Profile of Greater Montréal’s Life Sciences and Health Technologies Industry
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1 Summary ...............................................................................4
Portrait of the Industry 1.1 Value Creator for Greater MontrĂŠal ...............................................................................8 1.2 Critical Mass of LSHT Jobs and Companies ...............................................................................9 1.3 Easy Access to Global Markets ...............................................................................9 Testimony of Ghislain Boudreau, Vice-President of Public Affairs and Stakeholder Relations, Pfizer Canada .............................................................................10 1.4 A Business-Friendly Environment for Private Sector R&D .............................................................................. 11 1.5 Very Positive Investment Climate ............................................................................. 12 Testimony of Neil Fraser, President and CEO, Medtronic of Canada ............................................................................. 13 1.6 Strong Presence of Foreign Subsidiaries ............................................................................. 15
2 Industry Leaders 2.1 Pharmaceuticals ............................................................................. 18 Testimony of Riad Sherif B., President, Novartis Pharma Canada ............................................................................. 19 Testimony of Martin Leblanc, President and CEO, Caprion ............................................................................. 21 2.2 Health Technologie ............................................................................ 22 2.3 Biotechnology ............................................................................ 24 2.4 Contract Manufacturing/Research ............................................................................ 26
3 Workforce and Training 3.1 Specialists in Many Fields ............................................................................30 3.2 Educational Institutions Offering High Quality LSHT Programs ............................................................................ 32 Testimony of Louise Proulx, Ex-Vice President and General Manager, Vertex Pharmaceuticals (Canada) inc. ............................................................................34 3.3 New Talent Capable of Meeting Challenges Facing the Industry ............................................................................ 35 3.4 Largest Amount of Funding for University Research in Canada ............................................................................ 36 Testimony of Cyril Shiever, Ex-President and Director General, Merck Canada ............................................................................ 39
Profile of Greater Montréal’s Life Sciences and Health Technologies Industry Table of Contents
4 Venture Capital ....................................................................... 42 Testimony of Yves Cornellier, President and CEO, Alethia Biotherapeutics ............................................................................44 Testimony of Michelle Laflamme, President and CEO, Emovi ............................................................................ 47
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Research Organizations Operating and Other Strategic Costs Innovation Groups 6.1 Some of the Most Competitive 5.1 LSHT Research Organizations ............................................................................. 51 Testimony of Jean De Serres, President and CEO, Héma-Québec ............................................................................ 53 5.2 Other Strategic Groups Supporting LSHT Innovation ............................................................................54 Testimony of Rémi Quirion, Chief Scientist, Fonds de recherche du Québec ............................................................................ 57
Operating Costs among Large North American and European Metropolitan Areas ............................................................................ 62 Testimony of Sylvain Duvernay, CEO, Uman Pharma ............................................................................ 63 6.2 Competitive Specialized Labour Costs ............................................................................64 6.3 Clean, Reliable and Affordable Energy ............................................................................66 6.4 Reasonably Priced Operating Space ............................................................................66
Appendix A Methodological Notes ............................................................................ 82 B Sources ............................................................................ 86 About Montréal InVivo ............................................................................ 88 About Montréal International ............................................................................ 89
Testimony of David Howman, Director General, World Anti-Doping Agency ............................................................................ 67
7 Business Environment 7.1 Strategies and Policies ............................................................................70 7.1.1 Québec Research and Innovation Strategy (QRIS)/ National Research and Innovation Policy (NRIP) ................................................................. 70 7.1.2 Québec Biopharmaceutical Strategy ...................................................................71 7.1.3 Québec Drug Policy ........................................................................71 Testimony of Yves Roy, President, COREALIS Pharma Inc. ............................................................................ 72 7.2 Taxation and Incentives ............................................................................ 73 7.2.1 Corporate Tax Rates for R&D Operations: Ranked First in North America .......................................................................73 7.2.2 Highly Attractive Incentives .......................................................................74 Testimony of Claude Chevalier, President, Bio-K Plus International ............................................................................ 75
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Summary A coproduction of Montréal InVivo, the Life Sciences and Health Technologies (LSHT) Cluster of Metropolitan Montréal, and Montréal International (MI), this profile is designed to provide an overview of Greater Montréal’s LSHT industry by showcasing its main players and highlighting its performance indicators.
Greater Montréal’s LSHT industry represents: A critical mass of industry leaders, workers, students and recent graduates World-class companies operating in four subsectors: pharmaceuticals, health technologies, biotechnology and contract manufacturing/research Approximately 45,000 jobs in some 600 facilities 6th among North America’s largest metropolitan areas in LSHT job concentration in 2011 Over 27,000 students enrolled in LSHT-related university programs in 2010 (Fall semester) and nearly 6,300 graduates during that year
Research and development expertise (R&D) Over 12,000 researchers and specialists working in approximately 300 public research organizations in 2011 Internationally recognized areas of excellence: aging, neuroscience and mental health, cancer, cardiovascular and metabolic disease, genetics, genomics, proteomics, etc. Nearly $1.8 billion in awards and grants from the Canadian Institutes of Health Research (CIHR) and Natural Sciences and Engineering Research Council of Canada (NSERC) between 2006 and 2011 – the highest in Canada
Profile of Greater Montréal’s Life Sciences and Health Technologies Industry Summary
Some of the lowest LSHT operating costs among large North American and Western European metropolitan areas A 14% average cost advantage compared with major metropolitan areas such as Toronto, Philadelphia, Boston, San Diego and London
A highly competitive business environment, tax structure and incentive package A 2012 tax burden for R&D companies two to five times lower than in any major metro area in the western world due largely to generous incentives such as R&D tax credits offered by governments of Canada and Québec Over $1.6 billion in venture capital invested in the LSHT industry between 2001 and 2011 – nearly 33% of the Canadian total – the highest in Canada Strategic, political and other types of initiatives fostering business development: Québec’s Research and Innovation Strategy (QRIS)/National Research and Innovation Policy (NRIP), Biopharmaceutical Strategy, Drug Policy, etc.
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«Une artère qui a du cœur» by Boris Chayer Université de Montréal
Finalist 2010, La preuve par l’image, Acfas
Image of a femoral artery from an in vivo study on red blood cell aggregation. Some pathologies, such as diabetes, cause red blood cells to cluster together dangerously. Thanks to ultrasound imaging these red blood cell masses can be mapped inside veins and arteries.
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Portrait of the Industry
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Portrait of the Industry
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1.1
Greater Montréal’s Life Sciences and Health Technologies sector (LSHT) is a prime source of economic development. Over the years, the region has succeeded in positioning itself as one of North America’s major LSHT players.
Value Creator for Greater Montréal In 2011, the real GDP of Greater Montréal’s LSHT industry reached nearly $1 billion. This represented approximately 65% of the Province of Québec’s entire LSHT GDP and over 20% of Canada’s1. Between 2008 and 2011, a period marked by significant economic downturn, the sector’s GDP continued to grow by approximately 2% in the Montréal metropolitan area2.
Source: Statistics Canada, 2012. GDP is based on data available for two of the five LSHT components, namely pharmaceutical and medicine manufacturing and medical equipment and supplies manufacturing. This number obviously underestimates the industry’s real GDP. Unless otherwise indicated, “dollar” ($) refers to Canadian dollars. For additional information, please consult the methodological notes in Appendix A. 2 Source: Statistics Canada, 2012 1
Profile of Greater Montréal’s Life Sciences and Health Technologies Industry/Section 1 Portrait of the industry
1.2
Critical Mass of LSHT Jobs and Companies Greater Montréal’s LSHT industry accounts for approximately 45,000 jobs in some 600 facilities3. This includes over 12,000 researchers and specialists working in more than 300 public LSHT research organizations. This critical mass represents over 18% of all LSHT jobs in Canada4. Greater Montréal also lays claim to a high concentration of LSHT workers. With over 1.8% of its total labour force in the LSHT sector, the region ranks 6th out of North America’s largest metropolitan areas5.
1.3
Easy Access to Global Markets As part of NAFTA6 and only hours away from major North American markets via road and rail, Greater Montréal also has one of the world’s busiest inland ports located near its downtown core as well as two major airports serving global markets. Greater Montréal’s infrastructure and geographical location make it a veritable bridge between North America and Europe and an ideal location for companies looking to expand into foreign markets. In 2012, Greater Montréal’s LSHT industry exported over $820 million worth of goods. Between 2006 and 2012, the region’s LSHT exports represented $5 billion.7
Sources: Expertise recherche Québec, 2012 and Statistics Canada, 2012 Source: Statistics Canada, 2012 5 Sources: Bureau of Labor Statistics, 2012 and Statistics Canada, 2012 6 NAFTA : North American Free Trade Agreement 7 Source: Industry Canada, 2012. Exports are based on data available for two of the five LSHT components, namely pharmaceutical and medicine manufacturing and medical equipment and supplies manufacturing. This number obviously underestimates the industry’s exports. For additional information, please consult the methodological notes in Appendix A. 3 4
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10 Testimony
A Champion of Pharmaceutical R&D A subsidiary of the world’s largest biopharmaceutical company, Pfizer Canada employs 2,300 individuals across the country, most of whom are based in Québec. Its diversified health care portfolio includes biologic and small molecule medicines as well as vaccines for humans and animals, and many of the world’s best-known consumer products. Its primary therapeutic interests are in oncology, infectious diseases, neurology and inflammatory and degenerative diseases. Since 2000, Pfizer Canada has invested $1 billion in R&D.
“Even though Pfizer Canada focuses on R&D, it has never maintained its own research centres. We have always preferred conducting studies in partnership with specialized public and private sector organizations, an approach that has lately become the industry standard. I believe that this is an effective model that ensures the relevance and durability of Greater Montréal’s ecosystem,” said Mr. Ghislain Boudreau, Vice-President of Public Affairs and Stakeholder Relations. Pfizer is also one of the key players in an innovative Canadian initiative: the Québec Consortium for Drug Discovery, an organization dedicated to accelerating the drug discovery process and developing safer and more effective drugs, by allowing competitors to collaborate at the pre-competitive stage. “We believe in the cluster’s future because of the presence of several renowned university centres and Greater Montréal’s power of attraction, but we have to carefully select and define the next areas of excellence in which we have a real chance of becoming the best in the world,” added Mr. Boudreau.
Ghislain Boudreau Vice-President of Public Affairs and Stakeholder Relations
Pfizer Canada VIDEO CORPORATE WEBSITE
Profile of Greater Montréal’s Life Sciences and Health Technologies Industry/Section 1 Portrait of the industry
1.4
A Business-Friendly Environment for Private Sector R&D The competitive tax burden for businesses in the region, one of the most advantageous in North America, partly accounts for the significant concentration of industrial research and development (R&D) in Greater Montréal. Generous R&D tax credits granted by the governments of Canada and Québec offer this significant cost benefit that, over the years, has helped attract R&D companies to the area.8 For example, in 2011, Sanofi, GlaxoSmithKline and Pfizer Canada ranked among the top 20 R&D private sector spenders in Canada, all sectors considered. In addition to competitive R&D costs, companies have access to a readily available pool of qualified workers, an essential element for delivering international-calibre projects.
Sample of the Largest Private Sector LSHT R&D Spenders in Canada Present in Greater Montréal, 2009-2011 Company
R&D Expenditures in Canada ($ million)
Subsector
Sanofi*
492.5
Pharmaceuticals
GlaxoSmithKline
427.6
Pharmaceuticals
Pfizer Canada
368.4
Pharmaceuticals
Novartis Pharma Canada
298.0
Pharmaceuticals
Valeant Canada**
273.3
Pharmaceuticals
Merck Canada***
200.2
Pharmaceuticals
Pharmascience
98.5
Pharmaceuticals
Bioniche Life Sciences
47.2
Biotechnology
* includes expenditures of Sanofi Canada and Sanofi Pasteur ** includes expenditures of Biovail in 2009, acquired by Valeant in 2010 *** includes combined expenditures of Merck Frosst Canada and Schering-Plough Canada in 2009 TabLE 1
Please see Section 7: Business Environment
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Profile of Greater Montréal’s Life Sciences and Health Technologies Industry/Section 1 Portrait of the industry
Sample of LSHT Investments Announced in Greater Montréal between 2007 and 2012 Company
Amount announced
Year of announcement
Type of investment
($ million)
Number of jobs announced
TELUS Health Solutions
100
n/a
2008
Expansion
Health Technologies
Canada
Sandoz Canada
80
100
2007
Expansion
Pharmaceuticals
Switzerland United States
Subsector
Company’s home country
Medtronic CryoCath
51
200
2012
Expansion
Health Technologies
GlaxoSmithKline
50
60
2007
Expansion
Pharmaceuticals
United Kingdom
Pharmascience
40
180
2011
Expansion
Pharmaceuticals
Canada
Galderma Canada
38
30
2010
Expansion
Pharmaceuticals
Switzerland
Merck Canada
33
n/a
2011
Expansion
Pharmaceuticals
United States
Pfizer Canada
32
n/a
2012
Expansion
Pharmaceuticals
United States
Schering Plough Canada*
31
n/a
2009
Expansion
Pharmaceuticals
United States
Sanofi
25
n/a
2008
Expansion
Pharmaceuticals
France
Pfizer Canada
22
n/a
2010
Expansion
Pharmaceuticals
United States
Roche Diagnostics
20
n/a
2007
Expansion
Health Technologies
France
Wyeth Pharmaceuticals**
20
n/a
2007
Expansion
Pharmaceuticals
United States
Schering-Plough Canada*
18.5
n/a
2007
Expansion
Pharmaceuticals
United States
Alethia Biotherapeutics
9.6
n/a
2010
Expansion
Biotechnology
Canada
* Acquired by Merck in 2009 ** Acquired by Pfizer in 2009
TablE 2
1.5
Very Positive Investment Climate Greater Montréal’s strategic location in North America makes it an ideal place to grow an LSHT company. The stability of its economy, the vitality of its high technology sectors and potential for collaborative business ventures, combined with many incentives,9 make the region highly attractive to LSHT companies seeking investment opportunities. Between 2007 and 2012, several major players announced plans to invest in the Greater Montréal area (see Table 2). It should be noted that foreign companies represent over 85% of the investments listed below.
Please see Section 7: Business Environment
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13 Testimony
Life Saving Engineering Since 1949, Medtronic’s mission has been “to alleviate pain, restore health and extend life.” Today, it is the world’s largest medical technology company with $16 billion in sales and 45,000 employees. Headquartered in Ontario, Medtronic of Canada employs 800 workers, half of whom are located in the Greater Montréal area. Its first life-changing therapy – a wearable, battery-powered cardiac pacemaker – was the foundation for dozens more Medtronic products that use technologies for the human body, including radio frequency technology, mechanical devices, drug and biologic delivery devices and diagnostic tools. “I see Medtronic as a biomedical engineering company because all of our products are in fact engineering products. We focus on three major areas: cardiovascular, neuromodulation and diabetes,” declared Mr. Neil Fraser, President and CEO.
Neil Fraser President and CEO
Medtronic of Canada VIDEO CORPORATE WEBSITE
In 2008, Medtronic acquired the Montréal firm CryoCath, which was spun off from technology developed by the Montréal Heart Institute. Today, Medtronic CryoCath is a leader in the manufacture of atrial fibrillation ablation catheters and related products and one of the company’s fastest growing divisions. “After Boston, Greater Montréal has one of the largest concentrations of universities in North America and the Government of Québec has certainly created a friendly climate for the life sciences. Our cluster has a great future if we focus on the right lines of research and monitor what similar clusters are doing around the world,” stated Mr. Fraser.
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Montréal International Serving Foreign LSHT Companies One of Montréal International’s (MI) mandates is to attract, retain and expand foreign direct investment. Between 2006 and 2011, MI provided assistance to 19 LSHT projects in the Greater Montréal area, which resulted in over $325 million in investment and approximately 1,000 announced new jobs.
Profile of Greater Montréal’s Life Sciences and Health Technologies Industry/Section 1 Portrait of the industry
Sample of Foreign LSHT Subsidiaries by Number of Employees (250 or more), Greater Montréal, 2012
1.6
Company
Strong Presence of Foreign Subsidiaries Foreign LSHT subsidiaries contribute significantly to Greater Montréal’s economic development and global reputation. They account for over 17,000 jobs in approximately 160 facilities.10 Companies such as Charles River Preclinical Services Montréal, Merck Canada, Pfizer Canada, Sanofi and Sandoz Canada generate millions of dollars in capital and R&D investment expenditures as well as thousands of jobs. All of this activity stimulates innovation and increases productivity in the region.
Source: Montréal International, 2012
Subsector
Company’s home country
Charles River Preclinical Services Montréal
1,250-1,499
Contract Manufacturing/Research
United States
Pfizer Canada
1,250-1,499
Pharmaceuticals
United States
McKesson Canada
750-999
Logistics and Distribution (healthcare)
United States
Sandoz Canada
750-999
Pharmaceuticals
Switzerland
Covidien
500-749
Health Technologies
United States
Jubilant DraxImage
500-749
Pharmaceuticals
India
Merck Canada
500-749
Pharmaceuticals
United States
AbbVie
250-499
Pharmaceuticals
United States
Bracco Imaging Canada
250-499
Medical Technology
Italy
Galderma Canada
250-499
Pharmaceuticals
Switzerland
Halo Pharmaceutical
250-499
Contract Manufacturing
United States
Medtronic of Canada
250-499
Health Technologies
United States
Novartis Pharma Canada
250-499
Pharmaceuticals
Switzerland
Roche Diagnostics
250-499
Health Technologies
Switzerland
Sanofi
250-499
Pharmaceuticals
France
Table 3
10
Number of employees
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«Microcosme dans une goutte de mer»
by André Rochon Université du Québec à Rimouski (UQAR)
Winner 2010, La preuve par l’image, Acfas
Specimen of marine phytoplancton collected from the Pacific Ocean, along the Mexican coast. These single-celled organisms belong to the dinoflagellates group. They are responsible for so-called toxic red tide. Contaminated molluscs can cause paralytic poisoning in humans who consume them.
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Industry Leaders
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2
Industry Leaders 2.1
Pharmaceuticals Several LSHT industry leaders, specializing in the four following sectors, are present in Greater Montréal: Pharmaceuticals Health Technologies Biotechnology Contract Manufacturing and Research Organizations (CMO/CRO) After New York and Washington, Montréal also has one of the most important concentrations of international organizations in North America, all sectors considered. The World Anti-Doping Agency, World Federation of Hemophilia and Société internationale d’urologie are among the over 60 international organizations located in the area.
Several multinational pharmaceutical companies have established their Canadian headquarters in the Montréal region. These include Abbott Laboratories, AbbVie, Bristol-Myers Squibb Canada, GlaxoSmithKline, Merck Canada, Novartis Pharma Canada, Pfizer Canada, Sanofi and Servier Canada. Greater Montréal is recognized as one of the few urban centres in the world where a company can carry out every stage of the drug development process, from basic research and required preclinical and clinical trials right through to full-scale production and marketing. Some of the blockbuster drugs discovered in the Greater Montréal include:
Merck Canada’s 222® (analgesic), Arcoxia® (pain) and Singulair® (asthma)
Shire Canada’s 3TC® (HIV/AIDS)11
Theratechnologies’ EGRIFTAMD (HIV-lipodystrophy) GlaxoSmithKline’s Fluvarix® (flu) Pfizer Canada’s Premarin® (menopause, osteoporosis)12
Biochem Pharma which discovered 3TC® was subsequently acquired by Shire in 2000. Sources: Investissement Québec, 2012; Montréal InVivo, 2012 (retrieved from their websites)
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19 Testimony
A General Practitioner with Deep Roots “I believe that what sets us apart from other big pharmas is that we are involved in everything, from generics to prevention, diagnostics, research and manufacturing. That makes us a particularly interesting company to partner with,” asserted Dr. Riad Sherif B., President of Novartis Pharma Canada and Chair of Montréal InVivo’s Board of directors. A global health care leader, Novartis strives to create groundbreaking products and services in the area of pharmaceuticals, nutrition, eye-care and animal health. In 2011, Novartis Pharma Canada generated revenue of over $750 million and reinvested approximately $100 million in R&D. Headquartered in Dorval, the company has over 600 employees in Canada.
Riad Sherif B. President
Novartis Pharma Canada VIDEO CORPORATE WEBSITE
It conducts clinical trials in hundreds of centres across the country annually. Notable among these studies are those seeking to discover new treatments for cardiovascular disease, diabetes, irritable bowel syndrome, schizophrenia and different types of cancer. “The health care industry is going through a period of unprecedented change and Montréal InVivo provides us with a unique forum for exchange and collaboration facilitating our adjustment to a new business model. It is the only place that I know of where you can find absolutely every type of industry players. Another significant advantage is having access to a pool of nearly 200,000 university students – a veritable luxury,” added Dr. Sherif B. Born in 1996 from the merger of the Swiss-based pharmaceutical companies, Ciba-Geigy and Sandoz, Novartis has operations in 140 countries around the globe.
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Profile of Greater Montréal’s Life Sciences and Health Technologies Industry/Section 2 Industry Leaders
Sample of Pharmaceutical Companies by Number of Employees (100 or more), Greater Montréal, 2012 Company
Number of employees
Pfizer Canada
1,250-1,499
Biologic and small molecule medicines and vaccines for humans and animals, nutritional supplements and consumer products
United States
Pharmascience
1,250-1,499
Production of generic drugs in a broad range of therapeutic categories
Canada
Sandoz Canada
750-999
Development, production, marketing and distribution of a broad range of generic products used in the fields of anaesthesia, infectious diseases, oncology, cardiology and pain management
Switzerland
Jubilant DraxImage
500-749
Discovery, development, production and marketing of diagnostic and therapeutic radiopharmaceuticals and other technologies related to nuclear medicine
India
Merck Canada
500-749
Development of prescription medicines, vaccines, consumer and animal health products and improved healthcare access
United States
AbbVie
250-499
Research of speciality biopharmaceuticals, especially in the fields of immunology and virology
United States
Galderma Canada
250-499
Development and marketing of therapeutic, corrective and aesthetic solutions for dermatology patients
Switzerland
Novartis Pharma Canada
250-499
Research, development and marketing of pharmaceutical and healthcare products
Switzerland
Sanofi
250-499
Research, development and marketing of therapies to treat conditions in seven therapeutic areas: cardiovascular disease, thrombosis, central nervous system, oncology, diabetes, internal medicine and vaccines
France
Abbott Laboratories
100-249
Development of healthcare products based on scientific data such as diagnostics, medical devices, nutritionals and branded generic pharmaceuticals
United States
Aptalis
100-249
Innovative therapies for unmet medical needs, including cystic fibrosis and gastrointestinal disorders
United States
Bristol-Myers Squibb Canada
100-249
Research and development of treatments in five therapeutic areas: cardiovascular and metabolism, oncology, neuroscience, immunoscience and virology
United States
GlaxoSmithKline
100-249
Discovery and development of medicines, vaccines and healthcare products
United Kingdom
Lundbeck Canada
100-249
Marketing of products targeted at disorders such as depression and anxiety, Alzheimer’s disease, schizophrenia – and more recently – for treatment of chronic lymphoid leukemia and non-Hodgkin’s lymphoma
Denmark
Paladin Labs
100-249
Acquisition and in-licensing of innovative pharmaceuticals for the Canadian and international markets
Canada
Servier Canada
100-249
Research and development of ethical pharmaceutical products
France
Valeant Canada
100-249
Production and marketing of prescription and OTC pharmaceutical products (neurology, dermatology)
Canada
Table 4
Activities
Company’s home country
Profile of Greater Montréal’s Life Sciences and Health Technologies Industry/Section 6 Operating Costs
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Testimony
Leading Provider of Proteomics Based Services Caprion provides a wide range of services for target discovery and clinical validation of biomarkers using its robust, integrated proteomics discovery platform CellCarta®. Its expertise includes the discovery, qualification and verification of disease-specific biomarkers in all phases of clinical and pre-clinical studies. “Caprion is one of, if not the world leader in proteomic services with 70 employees located in Montréal,” declared Mr. Martin Leblanc, President and CEO. “Our platform combines molecular and cellular biology, mass spectrometry and bioinformatics.” Caprion works with the world’s largest pharmaceutical companies as well as small biotech firms that have decided to outsource flow cytometric and proteomic analysis. Profitable since 2006, the company has experienced 35% to 40% growth over the past few years, a trend that should continue since the firm has begun to develop its own diagnostic tools for cancer, infectious diseases and diabetes.
Martin Leblanc President and CEO
Caprion VIDEO CORPORATE WEBSITE
“Greater Montréal has a significant pool of talent trained in the scientific disciplines that are critical for Caprion’s success. It also has people with vital management and business development skills. What we have here is a complete ecosystem, a unique cluster in North America that brings together players capable of collaborating and adopting common strategies. The fact that Canada has a single-payer health care system is also an asset because that makes it possible to match clinical research with the needs of personalized medicine. This could prompt more companies to develop their drugs in Greater Montréal,” asserted Mr. Leblanc.
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2.2
Health Technologies Greater Montréal’s health technologies industry consists of:
Innovative, international-calibre companies such as Covidien, Elekta, Medtronic of Canada, TELUS Health Solutions, Zimmer CAS, etc.
A large number of locally based and highly creative SMEs such as ART Advanced Research Technologies, Carré Technologies, Emovi, Kinova, etc.
This sector includes R&D activities in five areas of excellence:
Assistive devices Information technology Imaging Biomaterials Diagnostic and therapeutic devices
It features a broad spectrum of applications for radiology, cardiology, orthopedics, oncology, obstetrics, clinical decision support, dentistry and remote surgery.
HÉMA-QUÉBEC
Health technologies represent a sector where scientific innovation and emerging technology converge. A large number of Greater Montréal companies turn to microelectronics, information and communications technology, advanced materials technology and biotechnology. The sector also has a bright future because of the construction of two major university hospitals: the Centre hospitalier de l’Université de Montréal (CHUM) and McGill University Health Centre (MUHC) will offer growth opportunities for health technologies companies.13
Sources: Invest in Canada, 2011, Investissement Québec, 2012 (retrieved from their website) and Montréal International, 2011
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Profile of Greater Montréal’s Life Sciences and Health Technologies Industry/Section 2 Industry Leaders
Sample of health technologies Companies by Number of Employees, Greater Montréal, 2012 Company
Number of employees
Covidien
500-749
Production, distribution and service in four fields: medical devices, imaging, pharmaceuticals and medical supplies
United States
Bracco Imaging Canada
250-499
Development of applications and equipment in the field of diagnostic imaging
Italy
Medtronic of Canada
250-499
Development of health system solutions and advanced medical technologies to alleviate pain, restore health and extend life in the areas of cardiovascular medicine, diabetes, spinal and neurosurgery and ENT surgery
United States
Roche Diagnostics
250-499
Development of personalized healthcare based on research, combining expertise in pharmaceuticals and diagnostics
Switzerland
TELUS Health Solutions
250-499
Development of technologies and applications for efficient, effective and secure movement and storage of information and connecting professionals
Canada
Analogic Canada Corporation
100-249
Development of high-precision electronic products and subsystems for healthcare, security and industrial applications
Canada
emd technologies
50-99
Design, manufacturing and marketing of High-Voltage Advanced Power Electronics products
Canada
PeriGen
50-99
Distribution of fetal surveillance systems employing patented, pattern-recognition and obstetrics technologies that empower perinatal clinicians to make confident, real-time decisions about the mothers and babies in their care
United States
Zimmer CAS
50-99
Design and develops computer-assisted surgical guidance solutions providing surgeons with an unparalleled level of accuracy for implants positioning
United States
ART Advanced Research Technologies
1-49
Research, design, development and marketing of optical imaging products for the medical and pharmaceutical industries
Canada
Carré Technologies
1-49
Development of software and devices to monitor and record biosignals for real-time or delayed analysis
Canada
Elekta
1-49
Development and sale of systems for radiation therapy and radiosurgery and software systems that enhance work-flow efficiency throughout the entire spectrum of cancer care
Sweden
Emovi
1-49
Assistance to healthcare professionals to provide optimal orthopedic care by offering highly innovative technologies
Canada
Kinova
1-49
Design and manufacturing of innovative solutions in the field of personal robotics
Canada
TabLE 5
Activities
Company’s home country
23
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ALETHIA Biothérapeutics
2.3
Biotechnology As its name implies, biotechnology combines biology, the science of life, and technology from disciplines such as microbiology, biochemistry, biophysics, genetics, molecular biology and IT. Greater Montréal is headquarters for many companies that have earned national and international recognition including Alethia Biotherapeutics, Bio-K Plus International, Caprion, MethylGene, Theratechnologies and Vertex Pharmaceuticals (Canada). Montréal is Canada’s genomics hub. It is home to such internationally acclaimed research centres as:
The McGill University and Génome Québec Innovation Centre
The Université de Montréal’s Beaulieu-Saucier
The following centres offer a considerable amount of office and laboratory space to emerging companies:
The Québec Biotechnology Innovation Centre (QBIC)14 Biotech City The Université du Québec à Montréal’s (UQAM) Complexe des sciences Pierre-Dansereau
The Biotechnology Research Institute (NRC-BRI) The J.-Armand-Bombardier Incubator of the Université de Montréal and École Polytechnique de Montréal
Technoparc Montréal Technopôle Angus15
Pharmacogenomics Centre (at the Montréal Heart Institute)
The Université de Montréal and Génome Québec National Immune Monitoring Laboratory (NIML)
Organizations located in this centre are eligible for tax credits through the Laval Biotechnology Development Centre (LBDC) 15 Sources: Investissement Québec, 2012 and Montréal InVivo, 2012 (retrieved from respective websites) 14
Profile of Greater Montréal’s Life Sciences and Health Technologies Industry/Section 2 Industry Leaders
Sample of Biotechnology Companies by Number of Employees, Greater Montréal, 2012 Company
Number of employees
Activities
Company’s home country
BELLUS Health
100-249
Development of products that address critical unmet medical needs
Canada
Bio-K Plus International
50-99
Production, marketing and distribution of probiotic products
Canada
Institut Rosell-Lallemand
50-99
Development, production and marketing of probiotics for human nutrition applications
Canada
ProMetic Life Sciences
50-99
Development of technologies to remove pathogens from blood and extract and recover valuable proteins from plasma
Canada
Vertex Pharmaceuticals (Canada)
50-99
Discovery, development and marketing of innovative therapies to cure or advance the treatment of hepatitis C, cystic fibrosis, rheumatoid arthritis and other potentially fatal diseases
United States
Aegera Therapeutics (Pharmascience)
1-49
Development of targeted therapeutics to address major unmet medical needs with a focus on preclinical and early-stage clinical development through integration of “in-house” medicinal chemistry, biochemistry, cell biology, pharmacokinetics and in vivo pharmacology/efficacy
Canada
Alethia Biotherapeutics
1-49
Discovery and development of therapeutic monoclonal antibodies for highly-diseased tissue
Canada
Angiochem
1-49
Development of a new class of pharmaceuticals that achieve meaningful outcomes in a wide range of central nervous system diseases, including brain cancer, neurodegenerative and metabolic diseases, pain, and others
Canada
Bioniche Life Sciences
1-49
Discovery, development, manufacture and marketing of products for human and animal health markets worldwide
Canada
Caprion
1-49
Identification of biomarkers and proteomic targets
Canada
gIcare Pharma
1-49
Development of novel gastrointestinal drugs
Canada
Kiadis Pharma
1-49
Development of therapies for patients with late-stage blood cancers and related disorders
Netherlands
MethylGene
1-49
Development of novel targeted drugs for the treatment of cancer and infectious disease
Canada
Milestone Pharmaceuticals
1-49
Development of novel small molecule cardiovascular therapeutics based on clinically validated mechanisms
Canada
New World Laboratories
1-49
Development of regenerative and personalized medical therapies
Canada
Oncozyme Pharma
1-49
Development of a new approach in cancer therapy, based on the inhibition of endo-exonuclease an enzyme involved in cancer cell proliferation
Canada
Prognomix
1-49
Discovery and clinical application of genomic signatures predictive of susceptibility to diseases, their complications and individual therapeutic responsiveness
Canada
Theratechnologies
1-49
Discovery and development of innovative therapeutic peptide products linked to the human growth hormone releasing factor
Canada
TablE 6
25
26
2.4
Contract Manufacturing Research Cost competitiveness, a concentration of pharmaceutical and biotechnology companies, a readily available pool of patients, a high level of medical expertise and public acceptance of clinical trials contribute to making Greater Montréal a premier market for CMO/CRO companies. The region’s companies offer a complete array of services ranging from preclinical studies to therapeutic drug monitoring in compliance with Good Manufacturing Practices (GMP). These international-calibre companies include:
Algorithme Pharma Cato Research Canada COREALIS Pharma Inc. Charles River Preclinical Services Montréal ITR Canada Quintiles Canada Icon Clinical Research Canada
Bio-K Plus International
Uman Pharma16
Source: Investissement Québec, 2012 (retrieved from their website)
16
Profile of Greater Montréal’s Life Sciences and Health Technologies Industry/Section 2 Industry Leaders
Sample of CMO/CRO Companies by Number of Employees (100 or more), Greater Montréal, 2012 Company
Number of employees
Activities
Company’s home country
Charles River Preclinical Services Montréal
1,250-1,499
Provider of a range of services and expertise to help initiate and complete critical phases of preclinical drug development
United States
Pharmetics
250-499
Contract manufacturing of OTC and nutrition products, specializing in the retail brand market
Canada
Algorithme Pharma
250-499
Provider of early stage clinical development services to an international customer base of generic, biotechnology and pharmaceutical companies
Canada
Halo Pharmaceutical
250-499
Provider of drug development and commercial manufacturing services to the pharmaceutical industry
United States
Warnex
100-249
Provider of laboratory services to the pharmaceutical sector
Canada
Confab Laboratories
100-249
Manufacture and packaging of pharmaceutical products in various types of dosage
Canada
Gamma-Dynacare
100-249
Transformation of laboratory information and services into solutions that improve health, wellness and the Canadian health care system
Canada
Icon Clinical Research Canada
100-249
Provider of outsourced development services to the pharmaceutical, biotechnology and medical device industries, specializing in the strategic development, management and analysis of programs that support clinical development
Ireland
ITR Canada
100-249
Provider of non-clinical toxicology services for the biotechnology and pharmaceutical industries
Japan
Omega Laboratories
100-249
Manufacturer of a complete range of specialized pharmaceutical products
Canada
Quintiles Canada
100-249
Provider of support to accelerate clinical development, meet sales goals and improve patient adherence
United States
Ropack
100-249
Provider of turnkey contract packaging and manufacturing services for the pharmaceutical and consumer healthcare industries
Canada
Uman Pharma
100-249
Development, manufacture and marketing of generic anticancer drugs, specialty oncology products and other injectable products
Canada
Table 7
27
«Le stress d’Arabidopsis» by Justin Wright, Patrick Gulick Concordia University
Finalist 2012, La preuve par l’image, Acfas Detail of an Arabidopsis thaliana root and leaf. These plants express several genes when they undergo stress. In order to view the expression of the Response to Drought (RD20) gene, researchers spliced it with another gene that produces blue pigmentation. The RD20 gene is triggered, among other things, by drought and salt stress. It therefore impacts the development of the root architecture. The gene affects the root architecture development under stress conditions. This research could prove strategic in light of recent studies showing a rise in famine.
3
Workforce and Training
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30
3
Workforce and Training 3.1
Greater Montréal has a critical mass of LSHT jobs and a reliable supply of graduates from high-quality academic programs.
Specialists in Many Fields The 45,000 employees in Greater Montréal’s LSHT industry possess a broad range of expertise. This is due to the exceptional training offered by the region’s educational institutions, the presence of companies operating in a variety of sub-sectors and a network of research organizations focused on industry needs. In 2011, 25% of Québec’s biopharmaceutical employees held a graduate degree (masters or Ph.D.). Moreover, in that same year, most of the industry’s specialists held the following positions: bioprocessing or pharmaceutical manufacturing operator, laboratory animal attendant, administrative or financial manager, middle manager, laboratory technician or quality control supervisor (R&D, chemical or manufacturing).17
Source: Pharmabio Développement, 2011
17
The Research Institute of the McGill University Health Centre (RI-MUHC) and the Centre de recherche du Centre hospitalier de l’Université de Montréal (CRCHUM)18 – A Québec-Based Focal Point for World-Class Research
Profile of Greater Montréal’s Life Sciences and Health Technologies Industry/Section 3 Workforce and Training
31
$800 million invested in two university hospital research centres
100,000 m2 dedicated to world-class research
970 recipients of international awards for research excellence
$82 million in grants annually – highest in Canada
2,200 peer-reviewed scientific publications annually
Among Québec’s top 40 employers (4,000 employees)
$200 million in revenue; $25 million in industry contracts
Key players in urban development: Montréal Technopole, Quartier de la santé19
Ultra modern facilities available for major business partnerships20 University of Montréal Hospital Centre’s Research Centre Health District of Montréal 20 RI-MUHC and CRCHUM, Forum québécois des sciences de la vie, 2012
18
19
Nearly 1,000 globally renowned researchers are working for the CHUM and the MUHC. With more than $800 million invested in these two major neighbouring university hospital research centres, Greater Montréal truly becomes one of the world’s top translational research centres. Dr. Vassilios Papadopoulos, Director of the RI-MUHC, and Dr. Jacques Turgeon, Director of the CRCHUM
32
COREALIS PHARMA INC.
3.2
Educational Institutions Offering High Quality LSHT Programs Home to most of Québec’s universities and universitybased research centres, Greater Montréal is recognized for the size and scope of an educational network that offers leading-edge programs in both of Canada’s official languages (French and English). With eight universities offering LSHT programs, two of the province’s medical schools and university health centres, CEGEPs,21 vocational schools and many research centres, Greater Montréal has a substantial pool of future specialists at its disposal, ranking it among North America’s leaders in intellectual vitality.
CEGEP is an acronym for Collège d’enseignement général et professionnel or General and Vocational College
21
Profile of Greater Montréal’s Life Sciences and Health Technologies Industry/Section 3 Workforce and Training
Main University-Level Institutions Offering LSHT Programs in Greater Montréal General Education
Université de Montréal Centre hospitalier de l’Université de Montréal (CHUM)
Biopharma RHConnect – A Life Sciences and Health Technologies Human Resource Portal
McGill University
McGill University Health Centre (MUHC) Université du Québec à Montréal (UQAM) Concordia University
This Montréal InVivo and Pharmabio Développement
Université de Sherbrooke (Longueuil Campus)
initiative, made possible by the support of Merck Canada and the Ministère des Finances et de l’Économie du Québec, highlights Québec’s outstanding expertise in the life sciences22.
Engineering and Scientific Research École Polytechnique de Montréal
I t was launched in March 2012: http://www.biopharma-rhconnect.com/rh/home.php
École de technologie supérieure (ÉTS) Institut national de la recherche scientifique (INRS)
It ensures complete confidentiality while connecting employers with potential candidates. It showcases the exceptional talent available in the biopharmaceutical sector, facilitates job searches and simplifies the recruitment of qualified personnel. It also helps budding entrepreneurs identify potential business partners with complementary capabilities.
Sources: Biopharma RHConnect, 2012 and Montréal InVivo, 2012
22
33
34
Profil de Profile ofl’industrie Greater Montréal’s des SVTSLife du Grand Sciences Montréal and Health 2012 Technologies Industry/Section 3 Workforce LEADER de l’industrie and Training
Testimony
A Passion for New Challenges The scientists at Vertex Pharmaceuticals were the first to discover the crystal structure for the protease of the hepatitis C virus. “Vertex was founded in 1989. From the very outset, the intention was to work on difficult to treat diseases that had been more or less ignored by the larger companies. When it acquired Virochem Pharma in 2009, also working on hepatitis C, Vertex gave us a free hand to redefine our research,” declared Ms. Louise Proulx, Ex-Vice President and General Manager. With 55 of Vertex’ 2,500 employees, the Laval research centre is currently focused on developing new approaches to the treatment of Crohn’s disease, ulcerative colitis and other diseases while striving to become the company’s centre of excellence for the development of drugs in preclinical and early clinical research. Vertex’ other major fields of research include cystic fibrosis, infectious viral and bacterial diseases, rheumatoid arthritis, Huntington disease and multiple sclerosis. It was the first and is still the only company to have multiple medicines in development targeting the underlying cause of cystic fibrosis. “Among the arguments used to convince our company’s management to invest in our team’s know-how, I emphasized on Greater Montréal cluster’s assets, partnership opportunities and quality of research. In spite of recent changes in big pharma’s business model, these strengths remain. I believe that to continue to develop, we will have to rely on our institutions that have earned international recognition in areas such as cardiology and neurology as well as specialties in which we are already on the cutting-edge,” added Ms. Proulx.
LOUISE PROULX
Ex-Vice President and General Manager
Vertex Pharmaceuticals (Canada) inc. VIDEO CORPORATE WEBSITE
35
Profile of Greater Montréal’s Life Sciences and Health Technologies Industry/Section 3 Workforce and Training
3.3
New Talent Capable of Meeting Challenges Facing the Industry The LSHT industry’s needs are constantly evolving and recent graduates must be ready to meet current labour market demands. In this regard, Greater Montréal’s educational institutions, in collaboration with several research centres, provide future specialists with first-rate theoretical and practical training, thereby contributing to the sector’s competitiveness. The following tables provide an overview of the LSHT programs available in the Greater Montréal area as well as the number of university degrees (bachelors, masters and Ph.D.) and college diplomas (Diploma of College Studies – DEC) awarded. It should be noted that, in 2010, over 27,000 students were enrolled in LSHT-related university programs in the Greater Montréal area (Fall semester) and nearly 6,300 graduated from them.23
Number of Graduates from a Sample of LSHT-Related University Programs (Bachelors, Masters, Ph.D.), Greater Montréal, 2010p Bachelors
Masters
Ph.D.
Total
LSHT Programs Public Health and Epidemiology
558
154
28
740
Basic and Applied Medical Science
402
194
101
697
Biological Science
383
136
53
572
Medicine
424
-
-
424
Nursing
323
89
4
416
Biochemistry
246
31
25
302
Pharmacy and Pharmaceutical Science
168
48
27
243
Chemistry
99
62
40
201
Chemical Engineering
127
26
26
179
Microbiology
113
40
19
172
Dentistry
111
8
5
124
Medicine and Experimental Surgery
-
48
16
64
16
26
16
58
-
8
7
15
2,970
870
367
4,207
771
171
32
974
Electrical and Electronic Engineering
539
239
85
863
Engineering Physics
104
56
41
201
64
7
5
76
Biological and Biomedical Engineering Genetics Subtotal (A)
Related Programs Mechanical Engineering
Mathematics Subtotal (B)
1,478
473
163
2,114
Total (A+B)
4,448
1,343
530
6,321
p : Provisional data 23
Source: Ministère de l’Éducation, du Loisir et du Sport (MELS) du Québec, 2011
Table 8
36
3.4
Largest Amount of Funding for University Research in Canada
ALETHIA BiothErapeutiCs
Between 2005 and 2010, Montréal-based universities received $6 billion in research funds or 20% of the total for the entire country: the highest in Canada. While the national research budget grew by 12% over this period, Montréal’s share increased by nearly 18%, thereby cementing the region’s status as the nation’s R&D capital.24 The availability of these funds is critical for researchers interested in working on key LSHT projects of the future. It also boosts the region’s capacity to attract top-level talent.
Source: RE$EARCH Infosource, 2011. RE$EARCH Infosource only included the 50 universities with the largest research budgets in Canada in its survey.
24
37
Profile of Greater Montréal’s Life Sciences and Health Technologies Industry/Section 3 Workforce and Training
Funds Dedicated to University Research ($ million) Canada’s Top Five Metropolitan Areas, 2005-2010
1,200
Montréal
1,000
Toronto
800
The Government of Canada recognizes the quality of Greater Montréal’s system of innovation. The Canadian Institutes of Health Research (CIHR) and Natural Sciences and Engineering Research Council of Canada (NSERC) awarded $1,147 million and $786 million in awards and grants respectively in the Greater Montréal area between 2006 and 2011: the highest in Canada. The Canadian Foundation for Innovation and Genome Canada have also invested millions in the region.
Vancouver
600 400
Ottawa Calgary
200 2005
2006
2007
2008
2010
NSERC Awards and Grants ($ million) Chart 1
Canada’s Top Five Metropolitan Areas, 2006 to 2011
1,000
CIHR Awards and Grants ($ million)
800
Canada’s Top Five Metropolitan Areas, 2006 to 2011
600 400 1,500
200
1,200
0 Montréal
900 600
786
1,147
Toronto
552
Vancouver
235
184
Ottawa
Calgary
1,142 623
300 0 Montréal
596
Toronto
Vancouver
Chart 3
314
203
Ottawa
Calgary
Chart 2
38
Profile of Greater Montréal’s Life Sciences and Health Technologies Industry/Section 3 Workforce and Training
A Well Funded Innovation System Fonds de recherche du Québec – Santé (FRQ-S) – A Front Line Player in the Planning and Coordination of Health Research in Québec The FRQ-S allocated nearly $100 million each year until 2012 in awards and grants to universities and hospital-based research centres for human health studies. To fulfil its mission and maximize the economic and health benefits of scientific investigation, the FRQ-S provides funding for ➢ ➢ ➢ ➢ ➢
top-performing researchers and students research centres, groups and networks the promotion of excellence and innovation and the dissemination of knowledge social responsibility and ethical practices 25 synergies and partnerships
Québec Consortium for Drug Discovery (CQDM) – Strengthening Québec’s Leadership Position in Biopharmaceutical Research The CQDM is a non-profit organization whose mission is to identify, fund and support pharmaceutical research projects involving university/private sector partnerships. CQDM-financed projects are aimed at generating technologies and innovative tools for accelerating the drug discovery process.26 Génome Québec – The Driving Force Behind the Development of Genomics in Québec By funding over 60 research projects and 750 researchers and supporting the operations of the McGill University and Génome Québec Innovation Centre, Génome Québec is helping to accelerate the discovery of new applications for genomics in strategic areas, particularly human health. Through its many innovation-driven investments, it has contributed to Québec’s leadership status in the life sciences and helped to maximize the social and economic benefits of genomics research.27
Source: FRQ-S, 2012 Source: CQDM, 2012 27 Source: Génome Québec, 2012 25
26
Profil de l’industrie des SVTS du Grand Montréal 2012 LEADER de l’industrie
Profile of Greater Montréal’s Life Sciences and Health Technologies Industry/Section 3 Workforce and Training
39
Testimony
A Giant Looking for Partners A subsidiary of one of the world’s largest pharmaceutical companies, Merck Canada employs over 1,250 people across Canada and markets more than 530 pharmaceutical, consumer and animal health products. Merck is a leader in a broad range of areas such as cardiology, infectious diseases, respiratory, vaccines, women’s health and sun care, and is focused on expanding offerings in other areas, including virology, oncology and diabetes. Based in Kirkland, Québec, the Canadian unit leads all other Merck subsidiaries in clinical research and is a close second to the company’s international headquarters in that department. “For the past several years, we have repositioned our investments based on our new business model founded on a partnership approach. The climate in Greater Montréal was well suited to such a transformation. We enjoy here the benefits of a strong scientific environment, active government support and favourable regulatory and fiscal policies,” declared Ex-President and Director General, Mr. Cyril Schiever. In 2011, Merck Canada announced a $6.8 million investment in AmorChem, a Québec life science venture capital fund, and a $5 million participation in the Québec Consortium for Drug Discovery, an organization that finances early stage research projects involving partnerships. In the spring of 2012, the company also announced its participation ($40 million) in two other Québec funds, Merck Lumira Biosciences Fund and Lumira Capital II. “I believe that Greater Montréal’s cluster has a bright future because of its diversity and capacity for innovation, but that doesn’t mean that efforts aren’t needed to reinforce our critical mass and centres of excellence in a number of strategic areas and stimulate innovation in the biopharmaceutical industry with competitive public policies,” added Mr. Schiever.
Cyril Schiever Ex-President and Director General
Merck Canada VIDEO CORPORATE WEBSITE
«Autoroutes cérébrales»
by Étienne Saint-Amant, Gabriel Girard, Maxime Descoteaux Université de Sherbrooke
Winner 2011, La preuve par l’image, Acfas
Network of axons interlinking various regions of the brain. Axons are an elongated projection of neurons that are able to transmit information throughout the brain and up to the spinal cord. This type of imaging could potentially help neurosurgeons limit the destruction of neuronal networks during brain surgery.
4
Venture
Capital BACK TO MENU
42
4
Venture Capital Greater Montréal benefited from over 1,000 LSHT venture capital investments between 2001 and 2011, totalling $1.6 billion. This represents the largest share of VC investment in Canada over that same period (33%)28.
LSHT venture capital investment in the Greater Montréal area covers a wide range of activities and funds are available for all types of development projects, regardless of stage.
LSHT Venture Capital InvestmentS (%) by Sector Greater Montréal, 2001-2011
81 % 10 % 8 % 1 %
• • • •
Biopharmaceuticals Medical equipment and devices Medical/biotechnology software and IT services Healthcare CHART 4
Source: Thomson Reuters, 2012
28
43
Profile of Greater Montréal’s Life Sciences and Health Technologies Industry/Section 4 Venture Capital
LSHT Venture Capital Investments by Stage, Greater Montréal, 2001-2011 Stage
New development
Number of investments
799,847
609
20,300
25
Start-up
258,252
219
Other stages
521,295
365
Advanced development
811,499
417
Expansion
744,803
384
11,276
17
Restructuring
10,760
6
Other stages
44,660
10
1,611,346
1,026
Pre-start-up
Buyout/acquisition
Total LSHT
Bio-K Plus International
Amount invested ($ thousand)
Table 9
44
Profil de l’industrie des SVTS du Grand Montréal 2012/Section 4 Capital de risque
Testimony
A Biotech in the Era of Personalized Medicine Founded in 2002 through an investment from Génome Québec to develop and apply functional genomic technology, Alethia Biotherapeutics was bought out by its management in 2005. It has since specialized in therapeutic monoclonal antibodies. It is currently moving from basic research to drug development. In many regards, this is a classic example of the many promising Québec biotech start-ups that have sprung up over the past decades. In this particular instance, the company dared to venture into an especially promising niche, therapeutic monoclonal antibodies, which represented $20 billion in 2006 and should generate $60 billion in revenue by 2014. “We are developing monoclonal antibody therapeutics to novel clinically relevant targets identified using our patented STAR discovery technology. What sets us apart is that we set out to discover these targets. Therefore, the resulting intellectual property applies to both the targets and the antibodies developed to reach them,” said Mr. Yves Cornellier, President and CEO. The company is currently focusing on bone loss in acute disorders, invasive carcinomas and cancer-associated epithelial-to-mesenchymal transition, three areas for which there are very few therapeutic options. “Nearly half of all Canadian biopharmaceutical activity is concentrated in Québec, particularly in the Montréal area. Over the years, we have benefited from collaborations with universities and the Biotechnology Research Institute (NRC-BRI). The Greater Montréal cluster has everything needed for the development of drugs from basic research through to commercialization, an extraordinary asset,” asserted Mr. Cornellier.
Yves Cornellier President and CEO
Alethia Biotherapeutics VIDEO CORPORATE WEBSITE
Profile of Greater Montréal’s Life Sciences and Health Technologies Industry/Section 4 Venture Capital
Sample of LSHT Venture Capital Firms Greater Montréal29 Firm
Capital under management ($)
Minimum investment Maximum per project ($) investment per project ($)
Business Development Bank of Canada (BDC) Venture Capital
600,000,000
Between 250,001 and 500,000
Between 10,000,001 and 15,000,000
TVM Life Science Ventures VII Canada
150,000,000
n/a
n/a
Lumira Capital II
100,000,000
n/a
n/a
CTI Life Sciences Fund
100,000,000
Between 750,001 and 1,000,000
Between 5,000,001 and 10,000,000
GSK Canada Life Sciences Innovation Fund
50,000,000
n/a
n/a
Merck Lumira Biosciences Fund
50,000,000
n/a
n/a
AmorChem
41,250,000
n/a
n/a
Fonds Bio-Innovation (Centre québécois de valorisation des biotechnologies - CQVB)
3,300,000
Under 250,000
Between 1,500,001 and 2,000,000
In addition to the firms listed in Table 10, Greater Montréal can also count on the Fonds de solidarité de la Fédération des travailleurs du Québec (FTQ)30 and Teralys Capital which invest in LSHT venture capital funds. Others such as Anges Québec, Lumira Capital Corporation, MSBi Valorisation, Pappas Ventures, Persistence Capital Partners, Picchio Pharma and ProQuest Investments are also active in LSHT.
Table 10
Sources: Gilles Duruflé, 2012, Ministère des Finances et de l’Économie du Québec, 2012 and Réseau Capital, 2012. Réseau Capital data were retrieved from the firm’s website on September 17, 2012. Only those investors involved in the sector under consideration were taken into account. 30 Québec Federation of Labour Solidarity Fund 29
45
46
Profile of Greater Montréal’s Life Sciences and Health Technologies Industry/Section 4 Venture Capital
New LSHT Capital Inflows in Greater Montréal, 2011 and 2012 Creation of TVM Life Science Ventures VII on May 28, 2012 $150 million first closing Top-tier investors, including Teralys Capital, Ely Lilly and Company, BDC Venture Capital, Fondaction and Advantus Capital Management, a subsidiary of Minnesota Life Insurance Company Focus on LSHT investments and initial stages of drug development Support for the creation of companies based on a single therapeutic agent31 Launch of the Merck Lumira Biosciences Fund and Lumira Capital II on March 26, 2012 Merck Lumira Biosciences Fund (target closing of $50 million) supports early stage life science innovation in Québec. Lumira Capital II (initial closing of $100 million) focuses on Québec late-stage biotherapeutic and medical device companies. These funds are backed by Merck Canada, which will invest $40 million in them. Teralys Capital, the Fonds de solidarité FTQ and others are also financial partners. Lumira Capital manages both funds.32 Launch of AmorChem Venture Fund on February 18, 2011 Committed capital of at least $41.25 million Public sector partners include the Government of Québec through Investissement Québec ($16.5 million), the Fonds de solidarité FTQ ($10.9 million) and FIER Partenaires ($5.6 million), for a total of $33 million and private sector players ($8.25 million) Its objective is to increase the commercial potential of the quality academic research carried out in Québec.33
Source: CNW Group, 2012 Source: CNW Group, 2012 33 Source: Ministère des Finances et de l’Économie du Québec, 2011 31
32
Profile of Greater Montréal’s Life Sciences and Health Technologies Industry/Section 4 Venture Capital
47
Testimony
A Fast Moving Start-Up The transfer of a knee evaluation system developed by the Imaging and Orthopedics Laboratory (LIO) of the École de technologie supérieure (ÉTS) led to Emovi’s founding in 2007. Its initial sales were destined to the research market (2008), followed by sales to hospitals (2011). KneeKG, an award winning technology, allows for knee 3-D analysis in a weight-bearing and dynamic condition and the optimization of other types of assessment such as X-Ray and MRI by providing accurate information on movement and functionalities. “Using a harness equipped with optical sensors, this is a revolutionary, non-invasive evaluation system that makes it possible to examine and correct joint function with unequalled precision,” claimed Ms. Michelle Laflamme, President and CEO. This small company, that already has customers in Canada, France and the United States, also develops software, notably in the field of image fusion for treatment planning. It expects to double its sales, reaching $1.2 million in 2012. It currently has nine employees in Laval and Montréal and a small number of representatives stationed abroad. “Greater Montréal provides a budding start-up like ours with valuable access to world-renowned researchers and a pool of potential partners accustomed to working together. All of this is extremely stimulating and essential to our success. I believe that the life sciences cluster is the equivalent of a market, an environment in which companies derive benefit from working together. In our sector, most small high technology companies end up being bought out. I would like to counter this trend by forming the kinds of alliances that will enhance our international success,” stated Ms. Laflamme.
Michelle Laflamme President and CEO
Emovi VIDEO CORPORATE WEBSITE
«Fibres en bouquet» by Nicolas Sgarioto McGill University
Winner 2012, La preuve par l’image, Acfas
Loss of muscle mass, and consequently of muscle function, is called sarcopenia. This phenomenon is caused, among other things, by aging, neurological diseases or nutritional deficiencies. Immunology techniques combined with imaging can help accurately determine the fibre composition and understand the mechanisms that lead to this muscle degeneration.
5
Research
Organizations and Other Strategic
Innovation Groups
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50
5 Research Organizations and Other Strategic Innovation Groups
Greater Montréal LSHT research organizations focus especially on the following areas of excellence: aging, neuroscience and mental health, cancer, cardiovascular and metabolic disease and genetics (including genomics and proteomics).34 The region has more than 300 such groups with over 12,000 employees, half of whom are directly involved in research. Technology transfer centres, business incubators and technology parks also help to sustain the industry’s growth and competitiveness.
34
Source: Fonds de recherche du Québec – Santé (FRQ-S), 2012
Profile of Greater Montréal’s Life Sciences and Health Technologies Industry/Section 5 Research Organizations and Other Strategic Innovation Groups
5.1
LSHT Research Organizations Sample of LSHT Research Organizations (100 or more employees) GrEATER Montréal Research Organization
Research Institute of the McGill University Health Centre (RI-MUHC)
Lines of Research - Cancer - Endocrinology, diabetes, nutrition and renal disease - Medical genetics and genomics - Infection and immunity - Cardiovascular disease and critical care - Mental health and addiction - Neurosciences - Health outcomes - Human reproduction and development - Respiratory health - Musculoskeletal disorders
Centre de recherche du Centre hospitalier de l'Université de Montréal (CRCHUM)
- Cancer - Cardiometabolic health - Infection, immunity, inflammation - Musculoskeletal disease - Neuroscience - Health risks - World health - Healthcare systems
Centre de recherche du Centre hospitalier universitaire Sainte-Justine (CHU Sainte-Justine) Université de Montréal
- Health outcomes - Brain disease - Musculoskeletal disease and human movement science - Viral and immune diseases and cancer - Fetomaternal and neonatal pathologies - Metabolic health
Research Centre of the Montréal Heart Institute
- Acute coronary disease - Chronic coronary disease - Cardiac surgery - Cardiac arrhythmia - Heart failure - Rehabilitation and prevention - Diagnostic and therapeutic technology - Cardiovascular magnetic resonance imaging (CMR)
TablE 11
Research Organization
Centre de recherche de l'Hôpital du Sacré-Cœur de Montréal (HSCM)
Lines of Research - Cardiovascular health - Respiratory health - Traumatology, orthopedics, intensive care and emergency medicine - Genetics and the epidemiology of renal disease - Neuroscience and mental health
Centre de recherche de l’Hôpital MaisonneuveRosemont (CRHMR) Université de Montréal
- Immunology and oncology - Nephrology - Vision health - Link between basic and clinical research
Centre de recherche Fernand-Seguin de l’Hôpital Louis-H. Lafontaine Montréal
- Biological, psychological and social signatures of mental illness - Customized treatment and rehabilitation for special populations - Technology development and knowledge transfer
Centre for Interdisciplinary Research in Rehabilitation of Greater Montréal
- Basic, clinical, epidemiological and applied biomedical and psychosocial research addressing the needs of a varied clientele with significant and persistent physical disabilities
Institut de recherches cliniques de Montréal (IRCM) Université de Montréal
- Systems biology and medicinal chemistry - Cancer - Immunity and viral infections - Cardiovascular and metabolic disease - Neurobiology and development
Institute for Research in Immunology and Cancer (IRIC) Université de Montréal
- Cancer biology - Leukemia and stem cell biology - Targeted molecular therapies and diagnostics
51
52
Profile of Greater Montréal’s Life Sciences and Health Technologies Industry/Section 5 Research Organizations and Other Strategic Innovation Groups
Sample of LSHT Research Organizations (100 or more employees) GrEATER Montréal Research Organization
Université de Montréal Public Health Research Institute
Lines of Research
Research Organization
Lines of Research
- Social determinants of health - Environments and health - Health systems - Global health - Development of knowledge about the processes and tools suitable for mobilizing research results to improve public health practice and decision-making
McGill University’s Douglas Mental Health University Institute
- Schizophrenia and neurodevelopmental disorders - Services, policy and population health research - Mood, anxiety and impulsivity-related disorders - Aging and Alzheimer disease
Québec Population Health Research Network (QPHRN)
- Ethics and public health - Social inequality and health and life outcomes - First-line healthcare services - Health and the Internet - Knowledge exchange and transfer - Global health - Consortium for the Exploitation of Longitudinal Administrative Databases (CELAD)
Respiratory Health Network of the FRQ-S (RHN)
- Obstructive sleep apnea and cardiovascular morbidity factors - Inflammation and remodelling - Bioaerosols and respiratory health - Cystic fibrosis - Chronic obstructive pulmonary diseases - Respiratory critical care
Québec Rehabilitation Research Network (FRQ-S)
- Rehabilitation of cerebrovascular disorders - Rehabilitation of upper-limb motor function - Mechanisms and interventions to facilitate mobility Mechanisms and interventions to facilitate communication - Work rehabilitation - Rehabilitation technologies - Support for social integration - Rehabilitation care and services - Traumatology - Knowledge exchange and transfer
Québec Network for Research on Aging
- Cognition - Mental health - Nutrition - Urinary incontinence - Geriatric rehabilitation - Long-term care - Social interaction and support - Healthcare and services
Montréal Neurological Institute and Hospital
- Brain tumours - Cell biology of excitable tissues - Neuronal survival - Clinical research - Cognitive neuroscience - Complex neural systems - Epilepsy - Brain imaging - Neuroimmunology - Neuromuscular disease - Neuroradiology - Neurosurgery
Lady Davis Institute (LDI) of the Jewish General Hospital (JGH)
- HIV/AIDS - Aging - Cancer - Vascular disease - Epidemiology - Psychosocial science
Institut Santé et société Université du Québec à Montréal (UQAM)
- Health and social factors - Mental health - Mother and child health - Sexual health - Workplace health
Montréal Chest Institute (MCI) McGill University Health Centre
Table 11 (cont”d)
- Research in and treatment of respiratory ailments
Profil de l’industrie des SVTS du Grand Montréal/Section 5 Organismes de recherche et autres regroupements stratégiques en innovation dans le secteur des SVTS
53
Testimony
A Model of Sound Management and Determination Considered one of the world leaders in its field for the volume, quality and efficiency of its production, Héma-Québec supplies over 500,000 products annually to Québec hospitals. With 1,300 employees, this public organization, founded in 1998, is in fact one of Québec’s largest biotechnology enterprises. It regularly allocates 5% of its revenue to R&D, a commitment that compares very favourably with other similar organizations. “Other than supplying blood products, we also distribute a range of other types of products and human tissue. We have our own R&D division, production facilities in Montréal and Québec City, and distribution network. Moreover, we are preparing to manufacture in the near future several stem cell derived products destined for clinical trials, such as skin substitutes. These will eventually constitute one of our main growth areas,” declared Dr. Jean De Serres, President and CEO.
Jean De Serres President and CEO
Héma-Québec VIDEO organization’s website
Concerned with ensuring its future and having a ripple effect on its community, the organization is now seeking to become a world leader in cell production, notably by assisting other Québec biotechnology companies to market their innovations, thereby guaranteeing the stability of local expertise, costs and security of supply. “Greater Montréal’s cluster has an excellent research and innovation capacity. Neither too big nor too small, with major university hospitals, the region is home to an abundant source of highly qualified talent and excellence in clinical research. By focusing on promising niches and optimizing linkages with the ICT cluster, I am convinced that we can achieve truly remarkable results,” added Dr. De Serres.
54
Profile of Greater Montréal’s Life Sciences and Health Technologies Industry/Section 5 Research Organizations and Other Strategic Innovation Groups
5.2
Other Strategic Groups Supporting LSHT Innovation
Technology Transfer and Commercialization Organizations Greater Montréal Technology Transfer and Commercialization Organization Concordia University’s Office of Research
Office of Research/Centre for Technological Development École Polytechnique de Montréal
Montréal InVivo is an economic development body aimed at creating a business environment conducive to innovation and the development of LSHT enterprises and organizations. Montréal InVivo assumes a leadership role by uniting all cluster stakeholders around common objectives designed to ensure the competitiveness and growth of LSHT in the Greater Montréal area and across Québec. Montréal InVivo, through stakeholder cooperation, provides strategic leverage and initiates and coordinates transformative projects, thereby allowing cluster members to jointly capitalize on development opportunities.
Mission - T o identify, develop, support and administer all of the university’s research and related activities - To provide liaison between funding agencies and researchers - To promote and develop ties between the École Polytechnique and industry in the areas of research and development, technology transfer, and strategic partnerships and alliances - To promote, in collaboration with Univalor, the commercialization of research results obtained at the École Polytechnique and facilitate the transfer of available technologies to that company
Centre d’expérimentation et de transfert technologique de l’École de technologie supérieure (CETT-ÉTS)
- To cooperate with industry, develop new technologies and ensure their transfer to the private sector
Centre québécois de valorisation des biotechnologies (CQVB)
- To increase the innovation capacity of SMEs and transfer of technology to Québec’s bioindustry
Univalor
- To accelerate the transfer of the results of research conducted at the Université de Montréal and its affiliated schools and hospitals to industry
Valeo Management
- T o increase the commercial potential of the results of university research
MSBi Valorisation (MSBiV)
- To provide early-stage seed money and human resources and foster an entrepreneurial spirit, thereby providing added value for promising technologies developed by its partner academic institutions (McGill University, Université de Sherbrooke, Bishop’s University) - To assist in the creation of spin-off enterprises and development of technologies ripe for transfer to existing companies
Société de valorisation des applications de la recherche (SOVAR)
- To identify research results with significant commercial potential, demonstrate their technical and commercial viability and transfer the resulting applications to industry and, ultimately, the marketplace
McGill University’s Office of Technology Transfer
- T o promote and facilitate the transfer of knowledge and technologies from University researchers to external parties
TransBIOTech
- To primarily provide services for research, but also technical assistance services to SMEs
Table 12
55 Technology Parks Greater Montréal Technology Park
Vertex Pharmaceuticals (Canada) inc.
Mission
Biotech City
- T o provide individuals and enterprises with a wide range of location solutions in a world class business and science centre
Technoparc Montréal
- T o encourage cooperation among CEGEPs, universities, government organizations and companies in order to develop Montréal’s scientific infrastructure
Technopôle Angus
- To provide private sector and social economy enterprises and institutional organizations with facilities in an urban and ecologically-friendly setting - To facilitate the work of 250 life science researchers located in the Bernard Lamarre building
Table 13
Business IncubatorS Greater Montréal Business Incubator
Mission
CTS Healthcare
- T o ensure the development and sustainability of medical technology enterprises and enhance their national and international exposure
Centre québécois d’innovation en biotechnologie (CQIB)
- T o offer specialized services to emerging life science and health technology companies - To provide rigorous support to entrepreneurs during the creation and start-up stages of their companies
Centre d’entreprises et d’innovation de Montréal (CEIM)
- T o provide specialized coaching and consulting services and dedicated office space in the Cité du Multimédia to help start and grow IT, multimedia, industrial and clean technology and life science companies
Centre d'entrepreneurship HEC-POLY-UdeM
- To generate interest in entrepreneurship and innovation in the university setting and support business creation - To foster the emergence of innovative projects
Table 14
56
Profile of Greater Montréal’s Life Sciences and Health Technologies Industry/Section 5 Research Organizations and Other Strategic Innovation Groups
Areas of Excellence in LSHT Research – Greater Montréal and the Province of Québec In addition to personalized healthcare, Québec (including Greater Montréal) has performed remarkably well in four research areas of prime importance for the health of Québecers, according to the Fonds de recherche du Québec – Santé (FRQ-S): Aging Neuroscience and Mental Health Cancer Cardiovascular and Metabolic Disease
Aging > According to the Institut de la statistique du Québec (2009), persons aged 65 years or over will outnumber those in the 0 to 19 category by 2022. In order to deal with the health issues of an aging population, the province’s research community has taken steps to foster collaboration among key players. Among others, Québec now has the Québec Network for Research on Aging. Headquartered in the Centre hospitalier de l’Université de Montréal’s Research Centre, the Network currently has 425 members35 affiliated with Québec universities (Concordia University, Université de Montréal, Université du Québec à Montréal and McGill University) and grouped into the following eight thematic clusters according to their primary and secondary research interests: cognition, mental health, nutrition, urinary incontinence, geriatric rehabilitation, long-term care, social interaction and social support, and healthcare and services.
Neuroscience and Mental Health > Mental health issues are common among seniors. According to the World Health Organization (WHO), they will soon constitute, behind cardiovascular disease, the second leading cause of anxiety and disability in this age group.36 The following Greater Montréal research organizations have achieved international recognition for their achievements in this area: McGill University’s Douglas Mental Health University Institute. With an annual budget of $18.5 million, it employs over 300 eminent researchers and postdoctoral students from the world over. Their scientific breakthroughs generate 215 scholarly publications annually. The WHO Collaborating Centre for Research and Training in Mental Health chose to locate here.37
Source: Réseau québécois de recherche sur le vieillissement (RQRV), 2012 36 Source: Ministère de la Santé et des Services sociaux, 2012 37 Source: Douglas Mental Health University Institute, 2012 (retrieved from their website) 35
Profil de l’industrie des SVTS du Grand Montréal 2012/Section 5 Organismes de recherche et autres regroupements stratégiques en innovation dans le secteur des SVTS
57
Testimony
Québec’s Chief Scientist In July 2011, Dr. Rémi Quirion was appointed Québec’s very first Chief Scientist and Chairman of the boards of directors of the Fonds de recherche du Québec (Nature et technologies, Santé, Société et culture) aimed at promoting and funding research, knowledge transfer and researcher training. “These funds are unique in Canada. Over the past few decades, the health fund has contributed toward making Québec highly competitive in such areas of excellence as aging, cancer and cardiovascular disease,” declared Dr. Quirion. Even though these funds already support interdisciplinary research projects, stepped-up efforts are needed to foster disciplinary decompartmentalization and collaboration to maximize the impact of this type of work. With this in mind, Dr. Quirion invited, in early 2012, Québec’s research community to submit comments and suggestions concerning potential themes for major interdisciplinary projects. Over 60 proposals were put forward. It is now a matter of choosing which avenues to pursue. “Québec, Greater Montréal in particular, is very well positioned in the health sciences thanks to a concentration of institutions and organizations dedicated to this field. To provide new impetus, we must now increasingly open our health care system to innovation. Moreover, that was the main recommendation of the Life Sciences Forum held in June 2012 and we are working on it,” stated Dr. Quirion. Fascinated with the human brain since his graduate student days, Dr. Quirion is the author of five books and over 650 scientific publications and one of the most cited neuroscientists in the world.
Rémi Quirion Chief Scientist
Fonds de recherche du Québec VIDEO Organization’s WEBSITE
58 Neuroscience and Mental Health (cont’d) > The Montréal Neurological Institute (MNI). An academic medical centre affiliated with McGill University, it has a team of 350 researchers working in all aspects of neurology. Its research units include:
The McConnell Brain Imaging Centre which is widely regarded as one of the top brain imaging research centres in the world
The Centre for Neuronal Survival that investigates mechanisms of nerve cell death occurring as a result of stroke, epilepsy, cancer and neurodegenerative diseases
The Montréal Neurological Hospital which provides an ideal setting for patient research and is recognized for 38 an ambulatory care centre that facilitates outpatient clinical research
Concordia University’s Centre for Studies in Behaviour Neurobiology (CSBN), the Université de Montréal’s Centre de recherche en neuropsychologie et cognition (CERNEC) and the Groupe de recherche sur le système nerveux central (GRSNC) also underscore Greater Montréal’s expertise in neuroscience and mental health. BELLUS Health, Osta Biotechnologies, New World Laboratories and Nymox Pharmaceutical are examples of some of the companies working in the field.
Cancer > Cancer research is of prime importance in Québec, especially in the Greater Montréal area. One of the region’s main strengths is its multidisciplinary approach and close collaboration between basic and clinical researchers. The following are some of the organizations involved in this type of endeavour: the Université de Montréal’s Centre de recherche du Centre hospitalier (CRCHUM) and Institut de recherche en immunologie et en cancérologie (IRIC); McGill University’s Rosalind and Morris Goodman Cancer Research Centre, Segal Cancer Centre (Jewish General Hospital) and Molecular Oncology Group; the National Research Council’s Biotechnology Research Institute (BRI-NRC); the Institut du cancer de Montréal. One should also mention the Réseau de recherche sur le cancer (RRC), a group of researchers funded by the FRQ-S that creates new clinical research and knowledge transfer opportunities for improving care and services for oncology patients. It is located in the Hôpital Notre-Dame of the Centre hospitalier de l’Université de Montréal (CHUM). Many highly promising companies currently developing innovative cancer therapies are also located in the Greater Montréal area. These include Alethia Biotherapeutics, Bioniche Life Sciences, Elekta, MethylGene, Oncozyme Pharma, ProMetic Life Sciences and ProScan Rx Pharma.
Source: Investissement Québec, 2011 (retrieved from their website)
38
59
Cardiovascular and Metabolic Disease > Cardiometabolic and respiratory diseases represent one of the main causes of mortality and morbidity and generate a large proportion of healthcare costs.39 Greater Montréal is home to internationally recognized research centres such as the Montréal Chest Institute (MCI), the Centre de recherche du Centre hospitalier de l’Université de Montréal (CRCHUM) and Centre de recherche du Centre hospitalier universitaire (CHU) Sainte-Justine. These three organizations are part of the Réseau de recherche en santé cardiométabolique, diabète et obésité (CMDO) which focuses on diabetes, nutrition, physical activity and human physiopathology as well as lifestyle habits, risk factors and public health interventions across the lifecycle. Alexion Pharmaceuticals, BELLUS Health, Milestone Pharmaceuticals and Prognomix are examples of some of the companies working in the field Source: Centre de recherche du Centre hospitalier de l’Université de Montréal (CRCHUM), 2012
39
COREALIS PHARMA INC.
“La forêt des affamés» by Steve Charette Université Laval
Winner 2012, La preuve par l’image, Acfas
These tiny 2-mm tall “trees” are called “fruiting bodies.” They are formed by the clumping of thousands of starving amoeba. These single-celled organisms eat bacteria as a source of energy. During periods of starvation, after having consumed all the bacteria around them, the amoebas’ survival instinct kicks in and they start working together as a group.
6
Operating
Costs BACK TO MENU
62
6 By locating in the Greater Montréal area, LSHT companies can get closer to their markets and potentially improve their bottom line. Montréal is one of the Western World’s large metropolitan areas with the lowest labour, energy and leasing costs.
Operating Costs
6.1
Some of the Most Competitive Operating Costs among Large North American and European Metropolitan Areas According to KPMG (2012), Greater Montréal’s enjoys a 14% average cost-advantage over Toronto, Philadelphia, Boston, San Diego and London.
Total Operating Costs of an LSHT Company (Montréal = 100), by Sector
Sample of Large North American and European Metropolitan Areas Specializing in LSHT, 2012 125 120 115 110 105
• • • • •
100 95 90 Montréal Note: US$1 =CA$1
Toronto
PHILADELPHIA
Boston
San DIEGO
Pharmaceuticals Biomedical R&D Clinical Trial Management Medical Devices Average
LonDON CHART 5
63 Testimony
Targeted Generics Part of CFR Pharmaceuticals from Santiago, Chile, a leader in South America and other emerging markets, Uman Pharma is a fully-integrated pharmaceutical company that develops, manufactures and markets generic cytotoxic solid and injectable products for the oncology market. Uman Pharma launched its first product in Europe in July 2012. A few months later, it obtained the authorization to market four products in the United States in 2013. It currently has 150 employees, up from 40 in 2008. “Since acquiring the Bristol-Myers-Squibb facility in 2008, we have developed a dozen of new injectable products. As far as I know, Uman Pharma is the only facility in Canada able to manufacture cytotoxic injectable drugs in pre-filled syringes as well as vials, in either liposomal solution or emulsion forms. It is one of our competitive advantages,” stated the company CEO, Mr. Sylvain Duvernay. The company’s 12,000 m2 facility houses two manufacturing units and 20 R&D, formulation and quality control laboratories. Uman Pharma is increasingly shifting to the manufacture of its own products and foresees expanding its current space by 25% over the coming years. “Being in the Greater Montréal area allows us to tap into a source of highly-qualified talent, a network of dynamic R&D companies and various forms of government support. It also provides us with physical proximity to the American market and regulatory proximity to Europe given the harmonized system between Canada and the European Union,” added Mr. Duvernay.
Sylvain Duvernay CEO
Uman Pharma VIDEO CORPORATE WEBSITE
64 Average Annual Base Salaries ($) for a Selection of LSHT Occupations Sample of Five Large North American Metropolitan Areas Specializing in LSHT, 2012
6.2
Occupations
Competitive Specialized Labour Costs Greater Montréal’s LSHT companies benefit from labour costs that compare very favourably to those of other North American metropolitan areas specializing in the field. According to KPMG (2012), the average total pay package40 of an LSHT worker in the area is lower than that paid in Toronto, San Diego, Philadelphia and Boston. The following table clearly demonstrates that the wages of LSHT specialists are, on average, 2% to 10% lower in Greater Montréal than in other large North American metropolitan areas specializing in the field.
San Diego
Boston
114,920
119,236
127,846
132,648
Pharmacologist
95,553
100,974
96,795
99,098
105,313
Medical Laboratory Director
93,092
98,378
95,856
102,503
106,436
Clinical Nurse Specialist
87,989
92,995
90,631
97,123
100,630
Biochemist
87,971
92,975
88,920
90,854
96,572
Chemical Engineer
86,972
91,921
91,690
96,167
101,345
Biophysicist
85,008
89,849
85,992
87,790
93,322
81,711
86,371
82,450
82,850
89,019
Biomedical Engineer
80,399
84,986
80,482
84,209
88,736
Biostatistician
77,927
82,378
78,707
80,539
86,535
Microbiologist
76,452
80,821
76,775
78,152
83,081
Researcher
75,693
80,021
76,193
77,890
83,720
Laboratory Supervisor
72,800
76,965
74,693
76,444
81,746
Chemist
72,043
76,167
73,334
74,994
80,229
57,117
60,433
58,577
59,582
63,613
Chemist Operator
47,838
50,660
48,187
46,431
51,051
Medical Laboratory Technician
45,538
48,255
43,135
44,777
47,196
Research and Development Supervisor (nontechnical)
Note: US$1 = CA$1 Table 15
According to KPMG (2012), total remuneration includes wages and salaries, statutory costs and other benefits.
Toronto Philadelphia
108,770
Pharmacist
Biomedical Equipment Technician
40
Montréal
Profile of Greater Montréal’s Life Sciences and Health Technologies Industry/Section 6 Operating Costs
According to KPMG (2012), Greater Montréal’s employer outlays for statutory plans and other benefits are lower than the average in comparable North American and European metro areas. The following table details Québec statutory plan costs for three pay levels.
Employer Contributions to Statutory Plans ($) Province of Québec (Greater Montréal), 2012 Gross Salary (annual) Québec Pension (5.025 %)
75,000
100,000 2,342
2,342
Québec Parental Insurance Plan (employee 0.559%, employer 0.782%)
516
516
516
Employment Insurance (employee 1.47%, employer 2.058%)
945
945
945
2,025
2,700
3,375
51
51
51
384
384
384
Total Contributions
6,263
6,938
7,613
Total Employer Cost
81,263
106,938
132,613
Commission des normes du travail (Labour Standards Board) (0.08%) Commission de la santé et sécurité au Travail (CSST) (Occupational Health and Safety Board) (0.6% for the service sector)
For example, according to KPMG (2012), the per-employee value of incentives is worth over US$11,000 in Greater Montréal as compared to US$2,926 in Boston, US$1,967 in London, US$700 in Toronto, US$624 in Philadelphia and US$227 in San Diego. This cost-advantage is particularly important for LSHT companies for whom labour often represents their single largest cost component.
125,000
2,342
Health Services Fund (2.7% if total payroll is under $1 million)
Moreover, the governments of Canada and Québec offer tax incentives such as R&D tax credits that lower a company’s labour costs and thereby further contribute to the competitiveness of Greater Montréal’s LSHT sector.41
Notes: The Act respecting labour standards stipulates that vacation pay must be at least 4% of gross salary. Statutory holidays (+/- 10 days, or 4%) are included in gross salary. Table 16
See Section 7: Business Environment
41
65
66
Profile of Greater Montréal’s Life Sciences and Health Technologies Industry/Section 6 Operating Costs
Average Electricity Rates ($/kWh - Pre-tax)
Average Rent for Office Space (US$/square foot/year)
Sample of Large North American Metropolitan Areas, April 1, 2012
Sample of Large North American Metropolitan Areas Specializing in LSHT, 2011
0.20 60 0.15
50
0.10
40 30
0.05
20
Note: Rates correspond to averages for small (40 kWh), medium (500 kWh, 1,000 kWh and 2,500 kWh) and large power (5,000 kWh and 50,000 kWh) users. Hydro-Québec calculated these rates, which may vary with usage. The exchange rate used in this study: CA$1 = US$1.0084 (12:00 PM – April 1, 2012).
10
New York
Boston
San Francisco
Toronto
DEtroit
Miami
Chicago
MOntréal
Houston
Seattle
0.00
0 Montréal
Toronto
PHILADELPHIA
Los Angeles(1)(2) San DIEGO
Notes: (1) West (2) The average rent for San Diego was not available. Average rent does not include service charges and local taxes. Except for Los Angeles, these data are for Class A buildings located in core business districts. The exchange rate used here: CA$1 = US$0.9820 (December 31, 2011).
CHART 6
CHART 7
6.3
6.4
Clean, Reliable and Affordable Energy
Reasonably Priced Operating Space
Québec is known throughout the world for producing and distributing clean and competitively priced electric energy. According to Hydro-Québec (2012), Greater Montréal ranks third among North America’s largest metro areas in terms of the average pre-tax price for large power electricity: approximately 0.07¢/kWh.
Office and industrial space is readily available in Greater Montréal at extremely competitive rates, both in the downtown core and conveniently located North and South Shore business districts. According to Cushman & Wakefield (2012), the average yearly net rent paid in 2011 for space in a Class A building in the heart of Greater Montréal’s business district was approximately $20 per square foot.
Profil de l’industrie des SVTS du Grand Montréal 2012 LEADER de l’industrie
67
Testimony
An Organization as International as the City of Montréal The World Anti-Doping Agency (WADA) was founded in Lausanne in 1999, following the first World Conference on Doping in Sport. Its funding is sourced equally from the Olympic Movement and governments of the world. WADA’s main activities focus on several areas emanating from the responsibilities given by the World Anti-Doping Code and reflect the importance of a comprehensive approach to the fight against doping in sport, which includes education, research, the development of anti-doping programs and code compliance monitoring. “WADA moved its headquarters to Montréal in 2002 after considering competing bids. Even if no country is immune to it, Canada has acquired the reputation of taking the doping problem seriously following the Ben Johnson affair and that weighed heavily in our decision-making. Moreover, the joint offer from the governments of Canada and Québec met our needs and all commitments have been kept,” stated WADA’s Director General, Mr. David Howman. WADA allocates between $5 and $6 million a year to scientific research particularly to identify and detect doping substances and methods while conducting studies designed to develop effective doping prevention strategies. “Montréal offers excellent working and living conditions. On the one hand, we need to have access to a broad range of high-level expertise, which is available in the region. On the other hand, our 55 employees come from 30 different countries and Montréal provides an especially stimulating and cosmopolitan environment. We are an international organization in an international city. When you are in Montréal, you don’t feel that you are in North America – that’s the charm of this city,” added Mr. Howman.
David Howman Director General
World Anti-Doping Agency VIDEO ORGANISATION’S WEBSITE
«De maman à bébé : une histoire de couches» by Valérie Nadeau, Jean Charron Université Laval
Finalist 2011, La preuve par l’image, Acfas
The placenta—in this case of a mouse—contains a double layer of cells, SynT, specializing in molecule exchange. This double layer (red, green) allows the oxygen in the maternal red blood cells (yellow) to pass through to the fetus (blue). It also carries nutrients, from mother to fetus, and toxic waste, from fetus to mother.
7
Business Environment
BACK TO MENU
7
70
Business Environment 7.1
Strategies and Policies42 Greater Montréal’s LSHT industry works closely with the governments of Canada and Québec to create one of the world’s most competitive business environments. The following provides a brief overview of recent strategies, policies and other relevant initiatives that have helped to generate this climate.
7.1.1 Québec Research and Innovation Strategy (QRIS) National Research and Innovation Policy (NRIP) An initial $1.2 billion for 2007-2010 Nearly $2 billion in additional investment anticipated for 2010-2013 Transformative projects in personalized healthcare listed among the four main intervention targets The QRIS 2010-2013, which expires in March 2013, will be replaced by the NRIP, as announced in the 2013-2014 budget of the Government of Québec. More information about the new NRIP will be revealed in the near future.
Personalized Health Care (PHC) – A Major Initiative for Québec’s LSHT Sector The initial $40 million allocated to this program for 20112015 is meant to support large-scale showcase projects involving several partners and led by businesses or organizations capable of meeting user demands through innovation. Every project must involve a partnership between a research centre and one or more SMEs (covering at least 10% of total project costs). Eligible projects include: T he development and consolidation of an integrated platform for analytical and clinical validation of PHC solutions T he development and commercial demonstration of PHC-specific biomarkers T he development and commercial demonstration of PHC digital solutions and decision-making tools T he development and consolidation of an integrated platform to demonstrate the benefits of the deployment of PHC for the healthcare system
Source: Ministère des Finances et de l’Économie du Québec, 2012
42
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NEOMED: Pioneering a novel approach to bridge the gap in drug development
7.1.2 Québec Biopharmaceutical Strategy Encourage the development of biopharmaceutical and biotechnology companies Provide $123 million in Government of Québec funding from 2010 through 2012 Target five focus areas: the development of research, biotechnology and large biopharmaceutical companies, the retention of a skilled labour force to satisfy industry needs and the promotion of Québec’s image as a biopharmaceutical hub throughout the world
7.1.3 Québec Drug Policy The Québec Drug Policy, the first of its kind in Canada, establishes the foundation for greater collaboration between the biopharmaceutical industry and the government and recognizes the industry’s contribution to healthcare quality and the economy.
NEOMED is a novel type of not-for-profit organization which will pioneer an approach to bridge the gap between early innovations and the healthcare needs of society. NEOMED has a full-time, dedicated, strong cross-functional team of experts with over 130 years of industry experience in R&D projects and alliances across academia, pharma and biotech. It is a Public Private Partnership funded jointly by private and public partners (currently AstraZeneca, Pfizer and the Québec Government). NEOMED operates from the former AstraZeneca R&D centre in the Montréal Technoparc in Ville St-Laurent. NEOMED already has $38 million committed along with a research facility filled with specialized equipment towards the achievement of its mission. NEOMED will provide partnership opportunities by offering industry-level expertise in Drug Discovery and Development combined with the funds needed to advance projects to a stage where they will become attractive to the biopharma industry or as the basis for the creation of solid start-up companies in Québec.43
43
Source: NEOMED, 2012
72
Profil de l’industrie des SVTS du Grand Montréal Montréal/Section 2012/Section 7 7 Environnement d’affaires
Testimony
Formulation Development Specialist COREALIS Pharma develops and manufactures pharmaceutical solid dosage forms (tablets, capsules and granules) based on active ingredients developed by its pharmaceutical and biotechnology clients. COREALIS Pharma’s specialists have access to well-equipped laboratories and manufacturing facilities, allowing them to successfully complete the most complex formulation and process development contracts in compliance with Best Manufacturing Practices (BMP). The company’s facilities, originally built for a consortium of multinational pharmaceutical firms, make it possible for it to face the most complex challenges in formulation and analytical development as well as manufacture clinical trial materials. “My fellow COREALIS Pharma cofounders also come from the pharmaceutical industry. Like me, they realized that there was room for a formulation development company capable of delivering on its commitments. Our success since 2005 is due to the fact that we scrupulously respect customer timelines,” declared Dr. Yves Roy, President. This CRO’s customer base consists primarily of small and medium-sized biotechnology firms based for the most part in the US Northeast and California. It offers a range of products relying on cutting-edge, innovative and dependable formulation and production technology. “We are fortunate to belong to a highly diversified cluster that includes all types of service companies and remains highly competitive thanks to the collaboration of public and private sector players. We must strive to consolidate our various partnerships to improve our ability to support our international customers throughout the drug development process and make Greater Montréal a must for a growing number of companies,” stated Dr. Roy.
Yves Roy President
COREALIS Pharma Inc. VIDEO CORPORATE WEBSITE
Profile of Greater Montréal’s Life Sciences and Health Technologies Industry/Section 7 Business Environment
7.2
Taxation and Incentives 7.2.1 Corporate Tax Rates for R&D Operations: Ranked First in North America Year after year, Greater Montréal’s LSHT companies remain competitive and profitable thanks in large part to one of the world’s lightest tax burdens. According to KPMG (2012), the tax bill for R&D enterprises located in the Montréal metro area can be between two and five times lower than the average for those based in other large North American and European cities specializing in LSHT, namely Toronto, London, San Diego, Boston and Philadelphia. In this regard, Greater Montréal ranks 1st in North America and 2nd worldwide among cities with a population of over two million. Generous tax credits offered by the governments of Canada and Québec are largely responsible for this cost advantage.
Total Tax Index for R&D Companies (Average for US Metropolitan Areas = 100)
Sample of Large North American and European Metropolitan Areas Specializing in LSHT, 2012 120 100 80 60 40 20 0 Montréal
Toronto
LondON
San DIEGO
Boston
philadelphiA CAHRT 8
73
74
Profile of Greater Montréal’s Life Sciences and Health Technologies Industry/Section 7 Business Environment
7.2.2 Highly Attractive Incentives The governments of Canada and Québec offer many fiscal and financial incentives aimed at encouraging LSHT investment and industrial research. The following section lists the main programs available to LSHT companies.
Fiscal Incentives >
Scenario ($)
Scientific Research and Experimental Development Program (SR&ED), 2012 Premises: Private, foreign-controlled company 20 eligible employees @ $50,000/year 100% of its work is related to eligible activities
R&D Tax Credit
Subcontractor: $200,000
Québec has offered an R&D tax credit since the mid-1980s. 44 Canada offers a 20% tax credit; Québec, a 17.5% refundable tax credit.
I n its 2013-2014 budget, the Government of Québec increased from 17.5% to 27.5% the rate of the refundable tax credit for R&D salary in relation to biopharmaceutical activities.
Equipment: $150,000
Salaries ($)
Federal
Québec
1,000,000
1,000,000
Proxy amount @ 65 %
650,000
Subcontractors (1)
200,000
Equipment Québec SR&ED tax credit (2)
Together, these two measures lower R&D costs by more than half.
Federal tax credit @ 20% Québec tax credit @ 17.5%
Total
100,000
150,000 (192,500) 1,807,500
1,100,000
361,500
192,500
554,000
Notes: (1) Only 50% of the amount paid to a subcontractor is eligible for the Québec tax credit. Moreover, only R&D related salary and subcontracting costs (50%) are eligible for the provincial tax credit. (2) In calculating the combined credit, the federal tax credit is reduced by the provincial tax credit receivable.
This scenario does not take into account new measures announced in Government of Canada’s 2012 budget, which will go into effect at a later time. Also, it does not take into account the increase from 17.5% to 27.5% in the rate of the refundable tax credit for R&D salary in relation to biopharmaceutical activities, announced in the 2013-2014 budget of the Government of Québec. Table 17
As of January 1, 2014, the federal R&D tax credit will be reduced to 15 %.
44
Profile of Greater Montréal’s Life Sciences and Health Technologies Industry/Section 7 Business Environment
75
Testimony
Inventor of the First Probiotic Effective Against C. difficile The success story of this biotech specialized in probiotics and biotherapeutics began in 1983 when Mr. Claude Chevalier, then President of the Dairy Farmers of Canada, met Dr. François-Marie Luquet, a renowned microbiologist who graduated from the Institut Pasteur. However, it was only ten years later that the plan to create a healthy, nutritious and therapeutic probiotic from a culture of human origin maintained alive and active in a food substrate was born. Since then, the company has experienced sustained growth and is currently deeply involved in R&D. “Clinical and medical research have demonstrated that in addition to helping intestinal bacteria perform their tasks more efficiently, Bio-K+ has been proven to be effective in reducing the spread of C. difficile in hospital settings and preventing diarrhea associated with antibiotics. In liquid or capsule form, it is the only primary prevention product recognized by Health Canada,” stated Mr. Claude Chevalier, President of the company. The unique and exclusive strains in Bio-K+ are patent-protected and have received the approval of France’s Institut Pasteur and Québec’s Armand-Frappier Institute. Bio-K+ is currently the most commonly prescribed probiotic by Québec and North American physicians. Widely distributed throughout Canada and the United States, the company’s products will soon be available in Europe and South America. “In Greater Montréal, we have a very favourable business climate, incentives, R&D credits, access to talent and a geographical location strategically positioned between the world’s great markets. If we support our companies beyond the commercialization stage to allow them to rapidly achieve international status, we will continue to have a premier life sciences cluster,” added Mr. Chevalier.
Claude Chevalier President
Bio-K Plus International VIDEO CORPORATE WEBSITE
76
REFUNDABLE TAX CREDIT FOR PRECOMPETITIVE, PRIVATE PARTNERSHIP RESEARCH PROJECTS
TAX HOLIDAY FOR FOREIGN RESEARCHERS AND SPECIALISTS
Introduced by the Government of Québec in 2006, this measure is aimed at encouraging companies to form partnerships, thereby allowing them to carry out projects of a scale larger than those that they would normally have pursued on their own. It consists of a 35% refundable tax credit on eligible R&D expenses (current and capital expenses) incurred in Québec and certified by Québec’s Ministère des Finances et de l’Économie.
Eligible Current Expenses:
•
Salaries
•
Material consumed and transformed
•
Payment made to subcontractors and third parties
•
Space leasing/rental expenses
•
Facilities or materials
•
Administrative costs
riginally designed for foreign researchers by the O Government of Québec in 1987
Made available to foreign specialists in 1999 Québec income tax exemption for a maximum of five years on
100 % of an individual’s salary for the first two years
75 % for the third year
50 % for the fourth year
25 % for the fifth year
LAVAL BIOTECHNOLOGY DEVELOPMENT CENTRE (LBDC) Since March 31, 2004, this Government of Québec program has been offering refundable tax credits to Canadian and foreign biotechnology and life science companies located in the LBDC. It is designed to bring biotechnology businesses together at designated facilities adapted to their needs.
Eligible Capital Expenses:
•
Furniture
•
Office equipment
•
Other depreciable property
Tax Credits Available Through the LBDC Program, 2012 Eligible Items
Conditions
Duration
Wages
30% of wages paid to eligible employees ($11,250 limit per employee)
Up to 10 years (until December 31, 2013)
Material
30% of the cost of eligible specialized material acquired or leased by the corporation
3 years (purchase) 5 years (lease)
Specialized facilities
30% of eligible leasing fees
5 years
Table 18
Profile of Greater Montréal’s Life Sciences and Health Technologies Industry/Section 7 Business Environment
Financial Incentives > $125-MILLION MATCHING FUNDING FOR PRIVATE-PUBLIC RESEARCH PARTNERSHIPS To ensure that Québec remains a preferred location for investment in the life sciences field, the government is providing, in its 2013-2014 budget, matching funding of $125 million over five years to encourage research partnerships. This funding will help support large-scale projects carried out in partnership with pharmaceutical companies and public research organizations, in particular specialized university and hospital centres, operating in sectors that are strategic for Québec. Details of this measure will be revealed in the near future.
Support comes in the form of a repayable contribution or guarantee to repay the net loss suffered by a financial institution granting a loan, line of credit or letter of credit. If no other funding is possible, a company may receive a non-refundable contribution. Eligible Projects
projects involving the implementation of a process to provide a service or the establishment of a manufacturing facility leveraging a proven green technology developed in Québec
projects for the construction, modification, expansion or acquisition of a building in order to create new R&D space for research companies without facilities and those with facilities in which they are currently conducting R&D in Québec
projects not involving capital asset expenditures, but generating a cumulative payroll increase of $2 million or more over the first three years following their start date
ESSOR PROGRAM Created in 2012, this program provides assistance for the development of strategic investment projects. It is funded by the Fond de développement économique du Québec and administered by Investissement Québec and Québec’s Ministère des Finances et de l’Économie. Financial assistance can be extended for up to 10 years, but must not exceed 50% of a project’s total costs. This program targets for-profit enterprises, cooperatives and social economy companies involved in: manufacturing software publishing research environmental services tourism (subject to certain restrictions)
Capital asset projects with eligible expenditures of $250,000 or more, such as: i nvestment projects aimed at creating a new company or expanding (or modernizing) an existing one
77
78
FINANCIAL ASSISTANCE FOR JOB CREATION AND TRAINING In 1998, the Government of Québec enacted measures providing private companies with technical and financial assistance to help them meet their manpower needs. Assistance can come in the form of a contribution of: up to 25% of eligible costs sustained for the implementation of a training plan or
NATIONAL RESEARCH COUNCIL’S INDUSTRIAL RESEARCH ASSISTANCE PROGRAM (NRC-IRAP) This program stimulates wealth creation through technological innovation by providing technology advice, assistance and services to SMEs to help them build their innovation capacity. NRC-IRAP brings together a diverse network of organizations, services and programs to help Canadian SMEs develop and exploit technologies in the competitive, global, knowledge economy.
up to 50% of costs incurred for the creation of a human resources department
A Government of Canada program offered for over 60 years and designed specifically for SMEs
A special fund also exists for job creating “major economic initiatives.” To be eligible, a company must:
Technical assistance available to help clients through every aspect of developing and commercializing innovative, technology-driven new or improved products, services, or processes
submit a project that will have a significant impact on regional employment submit a project that comes on the heels of a major investment or create 50 new full-time, lasting jobs over a 24-month period
Solutions provided to over 10,000 SMEs including:
technical and business advisory services
financial assistance
access to business information
national and international networking services
This program maintains extensive networks with over 100 member organizations and 1,000 private-sector suppliers capable of providing SMEs with valuable advice. In its 2012 budget, the Government of Canada allocated an additional $110 million to NRC-IRAP annually, thereby doubling the assistance available to companies served by this program.
Profile of Greater Montréal’s Life Sciences and Health Technologies Industry/Section 7 Business Environment
EXPORT GUARANTEE PROGRAM (EGP)
QUÉBEC ECONOMIC DEVELOPMENT PROGRAM (QEDP)
The Government of Canada’s Export Guarantee Program helps eligible companies manage all kinds of upfront costs. It shares the financial risk with a company’s bank so that it can get the financing needed to break into new markets, increase production for a new order or support foreign investments.
In 2005, the Government of Canada introduced this program managed by the Economic Development Agency of Canada for Québec Regions. Its ultimate objective is to foster the development of eligible Québec-based companies by directly supporting entrepreneurship and company performance. The Agency can help someone to:
Among other things, it provides a financial institution with guarantees on financing for a variety of activities, including:
create or start a business
work in progress and inventory related to export contracts
plan a business succession
ongoing working capital needs
improve a business’s productivity
the purchase of equipment
innovate, adopt a technology or ensure technology transfer
EGP coverage can vary from: up to 75% for guaranteed amounts greater than $500,000 and up to $10 million up to 90% for guaranteed amounts up to and including $500,000 up to 100% for loans where Canadian companies are making direct investments abroad or are looking to set up an operating line for their foreign subsidiary
market or export structure a network Depending on the nature of a project, the Agency can offer financial assistance in the form of repayable or non-repayable contributions or grants.
79
«L’épineuse»
by Cyrena Riley, Richard Cloutier Université du Québec à Rimouski
(UQAR)
Finalist 2011, La preuve par l’image, Acfas
This young thorny skate belongs to the group of cartilaginous fishes (Chondrichtyes) that include sharks and chimeara. The cartilage of an Amblyraja radiata (in blue) is covered by fine mineralized plates (in red). These small calcified tiles, called tesserae, are a unique type of mineralization in the animal kingdom. This phenomenon proves that ossification was not the only mechanism used in evolution.
Appendix
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82
Appendix A
Methodological Notes 01. Portrait of the Industry GDP >
Statistical Definitions The following North American Industry Classification System (NAICS) codes were used in this report: 3 254-Pharmaceutical and Medicine Manufacturing 3391-Medical Equipment and Supplies Manufacturing 4145-Pharmaceuticals, Toiletries, Cosmetics and Sundries Wholesaler Distributors 5417-Scientific Research and Development Services 6215-Medical and Diagnostic Laboratories
Québec’s LSHT GDP was calculated based on data available on two of the five above mentioned fields, namely 3254 - Pharmaceutical and Medicine Manufacturing, and 3391 Medical Equipment and Supplies Manufacturing. Therefore, it underestimates Québec’s real LSHT GDP. Greater Montréal’s GDP was then estimated based on the ratio of Greater Montréal LSHT employment to Québec LSHT employment or 65% of the provincial total. (Employment for Greater Montréal and the Province of Québec was based on employment data on all five NAICS codes.) This ratio was then applied to Québec’s LSHT GDP.
Total Employment > Greater Montréal LSHT employment was calculated on the basis of employment data on all five NAICS codes (source: Statistics Canada, Labour Force Survey – LFS) and information from public research organizations located in the metropolitan area (source: Expertise Recherche Québec).
Profile of Greater Montréal’s Life Sciences and Health Technologies Industry APPENDIX
LSHT Employment Concentration >
Foreign Subsidiaries >
Regional LSHT employment concentration was measured by the ratio of LSHT employment to total employment. Data for the five NAICS codes were supplied by Statistics Canada’s Survey of Employment Payrolls and Hours (SEPH) and the Bureau of Labor Statistics (BLS) and used to calculate ratios for the largest North American metropolitan areas. The SEPH was chosen over the LFS because the former excludes self-employed workers, as does BLS (Quarterly Census of Employment and Wages – QCEW). This allowed for comparisons based on similar data.
Montréal International contacted the companies involved in person, by telephone or by email to verify the foreign subsidiary employment numbers presented in Table 3.
Exports > Total Québec LSHT exports are based on data on two of the five NAICS fields, namely 3254 - Pharmaceutical and Medicine Manufacturing, and 3391 - Medical Equipment and Supplies Manufacturing. Therefore, the number underestimates Québec’s LSHT exports. Greater Montréal’s exports were then estimated on the basis of the ratio of Greater Montréal LSHT employment to Québec LSHT employment or 65% of the provincial total. (Employment for Greater Montréal and the Province of Québec was based on employment data on all five NAICS codes.) This ratio was then applied to Québec’s exports in LSHT.
Recent Investments > LSHT investment and employment data presented in Table 2 were taken from documents published by Montréal International. Some figures were rounded off to the nearest tenth.
02. Industry Leaders Montréal International, Montréal inVivo and icriq.com supplied the employment data presented in tables 4 to 7. Montréal International contacted the companies involved in person, by telephone or by email to verify some of the data. Descriptions of company activities were taken from corporate websites.
03. Workforce and Training University Degrees > The MELS (Québec’s Ministry of Education) supplied the data used in Table 8. The following ratios were used to estimate the number of degrees awarded by institutions with limited operations in the Montréal metro region: 70% for the Institut national de la recherche scientifique (INRS), 55% for TÉLUQ (Télé-université), 50% for the École nationale d’administration publique (ENAP) and 10% for the Université de Sherbrooke.
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84
University Research Funding >
Other LSHT Strategic Innovation Groups >
University research funding Information for Canadian metro regions presented in Chart 1 was based on data from RE$EARCH Infosource on Canada’s top 50 research universities. The Top 50 varies over time. For Greater Montréal, Montréal International used the following ratios to estimate the amount of money allocated between 2005 and 2010 to university research by institutions with limited operations in the region: 60% for the Institut national de la recherche scientifique (INRS), 50% for the École nationale d’administration publique (ENAP) and 50% for TÉLUQ (Télé-université). No ratio for the Université de Sherbrooke could be estimated. The data presented in Chart 1 tend to underestimate the real amount of funding allocated to university research in the metro region.
The lists presented in tables 12 to 14 were retrieved from Montréal InVivo’s website. Descriptions of the organizations’ activities were retrieved from their respective websites.
06. Operating Costs Total Operating Costs > The data used in Chart 5 were taken from KPMG’s annual comparative study, Competitive Alternatives 2012, which measures the combined impact of 26 significant cost components that are most likely to vary by geographical location and sector. The four sectors considered when calculating the LSHT average were medical devices, clinical trial management, pharmaceuticals and biomedical R&D.
CIHR and NSERC Grants and Awards > Numbers for individual Canadian metro areas presented in Charts 2 and 3 were calculated based on institution-byinstitution data supplied by CIHR and NSERC.
05. LSHT Research Organizations and Other Strategic Innovation Groups LSHT Research Organizations > Expertise Recherche Québec provided the names listed in Table 11. Information on each centre’s areas of research was retrieved from respective websites.
Labour Costs > KPMG’s annual comparative study contains cost scenarios for the four LSHT sectors considered. Analysis for each is based on 124, 66, 50 and 100 workers respectively. In order to calculate the average labour costs per employee per metro area as presented on page 64, those for all four scenarios were divided by the average number of workers.
Profile of Greater Montréal’s Life Sciences and Health Technologies Industry APPENDIX
In addition to wages and salaries, KPMG (2012) included the following employer contributions: Statutory costs: government pension and health plans, unemployment insurance, and workers compensation. Other benefits: paid time not worked (holidays and vacations), private health insurance and other discretionary benefits.
Average Cost of Electricity > The data presented in Chart 6 were taken from two sources: a Hydro-Québec survey conducted among 16 companies and invoices estimated and validated for the most part by the companies involved.
07. Business Environment Total Tax Index > The data presented in Chart 8 were taken from KPMG’s Competitive Alternatives Special Report: Focus on Tax, 2012 Edition. To assess the tax burden of businesses by sector and location, KPMG devised the Total Tax Index (TTI), which is a measure of the total taxes paid by corporations in a particular location, expressed as a percentage of total taxes paid by corporations in the United States. Thus, the United States had a TTI of 100, which represented the benchmark against which the other countries and cities were scored.
The overall tax is the sum of three factors: corporate income taxes, other corporate taxes and statutory labour costs. Corporate taxes (at the national, regional and local levels) are determined based on business sector and location. Other corporate taxes include capital, sales, real estate and other types of taxes. Wage taxes include statutory plan costs and other wage-based taxes, which vary by business sector and jurisdiction. KPMG uses the index to assess the general tax competitiveness of the 113 cities in 14 countries studied in its main research project, focusing on 55 major international cities for 19 different types of business operation. TTI results vary among the different business sectors, namely digital, R&D, corporate services and manufacturing. Results for the R&D sector are based on an analysis of three model business operations: a biomedical R&D operation, a clinical trial management firm and an electronic systems development/testing operation.
85
86
Appendix B
Sources Compiled by Montréal International CHART
Source
Page
1
RE$EARCH Infosource, Canada’s Top 50 Research Universities 2011
37
2
IRSC, 2012
37
3
CRSNG, 2012
37
4
Thomson Reuters, 2012
42
5
KPMG, Competitive Alternatives, Guide to International Business Location Costs, 2012 Edition
62
6
Hydro-Québec, Comparison of Electricity Prices in Major North American Cities, Rates in Effect on April 1, 2012
66
7
Cushman & Wakefield, Office Space Across the World 2012
66
8
KPMG, Competitive Alternatives Special Report: Focus on Tax, 2012 Edition
73
Profile of Greater Montréal’s Life Sciences and Health Technologies Industry APPENDIX
Compiled by Montréal International Table
Source
Page
1
RE$EARCH Infosource, Canada’s Top 100 Corporate R&D Spenders 2011
11
2
fDi Markets, 2012; Montréal International, 2012
12
3
Montréal International, 2012
15
4, 5, 6, 7
icriq.com, 2012; Montréal International, 2012; Montréal InVivo, 2012
20, 23, 25, 27
8
Ministère de l’Éducation, du Loisir et du Sport du Québec (MELS), SPRS, DSID, Portail informationnel, système GDEU, May 3, 2011
35
9
Thomson Reuters, 2012
43
10
Gilles Duruflé, 2012; Ministère des Finances et de l’Économie du Québec, 2012; Réseau Capital, 2012
45
11
Expertise Recherche Québec, 2012; corporate websites
51, 52
Montréal InVivo, 2012; corporate websites
54, 55
12, 13, 14 15
Economic Research Institute, 2012
64
16
BDO Canada, 2012
65
17
Deloitte, Tax Incentive Program in Québec –IT, January 2011; Québec eBusiness Development Tax Credit, March 2011
74
18
Investissement Québec, 2012
76
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About
MONTRÉAL INVIVO www.montreal-invivo.com
Objective Montréal InVivo’s objective is to foster the economic development of the LSHT cluster in order that Greater Montréal gains recognition as one of North America’s most prolific centres in product and service development and commercialization and one of the world’s Top 5 health and life sciences centres. Through the involvement of its members, partners, funding bodies and employees, it seeks to contribute to the creation of wealth and a highly effective ecosystem.
Achievement of this Objective through Concrete Initiatives
Mission
Initiatives relevant to the LSHT cluster’s main needs
Initiatives fostering the growth and performance of LSHT related organizations
Montréal InVivo is an economic development body aimed at
creating a business environment conducive to innovation and the development of LSHT enterprises and organizations.
Montréal InVivo assumes a leadership role by uniting all cluster stakeholders around common objectives designed to ensure the competitiveness and growth of LSHT in the Greater Montréal area and across Québec. Montréal InVivo, through stakeholder cooperation, provides strategic leverage and initiates and coordinates transformative projects, thereby allowing cluster members to jointly capitalize on development opportunities.
Winning initiatives generating economic, scientific or social benefits for Québec
Strategic Lines of Action
To provide increasing support for the most promising lines of research
To accelerate the transition from discovery to commercialization and support entrepreneurship To increase collaboration among partners and linkages with decision makers To increase the cluster’s visibility and national and international collaboration To ensure the existence of a reliable funding stream To have access to a qualified, creative and flexible workforce
380 St. Antoine Street West, Suite 8000 Montréal (Québec) H2Y 3X7 Tel.: (514) 987-9380 info@montreal-invivo.com
About
MONTRÉAL INTERNATIONAL www.montrealinternational.com
89
Mandates
Attract, retain and expand foreign direct investment
Attract, retain and expand international organizations Attract, welcome and retain foreign talent Promote and reinforce Greater Montréal’s economic attractiveness and international status
Services As a one-stop organization, MI offers a wide range of customized and confidential services free of charge. The organization relies on the expertise of 50 professionals, all whom are specialists in their respective field.
Mission Montréal International (MI) is a non-profit organization created in 1996 as a result of a private-public partnership. Its mission is to contribute to the economic development of Greater Montréal and enhance its international status. MI is financed by some 130 members from the private and institutional sectors, as well as the governments of Canada and Québec, the Communauté métropolitaine de Montréal and the City of Montréal.
Strategic Support A public/private partnership, MI provides foreign companies with valuable assistance with site location, expansion and strategic alliance projects. Companies are given expert advice to help them benefit fully from opportunities for growing their businesses.
Knowledge of Fiscal and
Financial Programs Companies locating in Greater Montréal can benefit from a range of government programs. MI can provide them with guidance in identifying the right financial and fiscal incentives as well as various sources of potential funding.
International Mobility
380 St. Antoine Street West, Suite 8000 Montréal (Québec) H2Y 3X7 Tel.: (514) 987-8191 info@montrealinternational.com
MI assists companies and organizations seeking to hire foreign strategic workers, particularly by providing assistance with paperwork and easing the settlement process for these individuals and their families in Greater Montréal.
Sectoral Expertise In addition to coordinating various services required to advance promising projects, MI provides foreign companies contemplating a move to the area with information and advice regarding their sector.
Site Selection Data MI can offer a full range of key comparative data on Greater Montréal’s business environment (workforce, costs, taxes, innovation, quality of life, etc.).
Government Relations Investors benefit from MI’s extensive network of relationships with federal, provincial and municipal partners as well as with universities and training and research centres.
“PROFILE OF GREATER MONTRÉAL’S LIFE SCIENCES AND HEALTH TECHNOLOGIES INDUSTRY“ is jointly produced by Montréal InVivo and Montréal International
GRAPHIC DESIGN: Kévin Carignan Studio Be Roseline Gougeon Poisson Rose Design
PHOTOGRAPHY: Luce Tremblay-Gaudette © lucetg.com The pictures presented at the beginning of each chapter were taken from l’Association francophone pour le savoir (ACFAS)’s website. They were submitted for the 2010, 2011 and 2012 editions of the contest La preuve par l’image, an ACFAS’ project, developed in partnership with Radio-Canada and the Eureka Festival! The ACFAS is a non-profit organization contributing to the advancement of science in Québec and the Canadian Francophonie.
TEXTS OF THE INTERVIEWS: Frédéric Simonnot Perception communications
TRANSLATION: Texts: Charles S. Bourgeois Videos: Mélanie Caillierez
ViDEOs Introduction: Étienne Matuszewski Matiano Multimedia Video capture and editing (interviews): Luc Laflamme Ognian Gueorguiev Charlaine Ricard Productions Aura inc.
www.montreal-invivo.com www.montrealinternational.com Document available only electronically Disponible en version française