the TFSA? This article is…

Read more »