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It is no surprise that the health care industry was among the first to be at the receiving end of the havoc caused by coronavirus, a fact reflected in the performances of medical stocks too.
However, the pandemic did boost the growth of certain medical stocks operating in the digital domain such as Well Health (TSX:WELL) and CloudMD (TSXV:DOC).
While the TSX Capped Healthcare Index has returned 31 per cent in last one-year, the rise was primarily due to the booming pot stocks in the second half of 2020.
Handful TSX medical stocks continue to show resilience and are slowly advancing. We look at two such rising TSX health care stocks below:
Bausch Health Companies Inc. (TSX:BHC)
This medical stock is up 52 per cent year-to-date, outperforming the TSX healthcare index, which has gained 49 per cent in the same period.
Bausch is a global health care giant with domain expertise in pharmaceutical, consumer health and medical device. The company focuses on branded products for dermatology, ophthalmology, and gastrointestinal market.
The large-cap stock has yielded 15 per cent in the last one year.
The company expects its fourth quarter 2020 revenue to be around C$2.2 billion. For the entire 2020, it anticipates revenue range between C$7.80 to C$8.00 billion.
Profound Medical Corp. (TSX:PRN)
Stocks of the Ontario-based company are up almost 20 per cent YTD. In the last one-year, Profound Medical has returned over 40 per cent.
The manufacturer of medical instruments is currently developing a technology that combines real time MRI, robotically driven transurethral ultrasound, and closed loop temperature feedback control.
The company expects Q4 revenues to grow by 32 per cent YoY to around C$ 3.7 million.
How Pandemic Reshaped Canada’s Medical Industry
Looking back at 2020, the Canadian healthcare sector has the following takeaways:
- The shift to virtual care will be the new normal
- The balance between security, compliance and innovation is critical and
- Innovation will continue to be the torchbearer of the future of Canada's health care system.
Coronavirus will be the principal cost driver for at least in the next foreseeable future (C$80-C$160 billion), says a joint study by the Conference Board of Canada conducted in partnership with the Council of the Federation.
The increase in costs is likely to take place in the following areas:
- Counter the impact on the health of Canadians due to the virus
- Affecting infrastructural changes in health care delivery such as virtual care services.
