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Importance of Patient Capital in Life Sciences

TSX Venture Exchange has a strong history of helping early-stage health and life sciences companies raise patient capital for research and development purposes.

TSX Venture Exchange (TSXV), a premier junior stock exchange, has a strong history of helping early-stage health and life sciences companies raise patient capital for research and development purposes. On average, companies that go public on TSXV raise approximately $8 million and have a market value of around $47 million. As of March 31, 2023, Toronto Stock Exchange (TSX) and TSXV are home to 153 life sciences companies with a total market capitalization of $26.4 billion. This type of capital helps companies focus on staying true to the original vision of their founders with the support of investors willing to forgo immediate returns for more substantial, lasting returns.

Having a two-tiered stock exchange model in Canada, with TSX for later-stage companies and TSXV for earlier-stage companies, allows emerging companies to access public markets earlier in their lifecycle. When they’re ready, it helps them graduate from TSXV to TSX – also presenting them the option to explore dual-listing on a major U.S. exchange down the line should they choose to.

Eupraxia Pharmaceuticals, a clinical-stage biotechnology company, has been making waves in the industry with its focus on developing locally delivered, extended-release alternatives to currently approved drugs. Their innovative approach has not gone unnoticed, as their market capitalization has grown significantly over the past few months. This surge in value is a testament to the company’s commitment to developing cutting-edge solutions for needy patients. Eupraxia has raised over CDN $55 million through two financings, demonstrating that investors are keen to back their vision. The company’s share price has also significantly increased, rising by 56% throughout 2022.

In May 2022, Bausch + Lomb Corporation (TSX: BLCO), a leading global eye health company, made headlines with their dual listing on the New York Stock Exchange (NYSE) and TSX. The IPO valued the company at US$6.5 billion, allowing it to raise US$630 million despite doing so in a challenging market environment. 

Bausch + Lomb’s IPO was also the second-largest IPO in North America in 2022, indicating continued positive interest in the life sciences industry. With companies like Eupraxia Pharmaceuticals leading the way in developing innovative solutions for patients, it’s an exciting time for the biotech industry. 

In 2023, two U.S.-based companies, Quipt Home Medical Corp. and Aurora Spine Corporation, were featured on the TSX Venture 50 list, a ranking of the top performers on the Exchange over the last year. 

  1. Quipt Home Medical, based in Cincinnati, specializes in improving the home management of chronic illness through the application of telehealth systems and has seen a 71% increase in its share price since going public, completed 14 financings amounting to a total of CDN $161M and 20 acquisitions. Quipt Home Medical graduated from TSXV to TSX in June of 2023 and is also dual-listed on Nasdaq.
  2. Aurora Spine Therapeutics, based in California, is an emerging growth company focused on bringing new solutions to the spinal implant market, which has completed 11 financings thus far, amounting to a total of $30M. 

Rising awareness among health-conscious consumers, coupled with the needs of an aging population, means the life sciences industry will continue to be an essential driver of health innovation in North America. With support from investors and other government funding programs, Canada can become a significant global hub for clinical trials, drug development, and research and development of AI-enabled biotech health solutions.

* Unless otherwise noted, all data is sourced from the Market Intelligence Group of TMX Group as of December 31, 2022 and values are quoted in Canadian dollars.

George Khalife, VP of U.S. Capital Formation, based in Chicago, and who covers the Midwest U.S. for all sectors at TSX and TSX-V. George can be reached at george.khalife@tmx.com.