Ontario gov't launches $161-M life sciences strategy; medical devices among big winners

By Debbie Lawes

Ontario has set its sights on becoming a top-tier global cluster for life sciences with a new strategy designed to attract global product mandates and clinical trials, despite a climate of fierce international competition, tight credit and volatile markets. Released April 30, the $161-million Life Sciences Commercialization Strategy includes new funding for clinical trials and bioscience companies, and an emphasis on collaboration and streamlined programs in an effort to grab a larger slice of the $100-billion global life sciences research pie.

"The first thing that impresses me about the strategy is its comprehensiveness," says Russell Williams, president, Canada's Research-Based Pharmaceutical Companies (Rx&D). "There's a lot more to do but it's certainly a recognition of the issues and a very solid attempt to respond to them."

The strategy combines both existing and new initiatives. The lion's share of the money — $114.6 million — is allocated to the Global Leadership Round in Genomics & Life Sciences, $100 million of which was announced in Budget 2009 (R$, May 19/09). Most of these awards were made in April, including $97.5 million for 15 projects in Toronto and Hamilton and $8.1 million over five years for the International Barcode of Life.

"The current economic situation obviously constrained some of the choices we were able to make," says Ryan Lock, acting director, Access to Capital and Business Development Branch at the Ministry of Research and Innovation. "But (life sciences) is still an important area of focus and the commitment is there on the part of the government to continue investing in this area as best we can given the current circumstances."

The big winner for new funding is the Toronto-based Health Technology Exchange (HTX), which receives $21.4 million over five years to encourage partnerships between small-and medium-sized enterprises (SMEs), multinationals, health providers and research institutions to develop medical and assistive technologies (MAT) for global markets. HTX had requested $35 million, but the reduced amount is still nearly three times more than its previous provincial allotments.

"We're happy to get it in these tough times," says HTX president/CEO Dr. Morris (Mickey) Milner. "We're hoping the government will be more forthcoming once we show some real meaningful results over the next three to five years."

The HTX funding is the largest investment in life sciences companies since the province's $150-million Biopharmaceutical Investment Program, which is winding down and no longer accepting applications. Unlike the BIP, which primarily provided conditional grants for late stage research and advanced manufacturing, HTX will award performance-based loans, up to 50% of the project costs, to support SMEs in early and later stage product development, technology implementation and international sales and marketing.

HTX is also directing $7.8 million towards its Ontario Flagship Program to provide loans, up to 15% of project costs, for multinationals that carry out product development in the province.

"We want to create partnerships between the smaller and larger companies, because the big companies have the distribution networks, marketing capabilities, regulatory expertise — all the important things you need to get a product into the market," says Milner.

Reversing the tide for clinical trials

Strengthening Ontario's capacity to conduct clinical trials through streamlining and less red tape is another priority in the strategy. It directs $17 million for new infrastructure for clinical trials and investigational testing, including:

* An Ontario Clinical Trials Fellowship Program, with matching industry funds;

* Expanding capacity at McMaster Univ's Population Health Research Institute to support management of phase IV clinical trials on a global scale; and,

* A new province-wide coordinating infrastructure to streamline administrative processes and ethics reviews across multiple clinical sites.

Of all the items in the strategy, Lock says this one is getting the most positive feedback from industry. "There's a lot of interest in that particular piece and how it's going to move forward, so the government wants to get it right." Williams adds that it's timely and costly, for example, to have an ethical review board for every location in a multi-site clinical trial when a single review would suffice.

The Ontario strategy also includes one-time financing of $7 million for Ontario bioscience companies, an idea pitched by the Ontario Bioscience Industry Association. MRI held a consultation with industry representatives May 21 on the potential design of the program.

One of the four pillars of the strategy is improving international marketing and promotion, which is why the province decided to launch the strategy on the eve of the 2010 Bio International Conference in Chicago. MRI minister John Milloy and Sandra Pupatello, minister of economic development and trade, attended the event.

"The reality is that most of the private investment capital that supports the research activities that take place in Ontario comes from beyond our borders. So when we're talking about pharmaceutical companies and venture capitalists, it's incumbent upon the government to work with local stakeholders to do everything we can to attract them to Ontario," says Lock.

Ontario premier Dalton McGuinty and Pupatello left today for the Middle East where they will be shopping the strategy in Israel, the West Bank and Lebanon as part of a trade mission to promote life sciences companies, attract investment and strengthen cultural ties.

R$