Biopharmaceuticals 

View PDF

COMBINING INNOVATIVE DISCOVERY WITH DEVELOPMENT AND COMMERCIALIZATION ACUMEN AND EXPERIENCE TO BUILD ON OUR SUCCESS IN BIOPHARMACEUTICALS

British Columbia continues to chart a new course driven by knowledge based industries.   Local success stories and opportunities in the biopharmaceutical sector abound, supported by a strong foundation of world-class health research, a wealth of commercialization resources and ever more favorable political and economic conditions. 

BC is fortunate to have leading researchers investigating, and industry developing, a wide array of biopharmaceutical products and technologies.  From novel activation and delivery of drugs to antisense enhancement of chemotherapy, British Columbia stands at the forefront of innovation in biopharmaceuticals.  The BC biotechnology industry includes over 90 biopharmaceutical companies, representing the most developed sub-sector of BC’s overall life sciences industry.  It is the seventh largest biopharmaceutical cluster in North America and employs over 2,200 people. It has also seen significant commercial success to date, generating revenue in the range of $800 million per year.  By number of companies, BC’s biopharmaceutical sector is the fastest growing in Canada.  

The global biopharmaceutical landscape is highly dynamic.  Traditional pharmaceutical development aimed simply at symptom relief has evolved to focus on mechanism based approaches, disease modifying treatments, personalized medicine and healthcare efficiency.  Our province has managed to keep pace, and often to lead, this shift in innovation, feasible only with a vibrant, collaborative and supportive community that LifeSciences BC continues to foster. 

A Fertile Biopharmaceutical Landscape

British Columbia is home to one of the most vibrant biopharmaceutical sectors in the world. It’s a industry predominantly homegrown industry, having been built through investment in the province’s world-class research institutions including;

Notable features and recent developments in BC’s biopharmaceutical research community include:

  • The announcement of a new, state-of-the-art research pavilion to be established at Vancouver General Hospital, housing three internationally-recognized research programs. The seven-storey, 69,350 sq. ft. (6,442 sq.m.) facility will house three of VGH’s key research programs: the Vancouver Prostate Centre at VGH; the Centre for Hip Health and Mobility; and the Ovarian Cancer Research Initiative. 

  • The opening of the Blusson Spinal Cord Research Centre, the world’s largest, most advanced and most comprehensive facility devoted to spinal cord injury research and patient care.

  • A strong legacy left by the University of British Columbia’s late Nobel Laureate in Chemistry, Dr. Michael Smith. Dr. Smith was a catalyst for the tremendous increase in research in British Columbia that has occurred over the past decade; and no organizations have had a greater impact on this continued increase than Genome British Columbia and the Michael Smith Foundation for Health Research – each mandated with working to position British Columbia as a leader in life sciences research.

Fueling Biopharmaceutical Commercialization in BC

In February of 2008 British Columbia’s life sciences research community again distinguished itself as true national leaders in applied research by securing the largest amount of Federal Government funding (approx. CAD $60 million) to create four new Centres of Excellence for Commercialization and Research (“CECR”s) in BC. The award saw $163 million invested towards establishing 11 new CECRs across Canada. The most awards granted to any province are in British Columbia, with each of the four having received $14.95 million.

Recipients of CECR awards include:

  • The Prostate Centre’s Translational Research Initiative for Accelerated Discovery and Development (“PC-TRIADD”) -  PC-TRIADD acts as a bridge between academia and the biotechnology and pharmaceutical industry to conduct pre-clinical and clinical proof-of-concept studies on projects originating in both academia and industry. Its primary focus is on the mechanisms of late stage tumour progression and acquired treatment resistance in prostate cancer. PC- TRIADD is under the direction of leading urologist and surgeon Dr. Martin Gleave, who also holds B.C.’s Leadership Chair in Prostate Cancer Research and is co-founder of BC-based biotech company and recent success story, OncoGenex Technologies;

  • The Prevention of Epidemic Organ Failure (PROOF) - Led by the UBC’s Dr. Bruce McManus, PROOF aims to lead the way in finding practical solutions to vital organ failure and reducing organ failure’s impact on Canadians and the national healthcare system. PROOF's team of world-class researchers, scientists and clinicians are committed to improving the standard of care and quality of life for all patients in Canada faced with heart, lung and kidney failure.

  • The Centre for Drug Ressearch and Development (“CDRD”) – CDRD guides early-stage discoveries made by BC’s top academic and health researchers through the preclinical drug development process. CDRD’s expertise and facilities help researchers overcome obstacles to the overhead intensive, early development and testing of innovative pharmaceuticals towards bridging the gap between applied research and clinical testing.

  • Advanced Applied Physics Solutions (“AAPS”, $14.95 million) - Established at TRIUMF, Canada's national laboratory for research into particle and nuclear physics, AAPS’ mission is to commercialize advanced physics technologies for the social and economic well-being of Canadians and around the world. Few people recognize that physics innovation at TRIUMF has contributed to the health and biopharmaceutical fields of radio-labeled pharmaceuticals, radio-imaging technologies including positron emission tomography and proton treatment of certain types of ocular cancer.

Expanding on a Track-Record of Industry Achievement

Complimenting BC’s wealth in research and discovery, the simultaneous emergence of a business environment readily enabling the translation of research into commercial success has produced great value in BC for global partners and investors. In this context, the majority of B.C.’s biopharmaceutical companies formed as spin-offs from these public research institutions, and have been nurtured by researchers and business leaders with significant, relevant expertise, passion and entrepreneurial spirit.

Vancouver is home to about 70% of the BC Biopharma industry, including two of Canada’s largest and most successful biopharmaceutical companies: QLT and Angiotech Pharmaceuticals. 

Recent collaborative, partnership and licensing successes include:

  • Cardiome Pharmaceuticals (www.cardiome.com) with Merck - valued at up to $1 billion, this deal for commercial rights to Cardiome’s drug for treating acute atrial fibrillation represents the largest licensing deal ever done in Canada;
  • Merger of OncoGeneX (www.oncogenex.ca) with Sonus Pharmaceuticals – resulting in a NASDAQ public listing and, combined with promising clinical results, produced a tenfold increase in OncoGenex’s market capitalization;
  • Takeda Pharmaceuticals (www.takeda.com) with Alnylam and subsequently with Roche – Alnylam has partnered with Tekmira to deliver its RNAi therapeutics to specific tissues.  Roche, recognizing the opportunity of these combined technologies, partnered with Tekmira in a potential $34 million joint development transaction;
  • Xenon Pharmaceuticals (www.xenon-pharma.com) with Roche, Novartis, MERCK and Takeda.   Xenon has built an impressive and strongly capitalized research business based on world-class genomics and drug development know-how.  Alongside a novel pain therapeutic program in early clinical development and partnered with Japanese pharmaceutical giant Takeda, Xenon is leveraging its gene based drug discovery expertise in anemia and cardiovascular research programs with Roche and Merck, respectively.

Strategic successes in BC’s biotechnology sector include the following acquisitions together valued at greater than $5.5 billion:

  • Aspreva Pharmaceuticals by the Galenica Group (October 2007, $915 million); and
  • Anormed Pharmaceuticals by Genzyme; (October 2006, $580 million)
  • ID Biomedical by GlaxoSmithKlein (December 2005, $1.7 billion).
  • Abgenix Pharmaceuticals by Amgen (December 2005, $2.2 billion),

Additional innovative companies in BC’s biopharmaceutical space with promising technologies still in development are as follows:

  • Allon Therapeutics (www.allontherapeutics.com) - Allon is a post Phase II, clinical-stage biotechnology company developing the first, disease modifying drugs impacting the progression of neurodegenerative diseases. Allon’s drug davunetide has demonstrated human efficacy in amnestic mild cognitive impairment, a precursor to Alzheimer’s disease, and schizophrenia-related cognitive impairment.

  • Imimex Phramaceuticals (www.inimexpharma.com) - Inimex is a clinical stage company focused on the development and commercialization of Innate Defense Regulators (IDRs) which are novel, first in class biological drugs that selectively trigger the body's innate defenses without causing inflammation.

  • Aquinox Pharmaceuticals (www.aqxpharma.com) - Aquinox is developing novel and targeted small molecule therapeutics for the treatment of cancer and inflammatory disease.  Aquinox’s founders discovered a novel drug target, known as SHIP, and drugs to regulate this enzyme.  Activation of SHIP inhibits the critical PI3K pathway which promotes cell growth, proliferation, survival, and immune activation of certain blood cells.

  • MSI Methylation Sciences – MSI has patented a new formulation of a ubiquitously present, naturally occurring human molecule called S-Adenosyl Methionine (SAMe). SAMe has been produced and sold as a prescription drug in parts of Europe and as a dietary supplement in the US for more than 10 years. In physician trials, it is equally as effective as current antidepressant drug therapy (i.e. Prozac) but is free of some of the most intolerable side effects.

Compelling Incentives

The Federal BC governments are backing BC’s biopharmaceutical companies.  The federal Scientific and Experimental Development Tax Credit Program (SR&ED) provides Canadian companies with refundable tax credits of 35% of eligible R&D expenditures up to $2 million per annum plus 20% of other qualified expenditures. Foreign companies qualify for a 20% credit against taxes payable for eligible expenditures, but credits are non-refundable.

The BC government provides an additional refundable 10% tax credit against provincial taxes for eligible R&D expenditures for Canadian companies.  Foreign companies qualify for the same credit, but it is not refundable.  BC is also the first in North America to grant companies a corporate tax refund based on revenue from life sciences patents (75% up to $8 million/year), allowing commercially successful companies to re-invest in research and development at an accelerated pace.

BC’s Small Business Venture Capital Act (SBVCA) provides resident and corporate investors into venture capital funds or eligible small businesses with a tax credit of 30%.  Individuals are subject to a maximum refundable credit of $60,000 per annum; corporate credits are not refundable. BC’s International Financial Activity Act (IFAA) allows incorporated Canadian companies with permanent establishments in BC a refund of income tax paid on international income from commercialization of certain life sciences patents.  The maximum refund is the lesser of $8 million or 75% of corporate income tax payable. Eligible manufacturers also can receive an exemption from provincial sales tax on production equipment and machinery.

In Summary

With its proven strategy, a successful track record and an unparalleled quality of life, it’s easy to see why the global biopharmaceutical sector is turning its attention to British Columbia.

In short, British Columbia’s magic is based on having all the right ingredients for success:

  • World-class applied science;
  • Great academic institutions;
  • A track record of commercial success;
  • Compelling business incentives;
  • Consistent Value creating, presenting a high return on investment;
  • Ability to attract top talent; and
  • Quality of work and of life.

The resulting possibilities in British Columbia’s life sciences industry are truly vast and we welcome your involvement in this pioneering initiative

Defining the Terms...

Biotechnology is loosely defined by the United nations as "any technological application that uses biological systems, or derivatives thereof, to make or modify products or processes for specific use."  This definition of biotechnology includes small molecule and biopharmaceutical drugs, as well as some medical implants and instruments, derived from or developed from an understanding of biological systems. 

While historical drugs have often been serendipitously discovered and developed by trial and error, biotechnology products leverage our superior understanding of genomics, proteomics, physiology and systems biology to design and engineer products to specifically modify or exploit known  biochemical or physiological processes.

Biopharmaceuticals represent an emerging, new class of medical drugs produced using biotechnology. Biopharmaceuticals are typically proteins, including antibodies, or nucleic acids (DNA, RNA or antisense oligonucleotides) used for therapeutic or diagnostic purposes, and are produced by means other than direct extraction from a native biological source.  Biopharmaceuticals can refer to small compound pharmaceuticals developed using biotechnology methods.


Made By Marqui Solutions Inc.