Dr David B. Shindler

The Future is Now for Biomedical Research in Canada

By Dr David B. Shindler, CEO, Milestone Medica Corporation

Nearly 20 years ago, the National Biotechnology Advisory Committee (NBAC) reported to the federal government that Canada had serious limitations in its capability to commercialize biotechnology inventions. Canada's so-called 'development gap' stemmed from a lack of private and public risk capital to fund the proof-of-principle stage of R&D, and pharmaceutical patent legislation that constrained important R&D investments.

At that time, a federal task force on biotechnology did not foresee a dynamic biomedical industry, and urged concentration on the natural resource sectors where the impact could be readily predicted. Times and attitudes have changed dramatically. Today, significant new sources of capital are available - closing the gap and creating exciting, made-in-Canada opportunities.

The recent $100-million donation to University of Toronto exemplifies what has now become a pattern of significant Canadian stimulation of biomedical research. Expanded research builds on recognized quality in medical research across the nation and this quality has survived in spite of significant limitations to research funding over the past three decades or more. The message that investments in medical research are likely to deliver solid health care and economic returns has finally been accepted.

The list of government initiatives designed to build medical infrastructure and research is long and has dramatically accelerated in recent years, ranging from the National Biotechnology Strategy and National Research Council's biotechnology research institutes ($100 million, 1983), to the new Canadian Institutes for Health Research ($533 million in FY01-2). Complementary to these are a number of provincial initiatives and strategies designed to help attract research funds and build centres of strength.

In the private sector, the availability of early stage venture capital has expanded markedly. The Canadian Medical Discoveries Fund, Working Ventures, Ventures West, MDS, Sofinov, BioCapital and Royal Bank Ventures have taken important steps to support early stage ventures through specialized investment vehicles.

At least four companies with market capitalizations above $1 billion have emerged including well-known BioChem Pharma and QLT PhotoTherapeutics, along with at least 25 additional companies with market caps between $100-600 million. Behind these leaders are many smaller companies with excellent growth potential.

There is no doubt that a superstructure is being constructed on a foundation of international-calibre Canadian medical research, but what will it take to turn this potential into an economic powerhouse? Where will we find new scientific entrepreneurs such as Julia Levy (QLT Phototherapeutics) and Francesco Bellini (BioChem Pharma) - leaders who were able to establish research programs and conditions for real commercial activities? Where will their management teams come from? Who are the future financial leaders?

The answer is that they are actually all around us, but in limited numbers. Skilled commercial leaders will remain in short supply for the foreseeable future. The combined skills and knowledge of partners who can accomplish the transformation of research discoveries into robust commercial entities will need to be harnessed. Our policies and activities should continue to be driven by a philosophy of cooperation and teamwork - factors that seem natural to Canadians and are a source of real international competitive advantage.

Early stage investors like Milestone Medica believe partnerships creating sustained commercial value can be derived from our biomedical discoveries. Through teamwork, the results will certainly show in the next two decades of Canadian biomedical progress and commercial expansion.

David Shindler is CEO of Milestone Medica, a Toronto-based company specializing in identifying and commercializing Canada's high-potential early stage biomedical research and discoveries.