CDRD's commercialization model nets $32 million in federal Budget to scale operations

The Vancouver-based Centre for Drug Research and Development (CDRD) has successfully made its pitch for evolving into a national cluster for drug development and commercialization with $32 million over two years in last month's federal Budget. The funding, which begins FY17-18, will be used to scale up its drug development and accelerator activities to achieve critical mass, while strengthening its extensive international and industry linkages.

"We're building a cluster of national and global networks. We now have 52 affiliation agreements, 90% of which are Canadian," says Karimah Es Sabar, CDRD's president and CEO. "We're becoming a Canadian-led global enterprise and that requires resources and the funding allows us to retain great people, build the critical mass, plan ahead and be strategic."

CDRD's request for new federal funding began a year ago based on the premise that, having successfully delivered on its mandate, the organization warranted additional investments before its core federal funding through the Centres of Excellence for Commercialization and Research program expires in 2018.

Much debate has surrounded the finite nature of CECR funding, particularly when that funding has resulted in robust research and commercialization organizations that add value to their sectors and partners in industry, academia and government.

Science minister Kirsty Duncan raised the issue of sunsetting funding April 14 before the House Committee on Industry, Science and Technology. In the context of the Stem Cell Network — another highly successful Network of Centres of Excellence — and the review of fundamental science she will undertake in the months ahead, she asked: "Is there something that needs to be available afterwards?".

CDRD is among the most successful CECRs in the program and Es Sabar says it's critical that public support for its activities continue.

Since its inception, CDRD has incubated 209 early-stage technologies moving 56 forward and completing 14 commercial transactions, including seven spin-off companies that have attracted more than $60 million in seed funding. The organization has also supported an additional 26 small Canadian health sciences companies by providing over 9,000 hours of access to CDRD's scientific and commercial expertise and infrastructure.

Last year CDRD re-integrated its commercialization arm — CDRD Ventures Inc — back into the organization (R$, September 8/15). In 2013, it spearheaded the formation of the Global Alliance of Leading Drug Discovery and Development Centres representing six similar agencies from five countries with the view of sharing best practises, reducing redundancy and pooling resources to take advantage of shifts in the drug development landscape (R$, February 5/13).

CDRD has also reached out to similar organizations internationally,

"We've outgrown current programs like the CECRs. We're a much larger organization now," says Es Sabar. "CECR is not a huge amount of money but it's an excellent program to seed and incubate cutting-edge organizations like ours but it doesn't have a mechanism to scale up. The government has recognized the importance of scaling up in the Budget."

"The new government clearly values science and innovation and the translation of research into commercialization. It's front and centre and it sees the urgency of building a diversified economy, not just in life sciences but all high-tech sectors," adds Es Sabar. "The Budget made initial strategic investments as it develops its innovation strategy to keep the momentum going for organizations like ours."

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