Profile of Greater
Montréal’s
Life Sciences
and Health
Technologies
Industry
2
1
Summary
...............................................................................4
Portrait of
the Industry
1.1 Value Creator for Greater Montréal
...............................................................................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
5
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
Appendix
A Methodological Notes
............................................................................ 82
B Sources
............................................................................ 86
About Montréal InVivo
............................................................................ 88
About Montréal International
............................................................................ 89
6
Operating Costs among Large North
American and European Metropolitan
Areas
............................................................................ 62
Témoignage of Sylvain Duvernay,
CEO, Uman Pharma
............................................................................ 63
6.2 Competitive Specialized
Labour Costs
............................................................................64
6.3 Clean, Reliable and Affordable
Energy
............................................................................66
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
6.4 Reasonably Priced Operating
Space
............................................................................66
7.2 Taxation and Incentives
............................................................................ 73
Témoignage of David Howman,
Director General, World Anti-Doping
Agency
............................................................................ 67
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
3
4
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.
5
«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.
1
Portrait
of the Industry
BACK
TO MENU
8
Portrait
of the Industry
1
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
9
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
8
11
12
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
9
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.
14
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
15
«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.
2
Industry
Leaders
BACK
TO MENU
18
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)
11
12
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.
20
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
21
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.
22
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
13
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
24
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
BACK
TO MENU
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
It 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
BACK
TO MENU
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 71
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.
In 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:
investment 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
BACK
TO MENU
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.
83
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
87
88
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
[email protected]
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
[email protected]
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