Biotechnology is a strategic sector from both an economic and social point of view. On an international scale: biological products currently represent 40% of the total registered products and if one takes into account chemical medicines developed with biotechnology, one can estimate over 50% of new medicines, notably the most innovative medicines (insulin, growth hormones, recombinant growth factors, vaccinations, monoclonal antibodies for the treatment of cancers, inflammatory and infectious diseases, cell therapy, etc) and almost 250 million patients worldwide are already benefiting from advances made in biotechnologies, both in diagnostics and in treatment.

Small and medium-sized biotechnology firms (3,500 worldwide, approximately 250 to 300 in France) together with researchers are renewing the pipeline of the therapeutic products available to doctors and patients, undertaking cutting-edge research and using the very latest technologies.

The achievements of Canadian life sciences and biotechnology companies on an international platform are well known, with Canadian companies leading the way in many breakthrough innovations. The 2007 findings showcase the industry's maturity,
however, the industry still faces significant challenges in its pursuit of commercialization of intellectual property, the battle for capital and the need to recruit industry-savvy people.

Ranking:
• Biotech activities in Canada involve 2,500 life sciences organizations and over 200,000 jobs across the country.
• Canada is ranked NUMBER ONE as the least costly place in which to do research among G7 countries (Source: KPMG).
• FOURTH IN THE WORLD for acreage of biotech crops planted.
• Canada ranks among the TOP FIVE NATIONS in terms of publicly-performed research as a proportion of our gross domestic



In Canada, there are more than 530 Canadian biotechnology firms with 13, 430 employees, $1.7 billion in research and development (R&D) expenditures and $4.2 billion in revenues. Canada's biotechnology sector has annual growth rates of 8 percent in the number of companies, 12 percent in employment, 17 percent in R&D spending and 20 percent in revenues.

Distribution of the Industry's biotechnology companies

53% in the health sector
18% in agriculture
11% in food processing
8% in environment
4% in natural resource
3% in bioinformatics
3% in aquaculture

Biotechnology activity spans the country

The biotechnology industry is found across Canada, more than 80 percent of the industry is concentrated in the provinces of Quebec, Ontario, and British Columbia. More specifically, we find actual "clusters" of health-related biotechnology R&D in Montreal and Quebec City, as well as Toronto and Vancouver.

Centres of expertise in various biotechnology specialties across Canada

• Vancouver
• More than 90 biotechnology companies
• home of research institutions including Michael Smith Genome Centre
• Saskatoon
• A leading centre for agricultural biotechnology and vaccines
• Site of Canadian light Source synchrotron project and innovation Place Research Park
• Toronto
• About 130 biotechnology companies, leading research hospitals and institutes
• Research in oncology, cardiovascular diseases, CNS disorders, gene therapy, autoimmune diseases and tissue regeneration
• The University of Toronto and affiliated research institutions - the 4th largest medical R&D community in North America
• Montreal
• Over 145 health-related biotechnology companies, plus leading-research institutes
• Large multi-national pharmaceutical companies
• Home of the National Research Council of Canada's Biotechnology Research Institute and of CAVAC, a Network of Centres of Excellence focused on vaccine research

Global Leadership in Research & Development

Canada's R&D tax credits are among the most generous in the world. The after-tax cost of $1 in R&D expenditure ranges from $0.40 to $0.50. The country's research capacity has grown and is attracting international attention with funding bodies such as the National Research Council, Canadian Institutes of Health Research, Natural Sciences & Engineering Research Council, Networks of Centres of Excellence, Canada Foundation for Innovation, Canada Research Chairs and Genome Canada.

The Canadian biotechnology industry is one of the leading investors in research and development, spending more than 12 percent of the annual total.

• Canadian Institutes of Health Research is Canada's major federal funding agency for health research, with an annual budget of reached $863.5 million for 2006-07, an increase of $50.4 million (or 6.2%) over 2005-06.

• Genome Canada has invested more than $600 million across Canada, which, when combined with funding from other partners, is expected to result in more than $1.4 billion in 115 innovative research projects and sophisticated science and technology platforms.

• Canada Foundation for Innovation (CFI) has a $5.7 million budget to fund research infrastructure essential to the work being performed by 34 of the Chairs.

• Canada Research Chairs Program has received a total of $109.7 million to establish, fund appointments to, and renewals of, 109 Canada Research Chairs across the country and support research by Canada's leading scholarly and scientific minds

• The Networks of centers of Excellence (NCE): NCE program has received a total budget to $82.4 million to support research in universities and hospitals in partnership with private and public sectors.

• Centres of Excellence for Commercialization and Research (CECRs): In Feburary 2008, Government of Canada has announced 11 new CECRs. World-class centres will share $163 million to move discoveries out of the lab and onto the marketplace over the next five years.

• Canadian Biotechnology Strategy (CBS) is to ensure that the Government of Canada exercises its responsibilities to ensure that biotechnology will continue to enhance Canadians' quality of life in terms of health, safety, the environment and social and economic development. The CBS Fund provides core policy and management funding for the CBS. The fund enables leading-edge, cross-cutting policy development and analysis to the signatory departments and agencies to the CBS. It also provides funds for the expert arm's-length advice provided to the government by the Canadian Biotechnology Advisory Committee (CBAC). For 2007-2008, $1.75 million will be allocated to ensuring that biotechnology is well positioned with the Government of Canada's science and technology objectives.

Challenges

Canadian venture capital and adoption of innovation are the most critical success factor for the Canadian life sciences and biotechnology industry. Accessing venture or other capital is the most challenging issue for their organization. On average it takes 7-10 years, and over $1 billion dollars to bring a product to market. The majority of the companies are small medium sized enterprises, with less than 50 employees and have less than 2 years operating cash on hand. Canada needs a fiscal framework to encourage investment and a regulatory regime to foster development.

The fields of application of biotechnologies are extremely varied, and beyond human or animal health, biotechnology firms are also developing innovative applications in various industrial fields, in environmental protection and in agri-business, in particular.

Conclusion:

• Dynamic and growing biotechnology industry
• Well-established research infrastructure with innumerable opportunities for strategic partnerships and alliances
• Best R&D tax treatment in the G7
• Superior quality workforce and academic research base
• Cost-competitive and future-oriented environment for business
• Open for investments and collaborations