Report calls for renewed biotechnology strategy that focuses on global markets

Canada must choose the biotechnology niches in which it has the greatest chances of success and should look to connect emerging science with areas of traditional strength in agriculture and natural resources, suggests a new report from the Conference Board of Canada (CBoC). Entitled Biotechnology in Canada: A Technology Platform for Growth, the report says the accelerating pace of change in biotechnology must be confronted with a focus on customers and global markets spurred on by the development of a true culture of commerce.

Canada’s diverse biotechnology sector is comprised of nearly 500 companies, but the majority are small, frequently precommercial and focused largely on the domestic market. Faced with an inability to attract sufficient risk capital and top managerial talent, the sector could shrink dramatically unless the technology platform upon which it is based is strengthened and more narrowly focused.

The report by Trefor Munn-Venn and Paul Mitchell contends that biotechnology is the potential successor to information and communications technologies as the next economic growth platform for Canada. But unless government and industry face up to the urgent need to focus on achievable niches, other nations will grab an increasing share of future business.

“Will we have the discipline necessary to make the difficult choices that will let us become global-best in particular niches ? ... Canada does not have the wherewithal to invest in all subsectors,” states the report.

Key to improving Canada’s chances in the global marketplace is a change in thinking about biotechnology, from a collection of sectors to a technology that contributes to those sectors. The report argues that the shift in perspective is essential for governments to develop appropriate policies and regulations to strengthen the research base, talent pool and business environment.

Co-author Trefor Munn-Venn unveiled the report last month at the Ottawa Life Sciences Council’s BioNorth conference and said Canada must come to grips with a lack of critical mass in biotech R&D, talent and the size of companies that make up the sector. Of immediate concern for the majority of firms, however, is cash.

“The dollars to thrive aren’t there ... The cash crunch is a huge issue for companies of all stages,” he said.

Dr Graeme McRae, president and CEO of Bioniche Life Sciences, Belleville ON, said Canada would be wise to consider the Irish model for commercialization. McRae suggested that the current cash crunch could be softened if changes were made to the scientific research and experimental development tax credit program.

“Companies should be able to sell their SR&ED tax credits to the banks for fifty cents on the dollar,” he said.

The CBoC report can be obtained at www.conferenceboard.ca.

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