It’s no secret that the United States is the pacesetter in the race for biotech innovations, but Canada is a solid contender that should not be dismissed. Canada is second only to the United States in terms of number of biotech firms.

Multiple studies by industry experts echo congruent findings: The number of new biotech companies in Canada is rapidly rising, the Canadian government is proving a supportive ally to the industry and the country boasts the scientific brainpower and educational infrastructure to launch new innovations that should eventually spawn commercial success.

There are more than 400 biotech firms in Canada. All provinces have at least three biotech firms each, as stated in Ernst & Young LLP’s report, “Beyond Borders: The Canadian Biotechnology Report 2002.” However, it is clearly Quebec, Ontario and British Columbia — and respectively the cities of Montreal, Toronto and Vancouver -— that are leading the Canadian biotech industry.

Several key biotech projects are underway in Montreal, Canada’s flagship biotech location. DSM Biologics is one of the firms snagging headlines there.

Construction is underway on a massive investment by the biopharmaceutical manufacturer on a large-scale biopharmaceuticals plant. While the initial investment in the project is valued at $160 million, it holds the possibility of a $100 million expansion.

A significant number of jobs will accompany the new facility, which will serve as the production site for monoclonal antibodies and recombinant proteins based on mammalian cell culture technology.

Other Montreal plans include the recently announced Berlex Canada project. The firm, a division of Schering, is building a new Canadian head office in Montreal to the tune of $10 million. Nearly 30 new jobs should result from the project by 2005.

Berlex specializes in medical treatments for multiple sclerosis, dermatological disorders, female health concerns, cancer and cardiology. The company also focuses on the creation of new diagnostic imaging techniques.

Elsewhere in Quebec, Novartis Pharmaceuticals Canada unveiled a project in January 2003 in which it is investing $15 million for a new national head office building in Dorval.

Research-Friendly Environments

Companies frequently cite the regulatory and legislative environment as advantages when they select a Canadian site for a biotech venture.

Such was the case for Raylo Chemicals, a division of Germany’s Degussa Fine Chemicals AG.

In November, the Raylo facility in Edmonton, Alberta, was tapped for expansion plans after Degussa transferred its Genetics Medicines business there from another subsidiary, Proligo, in Boulder, Colo.

“The company needed to expand and our Alberta facility was the logical choice,” said Matthew Colomb, president of Raylo. “Our existing labs and production facility, which operate under strict current Good Manufacturing Practices controls, can easily support the new business.

“Furthermore, Alberta has an excellent investment climate and regulatory environment and there are really no impediments to transferring here,” he added. “Another big driver is the access to a sizeable, educated work force.”

In Mirabel, Quebec, construction is nearly complete on ratiopharm inc.’s new $80 million expansion. More than 160 new jobs will result from the project.

ratiopharm, formerly Technilab Pharma/AltiMed, specializes in the development, marketing and distribution of generic drugs.

“Canada’s research-friendly legislation toward product development has facilitated the establishment of our global center for excellence in R&D, enabling ratiopharm to develop new products for the North American market and to take on international research projects,” said Jean-Guy Goulet, president and CEO of ratiopharm. “These R&D activities ensure our long-term growth, and provide us with an essential competitive edge.”

Academia is another weapon in Canada’s biotech arsenal. Toronto is just one example of the wealth of academic excellence that Canada has to offer growing biotech companies.

Greater Toronto is one of North America’s largest centers of biotech activity and is home to more than 100 life sciences companies.

Global leaders such as GlaxoSmithKline, Eli Lilly, Aventis Pasteur and AstraZeneca represent only a small sampling of the biotech entities that can be found there.

There is no doubt that many biotech firms are drawn to the synergies that the University of Toronto presents. Additionally, world-renowned teaching hospitals and research facilities have made the Toronto area a favorite for the biotech community.

In western Canada, Vancouver also offers a substantial number of research centers. They are interspersed between government institutions, universities, teaching hospitals and technical colleges.

Other facilities, like Quebec’s Sherbrooke Biomedical Complex, illustrate the spirit of collaboration that helps propel Canadian biotech companies forward. Tenants of the complex include the Centre Hospitalier Universitaire de Sherbrooke (CHUS), the Sherbrooke Institute of Pharmacology and its technological incubator, and the CHUS Research Centre.