9 Hot Canadian Healthcare Stocks To Buy In 2021

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The year 2020 has been a rollercoaster, especially for the Canadian health care sector from an investment point of view – be it the drug makers looking to make a mark by manufacturing COVID-19 vaccine, or telemedicine business growing at a galloping rate, or the bullish biotech market.

This year, markets are already riding on optimism as the world economy bounces back.

Let us take a look at the 10 most sought-after health care stocks that could be a value addition for investment and return.

1.    CloudMD: (TSXV:DOC)

This small-cap stock that went public in June 2020 has a 52-week high of C$ 3.43. The stock has yielded a return of over 350 per cent in 12 months.

Engaged in digitizing the delivery of health care by providing access to patients to all points of health care via phone tablet or computer, Cloud MD Software and Services has been making headlines with its strategic acquisitions in the past few months.

On February 16, CloudMD announced an acquiring interest in Visionpros, a North American leader in digital eye care platform.

The stock is currently trading at C$2.28, up over 500 per cent from it’s 52-week low of C$0.37. But it is still 8 per cent down from its 52-week high.

2.    Trillium Therapeutics (TSX:TRIL)

Trillium Therapeutics is a biotech company engaged in the research and development of innovative therapies for cancer, with a focus on innate immunity.

The two lead programs of the company – TTI-621 and TTO-622 – act as a decoy receptor that prevents CD47 from sending, a "don't eat me" signal, thereby not allowing the cancer agent to evade the immune system.

Trillium stock advanced by over 100 per cent in the last one-year.

A biotech company and operating through a single segment i.e., R&D of therapies for cancer treatment.

3.    Viemed Healthcare Inc (TSX:VMD) 

COVID-19 induced lockdowns was a period that witnessed the rise and fall of many stocks but this one has been thriving and has given a return of nearly 200 per cent in the past one year.

The company provides durable medical equipment and health care solutions across North America.

VieMed Healthcare's net income for the year ended December 31, 2020, was approximately C$31.5 million compared to C$8.5 for the same period a year ago.

Moreover, with the price-to-earnings (P/E) ratio of 11.7, this stock is worth holding.  

4.    Andlauer Healthcare Group (TSX:AND)

Ranked highly among the stock list of 50 health care companies that are outperforming their peers, the stocks of Andlauer Healthcare Group have given a return of ~56 per cent in the past one year.

Andlauer Healthcare specializes in two segments namely medical transportation and healthcare logistics.

The Ontario-based companies' major chunk of the revenue comes from a specialized transportation system that provides temperature control services to healthcare customers of the last mile.

On March 1, Andlauer acquired Skeleton Canada and 49 per cent of Skeleton USA Inc., at a combined price of ~C$114.7 million.  

5.    Bausch Health Companies Inc (TSX:BHC)

At the time the filling the story, Bausch Health Companies is leading a stock list of 50 companies who have outperformed their peers.

With a customer base of more than 150 million and a global presence in over 90 countries, Bausch Health is focused on manufacturing and marketing a broad range of generic pharmaceuticals, over-the-counter (OTC) products, and medical devices such as contact lenses intraocular lenses ophthalmic surgical equipment and aesthetic devices.

Headquartered in Québec Canada, the stock price has grown 100 per cent in the last one year. 

According to the released company, financial data revenue for the entire year of 2020 stood at C$ 8.027 billion and adjusted EBITDA (non-GAAP) at C$ 3.294 billion.

With the business recovery in progress, the outlook for 2021 looks optimistic.  

6.    WELL Health Technologies (TSX:WELL)

While WELL Health, does not provide any health care services directly, it owns and operates the largest portfolio of Primary health clinics and associated services through:

1. clinical services
2. digital services.

The stocks are up whopping 430+ per cent in the last one year. Being the largest single chain network, its digital portfolio consists of more than 10,000 doctors along with 180 doctors from the clinic portfolio.

Additionally, its Electronic Medical Records (EMR) services help hundreds of clinics to achieve digitization.

With the Canadian government's commitment to spend more on health care delivery services, the outlook for well health technologies for 2021 remains highly optimistic. 

7.    Medexus Pharmaceuticals Inc. (TSXV:MDP)

Health care companies engaged in the production of anti-infection and immunity-boosting drugs and medicines are likely to gain in 2021.

Our next pick is Medexus Pharmaceuticals Inc., a Canadian specialty pharma company that focuses on autoimmune diseases.

Its stock price has grown by 129 per cent over the past one-year. The company’s revenue for the first nine-month period of the year went up by 70 per cent to C$82.7 million. 

With a more than sixfold increase over the previous year's adjusted EBITDA, Medexus Pharmaceuticals is a stock to watch out for in 2021.

8.    Skylight Health Group Inc. (TSXV:SHG)

Stocks of this penny healthcare stock has skyrocketed by nearly increased1600 per cent over the last one year.

In the post-COVID-19 scenario, the federal government of Canada committed to making health care delivery more affordable and to the last person in the society.

Under such circumstances, 2021 will be marked with unprecedented activity for Skylight since it is engaged in the business of providing medical care services via a unique membership scheme for the many diseases.

Earlier this month, Skylight announced that it will acquire three independent primary care give us in the United States with US$10 million in revenue.  

9.    HLS Therapeutics Inc. (TSX:HLS)

HLS is a pharmaceutical company that primarily focuses on the acquisition and commercialization of branded pharma products mostly in North American markets.

It provides access to drugs and other facilities to the caregivers or patients which are otherwise not easily available. 

HLS stocks have increased by 20 per cent in the last six months.