1. October 2001 Think Canada for Biotechnology Innovation and Investment

2. 2 Canada’s biotechnology industry offers a very receptive investment climate: dynamic and rapidly-growing companies a first-rate science base and business environment a highly-skilled workforce cost advantages access to the world’s largest and richest market: North America active Federal Government support for research a competitive regulatory environment other key success factors (eg. patent protection, access to financing)

3. 3 The Canadian biotechnology industry is maturing rapidly... The industry contains 358 core biotechnology companies: –42% in the health sector –25% in agriculture –10% in environment –5% in bioinformatics –4% in aquaculture –8% in food processing –6% in “other” (Statistics Canada: Biotechnology Use and Development Survey-1999*) 76 core biotechnology companies entered the industry between 1997 and 1999* Genome Canada has identified 54 Canadian genomics-related companies

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5. 5 Canada’s industry is doing leading work in therapeutic and technological areas... Therapeutic: Cancer Central Nervous System Infectious Diseases Cardiovascular HIV/AIDS Technological: Genomics Proteomics Bioinformatics Antibody-based Immunotherapy Gene Therapy Antisense Vaccines

6. 6 … supported by research institutions with strengths in biopharmaceutical technologies... Samuel Lunenfeld Research Institute genomics, bioinformatics, proteomics Toronto Hospital for Sick Children genomics, bioinformatics, proteomics, vaccines, gene therapy National Research Council genomics, bioinformatics, proteomics, antibody-based immunotherapy, vaccines, gene therapy Montreal Neurological Institute antibody-based immunotherapy, gene therapy Vancouver Hospital and Health Sciences Centre genomics, bioinformatics, antibody-based immunotherapy, gene therapy Canadian Genetic Diseases Network (NCE) genomics, bioinformatics, proteomics, antibody-based immunotherapy, gene therapy Protein Engineering Network (NCE) proteomics Canadian Bacterial Diseases Network (NCE) genomics, bioinformatics

7. 7 … and by biotechnology research in federal laboratories and agricultural research centres. National Research Council : Six research institutes Canadian Bioinformatics Resource Health Canada: Canadian Science Centre for Human and Animal Health Agriculture and Agri-Food Canada: Fifteen research centres across Canada Environment Canada: environmental genomics, bioremediation, and cleaner production research / support Natural Resources Canada: energy efficiency and use of renewable resources

8. 8 The Federal Government also provides support through the Canadian Institutes of Health Research (CIHR)... Launched in June 2000, with annual budget to reach $577 million by 2001-02, the CIHR provides federal funding to health research through virtual institutes in 13 key research areas, including: Circulatory and Respiratory Health Cancer Genetics Infection and Immunity Neurosciences, Mental Health and Addiction Musculoskeletal Health and Arthritis Nutrition, Metabolism and Diabetes Healthy Aging

9. 9 The Canadian Bacterial Diseases Network The Canadian Genetic Diseases Network The Protein Engineering Network of Centres of Excellence The Health Evidence Application and Linkage Network (HEALNET) Canadian Arthritis Network Canadian Stroke Network Canadian Network for Vaccines & Immunotherapeutics of Cancer & Chronic Viral Diseases Stem Cell Genomics and Therapeutic Network … and federally-funded Networks of Centres of Excellence

10. 10 Other Canadian Government investments assisting biotechnology research include... Genome Canada: $300 million for establishment of 5 genome science centres across Canada Canada Foundation for Innovation: $3.15 billion budget for strengthening of R&D infrastructure in Canadian universities and hospitals Canada Research Chairs: $900 million for establishment of 2000 Canada Research chairs by 2004-05 Technology Partnerships Canada: Invests in innovation in Canadian companies in selected technologies, including biotechnology Regulation of Biotechnology Products and Processes: the 2000 Federal Budget included an additional $90 million over 3 years

11. 11 A favourable exchange rate on the Canadian dollar provides more purchasing power than in the US Lower tax rates on capital gains and stock options and a lower average corporate income tax rate than in the US Scientific Research and Exploratory Development (SR&ED) tax credits that are available to eligible sponsoring companies when trials involve original research conducted in Canada Canadian Institutes of Health Research (CIHR) of Canada, which can share funding with industry partners for clinical trials in health care that are randomized or hypothesis-driven, and not solely for regulatory requirements Canada’s advantages include economic factors...

12. 12 … population and framework characteristics... Fourteen major Canadian cities are the main catchment areas for patient populations The patient base is multi-ethnic, with significant pockets of founder population groupings A public framework health care system facilitates patient recruiting and tracking The national health care system provides a single set of clinical standards across the country A national ethical review standard for Ethical Review Boards is in place in Canada Streamlining of regulatory environment for clinical trials is in progress

13. 13 … and other determinants of success. Availability of skilled workers in life sciences and other high tech fields Clusters of private sector and institutional biotechnology R&D activity in centres across the country Access to capital: –There is an active venture capital industry which includes such firms as Canadian Medical Discoveries Funds, MDS Capital Corporation and SOFINOV. –In the first 6 months of 2000, Canadian biotech firms raised Cdn. $1.57 billion in equity and debt, an increase of 40% from 1999 levels. A favourable overall business environment: The Economist Intelligence Unit ranks Canada highly in this area. Generous R&D tax treatment Competitive corporate and payroll taxes 20-year patent protection Reform of clinical trial regulations and improvement of drug approval times (both in progress)

14. 14 Locating in Canada provides real opportunities for companies in the biotechnology sector. Access to the North American market, the world’s largest and richest Potential for commercialization of new products through collaboration with government research experts and Centres of Excellence, and cross-sectoral research in convergent technologies Companies which are now sufficiently mature to establish partnerships and collaborations with foreign firms A skilled workforce: ranked first among G7 nations An excellent science base and a first-rate business environment, complemented by fiscal and financial incentives and other measures Committed support by the Canadian Government

15. 15 For further information on federally-supported innovation, please see the following. Canadian Institutes of Health Research - http://www.cihr.ca Genome Canada - http://www.genomecanada.ca National Research Council - http://www.nrc.ca Networks of Centres of Excellence - http://www.nce.gc.ca Natural Sciences and Engineering Research Council - http://www.nserc.ca Canada Foundation for Innovation - http://www.innovation.ca Technology Partnerships Canada - http://tpc.ic.gc.ca Scientific Research & Experimental Development Tax Credits - http://www.rc.gc.ca/sred Canadian Biotechnology Strategy - http://strategis.ic.gc.ca/cbs 2000 Federal Budget - http://canada.gc.ca

16. 16 To find out more about investment opportunities, contact Industry Canada. For information about investment opportunities in biotechnology, contact the Life Sciences Branch : Linda Leinan, Tel. (613) 954-3068; Fax. (613) 952-4209 E-mail: leinan.linda@ic.gc.ca OR Paul Vaillancourt Tel. (613) 952-7700; Fax. (613) 952-5822 E-mail: vaillancourt.paul@ic.gc.ca For information about Canada’s positive economic climate, view the Think Canada presentation by clicking the “Canadian Advantages” button at: www.investincanada.gc.ca