Canada's life sciences industry strengths

1. Canada: Florida’s Innovation, Investment
and International Biotech Partner
Life Sciences Breakfast
Tampa, February 1, 2010

2. Overview
Background
Canada
Florida
Opportunities
Partnerships
2

3. Background

4. Department of Foreign Affairs and
International Trade Canada (DFAIT)
Canada has diplomatic and consular offices in over
Canada has diplomatic and consular offices in over
270 locations in 180 countries.
270 locations in 180 countries.
4

5. Canada’s Footprint in North America
5

6. Canada-U.S. Relations
Canada and the U.S., a strong partnership
Geography, History, Security and Business
Canada is Florida’s #1 Economic Partner
Common industrial strengths, both depend
heavily on international commerce
Canada 8th largest economy worldwide,
Florida about 15th. 6

7. Market Access
500 km
St. John's
1000 km
Edmonton
Saskatoon Québec Charlottetown
Calgary Regina
Winnipeg Fredericton Halifax
Victoria Vancouver Ottawa Montréal
Seattle
Milwaukee
Toronto Boston
Windsor New York
Chicago Cleveland
Detroit Philadelphia
Pittsburgh Baltimore
St. Louis Washington
San Francisco Denver
Atlanta
Los Angeles
Houston
Miami
Mexico City
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8. Largest Trading Partner
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9. Largest Foreign Investor
Investment = Influence
9

10. A Top Investor in Florida
Top Foreign Investors in Florida
By Value (billions) By Jobs
Germany UK
$3.8 45,200
Japan Netherlands
$3.79 24,000
UK Canada
$3.69 23,100
Canada Germany
$2.99 22,400
Australia $2.77 Japan 21,20
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11. Canadian Businesses
11

12. Canadian Businesses
12

13. Canada

14. Canadian Health Care Market
Population: 33.5 million
High health expenditure: CAD $5170 p.p.
Long life expectancy: 81.6 years
$20B drug market, $6B in medical devices, Top 10 globally
Highly profitable: 13% average profit margins
Bio-based economy worth $78.3 billion (6.5% of GDP, similar in
size to auto) and is responsible for 1 million jobs.

15. Industry Snapshot
Home to 3rd largest Life Sciences industry in the world
Key strengths:
Biopharmaceutical R&D
Medical devices
Contract services
Leading scientific excellence
15

16. Life Science Clusters In Canada
Atlantic Canada
•30 companies
•200 employees (1%)
British Columbia •$25 M in annual R&D
•110 companies • Nutraceuticals &
•2500 employees (15%) Marine Bioscience
•$300 M in annual R&D
• Genomics
Prairies
•110 companies
•1800 employees (11%) Ontario:
Quebec
•$200 M in annual R&D •220 companies
•240 companies
• Bioimaging •6000 employees (38%)
•5500 employees (35%)
•$650 M in annual R&D
•$600 M in annual R&D
• Stem Cells
• Vaccine Research
• Drug Development
Source: Industry Canada, Statistics Canada, PMPRB. Statistics are for Private sector only
16

17. Pharmaceutical Industry Snapshot
$20 billion domestic
market
100+ companies with
40,000+ employees
Market dominated by
foreign multinationals
$1.5 billion in R&D
spending
Over $4 billion in exports
17

18. Consumer Pharmaceutical Spending
Total annual spending (prescription drugs): $19.3 billion
Brand name: $15.2 billion (78.6%)
Generic: $4.1 billion (21.4%)
Average cost per prescription, $CAD
18

19. Biopharmaceutical Industry Strengths
• Discovery & characterization of therapeutic molecules
• Genomics & proteomics platforms
• Vaccines & immuno-therapeutics
• Regenerative medicine & stem cell research
• Drug formulation & delivery systems
• Oncology/cancer research
• Generic pharmaceuticals

20. Major Global Investors in Canada
20

21. Top Sales Leaders in 2008
Leading Pharmaceutical Companies in Canada in 2008
Total
Leading R&D Location Market
Rank
Purchases
Companies in Canada Share (%)
($ Billions)
1 Pfizer Montreal 2.57 12.7
2 Apotex Toronto 1.52 7.5
3 AstraZeneca Montreal 1.34 6.6
4 Johnson & Johnson Toronto 1.10 5.5
5 GlaxoSmithKline Toronto 0.97 4.8
6 Novopharm Toronto 0.83 4.1
7 Novartis Toronto 0.75 3.7
8 Abbott Montreal 0.72 3.6
9 Schering-Plough Montreal 0.68 3.4
10 Roche Montreal 0.62 3.1
21

22. Recent Investments In Canada
Sanofi Pasteur
• $100M: vaccine R&D facilities in Toronto
AstraZeneca Canada Inc.
• $10M: pain control research centre in Montreal
Glaxo Smith Kline (GSK)
• $199M: vaccine production facility in Québec
• $50M: vaccine R&D headquarters in Montreal

23. Leading Canadian Companies
(Some Examples)
Company Focus
Apotex Generics manufacturing
Theranostics: detection of protein
Amorfix
misfolding
CNS disorders, pain management, &
Biovail
cardiovascular disease
BioNiche Life Sciences Oncology & animal vaccines
Cangene Mfg. of Ab.’s, peptides, & vaccines
DiaMedica Therapy for Type II diabetes
ImmunoVaccine
Vaccine innovation & development
Technologies
Controlled-release technologies for
Labopharm
small molecule drugs
NAEJA NCE discovery & synthesis
Mfg of natural, recombinant, &
Prometic Life Sciences
synthetic proteins
Theratechnologies Peptide-based therapeutics
23

24. Medical Device Industry Snapshot
$6 billion market
$2 billion in exports; $4 billion in
imports
Majority of revenues to
multinationals & distributors
200+ developers/manufacturers
(90% Canadian owned)
94% of firms have < 50 employees
24

25. Major Global Investors in Canada
25

26. Leading Canadian Companies
(Some Examples)
Company Focus
TAXUS® drug-eluting
Angiotech
coronary stent
ART Optical molecular imaging
EastMed Uresta® bladder support
Blood diagnostic system in
Epocal
FlexCard™ technology
IMRISneuro, Intra-
IMRIS
operative MRI
Radiological imaging &
MDS Nordion
isotopes
Novadaq
Operating room imaging
Technologies
Pyng Medical First Aid Devices
Resonant Medical 3D Ultrasound Imaging
Urodynamix Urology diagnostics
26

27. Leading Canadian Companies
(Some Examples)
Company Focus
Axela Protein interaction technology
BrightWELL Micro-Flow imaging technology
Techologies (MFI) for cell analysis
DNA collection & preservation
DNA Genotek
systems
QBM Cell Science
Cryopreserved mouse neurons
Advanced medical polymers &
Rimon Therapeutics
biomaterials for wound care
Spartan Biosciences Personal DNA analyzers
Fast testing of Sepsis & West
Spectral Diagnostic
Nile Virus
27

28. Medical Device Strengths
In-vitro diagnostics
Medical imaging & analysis
Nuclear medicine
Surgical & implant devices
Advanced materials & nanotechnology
28

29. In-Vitro Diagnostics
Examples Include:
Epocal’s Blood Diagnostic Spectral Diagnostic’s
System in FlexCard™ Testing Kit for West Nile
Technology Virus
29

30. Medical Imaging & Analysis
Examples Include:
ART’s SoftScan IDC’s DR System
Breast Imaging Device
30

31. Nuclear Medicine
Examples Include:
MDS Nordion’s Glucotrace® for Cardiology and
Oncology Diagnoses using PET Isotopes
31

32. Surgical & Implant Devices
Examples Include:
Angiotech’s
Drug-Eluting
Coronary
Stents
EastMed’s Uresta® for Stress Urinary
Incontinence for Women
32

33. Latest Innovation
World’s First Simulation-Based Brain Surgery Done in Halifax, Canada
2009.08
33

34. Canada’s Contract Services Subsector
THEN: Provided backup supply services to multinational
pharmaceutical companies
NOW: Grown and become technologically sophisticated
World renowned for quick recruiting
Adheres to GCP protocols & generates high quality, robust
data
4th worldwide in overall share of global clinical trials
Top 10 pharmaceutical companies consistently include
Canada in clinical development plans & new drug submission
data packages

35. Contract Services: Strengths
Contract manufacturers (CMOs)
Clinical research organizations
(CROs)
Design & manufacturing of high
value medical devices (surgical
devices, implants, imaging systems)
Analytical services
Regulatory affairs & compliance
35

36. Leading Canadian Companies
Company Focus
Research contracting organization specializing in pre-clinical, phase I & bioequivalence
Algorithme Pharma
studies
Clinical trial management company managing multi-site trials & sourcing trial services
Allphase Clinical Research
globally
Manufacturing contracts for both large and small-molecule Advanced Pharmaceutical
Biovectra
Ingredients (API’s), advanced intermediates, and cGMP bioprocessing reagents
MDS Pharma Service Research contracting organization that provides drug discovery and development services
Manufacturing contractors committed to the development, manufacturing, purification, and
Therapure Biopharma
packaging of high-quality biological therapeutics
Wellspring Pharmaceutical Manufacturing contracts for specialized dosage forms for clinical & commercial distribution
36

37. Clinical Trials by Condition
Source: ClinicalTrials.gov, Dec. 2008
37

38. Clinical Trials by Sponsor
38

39. Florida

40. Emerging Biotech Cluster
Why is Canada interested?
Top 10 US biotech clusters
US $10b+ NIH funding, most research
intensive country in the world, 50% and 40%
of global patent applications in med tech
and pharma/biotech products, respectively
Paradigm shift: globalization of industry and
BigPharma looking to fill innovation gap as
blockbuster revenue cliff approaches
Weaknesses in Florida
VC funding
Training/Tertiary Education/Skilled Labour
Entrepeneurship
40

41. Opportunities

42. Strategic Context
Post-recession
• Technology based firms need international linkages to position themselves for the
post-recession economy.
• By partnering with other countries on science and technology, firms connect to
knowledge, know-how, people, investments and markets abroad.
• They also respond to new business model where “biotech clusters will be
redefined away from geography and be more virtual built around diseases,
pathways, markets, and unique industry segments”. (Burrill & Co. Biotech 2010 –
Life Sciences: Adapting for Success).
Credit Crunch, Public & Private Capital Drought
• VC funding lowest in 15 years both in Canada and the U.S.: ($1 billion in Canada,
$235 million in Florida) – however healthcare surpassed IT or cleantech.
• PE/Buyout market: Canada 4th in volume, 18th in value of M&A deals, however
Canadian funds raised close to $20 billion in 2006-2008 so considerable available
capital to deploy.
• Only 3 biotech IPOs in 2009, but Burrill expects pick-up to 15 IPOs in 2010
42

43. Five major factors
drive foreign interest in collaborations
Attractions include Canada’s:
• Strong and stable economy
• First-class technological infrastructure
• Highly skilled workforce
• Lower business and R&D cost structure
• Investment incentive programs: the best
research incentives in the world
43

44. Workforce: Educated & Available
Higher Education Achievement
55 54,0
53,0
51,4 51,0
50,0
50 47,8
45
%
41,0 41,0 41,0
40,0 40,0 39,8
40 39,0 39,0
35
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Source: IMD, World Competitiveness Yearbook 2008
44

45. Workforce: Educated & Available
Source: IMD, World Competitiveness Yearbook 2008
45

46. Low Labor Costs
46

47. Thriving Clusters
47

48. Quality Living Environment
48

49. Canada: An Innovation Leader
Canada generates about 4% of global knowledge, as measured by
academic publications, a formidable statistic considering it
composes only 1% of the global population.
Canada leads the G7 in public sector research funding on a per
capita basis.
Canada has one of the most generous tax-based support
programs in the industrialized world through the Scientific
Research & Experimental Development tax credit.
49

50. Canadian Life Sciences Innovation
Canada’s health science research community consists of over
64,000 physicians, 30,000 investigators in 17 medical schools, and
over 100 teaching hospitals and research institutes.
Canadian innovators are internationally recognized for research
and product development excellence in genomics,proteomics,
vaccine development, medical devices, regenerative medicine
(stem cells), protein engineering, immunotherapies and drug
delivery systems.
Canada Canadian life sciences discoveries: insulin, pacemaker,
sequencing Alzheimer genome & H1N1 genome, adult stem cells,
how stem cells become blood cells, embryonic stem cells from
skin, etc.
50

51. Canadian university R&D
funding programs
• Canadian Institutes of Health Research (CIHR)
• Canada Foundation for Innovation (CFI)
• Canada Research Chairs (CRC)
• Genome Canada
• Networks of Centres of Excellence (NCE)
• Department of Foreign Affairs and International Trade
• National Research Council:
• 15 Industrial Partnership Facilities (IPF)
business incubators affiliated with NRC’s 21
research institutes -137 firms, 13 graduates 08-09
• Industry Research Assistance Program (IRAP)
works with 8000 SMEs, youth internships, Angiotech (anti-
inflammation tech) in 5 years $30 milllions 1,500 jobs
51

52. Innovation and Sector Interface
Life Sciences
ICT
Clean Tech
Aerospace
$ Pu
Valley of
b lic Death
e
iv at
Pr
Mind Market 52

53. Investment
Growth Capital
2009
TSX: 28 IPOs, $1.8billion
TSX-V: 20 IPOs, $69 million
2010 (projected)
TSX & TSX-V: $4 billion IPO market
53

54. Events in Canada
BioPartnering North America, Vancouver, Jan 24-26, 2010
BioFinance, Toronto, 6-8 April, 2010
BioContact, Quebec City, Oct. 6-7, 2010
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55. Partnerships

56. Success Stories
Stem Cells
56

57. Success Stories
Drug Development
57

58. Success Stories
Research/Education/Simulation/Commercialization
58

59. Success Stories
AIDS/Immunology
59

60. Success Stories
And more…
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61. Conclusion
Tap into Canadian ideas, knowledge and talent – through
strategic alliances, joint ventures, licensing and technology
transfer agreements, and venture capital as well as public and
private equity investments.
Explore the opportunities to make Canadian innovators your
technology development and commercialization partners.
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62. Contact Info
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