is a premier junior stock exchange with a long history of helping early stage health and life sciences companies raise patient capital for research and development purposes. On average, companies listed on the TSXV raised about $8 million and had a market capitalization of about $47 million. As of February 28, 2022, TSX and TSXV had 159 life science companies with a combined market capitalization of $32.2 billion. This type of capital helps companies focus on staying true to the founder’s original vision, backed by investors who are willing to forgo immediate returns for more substantial, long-lasting returns.
Having a two-tier stock exchange model in Canada, TSX for late-stage companies and TSXV for early-stage companies, gives emerging companies the opportunity to access public markets early in their life cycle. When they’re ready, it helps them graduate from TSXV to TSX — and offers them the opportunity to dual-list on major U.S. exchanges if they so choose.
Top performers in cleantech and life sciences in 2021 are Sernova (TSXV:SVA), a clinical-stage company focused on regenerative medicine treatment technologies for chronic diseases. It had a market cap of $475 million as of December 31, 2021, and its stock price has risen 172% over the course of the year. Sernova’s growth is a testament to the benefits of patient capital in drug development and biotech treatments.
The pandemic has accelerated global and Canadian attention to the life sciences sector, highlighting the importance of early investment in developing therapeutic solutions to emerging health problems.Another TSX Venture top performer was Therma Bright Inc., its market capitalization has doubled, and shares are up 91% in 2021. The company focuses on hyperthermia technology that combines artificial intelligence and the Internet of Things (IoT). During the pandemic, Therma Bright is adding Covid-19 diagnostics to its product line and offering at-home rapid antigen test kits for a growing number of coronavirus variants.
Growing awareness among health-conscious consumers, coupled with the demands of an aging population, means that the life sciences industry will continue to be an important driver of health innovation in North America. With the support of investors and other government funding programs, Canada can become a major global hub for clinical trials, drug development, and research and development of AI biotech health solutions.
* Unless otherwise stated, all data are from the TMX Group Market Intelligence Group as of December 31, 2021, and values are quoted in Canadian dollars.
