Biotech is a dynamic industry that is driving scientific advances and innovation in healthcare. In Canada, the biotech sector is home to companies pursuing cutting-edge therapies and medical technologies.
Read on to learn what’s been driving these Canadian biotech firms.
1. Eupraxia Pharmaceuticals (TSX:EPRX)
Year-on-year gain: 136.75 percent
Market cap: C$507.5 million
Share price: C$10.63
Eupraxia Pharmaceuticals is developing clinical candidates that employ its DiffuSphere technology, which delivers treatments to the targeted tissues.
The company’s candidates are currently EP-104GI for eosinophilic esophagitis and EP-104IAR for knee osteoarthritis, and it is exploring the use of its technology for other active compounds as well.
The company has continued to advance the treatment through clinical trials in 2025 and released multiple rounds of positive data from its Phase 1b/2a trial cohorts.
In July, Eupraxia dosed its first patient after advancing its investigation to Phase 2b trials based on safety and efficacy data from the earlier Phase 2a patient cohorts. Top-line results from the Phase 2b study are anticipated in Q3 2026.
In September, the company shared data from the highest-dose cohort of the still ongoing Phase 1b/2a trials, reporting that the group saw the largest improvements so far. Backed by a US$80.5 million public offering completed in September, Eupraxia ends 2025 capitalized through Q1 2028, the company stated.
2. NervGen (TSXV:NGEN)
Year-on-year gain: 123.08 percent
Market cap: C$562.67 million
Share price: C$6.96
NervGen is a clinical-stage Canadian biotechnology company that focuses on developing innovative treatments to enable the nervous system to repair itself following damage from injury or disease.
The company’s core technology targets a mechanism that hinders nervous system repair. When the nervous system is damaged, chondroitin sulfate proteoglycans (CSPG) form a “scar.” Initially, CSPGs help contain damage, but their long-term interaction with the PTPσ receptor inhibits repair.
NervGen’s lead drug candidate, NVG-291, is designed to relieve these inhibitory effects to promote nervous system repair. It received fast-track designation from the US FDA.
On November 24, 2025, the company announced expanded data from its Phase 1b/2a clinical trial testing NVG-291 in patients with chronic spinal cord injury. The results showed ‘unprecedented durable’ improvements in patients, with functional gains continuing to strengthen after the 12 week treatment period ended.
Compared to placebo, more patients who received the treatment reported substantially improved bladder control and muscle spasticity, and GRASSP quantitative prehension scores demonstrating a 3.7-fold greater mean improvement in hand function.
NVG-300, a newer preclinical candidate, is being evaluated for ischemic stroke and SCI.
3. Bright Minds Biosciences (CSE:DRUG)
Year-on-year gain: 103.83 percent
Market cap: C$918.89 million
Share price: C$110.72
Bright Minds Biosciences is developing novel serotonin agonists targeting neurocircuit abnormalities linked to neuropsychiatric disorders and epilepsy, designing next-generation treatments that aim to retain the therapeutic benefits of psychedelics while minimizing side effects.
Its lead candidate, BMB-101, a selective 5-HT2C receptor agonist, has shown encouraging preclinical efficacy by stopping seizures in an epilepsy mouse model, evaluated jointly with Firefly Neuroscience (NASDAQ:AIFF).
The company’s stock surged nearly 1,500 percent in October 2024 following H. Lundbeck’s acquisition announcement of a competitor focused on similar targets. Strengthening its epilepsy expertise, Bright Minds expanded its scientific advisory board in early 2025 by adding five leaders in the field.
In 2025, Bright Minds launched the BREAKTHROUGH study, an open-label Phase 2 trial evaluating BMB-101 in adults with absence epilepsy or developmental and epileptic encephalopathy.
Clinical updates presented at the American Epilepsy Society Annual Meeting on December 7 highlighted BMB-101’s unique G-protein biased agonism, which aims to provide anti-seizure efficacy without the cardiovascular risks typical of older serotonin drugs. The same month, Bright Minds company expanded its scope by initiating a new Phase 2a program investigating BMB-101 for Prader-Willi Syndrome.
4. Hemostemix (TSXV:HEM)
Year-on-year gain: 21.43 percent
Market cap: C$16.02 million
Share price: C$0.09
Hemostemix is a clinical-stage biotech company focused on developing autologous stem cell therapies, meaning the treatments use a patient’s own cells to theoretically enhance safety and efficacy.
Its main product, ACP-01, is an autologous cell therapy designed to promote tissue repair and regeneration in areas affected by diseases, including a range of heart diseases.
The company announced its first advanced sales orders for ACP-01 in Q1 2025 and has been working to expand internationally and attract new investment.
Hemostemix secured the regulatory green light for commercial sales in Florida after the state passed Senate Bill 1768. The bill creates a framework in which healthcare providers can administer stem cell therapies that had not yet been approved by the US Food and Drug Administration (FDA) but meet the bill’s guidelines.
The company now offers commercial ACP-01 treatments for ischemic pain in the state under the name VesCell, with sales forecasted to reach C$22.5 million in 2026. Operational plans target cash flow positivity by Q4 2026, supported by a growing physician network and commercial pipeline.
Additionally, Hemostemix is currently collaborating with Firefly Neuroscience on a Phase 1 clinical trial of ACP-01 for vascular dementia.
A pre-IND meeting, aiming to finalize a single Phase 1 clinical trial designed to study ACP-01 across multiple conditions simultaneously, is scheduled for January 16, 2026.
Securities Disclosure: I, Meagen Seatter, hold no direct investment interest in any company mentioned in this article.
