The Bloom Burton & Co. Healthcare Investor Conference
(BBHIC), held in Toronto this week, drew over 1,500 global
participants to one of Canada’s leading events for healthcare
investment and innovation. The conference brought together leading
Canadian healthcare companies, institutional investors and
international industry leaders for in-depth discussions on emerging
trends and strategic opportunities in the sector.
As both a participant and sponsor at this year’s BBHIC, we
had the opportunity to engage with thought leaders across both
R&D and commercial healthcare sectors. The conference offered
valuable insights into capital deployment strategies, innovation
trends and the evolving investor landscape in Canada.
Two powerhouse panels took a close look at investing in
healthcare companies at the R&D-stage and at the
commercial-stage. The event’s keynote speaker, Jim Momtazee,
talked about the tremendous upside to healthcare investing.
Here are the key takeaways from the discussions.
Jolyon Burton (Co-founder, President and Head of Investment
Banking at Bloom Burton & Co.), Aaron Sonshine (Partner at
Bennett Jones) and Brian Bloom (Co-founder, Chairman and CEO at
Bloom Burton & Co.).
Investing in R&D-Stage Healthcare Companies
Capital Efficiency
Capital efficiency in drug and technology development emerged as
a central theme. Canadian companies, often operating with limited
access to capital, have demonstrated an ability to innovate under
financial constraints—a characteristic increasingly valued by
investors.
Pitching Value Creation to Investors
Panelists stressed how important it is for companies to define
how they are creating value and then clearly communicate this to
investors. It is not as simple as it seems. The existential risks
to a company’s product need to be expelled and a clear, linear
path to value creation needs to be provided. Management teams need
to push themselves to develop a clean and crisp pitch they can
deliver to investors. Even if the risk profile is higher, investors
will listen to a compelling story that is built on value.
Companies, Investors and Risk
The panel was asked where they stand on biology risk versus
technology risk and first-in-class biologies versus best-in-class.
Perspectives differed, with some saying that pioneers have not been
rewarded in recent years and the envelope needs to be pushed once
again on biological risk in North America. Others said they are
less likely to take biological risk and prefer validated
targets.
When it comes to how entrepreneurs can de-risk, panel members
agreed that using clinical data sets from other companies and
trials should be used to bolster a company’s case. Health care
advisory firms and early investors can help entrepreneurs connect
the dots and build their investment pitch as they seek funding.
Investing in Commercial-Stage Healthcare Companies
Tariff Exposure and Market Volatility
Similar to many other industries, different areas of healthcare
are affected in different ways, depending on the exposure to
tariffs. Manufacturing, supply chains and consumer health are among
the most impacted. The uncertainty created by tariffs is creating
some pause in activity and there is some resetting of valuation and
risk taking place. Volatility is clearly a challenge and bears on
the work of some companies and their equity valuations.
High-Potential Sub-Sectors
The panel was asked what healthcare technology sub-sectors they
see as particularly attractive right now and why. Members pointed
to:
- Biotech, which has attractive valuations for investors
- Treatments for kidney disease that can lower the cost of
care - Mental health—employers want more of these services made
available to their workforce and insurance companies are funding
it - Home care—demand will continue to grow with Canada’s
aging population and as advanced services become available to keep
people living in their homes for longer - Women’s health, including fertility treatments
Scaling Canadian Innovation
Panelists spoke about how 30 percent of healthcare spending in
Canada comes from the private sector and expenditures continue to
increase. There is some very successful innovation in Canada and
valuations are much lower than the US. Due to the difference in the
sizes of the markets, Canadian companies should focus their
strategies on being able to compete in the US to grow or get
acquired. By only commercializing in Canada, a company is limiting
its strategic options.
Tremendous Upside in Healthcare Investing
Jim Momtazee, Managing Partner of Patient Square Capital,
delivered the keynote address on the first day of BBHIC. He spoke
about his views on why healthcare is a great place to invest due to
the “tremendous upside” driven by:
- rising demand;
- significant remaining unmet needs;
- accelerating pace of discovery;
- rewards for innovation; and
- historically depressed valuations.
Jim emphasized therapeutics as the sector with the most
significant growth in market capitalization from 2004 to 2024. He
highlighted how rising R&D productivity, combined with unmet
medical needs and increasing demand, creates a compelling
investment thesis—despite headwinds such as regulatory
uncertainty and recent market stagnation in biotech.
Final Reflections on BBHIC 2025
BBHIC 2025 reaffirmed that Canadian healthcare companies are
well positioned to deliver innovation and value, particularly for
investors seeking underappreciated assets and long-term growth. The
conference highlighted not only the resilience of the sector but
also the strategic considerations investors must weigh in
today’s evolving market. For professionals active in the
healthcare investment space, these discussions are both timely and
instructive.
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