The TSX/TSXV listed Canadian healthcare stocks on our list have generated superb returns year-to-date and could be just what the doctor ordered
SmallCapPower | September 26, 2019: Positive prospects for the healthcare sector are being driven by aging populations in Canada and other G7 countries globally. Data from the 2016 census released in May 2017, shows the largest increase in the seniors population since the first census after Confederation. The proportion of those aged 65 and older rose to 16.9% of the Canadian population, while those under the age of 15 fell to 16.6% (Globe and Mail, 2017). According to the CIHI, total healthcare spending in Canada reached $242B, or ~11.5% of Canada’s GDP, equal to $6,604 per Canadian. Healthcare spending has been increasing steadily since 1975 and with an aging population, spending is not likely to reverse anytime soon. Overall, the outlook for the healthcare sector remains strong. Today we have discovered four TSX/TSXV listed Canadian healthcare stocks that have experienced increased price momentum year-to-date.
*Share prices as at September 24, 2019, data obtained from S&P Capital IQ
WELL Health Technologies Corp. (TSXV:WELL) – $1.55
Health Care Providers and Technology
WELL Health Technologies is leveraging disruptive trends in the health and wellness space by strategically pursuing a proven blueprint M&A strategy in order to maximize profitable growth in the space. Target acquisition companies will be across various vertical industries within the health and wellness space and will possess low capital requirements and high potential to exploit shifts in health trends. Last November, the Company announced an agreement to acquire NerdEMR, BC’s largest OSCAR electronic medical records service provider. NerdEMR provides OSCAR EMR services to approximately 220 clinics in British Columbia and will help catapult WELL into the National EMR marketplace. The Company was ranked second in the Diversified Industries on the 2019 TSX Venture 50. On August 22, 2019, WELL Health reported Q2/19 financial results, highlighted by revenue of $7.4M, a 270% increase from Q2/18. Management expects that Q3/19 revenue should increase substantially as the quarter will benefit from the full contribution of the OSCARprn and KAI Innovations acquisitions.
- Market Cap: $156.9M
- 90-Day Return: +72.2%
- YTD-Return: +244.4%
- 90-Day Average Trading Volume: 686,330
Profound Medical Corp. (TSX:PRN) – $1.11
Medical Devices
Profound Medical is a medical device company focused on prostate cancer care. The Company is developing and commercializing a minimally-invasive procedure for patients with prostate cancer: the Transurethral Ultrasound Ablation-PRO (TULSA-PRO) system. The technology combines magnetic resonance imaging (MRI) guidance and ultrasound energy to deliver thermal ablative therapy to the prostate gland delivered through the urethra. Its real-time, MRI-guided ultrasound procedure (TULSA) ablates the whole prostate gland, from the inside out, in a single session. Profound Medical has completed a Phase l International Clinical Trial.
- Market Cap: $146.8M
- 90-Day Return: +48.0%
- YTD-Return: +101.8%
- 90-Day Average Trading Volume: 169,650
Viemed Healthcare, Inc. (TSX:VMD) – $9.28
Health Care Providers
Viemed Healthcare provides in-home healthcare solutions in the United States. VHI provides respiratory services & related equipment, along with respiratory disease management, neuromuscular care, and oxygen-therapy services. Viemed also provides education and counseling to patients using its technology. The Company has relationships with hospitals and pulmonologists in over half of the U.S. states. On August 9, 2019, Viemed announced Q2/19 financial results: EPS was $0.05 on revenue of $22.5M. Management also provided guidance for its Q3/19 financials, with revenue expected to be between $23.7M and $24.5M for the third quarter.
- Market Cap: $350.2M
- 90-Day Return: +1.4%
- YTD-Return: +76.9%
- 90-Day Average Trading Volume: 98,190
VitalHub Corp. (TSXV:VHI) – $0.19
Healthcare Technology
VitalHub develops technology solutions for Health and Human Service providers in the Mental Health, Long-Term Care, Community Health Service, Home Health, Social Service, and Acute-Care sectors. Some of the technologies VitalHub develops includes Blockchain, Mobile, Patient Flow, Web-Based Assessment, and Electronic Health Record Solutions. VitalHub has over 200 clients across North America and is based in Toronto, with an offshore development hub in Sri Lanka. On August 22, 2019, VitalHub announced Q2/19 financial results, which was highlighted by revenue of $2.8M and adjusted EBITDA of $0.5M, with recurring revenue representing 46.5% of VitalHub’s total revenue.
- Market Cap: $31.2M
- 90-Day Return: +18.8%
- YTD-Return: +26.7%
- 90-Day Average Trading Volume: 206,900
Disclosure: Neither the author nor his family own shares in any of the companies mentioned above.
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