Breaking into the Canadian healthcare market has been a challenge for many health tech startups. The biggest hurdle that founders reported facing is the uncertain regulatory regime.
Navigating the healthcare system in Canada requires more than just innovation. Startups need to do a fine balancing act between the main stakeholders which are the government, the healthcare service providers, and the patients.
Developments in the Canadian health tech industry have been slow. However, there is massive potential for growth as the industry outgrows its 20th-century methods.
There are several startups looking to make a difference in the field. In this article, we’ll discuss the top two Canadian health tech stocks to look out for.
Well Health Technologies is a top TSX bet
Well Health was founded in 2010 and has since grown to become the largest owner-operator of outpatient clinics in Canada. The company operates numerous clinics in Ontario, Quebec, and British Columbia. Additionally, Well Health also has a presence in the United States.
Its primary business model is to combine the latest technology with expert health care professionals. In addition to running top-of-the-line clinics, the company is also involved in providing telehealth services. Not only does this service meet the needs of the ongoing pandemic, but it also helps patients living in underserved communities.
Well Health’s stock price has gained around 60% over the past year, fueled by the many strategic acquisitions the company has made.
CloudMD Software and Services
CloudMD has been operating since 2013 and specializes in providing virtual healthcare. The company has developed proprietary technology which allows patients to connect with healthcare professionals directly through their smartphones, tablets, or computers.
CloudMD aims to negate the need for patients to visit clinics or doctors in person. The company also leverages artificial intelligence to bring quick care to its users.
CloudMD has also closed four acquisition deals in 2021 alone in an effort to become the go-to Canadian brand for telehealth services. It reported a second-quarter revenue of $15.7 million which marked 9% organic growth per quarter.
CloudMD’s stock has gained around 30% over the past year.
It is clear that the Canadian health-tech market has significant potential for growth. These start-ups are only just getting their feet wet and have a long way to go. The two Canadian stocks present a fair investment opportunity for anyone looking to invest in growth companies trading on the TSX today.