Spotlight on the Life Sciences in Canada: What International Companies Need to Know
When you think of Canada, maple syrup and snow might come to mind. Although we certainly identify with these things, Canada also has a rich history in the life sciences and is an established leader on the world stage of R&D, innovation, clinical research, product development, manufacturing, and contract services.
Let’s take a look at the Canadian life sciences landscape, the benefits of doing business here, and key points that international companies should be aware of to ensure success.
Overview of the Canadian Life Sciences Landscape
Canada has historically been the site of groundbreaking innovations such as the discovery of insulin, the invention of the pacemaker, and the creation of the first Ebola vaccine, among other achievements.
Today, there is a strong base of small and medium-sized companies as well as global giants with headquarters and operations in Canada. Key sectors include brand-name and generic pharmaceuticals, biopharmaceutical SMEs, and medical device providers.
The Canadian medical device sector includes developments in medical and surgical equipment, prosthetics and assistive devices, diagnostic kits, and more.
Canadian researchers excel in genomics, proteomics, vaccine development, regenerative medicine, protein engineering, immunotherapies, and drug delivery systems. Notably, Canada leads in the vaccine industry and is a hub for HIV vaccine research and related technologies.
On the research side, Canada has been part of the trend toward outsourcing R&D programs, including with academia, government research centres, CROs, and CMOs. Canada is known globally for the quality and competitiveness of clinical research. In fact, all the leading global pharma companies conduct clinical trials in Canada.
Top-Notch Quality: Navigating Canada’s Regulations
One area that global companies should be aware of before entering Canada is the distinct regulatory framework.
Compared to other regions, Canada is known for having more rigorous standards and requirements for safety, efficacy, and quality. This helps ensure the highest quality products reach the market, but the process can affect product approvals and timelines.
That said, these challenges can be overcome with careful navigation of the regulatory complexities and a deep understanding of the right pathways to market for each product type.
Entering Canada: The Importance of a Regional Network
As discussed in our previous post, Want to Go Global? How to Effectively Expand Your Life Science Business Beyond North America, a local network of connections that can help you is invaluable.
When entering Canada, it’s important to have established relationships in place, or to work with a point person who is tapped in and connected with the key players. It is critical to know who to approach for referrals, secure supply chain partners, and understand how the regulations and business culture works in Canada.
Working with a local business development expert in Canada can be invaluable, as they will be able to set up meetings, refer you to service providers and other consultants as needed, and offer guidance on operating your life science business in Canada.
Future Opportunities for Life Science Innovation and Business in Canada
Looking ahead, the Canadian life science landscape is poised for continued growth and innovation.
Advances in areas such as precision medicine, gene therapy, and biomanufacturing hold promise for breakthroughs in the near future.
From a business perspective, we anticipate an uptick in deals, licensing agreements, partnerships, and M&A activity across all sectors of the life sciences here in Canada.
However, challenges remain in the biotech space post-Covid, including the drain of innovation developed within Canada and moved abroad. Overcoming this will require efforts to boost commercialization of IP beyond the lab, as well as attracting and retaining skilled talent.
Conclusion
As global demand for healthcare solutions continues to grow, Canada's role as a hub of life science excellence is expected to strengthen. At Sosna + Co, we will continue to support companies entering and operating within Canada to contribute to these advancements.
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Sosna + Co is a boutique, outsourced business development partner for the life sciences. From M&A advisory and licensing deals with Fortune 500 companies to uncovering the potential of savvy, new start-ups, the principal is simple: we work meticulously to uncover new opportunities that grow your business. Contact us today to learn more.