A Canadian Perspective on the Bio-Economy
A Canadian Perspective on the Bio-Economy Philip Schwab, PhD. Vice-President, Industry Relations, BIOTECanada March 22, 2010 Auckland, NZ
Going Beyond Tradition • Leader in – Science and innovation – Learning and growth – Development and technology
• Biotechnology and bio-based economy can be the catalysts for the next wave of innovation and Canadian prosperity • Asia-Pacific Market Opportunities for Canadian Health, Agriculture and Industrial Biotechnology
Expectations From Our Biotech Investments • • • • •
New vaccines and cures More productive agriculture Climate Change solutions Jobs and economic opportunity Prosperity and a better life
Nine out of ten Canadians see biotech as important to Canada’s future economic prosperity
As you may know, biotechnology is a term that describes the controlled use of biological substances to make a wide variety of products in our everyday lives. Biotechnology innovations can create special drugs or vaccines, healthier crops that do not need pesticides, can turn waste into energy, can find new ways to make foods or can even convert plant matter into new products like car parts. Do you believe that the biotechnology industry is a very important, somewhat important, somewhat unimportant or very unimportant part of Canada’s future economic prosperity? Source: Nanos Research, Random Telephone Survey of 1,003 Canadians from August 28th to September 2nd, 2009. The margin of accuracy for a sample of 1,003 is ± 3.1%, 19 times out of 20.
Nine out of ten Canadians support research involving biotechnology 88%
Based on what you know about biotechnology, would you say you strongly support, somewhat support, somewhat oppose or strongly oppose research that involves biotechnology?
Source: Nanos Research, Random Telephone Survey of 1,003 Canadians from August 28th to September 2nd, 2009. The margin of accuracy for a sample of 1,003 is ± 3.1%, 19 times out of 20.
Canada’s Biotechnology Companies by Sector
Source: Canadian Life Sciences Database, January 2010
Biotech is growing… Canadian Industry Comparison by GDP and percentage of the economy
Source: Industrial Biotechnology. December 1, 2008, 4(4): 363-366. doi:10.1089/ind.2008.4.363
The Canadian Biotech Ecosystem • Over 600 companies engaged in biotechnology R&D, second only to the U.S. • Economic impact valued at $78B or 6.4% of GDP. • Contributes 4% of global revenues while economic size is only 1.8% of global economy. • Canadian biotechs invest $1.7 billion annually in R&D, representing 12.3% of total Canadian Business Expenditures on Research and Development (BERD). • Public biotechs valued at over $20 billion. • Canada has 5th largest acreage of biotech crops in the world. • Over 300 therapeutic biotech products currently under development. • Home to the largest number of public cleantech companies in the world.
An Experienced Biopharma Talent Pool Local potential to recruit skilled staff
The presence of experienced clinicians and researchers contributes to the success of R&D activities Ranked 1st in the world for higher education, Canada is home to a welleducated, motivated and diverse workforce
(highest-ranking cities in North America)
7.2
Jersey City , NJ 6.2
Toronto, ON
6.0
Philadelphia, PA City of Québec, QC
5.7
Montréal, QC
5.7
Boston, MA
5.4
San Francisco, CA
4.8
Minneapolis, MN
4.4
San Diego, CA
4.3
Vancouver, BC Canadian Non-Canadian
4.1 0
1
2
3
4
5
6
7
Qualitative Assessment Score (0 to 10)
Source: IBM-PLI Benchmark 2009
8
Big Hairy Audacious Goal By the year 2020, Canada will become the world’s leading biobased economy
What does this mean to us? • New jobs, new knowledge-based industries, new long-term prosperity • New global competitiveness for traditional industries • Canadian bio-based solutions actively sought and contributing to global needs in health, energy and environment • Canada leading in development and adoption of new bio-based technologies • Canada will be the most competitive business jurisdiction for bio-based industries
What it’ll take…working together for… • Enabling, Globally Competitive Regulatory Environment • World Class Scientists and Managers • Most Bio-Friendly Investment and Tax Environment in the World
Canada’s Investment Environment • SR&ED Tax Credit Program • Increasing incentives attracting foreign investors • Mandate to employ lowest corporate tax rate in G7 by 2012 • Home to world-renowned capital markets, Toronto Stock Exchange, Venture Exchange • Neighbor and primary trading partner to world’s largest consumer market
Top 10 Canadian Biotech Deals 2009 Company
Date
Type of Deal*
Total Value of Deal (CDN)
1
Cardiome & Merck
April 8
Licensing agreement
$700M
2
ViroChem & Vertex
March 3
Acquisition
$520M
3
Oncogenex Pharma & Teva
December 21
Licensing Agreement
$430M
4
Biovail & Santhera
August 23
Licensing agreement
$192M
5
Aeterna Zentaris & Sanofi Aventis
March 6
Licensing agreement
$165M
6
Thallion Pharma & LFB Biotechnologies
December 18
Licensing agreement
$150M
7
Bioniche & Endo Pharma
July 10
Licensing agreement
$130M
June 18
Private placement of equity
$58.7M
May 11
Licensing agreement
$50.4M
August 10
Venture capital financing
$50M
8
Paladin Labs
9
Tekmira & Roche
10
Enobia Pharma
Sources: BIOTECanada Research Services
*Licensing agreements include both upfront and milestone payments
Building Industrial Biotechnology Agrisoma • Creating New Generation of Crops for Bio-energy and Food with enhanced performance, quality and environmental benefits. Lignol Energy Corporation • Cellulosic Ethanol and biobased materials from wood Ontario BioAuto Council • Stimulating development of biobased materials for the auto sector. Bluewater Sustainability Project •
Industrial diversification for Sarnia Ontario to transform itself into a centre of biobased chemical production.
Canadian Life Sciences Database www.canadianlifesciences.com
Canadian Life Sciences Database Type of Information Presented: •Summary of products in the development pipeline •Number of employees •Financing data •Key contact details •Management information
Snapshot of a query:
Philip Schwab, Vice-President, Industry Relations [email protected] Gibril Muddei, Information Officer [email protected] +1-613-230-5585 www.biotech.ca BIOTECanada @CLSD
Going Beyond Tradition • Leader in – Science and innovation – Learning and growth – Development and technology
• Biotechnology and bio-based economy can be the catalysts for the next wave of innovation and Canadian prosperity • Asia-Pacific Market Opportunities for Canadian Health, Agriculture and Industrial Biotechnology
Expectations From Our Biotech Investments • • • • •
New vaccines and cures More productive agriculture Climate Change solutions Jobs and economic opportunity Prosperity and a better life
Nine out of ten Canadians see biotech as important to Canada’s future economic prosperity
As you may know, biotechnology is a term that describes the controlled use of biological substances to make a wide variety of products in our everyday lives. Biotechnology innovations can create special drugs or vaccines, healthier crops that do not need pesticides, can turn waste into energy, can find new ways to make foods or can even convert plant matter into new products like car parts. Do you believe that the biotechnology industry is a very important, somewhat important, somewhat unimportant or very unimportant part of Canada’s future economic prosperity? Source: Nanos Research, Random Telephone Survey of 1,003 Canadians from August 28th to September 2nd, 2009. The margin of accuracy for a sample of 1,003 is ± 3.1%, 19 times out of 20.
Nine out of ten Canadians support research involving biotechnology 88%
Based on what you know about biotechnology, would you say you strongly support, somewhat support, somewhat oppose or strongly oppose research that involves biotechnology?
Source: Nanos Research, Random Telephone Survey of 1,003 Canadians from August 28th to September 2nd, 2009. The margin of accuracy for a sample of 1,003 is ± 3.1%, 19 times out of 20.
Canada’s Biotechnology Companies by Sector
Source: Canadian Life Sciences Database, January 2010
Biotech is growing… Canadian Industry Comparison by GDP and percentage of the economy
Source: Industrial Biotechnology. December 1, 2008, 4(4): 363-366. doi:10.1089/ind.2008.4.363
The Canadian Biotech Ecosystem • Over 600 companies engaged in biotechnology R&D, second only to the U.S. • Economic impact valued at $78B or 6.4% of GDP. • Contributes 4% of global revenues while economic size is only 1.8% of global economy. • Canadian biotechs invest $1.7 billion annually in R&D, representing 12.3% of total Canadian Business Expenditures on Research and Development (BERD). • Public biotechs valued at over $20 billion. • Canada has 5th largest acreage of biotech crops in the world. • Over 300 therapeutic biotech products currently under development. • Home to the largest number of public cleantech companies in the world.
An Experienced Biopharma Talent Pool Local potential to recruit skilled staff
The presence of experienced clinicians and researchers contributes to the success of R&D activities Ranked 1st in the world for higher education, Canada is home to a welleducated, motivated and diverse workforce
(highest-ranking cities in North America)
7.2
Jersey City , NJ 6.2
Toronto, ON
6.0
Philadelphia, PA City of Québec, QC
5.7
Montréal, QC
5.7
Boston, MA
5.4
San Francisco, CA
4.8
Minneapolis, MN
4.4
San Diego, CA
4.3
Vancouver, BC Canadian Non-Canadian
4.1 0
1
2
3
4
5
6
7
Qualitative Assessment Score (0 to 10)
Source: IBM-PLI Benchmark 2009
8
Big Hairy Audacious Goal By the year 2020, Canada will become the world’s leading biobased economy
What does this mean to us? • New jobs, new knowledge-based industries, new long-term prosperity • New global competitiveness for traditional industries • Canadian bio-based solutions actively sought and contributing to global needs in health, energy and environment • Canada leading in development and adoption of new bio-based technologies • Canada will be the most competitive business jurisdiction for bio-based industries
What it’ll take…working together for… • Enabling, Globally Competitive Regulatory Environment • World Class Scientists and Managers • Most Bio-Friendly Investment and Tax Environment in the World
Canada’s Investment Environment • SR&ED Tax Credit Program • Increasing incentives attracting foreign investors • Mandate to employ lowest corporate tax rate in G7 by 2012 • Home to world-renowned capital markets, Toronto Stock Exchange, Venture Exchange • Neighbor and primary trading partner to world’s largest consumer market
Top 10 Canadian Biotech Deals 2009 Company
Date
Type of Deal*
Total Value of Deal (CDN)
1
Cardiome & Merck
April 8
Licensing agreement
$700M
2
ViroChem & Vertex
March 3
Acquisition
$520M
3
Oncogenex Pharma & Teva
December 21
Licensing Agreement
$430M
4
Biovail & Santhera
August 23
Licensing agreement
$192M
5
Aeterna Zentaris & Sanofi Aventis
March 6
Licensing agreement
$165M
6
Thallion Pharma & LFB Biotechnologies
December 18
Licensing agreement
$150M
7
Bioniche & Endo Pharma
July 10
Licensing agreement
$130M
June 18
Private placement of equity
$58.7M
May 11
Licensing agreement
$50.4M
August 10
Venture capital financing
$50M
8
Paladin Labs
9
Tekmira & Roche
10
Enobia Pharma
Sources: BIOTECanada Research Services
*Licensing agreements include both upfront and milestone payments
Building Industrial Biotechnology Agrisoma • Creating New Generation of Crops for Bio-energy and Food with enhanced performance, quality and environmental benefits. Lignol Energy Corporation • Cellulosic Ethanol and biobased materials from wood Ontario BioAuto Council • Stimulating development of biobased materials for the auto sector. Bluewater Sustainability Project •
Industrial diversification for Sarnia Ontario to transform itself into a centre of biobased chemical production.
Canadian Life Sciences Database www.canadianlifesciences.com
Canadian Life Sciences Database Type of Information Presented: •Summary of products in the development pipeline •Number of employees •Financing data •Key contact details •Management information
Snapshot of a query:
Philip Schwab, Vice-President, Industry Relations [email protected] Gibril Muddei, Information Officer [email protected] +1-613-230-5585 www.biotech.ca BIOTECanada @CLSD
