Life Science the Canadian way

More than 12 million people live in the province of Ontario. That is more than two thirds of the Canadian population. 42 percent of the country’s GNP is generated in the province, and the life science industries along with medical research show considerable future potential in comparison to other regions in the world.
Ontario is the eighth largest economic region in North America (see Figure 1). In 2003, around 100 biotech companies had a combined turnover of more than 1,1 billion US-Dollars in Canada’s most important province. In comparision to this the 1800 Biotech companies in
Europe generated only revenues of 14,8 billion US-Dollars.
Companies operating in Ontario have significantly lower costs compared to the US. Many experts believe that lower costs plus a favorable legal and tax environment have produced a very good economic climate. A number of pharmaceutical giants including GlaxoSmithKline, Amgen, Biogen, Genzyme, AstraZeneca and Pfizer have taken advantage of this environment and have invested in production and R&D facilities.

However, it is not just the big players who are convinced that conditions are right in Ontario. Small startups are also attracted to the province. John D. Mendlein, CEO of Affinium Pharmaceuticals, highlighted the very attractive tax rules in an interview with ‘NewDrugs’ For example, 20% of R&D investment costs are refunded to the company if it collaborates with local universities or institutes. Mendlein also appreciates the presence of Big Pharma in Ontario, which provides excellent opportunities for a number of collaborative research projects (including Pfizer).
Investment has doubled
The provincial government made nearly 300 million euros available to promote pharmaceutical research in 2002. This underscores the fact that companies benefit from a favorable economic climate in Ontario. Expenditure has doubled over the past ten years.
Stuart McKeen from the Ontario Biotechnology Secretariat also points out that the ongoing cost of operating laboratories in Ontario is for example 25% lower than in Germany and 28% lower than in the US. Taxation rules relating to R&D expenditure are so favorable that one invested Canadian dollar only actually costs a company 50 cents.
Mars – research in Toronto
The Center for Medical & Related Sciences (Mars) in Toronto makes an important contribution to biomedical research in Ontario. This center, which opened in 2002, offers startup companies the opportunity to share laboratory facilities without having to make significant investments. John A. Cook, president and CEO of Mars, hopes to attract more than 100 biotech companies by 2010. More than 70,000 square meters of office and lab space will be available by April, 2005. This will increase to more than 130,000 square meters in phase 2. Cook highlighted the interdisciplinary nature of the center, which will be the home of a large think tank for medical research in Ontario.
These examples clearly demonstrate the effort that Ontario is making to be a leader in the life sciences.