Magazine Élites - Édition Montréal Economic Powerhouse vol. 2 no. 1

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LIFE SCIENCES | AEROSPACE | ICT

2011 edition

VOLUME 2

Montréal Economic Powerhouse

LIFE SCIENCES

A Changing Ecosystem INFORMATION AND COMMUNICATIONS TECHNOLOGY

Montréal Thinks Big AEROSPACE

Montréal Aerospace Flying High!

$ 9.95 PP 41614528

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Montréal A city of creators

Projects are coming to life.

The city is being transformed.

Montréal 2025 is taking shape.

Montréal, a daring and innovative city where talents converge to create and succeed.

do you have a plan? montreal2025@ville.montreal.qc.ca montreal2025.com 514 872-2025

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Montréal, a city of creators and collaborators In recent decades, the Montréal economy has undergone a far-reaching transformation. Today the “creative class” is making a huge contribution to the growth of cutting-edge sectors. Workers and entrepreneurs are coming up with new ideas, new technologies and new products. This is particularly clear in industry clusters such as the life sciences, aerospace and information and communication technologies.

This Montréal of creators is opening the door to a Montréal of collaborators, spontaneously bringing together researchers, artists and businesspeople eager to take on joint projects. Fashion designers are now creating clothes for virtual characters, the circus arts are using advanced technology, biotechnology is benefiting the environment and aerospace is going green. Collaborative ventures like these promise the greatest successes.

Montréal is making a name for itself as a daring, innovative metropolis where talents converge to create and succeed together. An inspiring place to live, work and have fun. A city where you can realize your full potential.

Projects are now taking shape all over the island, helping us to continue building this inspiring metropolis every day.

Gérald Tremblay Mayor of Montréal

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MONTRÉAL ECONOMIC POWERHOUSE

Contents INFORMATION AND COMMUNICATIONS TECHNOLOGY

EDITORIAL

3 Message

49 ICT :

from Mayor Tremblay

Montréal Thinks Big

5 Message

53 Technology SMEs,

from the Editor

Champions of Innovation

7 Onwards and Upwards Montréal 2025

13 Business Generators in Montréal

LIFE SCIENCES

AEROSPACE

57 Montréal,

17 A Changing

Aerospace Flying High!

Ecosystem

65 Aerospace

19 Montréal InVivo :

SMEs

Challenges and Strategies

25 Research Prospers in Montréal

29 Building for Health Care

35 Personalized Health Care: Challenges and Consensus

41 Pharmaceuticals: A Strong Chain of Innovation

45 Treating Scoliosis 46 Creating tissues... ...and evaluating tissues

47 Douglas Institute Research Centre

48 The Biotech City

PUBLISHER: Jacques Boisvert CHIEF EDITOR: Danielle Ouellet WRITERS: Catherine Flores, Danielle Ouellet, Sybille Pluvinage and Mathieu-Robert Sauvé TRANSLATION, REVISION AND PROOFING Adrienne Jackson, Kathe Lieber, and Maureen Nicholson

Legal Deposits—Library and Archives Canada and Bibliothèque nationale du Québec, 2010 The management states that authors are fully responsible for the content of their articles and disclaims any liability regarding unsolicited material.

All requests for reproduction must be made to the publisher in writing.

COVER PAGE ILLUSTRATION: Istockphoto by Nataliya Kuvaeva ADVERTISING: Zoé Lafond PRINTED BY: Imprimeries Transcontinental S.E.N.C. 2850, rue Jean-Perrin Québec (Québec) G2C 2C8

CANADA POST— PUBLICATIONS: Agreement no. PP 41614528

— Montréal Powerhouse – 2011 edition

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Message from the Editor

There's a Spirit of Optimism in Montréal

É

lites magazine's publication of this feature issue on “Montréal, Economic Powerhouse” marks the prospects of the coming months on a hopeful note. And why not? True, the economic crisis hurt, but working up the courage to continue is hard to do without confidence in the future, and changes for the better don't go anywhere.

Optimism is clearly the common denominator in all the testimonials by the business men and women, researchers and leaders interviewed here by Élites' journalists.

DANIELLE OUELLET

The life sciences experienced their share of challenges in the past ten years, but all the players are now joining together to breathe new life into that sector by building on today's scientific breakthroughs, in the field of genomics, for example.

Additionally, Montréal's capabilities and successes in the information and communications technology sector are largely unknown at this point, and growing efforts are being made to project them here and abroad. Meanwhile, the aerospace sector is flying high! Despite the recession, it continues to grow and is preparing for the future by training the succession at university . . . and even starting in elementary school!

The many construction sites already dotting the Montréal cityscape are only the tip of the iceberg. Large numbers of projects are now underway or about the begin and will sustain Greater Montréal's economic development in the years ahead. At present, clusters are forming in the transportation, finance and clean technology sectors. The sector of culture continues growing through input from bold, tenacious, determined artists. Fashion and design are coming into their own.

These will be the themes of the next “Montréal, Economic Powerhouse” issue of Élites. Watch for it to learn more about what is happening in these sectors and, even more important, to share in creating a new quality of life for Montréal.

Danielle Ouellet Chief editor, Élites

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Tell us what’s keeping you up at night

Gérald Tremblay

www.rcgt.com\tellus

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Onwards and Upwards to Montréal 2025

By Danielle Ouellet

BY 2025, MONTRÉAL SHOULD RANK AMONG THE TOP METROPOLISES IN NORTH AMERICA IN TERMS OF A HIGH STANDARD OF LIVING AND QUALITY OF LIFE. THAT IS THE LONG-TERM OBJECTIVE OF THE MONTRÉAL 2025 PLAN, PASSED IN 2005 AND REVISITED IN THE CITY OF MONTRÉAL’S ECONOMIC DEVELOPMENT STRATEGY. ÉLITES TALKED TO RICHARD DESCHAMPS, A MEMBER OF THE CITY’S EXECUTIVE COMMITTEE WHO IS IN CHARGE OF MAJOR PROJECTS, ECONOMIC DEVELOPMENT, INFRASTRUCTURES AND ROADWORK. HE SKETCHED THE BROAD LINES OF WHAT’S CURRENTLY UNDERWAY AND WHAT’S COMING UP TO MAKE THIS VAST PLAN A REALITY.

Élites. In a few years, the Montréal 2025 plan will be at the midpoint, and you will soon be delivering the new economic development strategy for 2011-2015. What orientation is the City taking in view of that stage?

Richard Deschamps. The Montréal 2025 vision is the broad backdrop, the long-term horizon that provides a framework for our major projects. The economic development strategy for 2011-2015 is firmly planted on steps that will be implemented over the next five RICHARD DESCHAMPS years in the broad sphere of the economy. We are now setting the table for the festivities – 2017 will mark the 350th anniversary of the City, the 150th anniversary of Confederation, and the 50th anniversary of Expo 67. The many projects that are now underway are extremely diversified, so we know for sure that the table will be beautifully set.

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MONTRÉAL ECONOMIC POWERHOUSE

The Quartier des spectacles (the entertainment district), for example, has started to transform downtown Montréal and change the cultural face of the city. Construction is continuing over a square-kilometre area around the existing core, with anticipated investments of $1.9 billion.

Artists will be more and more visible, and our citizens are already finding the sector a stimulating place to be. We are planning the second stage toward the east, between Saint Laurent and Saint Hubert streets. A real tourist attraction on its own, that high-end design area will become an essential crossroads for artistic creation and outreach. Imagine – in that block alone there is a higher concentration of theatre seats than there is on Broadway!

É. The creativity of Montréal artists that we hear about so often – could that become an economic force?

R.D. Of course. Montréal’s cultural richness contributes to creating a dynamic place to live, so Montreal exerts an enormous power of attraction – for companies, for tourists, for experts in various fields and for students.

But Montréal’s creativity goes well beyond the world of culture. It’s a pillar we can lean on to accelerate the development of our economy and make our city shine.

Of course there are creative artists in fashion and design (see sidebars). They are also at the heart of our industrial clusters – the life sciences, aerospace, information and communication technologies – as well as cinema and television, fields in which Montréal enjoys an enviable position in North America and even on the international scene. Two new clusters have just emerged – financial services and proprietary technologies – and the logistics and transportation cluster is well on its way to becoming a concrete reality.

PHOTO : VILLE DE MONTRÉAL

É. How is creativity manifested in these economic spheres?

R.D. Knowledge and creativity lead to innovation. Whether it’s developing drugs or approaches to disease, designing a new engine or aircraft developing software and video games, creativity is truly a Montréal trademark.

We take it further, however, by promoting collaboration among all the sectors. The Cirque du soleil is a shining

2010: A RECORD YEAR FOR TOURISM IN MONTRÉAL >> 7.6 million tourists in Montréal, or 40% of all tourists coming to Québec >> 10.4% growth in the number of embarking/disembarking passengers >> Addition, over the past 10 years, of 17 hotels representing 5000 rooms in the Greater Montréal area, for investments totalling $300 million. >> 8.2% growth in the number of rooms sold >> Increase of more than 13% in the number of rooms occupied between May and October >> 4.2% growth in rate of occupancy >> 950,000 tourists paid admission fees in a museum or visited an art gallery 950,000 tourists >> 300 conventions, symposiums, conferences and business meetings were held each year for 307,000 participants over the past 10 years >> Tourism in Montréal accounts for 40, 000 jobs and $1.8 billion paid out in salaries and benefits in the industry and to suppliers of the tourism industry.

Source : Charles Lapointe, President and CEO, Tourisme Montréal, Montréal moteur du développement touristique du Québec, 7 février 2011.

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R.D. The demographic decline does present a major challenge. By 2012, an estimated 700,000 positions will need to be filled in Québec. In 2011, 100% of growth in the labour force will be based on immigration. Unless we take action immediately, we could be facing a difficult situation in a few years. We’re in a transition phase. That’s why we’re now putting our money on making Montréal more and more attractive by devoting major funding to improving the business environment, improving what we have to offer tourists and the quality of the living environment. In addition, we are targeting the successful economic integration of immigrants and working on attracting strategic talents to meet the needs of companies. In that regard, the work being done by Montréal International, which is selling Montréal overseas as a city of knowledge, is crucial.

example of the convergence of the circus arts, fashion and advanced technologies. With the Montréal multimedia animation company Moment Factory, the Cirque has created a totally original hybrid spectacle. Representatives of the Société des arts technologiques de Montréal (SAT) have also met with people from Sainte-Justine Hospital to discuss ways in which sick children could benefit from research in the technological arts. We intend to work more and more on the borders of these sectors and technologies.

This kind of mix and collaboration among clusters will be strongly encouraged.

The presence in Montréal of 11 academic institutions, including four universities – the Université de Montréal, the Université du Québec à Montréal, McGill University and Concordia University – also bears testimony to the importance of this city as a pole of knowledge. With 170,000 students, including 17,000 foreign students, Montreal has the second-highest density of university students in North America, just behind Minneapolis.

MONTRÉAL’S BURGEONING CONSTRUCTION SITES A total of 162 construction sites with a value of $5 million or more are currently in progress in the Greater Montreal area.

Among them are 70 institutional and commercial projects, 65 residential projects, 29 civil engineering and road projects, as well as 2 industrial projects.

Apart from the artists who create works of art, there are many researchers and students working alongside entrepreneurs and workers developing new ideas and innovative projects and products. We should really be speaking of the “creative economy” from now on.

Source: Ville de Montréal in Statistics, on the Ville de Montréal website

É. We often hear that there’s a shortage of labour. How does Montréal see that situation, which could jeopardize the growth of the city’s economy?

É. That approach involves everyone working together.

PHOTO : VILLE DE MONTRÉAL

R.D. Collaboration is central to the economic strategy for Montréal, and it’s absolutely essential to the economic success of the city. Luckily, Montréal is clearly way ahead of most large cities when it comes to collaboration. We are in the habit of collaborating here, and we enjoy doing so; it’s becoming one of our fortes. Industrial clusters gather around a table, with all the players in a given milieu sharing a common objective.

Don’t forget that it was only in 1985 that this type of intersectorial creativity began to transform our industrial fabric in a certain way. That was when four guys who were barely out of school made a computer-animated short film that revolutionized the industry. By combining computer graphics with filmmaking techniques, they produced “Tony de Peltrie.” One of those kids was Daniel Langlois – and you know how successful he’s been since then at creating animation software, including the soft-

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MONTRÉAL ECONOMIC POWERHOUSE

FASHION

Wearing Well in Montréal

PHOTO : DENIS LABINE, VILLE DE MONTRÉAL

Fashion in Montréal has long been soley associated with the clothing manufacturing industry, as it was a major economic force in the 1960s, recalls Diane Duhamel, Commissioner at the Montréal Fashion Bureau which was established two years ago: “At that time some 50,000 people worked in this sector.” This kind of employment progressively decreased as China took over, but Montréal is still the Canadian fashion capital for manufacturing clothing as well as for the design, innovation and marketing of garments: “We find here 75% of the production and design of garments in Québec and 50% in Canada, notes Mrs. Duhamel. A very important pool of fashion designers and retailers is located in Montréal, many of which are very well established. A new class is appearing: the young are staking their claim.”

DIANE DUHAMEL Commissioner at the Montréal Fashion Bureau

ERIC WAZANA Founder of Second Clothing

One noteworthy fact is that this industry shows remarkable adaptability: “There are almost as many business models as there are retailers and manufacturers, states the commissioner. Some manufacture their garments abroad, others have their own in-house designer, others innovate, such as Second Clothing, manufacturer of the famous Yoga Jeans, for which the founder, Eric Wazana, developed his own fabric.”

The network of retailers is still very strong and we must again make the Montréal origin of many of them known, such as Reitmans, with its nine banners and sales of $1.3 billion, making it one of the most successful in Canada, along with Le Château and Tristan, to name others.

The sector is supported by fashion schools, starting at the high school level up to the university level. The first MBA in fashion in North America was recently launched at Université du Québec in Montréal. Diane Duhamel also points out the presence of fashion in the museums: at the Musée des Beaux-Arts, which opened its doors to Yves Saint Laurent in 2008 and to Quebecer Denis Gagnon in 2010, at the McCord Museum, with his exhibition on feminine fashion from the 19th century, and at the Musée du textile du Québec, located in Saint Lambert, where his exhibitions were held in Montréal for three years now.

FOR MORE INFORMATION: modemontreal.tv

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ware used in Jurassic Park. It just goes to show what true collaboration between artists and designers, a programmer and the department of mathematics at the Université de Montréal can do! É. How does innovation manifest itself in the city?

R.D. All you have to do is walk around Montréal and you soon see that there’s lots of construction and the urban landscape is undergoing a great transformation. Urban innovation is a major engine for development as we move toward Montreal 2025.

In the south-west, for instance, the Havre de Montréal is an economic priority for us. It will create a dynamic living environment in which people can reclaim some 10 square kilometres of riverside spaces and regain access to the river. There are several challenges involved, including how to integrate various developments into an overall vision and complete work on lowering the Bonaventure Autoroute.

ILLUSTRATION : VILLE DE MONTRÉAL

Major construction projects that will help make Montréal a leading technopolis are also underway. The construction of the Centre hospitalier de l'Université de Montréal (CHUM) and the McGill University Health Centre (MUHC), along with the CHU Sainte-Justine and other large hospitals in Montréal require major investments (see p. 29). There’s also the Outremont Campus and the Quartier de l'innovation around the École de technologie supérieure (ETS), which will accelerate and diversify the development of these central neighbourhoods. All in all, more than $10 billion will be invested in construction and the university campuses.

And then there’s the major Space for Life – Nature Museums initiative, which will consolidate the scientific environment around institutions like the Botanical Garden, the Insectarium, the Biodome, and the brand-new Université de Montréal Biodiversity Centre, made possible by an investment of more than $25 million. A large esplanade and dynamic spaces will also be added in that sector. In 2012, the Space for Life will welcome the Rio Tinto Alcan Planetarium, which represents an investment of $33 million. É. Are these construction projects enough to ensure economic development?

R.D. They’re essential, but we can’t stop there. One of our challenges will be to maximize the economic spin-offs arising from these investments. Real estate and equipment are not enough. To do that, we need to attract companies, form partnerships and maximize business opportunities.

Very soon, Montréal will have a leading-edge property and technology park, top-notch research centres and health-care institutions that reap the benefits of extremely high-level research. All that should lead to the creation of more companies. And we can’t let the opportunity go by to make Montréal better known. The major issue is to seize the business opportunities that arise from these facilities, showcase them and “sell” them around the world. É. What support can the business community rely on in that context?

R.D. In conjunction with recent consultations led by the Department of Economic Development. Innovation and Export Trade, we have initiated a reflection on entrepreneurship. We plan to work closely with the government and local economic development groups to put entrepreneurs back at the heart of the system, more fully respond to their needs, and facilitate and encourage the setting up of companies.

The City hopes to improve the services it offers to companies on an ongoing basis, support the social economy, promote sustainable development in a spirit of solidarity, and set up a business marketing strategy. Measures will be taken to make the east end of the city more dynamic, promote the industrial parks and make sure that various employment sectors survive and thrive. The program called “Réussir @ Montréal – Industrie” (PR@M) is designed for owners of industrial buildings; it’s been quite successful and will continue over the next few years.

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MONTRÉAL ECONOMIC POWERHOUSE

MONTRÉAL,

UNESCO City of Design

Instead of giving out design and architecture contracts by invitation to tender to the lowest bidders, we try to choose the best concept through the use of competitions, for which an investment of $1.2 million over three years was awarded in 2009 by the Government of Québec, the Cré de Montréal and the City of Montréal. This strategy is aimed at raising the quality of the built environment with a better and more effective integration of designers upstream of our projects.’’

PHOTO : JULIEN BECKER

In 2006, Montréal was named UNESCO City of Design, thus integrating the Creative City Network organized by UNESCO two years earlier. Marie-José Lacroix, Director of Design, City of Montréal explains it this way: ‘‘To obtain this title, we had to show our willingness and capacity to develop as a city of design. This nomination, based on the presence in Montréal of a major pool of design talent, thus becomes a project of its own which we include daily on the site of Réalisons Montréal, UNESCO City of Design. The metropolis is a city of design in the works and we are doing everything we can to make this vision a reality.

MARIE-JOSÉE LACROIX Director of Design City of Montréal

The design aspect carries enormous economic weight as Mme Lacroix points out: ‘‘Designers, architects, urban planners, graphic designers and interior designers account for 25,000 jobs in Montréal – without counting digital creators.’’

Today, the main issue is keeping these people in Montréal: ‘‘They can make a huge difference when it comes to the attractive and competitive aspects of the city. Design Montréal's office is actively working in that direction, in close collaboration with the UNESCO Chair in Landscape and Environment Design at the Université de Montréal.’’

FOR MORE INFORMATION: realisonsmontreal.com

É. Does Montréal have the money to achieve all these ambitious projects?

R.D. We believe in development, and the City has been accelerating the completion of major projects on its territory by injecting an extra $60 million or so every year since 2007. And don’t forget that big projects like the university health centres require major urban developments on our end. These huge investments bring a lot back to the community. We also have support from the Québec government, which will have spent $140 million between 2008 and 2012, and has committed to add another $175 million between now and 2017 to support the implementation of the Montréal 2025 plan.

R.D. Beyond the economic spin-offs, we want first and foremost to create or recreate environments where people can live, work, shop and have fun. A train station in the east end, for example, should not only be surrounded by parking lots. We need to create a neighbourhood around the station where citizens will find nearby services that make it a pleasant place to live. Our commercial arteries are definitely an asset in terms of providing nearby services for Montrealers. That’s why we have allocated substantial resources to “PR@M –Commerce,” a program that gives grants to businesses located along about 40 traditional arteries – a very concrete form of support for commercial vitality. É. So 2017 is the immediate objective?

É. How do all these measures contribute to improving the quality of life in Montréal?

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R.D. 2017 is a springboard for achieving the Montréal 2025 objective: to significantly raise Montrealers’ standard of living and quality of life.

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Business Generators in Montréal

By Danielle Ouellet

Élites. Mr. Leblanc, are you optimistic about the economic future of Montréal businesses?

Michel Leblanc. I'm very optimistic. Some sectors that have weathered rough times of late are getting their second wind. Their activities will significantly affect the prosperity of Montréal businesses.

To begin with, the mining industry was fairly quiet in the early 2000s, but is now on the rebound. Metal prices are rising worldwide, boosting the value of ore deposits and mining companies. We here in Québec need to seize this opportunity to reclaim a neglected sector. Let's take advantage of this favourable economic and investment

climate! Of course, mining companies operate in the regions for the most part. Still, most related services—legal, accounting and financial services—are found in the large urban centres. After sustained investment in the knowledge economy, a good many companies could begin again investing in mining. This would produce strong economic spinoffs for Montréal. Ten years ago, we didn't see this coming.

The forest sector also bears watching.

Its dark days are over. Environmental and organizational decisions have been made, and the price has been paid.

I see this sector making a strong comeback about five years down the road, with positive spinoffs for the metropolitan economy.

MICHEL LEBLANC President and CEO, Board of Trade of Metropolitan Montréal

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É. Meanwhile, how will you sell Montréal and its SMEs abroad?

M. L. There's no arguing that Montréal is a dynamic city, with a creative private sector centred on innovation. But this can't remain a secret. The big challenge is to tie this creativity to value creation in order to become business generators. A favourite example of mine is GSM Project, a firm that integrated media and technology to revamp the old coin telescopes used to enjoy the view from key landmarks. The company modernized those devices by fitting them with digital flat screens providing information about the observed place or object. These devices can now be found in Chicago, Mumbai and Shanghai. This is a success story in terms of innovation and marketing strategy. We need to generate more successes of this kind. É. Does the Board of Trade of Metropolitan Montréal support Montréal entrepreneurs with this objective in mind?

M. L. We first want to get people interested in starting a business. The Info entrepreneurs website (infoentrepreneurs.org) is a first-class resource. We also offer training in key areas, such as personnel management or the development of agreements, for small entrepreneurs without in-house human resource or legal departments.

We also put strong emphasis on exporting. It is important that SMEs clearly see the boundaries of the Québec market.

We are seeking prospective buyers for their products all around the world–India, China, Russia, the United States.

We organize foreign missions to establish contacts. Growing numbers of SMEs are breaking into foreign markets, and our challenge is to increase these successes. We maintain an updated list of 50,000 business contacts for their use.

Looking to offset the anticipated labour shortage, we act as a "marriage broker" between industry and Canadian landed immigrants seeking business internships here.

We work with Emploi Québec in this area.

VARIATION IN THE NUMBER OF JOBS IN THE CMA OF MONTRÉAL, GROUPED BY INDUSTRY, 2009-2010 VS. 2007-2008 (AVERAGES OF TWO YEARS, IN THOUSANDS)

Trade Transportation and warehousing Agriculture Accommodation and food services Forestry, fishing, mining oil gas Educational services Business, building and support services Finance, insurance, real estate Construction Other services Manufacturing Utilities Information, culture and recreation Public administration Health care and social assistance Professional, scientific, technical services Total, industries -9

-6

-3

0

3

6

9

12

15

18

Source: Statistics Canada, Labour Force Survey; compilation: Canada Economic Development

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É. How do you expect the Québec government to support your activities?

M. L. We liked the strong emphasis on Montréal in the 2010 budget. This time, we'd like to see budgetary restraint first and foremost. Québec must stop taking on debt as soon as it possibly can. The more solid the Québec government's finances, the better its credit rating and the greater the benefits for business and the overall economy.

We are also concerned about university funding. The universities give rise to the innovation that all sectors need; they are where skills and specialists are formed. In this area, the government can hardly do more than it's done.

As we hoped, it has increased tuition fees. Students must be part of the search for balance. This will not lower student enrolment; the surveys prove it. This is a very cost effective investment for them.We would also like to see the budgets announced in the Québec Strategy for Research and Innovation translated faster into programs and projects. International collaboration is a pressing need.

Lastly, we observe that our SMEs are taking longer than others to integrate innovation. This raises another challenge—the challenge of honing their competitive edge by urging them to mount a more effective technology watch and to act faster. É. What are the strategic business advantages for our SMEs? M. L. Here in Québec, and particularly in Montréal, we are recovering faster from the economic crisis than the United States is doing. I realized this at a recent meeting with my colleagues from large North American cities. We have a more optimistic economic base. We have experienced fewer layoffs, rehired workers faster and created more jobs than we cut. While our neighbours to the South are still wondering how to move past the hardships of the recent recession, we are dealing with growth-related challenges, such as the strength of the Canadian dollar, the increase in oil prices and the eventual rise of interest rates. We're in a better position from this perspective.

Let's capitalize on it!

“Unmatched expertise fuelling innovation” Centre d’entreprises et d’innovation de Montréal (CEIM) is a business incubator that has been helping technology-based companies get started and grow since 1996.

CEIM offers a full range of coaching and consulting services to start-ups in the information technology, new media, industrial technology, green technology and life sciences sectors.

CEIM’s network of influential business contacts is a valuable competitive advantage.

CEIM also offers office space in the Cité du Multimédia, on flexible terms and at affordable rates, including shared services such as secure controlled access, conference rooms, dining room, etc.

It’s better than Los Angeles “I started in Los Angeles. CEIM provided all the advice I needed to start my studio in Montreal: strategic planning, executive coaching, tax credits, private venture capital... “ – Benoît Girard, President, Digital Dimension, a 3D animation studio, winner of 6 Emmy Awards.

Invaluable administrative support “CEIM provided office space, administrative support and help in developing my business plan. They were patient and generous with their time.”

– André Boulet, Ph.D., President, PurGenesis, a producer of botanical drugs, with management offices at CEIM and a factory under construction in Montmagny, Québec.

For additional information:

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www.ceim.org 514 866-0575

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33 Prince Street Montréal, Québec H3C 2M7

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Life Sciences A Changing Ecosystem Feature Report by Danielle Ouellet, with Sybille Pluvinage

Research and innovation in the life sciences have put this Montréal industry on the world stage in recent decades. The sector is now going through a period of readjustment. Closer linkage among the players, public-private partnerships (PPP), targeted funding, collaborative research and personalized health care are the drivers for this shift, in which new strategies are pegged to the new challenges.

ILLUSTRATION : ISTOCKPHOTO BY NATALIYA KUVAEVA

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ILLUSTRATION : ISTOCKPHOTO BY SERDAR DURAN

LIFE SCIENCES

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Montréal InVivo : Challenges and Strategies T

he life sciences and health technologies (LSHT) cluster embodied by Montréal InVivo comprises over 600 organizations, including 150 research organizations and 80 subsidiaries of foreign companies. It is front and centre on a changing stage. Montréal InVivo Board chairman Paul Lévesque is also president of Pfizer Canada: "The sector is doing well, with 45,000 quality jobs in Greater Montréal," he states. "Still, each link in this ecosystem— pharmaceutical corporations, biotechnology companies and university research institutions—is facing challenges all its own. Staying competitive requires making changes, and those changes are already under way."

EMPHASIS ON PARTNERSHIPS Several leading molecules that have helped drive the pharmaceutical corporations are nearing the end of their cycle. The years of market exclusivity are ending, and it is time to launch new drug medications. "The pharmaceutical companies have been very successful thus far," Mr. Lévesque comments. "Half of their activities in Canada take place in Montréal. But those firms are victims of their success in a way. The treatments for cholesterol are effective, as are the treatments for high blood pressure or ulcers. It's time for the companies to innovate. For instance, there is strong demand for cancer therapies. Other avenues should be explored as well."

The pharmaceutical industry is therefore turning toward partnerships. Regardless PAUL LÉVESQUE Chairman of the Board of how big they are, the large companies Montréal InVivo and president find it increasingly hard to produce new of Pfizer Canada medications owing to research costs and productivity problems. So they are introducing an unusual research model. "We will be producing less and less in-house and outsourcing instead," Paul Lévesque explains. "We could form associations or contract out our research to, say, young biotech firms.

Pfizer's labs have already started down this road."

Small biotechnology companies are also facing challenges, including difficult financial circumstances. Funding is the key factor, but there is also a new reality to deal with. Here again, adaptation is crucial. Mario Lebrun is executive director of BIOQuébec, an industry association that promotes the growth of some 150 life sciences companies, half of them biotechnology companies and organizations conducting human health research in Québec. "Not that long ago, the government supported this sector through a policy of scattered funding, banking on large numbers

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of companies as opposed to targeting the most promising ones. This is no longer happening," he explains. "Nowadays, the government has devised tools to support companies that offer promising technologies and higher success rates. As a result, companies that don't measure up fall by the wayside. This may give the impression of trouble in this important niche of the knowledge economy."

As Paul Lévesque sees it, the situation is not all bleak; far from it. He cites the example of Theratechnologies (see page 44), which recently succeeded in having its leading molecule approved by the U.S. Food and Drug Administration (FDA). "This is a big win for Montréal's life sciences community. Other companies, such as Caprion (see page 40) and Angiochem, are also positioned for success. This proves that success can be ours if we put our efforts and the right people in the right places," he asserts.

Mario Lebrun is collaborating with Montréal InVivo while continuing to lobby the government. "We recognize the government's commitment to support industry growth,

QUÉBEC RANKS AMONG THE TEN LEADING LIFE SCIENCE HUBS IN NORTH AMERICA.

through adoption of the Québec biopharmaceutical strategy, for one. Nevertheless, we regret the snail's pace at which the government is deploying the MARIO LEBRUN measures it has planned, as well as the CEO, BIOQuébec slow implementation of other announced initiatives, including the Amorchem and Téralys Capital seed funds. More than a year after those government initiatives were announced, any real impact has yet to be felt. The government does show leadership, but solid action is slow in coming. We're keeping watch."

A VERY TIGHT LINKAGE Seeing the success scored elsewhere has prompted an approach rallying Montréal's entire life sciences and health technologies sector, making for a very tight linkage among all stakeholders. "Montréal owes its strength to this industry linkage," Paul Lévesque states. "The places where the life sciences are performing the best—California, Massachusetts and North Carolina—are the same places where the linkage among large pharmaceuticals, biotechs and research is strongest. Montréal InVivo has been working for two years now to get all these players seated at the same table. Today, the entire sector is at that table, including two levels of government and the funders.

Collaboration is much stronger here than, say, in Toronto, where our solidarity has them green with envy. This gives me great hope."

The time is past when big research centres and laboratories went it alone. "Partnerships are tomorrow's model," Mr. Lévesque states. In Québec, organizations such as the Fonds de la recherche en santé du Québec (FRSQ) are already sealing agreements with broad European consortia.

There is also the Québec Consortium for Drug Discovery (CQDM), working with large pharmaceutical companies— such as Pfizer, Astra-Zeneca or Merck—in pursuit of common goals. As stem cells did for Toronto, personalized health care customized for the individual has been singled out as the sector that can best help Montréal develop unique expertise and excel.

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LIFE SCIENCES

Comparative Recurrent Costs Index by Location – Index: United States = 100 Montreal (QC)

94.3 78.1 87.8

San Diego (CA)

100.9 99.4 102.2

Boston (MA)

99.8 102.2 106.9

London (GB)

99.5 99.5 112.7

Frankfurt (DE)

101.9 121.7 114.4

Pharmaceutical Manufacturing Clinical Trials Management Biomedical R&D Industry

Note : Costs affected by location include: salaries and benefits, transport, electricity, telecommunications, interest charges, depreciation and taxes.

Source: KPMG's Guide to International Business Location—2010 Edition.

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Montréal InVivo endeavours to get everyone working together. Michelle Savoie, general manager, emphasizes Greater Montréal's vitality on this count. "Things are moving right along. The stakeholders are all well aware of the transformation in the biopharmaceutical industry."

In fact, the industry has identified its priority areas of interest. Its first objective is stronger support for the most promising research streams, including personalized health care. Next, the progression from research to market development centres around three key projects. "We are creating a network of mentors because young entrepreneurs want access to a support network for starting their businesses on the right foot," Ms. Savoie explains. "Club BioSuccès should start up early this summer. We are also analyzing the funding chain linked with the innovation chain to better identify any weaknesses. And we are taking stock of investment opportunities in the Greater Montréal area so that we can tell potentially interested pharmaceutical corporations about them."

MONTRÉAL RANKS EIGHTH IN NORTH AMERICA

Other things are being done to heighten the cluster's notoriety and support efforts to attract investment to Greater Montréal. These include working collaboratively with organizations such as Montréal International and Investissement Québec. "We need to show that Montréal's strengths do not stop at bricks and mortar, the general manager of Montréal InVivo states. The November 2010 France-Québec Symposium was a success on this score. It led to the signing of six partnership agreements in the life sciences.

MICHELLE SAVOIE Executive Director Montréal In Vivo

The general manager continues: "We have to bank on human resources and the workforce. Awareness building activities are being set up for the next generation. We will also introduce mechanisms making it easier for business leaders in need of personnel to connect with the best human resources available."

"The positive response from industry players is unprecedented," Paul Lévesque says with great satisfaction. "This explains the support from the various governments, which find that the sector is now united and collaborating as never before. Given this, Montréal InVivo has a critical role as a catalyst. I'm very optimistic. Signs point to a bright future for the cluster."

FOR PHARMACEUTICAL JOBS.

Boosting partner collaboration is another matter of ongoing concern. "The Québec Consortium for Drug Discovery (CQDM) is a fine model of collaboration among the public, academic and private sectors," Michelle Savoie comments.

"The personalized health care strategy will provide a great opportunity for creating more partnerships, with an emphasis on clinical alliances for small and large companies." Diverse partners are getting together more and more, for instance at technology transfer breakfasts during which university researchers present their projects to prospective investors searching for business opportunities.

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LIFE SCIENCES

Concerts to Reverse the Brain Drain

PHOTO : INSTITUT DU CANCER DE MONTRÉAL

THE BRAIN DRAIN HAS BEEN CAUSE FOR CONCERN AND SERIOUS THOUGHT WITHIN THE RESEARCH COMMUNITY IN RECENT YEARS.

MARAL TERSAKIAN Director General, Institut du cancer de Montréal

A team that powers your business within the medical industry Campus of Healthcare Technologies

CTS

An accelerator for companies in a fast growing, high potential sector Offices, programs and a network of key partners dedicated to your success A new synergy right in the heart of Montréal

www.ctshealth.ca An initiative of CDEC Rosemont–Petite-Patrie

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For a talented research scientist, lack of laboratory start-up funding is definitely a major incentive for leaving Québec.

Upon marking its 60th anniversary in 2007, the Institut du cancer de Montréal (ICM) decided to do something about plugging the brain drain. So it organized a concert by the Orchestre métropolitain du Grand Montréal, conducted

by Yannick Nézet-Séguin and featuring pianist Louis Lortie.

In addition to that successful performance, the event led to a profitable Concert to Fight Cancer series. "The fourth concert in the series, held in February 2010 at Montréal's Place des Arts, brought in $550,000," Maral Tersakian, ICM executive director, informs us.

"We've been able to repatriate five researchers so far," Ms. Tersakian goes on to say. "The most recent one is a Chicoutimi-born specialist in breast cancer. He's coming back from Australia, and he'll be able to equip a lab and seek funding thanks to the $50,000 we will provide annually for the next five years." But it's not just about bringing people back. It's about keeping them here as well. "With this in mind, we will also be working to consolidate our gains."

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he organization of life sciences research, especially health research, increasingly reflects the expressed will of all stakeholders to establish linkages. The Fonds de la recherche en santé du Québec (FRSQ) is either envied or imitated; Génome Québec enjoys a favourable position in Canada and around the world; the research centres of the Université de Montréal and McGill University are both flourishing. There are growing numbers of research agreements here at home and abroad, making for optimism about the future.

equally between researchers and research groups. That organization is both a hub and a critical factor for success. FRSQ president Yves Joanette states: "The leverage effect has very real bearing.

When it comes to federal competitions, Québec is the only province that receives proportionally more funding (30%) than its demographic weight (22.5%) would suggest."

A SUSTAINABLE PERFORMANCE Aging, neuroscience, mental health, cancer, diabetes and genomics are among Québec's sectors of excellence. Some 3 000 research scientists and 6 000 student researchers in the life sciences are at work in 19 centres, 11 groups and 18 thematic networks, a significant proportion of them located in the Greater Montréal area. Funding is key for the life sciences sector. In 2008-2009, the FRSQ invested upwards of $90 million in funding support, divided

Over the past few decades, tremendous breakthroughs in genomics, especially the sequencing of the human genome, have significantly affected how health research is done in Québec. Jean-Marc Proulx, Génome Québec president and CEO, says, "Some highly effective medications were chance discoveries, but those days are over. Genomics has eliminated chance. For example, it was previously thought that the genomes of two different individuals were 99.9% identical. Advances in the past ten years have brought that figure down to 99.5%. That seemingly minimal change explains why it is becoming harder to find effective medication for any particular individual. Genomics is becoming a means of discovering fundamental mechanisms for inventing medicines and devising diagnostic tools."

YVES JOANETTE President, Fonds de recherche en santé du Québec (FRSQ)

JEAN-MARC PROULX President and CEO Génome Québec

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PHOTO : ISTOCKPHOTO BY DNY59

T

PHOTO : YVES BARRIÈRE, FRSQ

Research Prospers in Montréal

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Génome Québec, founded in 2001, is an organization intended to stimulate opportunities for Québec researchers by funding structuring research projects," Mr. Proulx explains. "Actually, we don't just stimulate action; we're also in on the reaction!" he adds on a humorous note.

We all have commitments OURS ARE TO CANADIANS FA C I N G S E R I O U S D I S E A S E S

Over the past 10 years, Génome Québec has managed investments totalling a half billion dollars to fund 540 largescale projects and establish five leading-edge genomic technology centres, including three in Montréal. One of them, the McGill University and Génome Québec Innovation Centre, provides genomics researchers with a range of bioinformatic analysis services. In 2010, 700 research

"FUNDING BIOTECHNOLOGY FIRMS IS A CHALLENGE, BUT THE MONEY WILL COME IF THE PROJECTS ARE ECONOMICALLY VIABLE AND PREDICATED ON A SOLID BUSINESS MODEL."

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– Jean-Marc Proulx

scientists used those services, making for 15% annual growth. "We want to make this centre a North American frontrunner," Jean-Marc Proulx explains. "Up to now, 45% of its income has come from clients outside Québec, a clear indication of our high-quality performance. The arrival this past February of Mark Lathrop, our eminent new scientific director recruited in France, also provides an opportunity to significantly expand the centre's installed equipment base and sequencing capability."Jean-Marc Proulx points to the substantial investments made in Ontario and British Columbia, however. "It was a real blow when Tom Hudson, who headed the McGill University and Génome Québec Innovation Centre, left for Ontario.

Seeing, too, that the University of British Columbia recently hired ten Nobel Prize winners from various disciplines, we realize that vigilance is the order of the day." The options: stimulate a critical corporate mass; attract smart investment, meaning investing together instead of piece-meal; put research findings to work and shorten the time from concept to project and then completion. "Funding biotechnology firms is a challenge, "Mr. Proulx points out.

"But the money will come if the projects are economically viable and predicated on a solid business model."

"The challenges we face include sustaining our performance," Yves Joanette adds. "This calls for ending the 15-year standstill in certain programs, including the one

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and a priority for Québec. Clusters of Québec and Chinese researchers are putting together a genomics project.

Other agreements strategically targeting specific themes and geographic locations are being drafted with Israel, India and the U.S."

targeting the research centres of teaching hospitals.

And it calls for fresh investment in the future. We have to examine Québec's funding levels for public-sector research within the universities. How will we handle pressure from the other Canadian provinces? What links are missing in the innovation funding chain? Bear in mind that the BRIC countries–Brazil, Russia, India and China–have grasped the importance of a knowledge-driven society."

Mr. Joanette takes special pride in the FRSQ's admission to the European Research Area networks (ERA-NET), "a sort of funding agency club whose bylaw allow national or regional organizations, such as Québec's, to join those large networks." In early 2011, the FRSQ announced that the ERA-NET NEURON neuroscience and mental health network would be funding Québec researchers for the first time. Thanks to this kind of practical support, Guy Rouleau, a neurogeneticist at the Sainte-Justine teaching hospital, will be working with French, Spanish and German teams researching schizophrenia and autism. The team headed by McGill University's Mosche Szyf will join with German and Italian groups to study perinatal stress and its effects on depression. "This is a major breakthrough for Québec," affirms the FRSQ president, thanks to whom the funding network held its first meeting outside Europe this past February in Montréal.

Solutions are appearing at the FRSQ. "We have a unique model," the FRSQ president states. "It is the envy of our Ontario colleagues because it promotes and structures all health research fields by tapping into Québec's strengths.

Collaboration is well under way. A partnership strategy has been established with charitable organizations, such as the Cancer Research Society, or with big industry to stimulate research in specific niches. There is, for one, a partnership with a company such as Pfizer, which is interested in helping fund personal health care."

INTERNATIONAL LINKAGE The linkage goal pursued by Montréal InVivo necessarily has an international component. "The position of Québec researchers within large international groups has steadily improved in the past two years," Yves Joanette notes with satisfaction. "We can no longer work 'against' the competition. We must grow 'together'."

Génome Québec's performance in Canada solidly positions the organization to ensure an effective presence around the world. Canada ranks about sixth worldwide in the field of genomics; Québec has thus far received 25% of Canadian funding, has 553 research scientists, or more than double British Columbia's contingent, and publishes 28% of the science articles. To illustrate the importance of international link-age, Jean-Marc Proulx points to the CART@GENE project (see page 39), funded through an alliance with a large-scale international project. "The project joined up with P3G (Public Population Project in Genomics)," explains the president and CEO of Montréalbased Génome Québec. That organization, with its 53 member countries, has developed tools to harmonize the data in international biobanks, as well as ethical procedures for creating and accessing those banks. It is a first-class partner."

PHOTO : ISTOCKPHOTO BY SVEN HOPPE

"Bilateral agreements are being inked. Québec research scientists will be working with Canadian and French colleagues on Alzheimer's, one of our areas of excellence

Yves Joanette concludes on an optimistic note regarding the future. "Whether we're talking public or private research, basic or clinical discoveries—all life sciences research in Québec should contribute toward creating a highly competitive society. Add to that our excellent health care system, and we have what it takes to attract high-level resources so as to carve out a position of advantage worldwide."

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Building for Health Care THE MONTRÉAL HEALTH DISTRICT Guy Gélineau, executive director of the Montréal Health District, is a happy man. From his office in the eastern downtown area, he can see the construction cranes busy at work. The new CHUM will soon be here, providing 285,000 square feet of space for patients, doctors, researchers, industrialists, technicians and managers. The action plan drawn up a few years back is well under way.

"We want to take advantage of CHUM's presence to replot the neighbourhood, which extends from the Montréal Convention Centre to Jacques-Cartier Bridge and from René-Lévesque Boulevard to the river," Mr. Gélineau explains. "Breathing new life into a neighbourhood means developing collaboration among all players.

This is what's now happening."

ILLUSTRATION : NFOE MSDL JLP LEMAY PARKIN ARCHITECTES

THERE ARE TWO LARGE CONSTRUCTION SITES IN MONTRÉAL RIGHT NOW. IN THE EASTERN DOWNTOWN AREA, THE HEALTH DISTRICT (QUARTIER DE LA SANTÉ) WILL BE HOME TO THE NEW CENTRE HOSPITALIER DE L'UNIVERSITÉ DE MONTRÉAL (CHUM). THE MCGILL UNIVERSITY HEALTH CENTRE (MUHC) IS BEING TURNED INTO THREE HOSPITAL CAMPUSES: THE GLEN CAMPUS, NOW UNDER CONSTRUCTION, AND THE MOUNTAIN AND LACHINE CAMPUSES. THESE TWO WORLD CLASS UNIVERSITIES GROUP TEACHING HOSPITAL AND HEALTHCARE NETWORKS AND TOP-NOTCH RESEARCH TEAMS CONSTITUTING SIGNIFICANT STRENGTHS FOR MONTRÉAL AND QUÉBEC.

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LIFE SCIENCES

"WE WANT THE CHUM TO BE THE HUB FOR AN INNOVATIVE CRITICAL MASS OF PUBLIC HEALTH EXPERTISE." PHOTO : CHUM – MULTIMÉDIA

– Guy Gélineau GUY GÉLINEAU Executive director Health District

Attracting industry to the CHUM is another objective.

"A thousand specialists in applied research will be in one place and have access to 400,000 patients a year requiring specialized medical care," Guy Gélineau comments.

The environment is ideal for attracting private enterprise.

The plan includes a health pavilion housing companies from around the world which will benefit from proximity to researchers and doctors.

"We want the CHUM to be the hub for an innovative critical mass of public health expertise," Mr. Gélineau continues. "The Université de Montréal's School of Public Health would be housed in a brand new building with 20,000 square feet of surface area. Montréal's Public Health Branch would move into the Health District, as would Québec's Public Health Institute, which employs 200 people in Montréal. This complex of buildings will make up the Norman Bethune Public Health Campus, 30

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JACQUES TURGEON Director CHUM Research Centre (CRCHUM)

named after the Canadian doctor who pioneered this field in Québec, Spain and China. The campus will host 500 experts and already has a linkage protocol with groups in Shanghai. This sector will have a significant economic impact on Montréal."

Dr. Jacques Turgeon, director of the CHUM Research Centre (CRCHUM), is eagerly awaiting the new facilities.

"The building is rising from the ground and will be ready two years from now, in early 2013! This is an exceptional project, one that has remarkably won the consensus of all researchers. We will have access to a building and installed equipment base that reflects the 2011 vision of

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Dr. Turgeon promotes a research model that fits perfectly into the hospital environment. "Our big advantage is heading up the Université de Montréal's broad-based integrated university health network (RUIS), which opens up a large catchment population for us," he says. "This is a boon for epidemiological studies and for understanding rare diseases.

Our studies draw inspiration from problems and issues that patients experience. We endeavour to listen carefully to their needs and to meet those needs, getting back to those patients with solutions. For example, when there is no present treatment for particular breast cancer patients, we could propose enrolling them in a research protocol for experimental therapies."

Norman Bethune Canadian Norman Bethune, thoracic surgeon and pneumologist, worked in Montréal at Hôpital Sacré-Cœur, in Spain during the Spanish Civil War (1936-1939) and in China during the Sino-Japanese War (1937-1945).

His involvement in social medicine led to Canada's universal healthcare insurance system in the late 1960s.

Illustration : Norman Bethune (1890-1939), by Francine Auger

science and are designed with an eye to the next 50 years.

The economic spinoffs are considerable, topping $60 million a year. CRCHUM will be the regular workplace for some 1500 people, including more than 300 researchers and investigators."

Source : Wikipedia

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Three MUHC Campuses

1

st in health

Health research earns UdeM top ranking among Quebec universities and 3rd place in Canada.

The UdeM is the only Canadian university offering all life sciences.

McGill also has a major project in the works. Besides the Lachine Campus, which includes a hospital, and the Mountain Campus, which will centre around the Montréal General Hospital, the Glen Campus will become the core facility for health care and research at McGill. The big move will come in fall 2014, and the new campus will comprise the Montréal Children's and Royal Victoria hospitals, the Montréal Chest Institute, the future Cancer Centre and the MUHC Research Institute, which has 550 researchers.

Dr. Vassilios Papadopoulos relocated from Washington to Montréal in 2007. "The close collaboration between the research community and industry is one of the reasons I felt led to come to Québec," the director of the MUHC Research Institute recalls. "The Glen Campus buildings, which will cost an estimated $1.5 billion, represent the largest infrastructure project in North America at this time. If we add in the work planned for the other two sites, that figure rises to $2.2 billion. Working in such an open context is very stimulating."

PHOTO : ROBERT DERVAL

The UdeM is among the world’s best universities according to the Times Higher Education ranking. It is also the largest university institution in the Francophone world.

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PHOTOS : ROBERT DERVAL

"WE FOCUS ON THE

The doctor's vision is clear-cut. "We focus on the patient, from pre-birth to death. Our research has to centre on health and disease." He estimates that it will be another 20 to 30 years before his dream comes true and everyone

PATIENT, FROM PRE-BIRTH TO DEATH. OUR RESEARCH HAS TO CENTRE ON

PHOTO : ROBERT DERVAL

Dr. Papadopoulos, an executive member of Montréal InVivo, readily answers the many questions about what all that investment will be used for. "There are big economic benefits. In any given year, we attract $130 million to $150 million to Montréal in funding money and contracts," he says. "The figures double when researcher salaries from various sources are factored in. There are also the small businesses spun off from our research, as well as benefits in the form of intellectual property rights for discoveries. Few industries have this much impact on the economy."

HEALTH AND DISEASE." – Vasilios Papadopoulos

VASSILIOS PAPADOPOULOS Director McGill University Research Institute (MUHC)

receives individual lifelong health care. This is an ambitious objective that goes beyond personalized medicine. But the researcher puts great store by it. "We focus on our present strengths, on our skills in the area of chronic diseases such

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PHOTO : ROBERT DERVAL

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as cancer, diabetes and asthma so that we can begin right now following patients from infancy to adulthood.

We also have many collaborative arrangements with our colleagues at the CHUM Research Centre. Beyond healing, we want to fathom the origin of diseases. This requires sustaining our efforts. Investment and vision must stay in step. Whether for clinical, basic or epidemiological research, we still need more investment to keep Montréal and Québec ranking in the forefront worldwide," Dr. Papadopoulos concludes.

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Personalized Health Care: Challenges and Consensus P

roviding the right medicine for the right person at the right time for the right disease–this is the dream of doctors, researchers, industrialists, healthcare managers... and patients! The dream is already starting to come true around the world, and Québec is determined to embrace it with open arms. Headed by Montréal InVivo, the industry's movers and shakers are coming together to pursue the common goal of becoming an undisputed leader in personalized health care.

TAILORED TREATMENT Back in the 1980s, it was discovered that about 30% of women with breast cancer were carriers of a genetic mutation that promoted onset of the disease. That led to choosing a new therapeutic approach. Herceptin, which destroys diseased cells without killing off healthy ones, was to become the first cancer drug to target a specific genetic error. The idea is that if two patients are diagnosed with the same disease, one of them will respond to a particular treatment, whereas the other will not.

Currently, there are some 30 therapies targeting a specific characteristic, especially in the case of cancer. Studies to discover other treatments are under way for cardiovascular disease, diabetes and obesity. "For six of those known drugs, the U.S. Food and Drug Administration (FDA) requires preliminary genetic testing to determine whether the treatment is appropriate for the patient," explains Catalina Lopez Correa, vice president, Scientific Affairs at Génome Québec. "We are seeing a real sea change in the health system. Québec has no choice but to climb aboard."

CATALINA LOPEZ CORREA Vice president Scientific Affairs at Génome Québec

PHOTO : ISTOCKPHOTO BY BLACKWATERIMAGES

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PHOTO : MERCK

LIFE SCIENCES

MICHEL CIMON Vice president Medical Affairs, Merck

THE BIG DRUG COMPANIES MAKE THE SHIFT In Montréal, Dr. Michel Cimon is vice president, Medical Affairs, at Merck, where the shift has already begun.

"This is crucial for us," he states. "The health system is very costly, and the drug companies are finding it more and more difficult to get their drugs reimbursed. If we can be 95% certain that a particular treatment is effective for a given patient, we can ease the payer's mind."

This significantly affects how research is organized. Developing a drug is no longer enough these days. It is necessary to know which patients will benefit from that drug. Basic research still has its part to play, but the clinical trial phase is taking on new importance. "As early as possible in the development

process, we must determine which individuals respond best to a given medication," Dr. Cimon points out. "Research is costly, and we can't afford to wait until the marketready phase to adjust our aim. Many of our new drugs are already being evaluated this way."

There is a pressing need to pool efforts. "Working through the Fonds de la recherche en santé du Québec (FRSQ), we're entering agreements with university research teams and biotech firms capable of discovering biomarkers for facilitating targeted drug therapies," Michel Cimon explains. "It is still early to know what economic benefits these changes will provide. Still, there is a strong resolve in Montréal to work together, and that's great news.

Simply put, we want an ordinary blood sample to tell us whether the patient will or will not respond to a particular treatment."

Research Matters

For better heart health

For our pediatric patients

For protection against disease

Research matters... for better health outcomes. www.muhc.ca/research 36

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For better bone health

For protecting young athletes from head injuries

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"THREE OR FOUR YEARS AGO, WE COLLECTED 12,000 BLOOD AND OTHER SAMPLES FROM VOLUNTEERS. WE'RE AIMING FOR 30,000. HOWEVER, FUNDING FOR THIS KIND OF PROJECT IS VERY HARD TO FIND BECAUSE THE RESULTS ARE NOT IMMEDIATE." – Jean-Claude Tardif

conducts clinical trials for the big drug companies and the biotechs. "We're even turning a profit, and other hospitals want to borrow this model." Dr. Tardif also founded the MHI Pharmacogenomics Centre with the help of donors.

JEAN-CLAUDE TARDIF Cardiologist and researcher Montréal Heart Institute (MHI)

MONTRÉAL'S EXCELLENCE The vision of Jean-Claude Tardif, cardiologist and researcher at the Montréal Heart Institute (MHI), dates back 10 years.

"Most patients I routinely saw at my clinic were obese or hypertensive. I knew that 10% of them would die of a heart attack. I wanted to know which ones."

To answer that question, the cardiologist needed some way to learn more about his patients, and he therefore created the MHI Biobank. "Three or four years ago, we collected 12,000 blood and other samples from volunteers. We're aiming for 30,000. However, funding for this kind of project is very hard to find because the results are not immediate." Dr. Tardif went further and established the Montréal Heart Institute Coordinating Centre, which

So it was that Jean-Claude Tardif laid the foundation for CEPMed, the Centre of Excellence in Personalized Medicine. Through education, policy development and PPPs, CEPMed seeks to optimize treatments that suit specific patient profiles. It is linked to the Canadian network of centres of excellence and is the only centre of its kind in the country. CEPMed director Clarissa Desjardins is enthusiastic about the early results. "Genetic testing CLARISSA DESJARDINS costs a lot. We need to try and take President and CEO of CEPMed the pressure off the health system," she points out. "So we conduct clinical trials for the big drug companies and share the earnings. The leverage effect from our investments benefits the Montréal economy. The partnership with Roche, for example, has had an impact 1.3 times greater than our immediate direct investment." For the time being, CEPMed-funded clinical trials are focused on cardiology, but education and promotion activities also touch on the areas of oncology and family medicine.

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LIFE SCIENCES

A STRATEGY FOR QUÉBEC This is the setting in which Montréal InVivo initiated the development of Québec's joint strategy for personalized medicine. That strategy is headed by Dr. Howard Bergman, FRSQ vice president, Scientific Affairs. "The market exists and is even growing," he says. "This is an economic reality.

We can capitalize on undeniable advantages thanks to high performing researchers, teaching hospitals, a solid industry, international partners and a universal healthcare system."

HOWARD BERGMAN FRSQ vice president Scientific Affairs

The expressions "personalized medicine" and "personalized health care" are the new buzzwords, and the financial stakes are huge. The Wall Street Journal reported in January1 that global sales of personalized drugs and diagnostics totalled $24 billion in 2009 and could grow at 10% annually to 2015, well beyond the anticipated 34% growth. This is real manna for the pharmaceutical industry, especially diagnostics companies. Still, the industry needs to adapt.

1. "Pharmaceutical Sector Remains Genetically Challenged," The Wall Street Journal, January 22, 2011.

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"Our universal health system gives us a big advantage," Catalina Lopez Correa comments. "This system and the particular characteristics of the Québec population facilitate personalized medicine studies—in strictest compliance with ethical standards, need I say. However, there is a problem embracing innovation on the whole, given that today's economy and demographics constrict our financial means. We do excellent research; the challenge is moving beyond results and into the hospitals and clinics."

Will closely targeted care lower health system costs?

The question is frequently raised. "It would be rash to talk about cost cutting," Howard Bergman asserts. "With personalized health care, we are aiming for a more effective system to help improve Québecers' health while exercising better cost control."

The challenges are sizeable. "We talk a lot about market readiness," Dr. Bergman cautions. "But bear in mind that present biomarkers and research platforms exist thanks to basic research dating back 15 to 20 years. For another thing, we have to do good science, but also to show that

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"WITH PERSONALIZED HEALTH CARE, WE ARE AIMING FOR A MORE EFFECTIVE SYSTEM TO

develop an application proof of concept for our health system. The application phase will come next."

HELP IMPROVE QUEBECERS' HEALTH WHILE EXERCISING BETTER COST CONTROL." – Howard Bergman

this new medical practice can be integrated into the health system." The 10-year strategy will comprise two phases. "First, we will validate biomarker efficacy and

"Québec is in a strong position to assume an international leadership role," Howard Bergman continues. "We have an agreement with France's Agence nationale de la recherche; we are considering partnerships with Luxembourg, Germany, China, Spain and others." Michel Cimon, for his part, expresses great optimism. "The demand is strong. Properly organized, Québec could definitely have a pioneering role."

CART@GENE 20,000 QUEBECERS ANSWER THE CALL

"Overall statistical data, for diabetes or hypertension for instance, provide no information about an individual's condition in terms of nutrition, lifestyle or environment," Dr. Hamet explains. "That's not counting people who never go to the doctor. We know nothing at all about them. We have set up an invaluable data bank that will help steer the development of medicines.

Blood and urine samples have been stored according to the best ethical practices, and the data for diabetes, hypertension, osteoporosis and obesity is being analyzed."

PHOTO : LUC LAUZIÈRE, CHUM

In 2010, Dr. Pavel Hamet personally signed some 10,000 thank you letters to scientifically selected individuals who answered the call of the Régie de l'assurance-maladie du Québec (provincial health insurance board) to participate in close assessment of their health profile and genetic background.

"They gave us three to four hours of their time. Thanking them was the least we could do," states Dr. Hamet, medical director of the CART@GENE project and the scientist entrusted with half of the 20,000 assessments conducted.

PAVEL HAMET Medical director, CART@GENE

Pavel Hamet, who holds the Canada Research Chair in Predictive Genomics, dreams big. "The CART@GENE project gives us a snapshot of our population.

Re-assessing the same cohort, every five years for example, would produce an ongoing picture. The start-up investment of $35 million provides a well-oiled infrastructure. Annual costs would then come to a few million dollars." Some economic spinoffs are already in the works. At the time of our interview, Dr. Hamet was about to leave on a government economic mission to India. "I hope to sign agreements with pharmaceutical firms, especially regarding diabetes, which is a veritable plague in that country."

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LIFE SCIENCES

Caprion Proteomics

PHOTO : ISTOCKPHOTO BY SKIP ODONNELL

The health system is in the midst of a shift to personalized medicine.

Montréal-based Caprion Proteomics is among the players instrumental in quickening the pace of that shift. Its leading-edge technology enables this biotech firm to analyze the full array of proteins in a cell, allowing it to check on how the cell is functioning. "Studying the proteins, or biomarkers, in the blood and organic tissues is a means of detecting a disease even before symptoms appear, tracking the pathogen through the body and choosing treatments suited to each individual," Martin LeBlanc, president of Caprion Proteomics, explains.

Caprion's ultra-modern discovery platform is a tool highly coveted by drug industry leaders such as Pfizer, AstraZeneca, Abbott, and so on. "Collaboration with the pharmas is growing by leaps and bounds," Mr. LeBlanc adds.

"Through the use of biomarkers, pharmaceutical labs can carry out more refined studies of what a particular drug does in the body. This makes for better informed decisions during the drug development process."

Caprion has built up exceptional expertise in the past ten years in order to understand drug company needs and provide services accordingly. Its partnerships with major drug companies generate annual sales topping $10 million and make it possible to project potential royalties from the drugs developed through collaboration. Caprion Proteomics is one of the top suppliers of biotechnology services focused on personalized medicine.

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www.medicorp.com 40

— Montréal Powerhouse – 2011 edition

Contact us for more information >

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Édition 2011 —

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Pharmaceuticals: A Strong Chain of Innovation

By Sybille Pluvinage

M

ontreal is truly the country’s nerve centre for pharmaceutical research, with an environment that’s conducive to innovation, providing solid infrastructures for production and research and a highly qualified workforce along with financial resources.

PHOTO : ISTOCKPHOTO BY SETIXELA

Nearly two years ago, the Québec government unveiled the new Québec Biopharmaceutical Strategy and announced nearly $123 million in funding over three years for the biopharmaceutical industry. The objective is to face the major challenges presented by international competition and rising R&D costs while positioning Québec as a place that welcomes investments and pharmaceutical manufacturers.

“The biopharmaceutical sector is in deep disarray,” says Dr. Max Fehlmann, President and CEO of the Québec Consortium for Drug Discovery (QCDD).

“Since the 1980s, we have also seen a declining number of discoveries of innovative molecules and rising investments in R&D. Today, very few molecules reach the marketplace. Of 100,000 molecules identified at the initial research stage, only one will be marketed.” It takes time MAX FELHMANN to produce a medication – more than President and CEO Québec Consortium 20 years from molecule research to for Drug Discovery (QCDD) marketing – and it takes money, too – between $800 million and $1.3 billion.

“The government has certainly grasped the importance of providing financial assistance at each stage in the medication innovation chain,” notes Dr. Fehlmann.

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LIFE SCIENCES

MICHEL BOUVIER Senior researcher Institute for Research in Immunology and Cancer (IRIC)

“THE KEY TO SUCCESS LIES IN ALL THE PLAYERS IN THE BIOPHARMACEUTICAL SECTOR WORKING TOGETHER” – Michel Bouvier

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projects every year, each in the $2-million range. “The Consortium is a forum that helps to strengthen the bonds between the academic community and industry. We foster innovation by supporting uncommon research projects and the development of tools that facilitate the discovery of new drugs,” says Dr. Fehlmann.

To counter the upheaval in the industry, a new model is emerging, based on synergy and mobilization of skills.

“The key to success lies in all the players in the biopharmaceutical sector working together,” says Dr. Michel Bouvier, senior researcher at the Institute for Research in Immunology and Cancer (IRIC) and a full professor in the department of biochemistry in the faculty of medicine at the Université de Montréal. To remain competitive and find the necessary expertise, the major pharmaceutical laboratories must be open to working in partnership with small biotechnology companies and the academic community. “This system, which we call ‘open innovation,’ is a reasonable model,” says Dr. Fehlmann. “If all the partners put their money in the same basket to fund risky projects and then share the profits, that’s a way to dilute the risks, and more projects can be funded with this model.

As a result, there are more chances of having a project that gets off the ground, for the same investment.”

THE DRUG DISCOVERY STAGE One solution for boosting R&D productivity involves establishing procedures to find the most promising projects upstream from the production line. “It’s useful to develop skills to anticipate which new molecules will be ineffective or toxic so we can ‘kill off” projects early, before they get too costly,” notes Dr. Fehlmann. This type of tool is widely used at IRIC in Montréal, as Dr. Bouvier explains: “We have all sorts of research projects at IRIC, but to accelerate the process of transferring knowledge to the discovery of drugs we need to design and develop the most innovative projects. That was why the Centre of Excellence for Commercialization and Research in Therapeutics Discovery was set up at IRIC. Once projects are mature, a pharmaceutical or biotechnology company will take over under a partnership agreement so that income can be fairly divided. This process strengthens relationships between the academic and industrial communities, as well as boosting productivity and research knowledge.”

The Québec government supports this model, notably by supporting the QCDD, a non-profit organization that funds innovative research projects conducted by partners in the public and private sectors. Since it was founded in 2008, the Consortium has supported three to five

CLINICAL TRIALS Developing new technologies at the clinical trial stage is another way of stressing the importance of development and the spin-off effects of research. Dr. Tarik Möröy, president and scientific director of the Institut de recherches

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cliniques de Montréal (IRCM), feels that “It’s important to radically reduce failures at a late stage in the development of new drugs. If a molecule gets to the clinical trial stage where it’s used with patients and it fails, the financial cost is enormous. That’s why the IRCM makes it possible for basic researchers and clinicians to work together closely in one place. The IRCM is a unique element in the chain of innovation – clinicians and investigators work side by side under one roof, with more homogeneous cohorts of patients who are clearly characterized so that we can put together solid clinical studies.” The IRCM, a hub of excellence in clinical research, is one of 19 centres supported by the Fonds de la recherche en santé du Québec (FRSQ).

The FRSQ recently announced that new budgets were being made available to achieve one of the objectives of the Québec Biopharmaceutical Strategy, to “back the development of new centres of excellence in clinical research within research centres.” That funding, a total of $2.6 million per year for two years, is intended for centres that wish to develop clinical research in collaboration with the biopharmaceutical industry. “This government

“IT’S IMPORTANT TO RADICALLY REDUCE FAILURES AT A LATE STAGE IN THE DEVELOPMENT OF NEW DRUGS. IF A MOLECULE GETS TO THE CLINICAL TRIAL STAGE WHERE IT’S USED WITH PATIENTS AND IT FAILS, THE FINANCIAL COST IS ENORMOUS.”

PHOTO : YVES LACOMBE > INSTITUTE FOR RESEARCH IN IMMUNOLOGY AND CANCER

– Max Fehlmann

funding is helping investigators to pursue broad-based projects in partnership with business and the biotechs, and to advance knowledge in fundamental research,” says Dr. Möröy.

OUT OF THE VALLEY OF DEATH “There is a real financial ‘valley of death’ between the molecule discovery stage and the pre-marketing stage,” Dr. Fehlmann points out. The term, which is broadly TARIK MÖRÖY President and scientific director used, perfectly describes the current Institut de recherches cliniques situation of the biotechs. In response de Montréal (IRCM) to the challenges they face, the Québec government set up new major risk-capital funds in 2009. The first, the Teralys Capital Fund, has total target capital commitments of $825 million. Backed by the Caisse de dépôt et placement du Québec and the QFL Solidarity Fund, it is dedicated to technology companies, notably those that are active in the life sciences sector. Three other funds have been set up in partnership with the QFL Solidarity Fund, FIER Partners, and private partners. Each $41.25 million fund is intended to fund emerging companies.

INVESTING IN TRAINING Montréal is home to a highly skilled workforce and internationally recognized academic programs. Our four universities house such world-famous research infrastructures as the Génome Québec Innovation Centre at McGill University and the Beaulieu-Saucier Pharmacogenomics Centre at the Université de Montréal. “It’s crucial to invest so we can train top-notch researchers who will then go on to work in the biopharmaceutical industry in Québec,” Dr. Bouvier says. “All the research groups in this domain act as a catalyst for Québec industry.” The government of Québec, which is obviously well aware of the strategic importance of training qualified workers, is investing $320,000 in developing tools to make young people aware of careers in biopharmaceuticals and motivate them to move into the sector.

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LIFE SCIENCES

Theratechnologies and its trail-blazing drug, EGRIFTATM : AN EXEMPLARY SUCCESS STORY THE U.S. FOOD AND DRUG ADMINISTRATION GAVE THE GREEN LIGHT TO EGRIFTATM ON NOVEMBER 11, 2010.

THIS REVOLUTIONARY NEW DRUG IS INDICATED TO REDUCE EXCESS ABDOMINAL FAT IN HIV-INFECTED PATIENTS WITH LIPODYSTROPHY. EGRIFTATM IS

“IT’S CRUCIAL TO INVEST SO WE CAN TRAIN

THE FIRST AND ONLY TREATMENT OF ITS KIND TO

TOP-NOTCH RESEARCHERS WHO WILL THEN

RECEIVE FDA APPROVAL. DEVELOPED FROM START

GO ON TO WORK IN THE BIOPHARMACEUTICAL

TO FINISH BY MONTRÉAL-BASED BIOPHARMACEUTICAL

INDUSTRY IN QUÉBEC.”

THERATECHNOLOGIES, IT WILL BE EXCLUSIVELY

– Michel Bouvier

MARKETED IN THE U.S. BY EMD SERONO, INC., AN AFFILIATE OF MERCK KGAA. FDA approval comes as excellent news for the entire Québec biotechnology industry. Since Biochem Pharma’s huge success in the 1990s, the sector has seen some tough times. Montréal-based Theratechnologies is one of the very few Canadian biotechnology companies to have discovered, developed and marketed a drug all on its own.

But that’s not all. The company recently awarded exclusive rights to distribute EGRIFTA in Latin America, Africa and the Middle East to Sanofi-Aventis, while Ferrer Internacional has the rights for Europe, Russia, South Korea, Taiwan and several countries in Central Asia.

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A PROPITIOUS BUSINESS CLIMATE The engine for the biopharmaceutical industry remains the corporate community. In all, some 20 international pharmaceutical companies have their Canadian HQ in Québec, most in the Montréal region. “This is a favourable environment for business development – especially due to the quality of networks that have been formed between the private and public sectors,” says Dr.Fehlmann. “Despite its size, Montréal is really a village. Communication between academia and industry is open in this area, unlike other parts of the biopharmaceutical sector. Players in the biopharmaceutical sector are able to work on neutral ground based on common interests. That is a unique and extremely precious tool.”

The drug development chain is extremely well developed in Montréal – from molecule to marketplace. This city enjoys substantial resources, and the Québec Biopharmaceutical Strategy represents another step to success in the sector. It’s not perfect, of course. Researchers concur that $123 million is just not enough. Dr. Fehlmann adds, “It’s never enough, but the government is on the right track.” Montréal has no intention of relinquishing its leadership role in the biopharmaceutical industry in North America.

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Treating Scoliosis A

biomechanical engineering research team at the École Polytechnique de Montréal has joined with SainteJustine Hospital's Research Centre to develop better tools for treating scoliosis, a deformation of the spinal column.

This invaluable collaboration is helping make Montréal a world leader in the treatment of spinal column diseases.

One of the multidisciplinary team's projects is building a 3D modelling program. “We can use imaging techniques

to make 3D reproductions of a patient's spine,” explains Carl-Éric Aubin, professor in the École Polytechnique's Department of Mechanical Engineering and holds the NSERC/Medtronic Industrial Research Chair in Spine Biomechanics. “This allows us to model the mechanical behaviour of the spine. We're using this new process to make the shift to personalized medicine and explore new therapeutic approaches.”

CARL-ÉRIC AUBIN Professor in the École Polytechnique's Department of Mechanical Engineering and holds the NSERC/Medtronic Industrial Research Chair in Spine Biomechanics

The personalized simulation program applied to braces is one of the most promising projects carried out by Professor Aubin's team. “It take a few minutes to create a 3D model of the patient. Then we make a large number of virtual braces. This indicates which brace will be most effective and what long-term effects it will have for the patient.”

Another 3D modelling program will simulate corrective surgeries for scoliosis. The goal: to predict the impacts of the main surgical procedures with sufficient accuracy and so provide more effective treatments.

A number of industrial partners have expressed early interest in these digital techniques and are ready to implement them if results prove conclusive.

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LIFE SCIENCES

Creating tissues ...

In

2003, a discovery at the École Polytechnique de Montréal made the headlines in Québec when hockey great Serge Savard was on the receiving end of research at that institution. Given numerous leg injuries over the course of his career, Mr. Savard could no longer avoid major surgery to replace his left knee joint. That happened when Health Canada allowed use of the CarGel™ biomaterial to treat several dozen patients before clinical trials were completed. Surgery was avoided, and the hockey player put away his cane. New tissue was regenerating the cartilage in his knee.

CAROLINE D. HOEMANN Biologist and professor in the Chemical Engineering Department and Biomedical Engineering Institute MICHAEL D. BUSCHMANN Professor Chemical Engineering Department

This breakthrough was driven by Michael D. Buschmann and Caroline D. Hoemann, who developed the world's only joint cartilage regeneration technique of its kind. Their biogel, a polymer called chitosan obtained from the outer skeleton of shellfish, is mixed with the patient's blood and applied directly to the wound during largely non-invasive surgery. The biogel adheres to the bone and cartilage, then breaks down completely during the healing process. "This is highly innovative technology," states Ms. Hoemann, biologist and professor in the Chemical Engineering Department of the École Polytechnique's Institute of Biomedical Engineering. "We were the first to think of using this kind of biogel to heal cartilage right at the wound site." Research is ongoing: "We are continuing with studies on interactions between the chitosan polymer and the cells involved in wound repair."

In 2010, Piramal Healthcare Limited, a large Indian pharmaceutical company, became interested in the tissue engineering studies of Prof. Michael Buschmann and his team and invested in the NSERC Piramal Industrial Research Chair in Hybrid Biomaterials for Innovative Regenerative Technologies. Prof. Buschmann holds that chair.

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... and evaluating tissues Martin Garon and Éric Quenneville both earned PhDs in biomedical engineering under Prof. Buschmann's supervision and are now partners in Biomomentum, a young device company. "While still in school, we recognized the need to measure the mechanical properties of tissues, skin and cartilage—their response to compression, for one," Mr. Garon explains. "We developed the Mach 1, an instrument for use in orthopaedic surgery." When the company that employed them closed its instrumentation department in 2009, the two of them bought back their patents and established Biomomentum as co-owners. Success is already in sight, with the award of first prize for technological innovation in the 2010 Concours québécois en entreprenariat, a competition in which the company's strong potential was recogMARTIN GARON and ÉRIC QUENNEVILLE nized.

At present, Biomomentum receives funding from Economic Development Canada and Investissement Québec, but requires more financial support. "We’re concentrating for now on sales of Mach 1 in Canada (30%), the United States (30%) and Europe (40%)." Arthro-BST, another arthroscopic evaluation instrument, is sold for lab use at this time. The researchers hope to have a clinical version by summer 2011. "Besides their evaluative uses, we see these instruments as solid diagnostic tools down the road," Martin Garon predicts.

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Douglas Institute Research Centre THE DOUGLAS INSTITUTE RESEARCH CENTRE IS QUÉBEC'S OLDEST SUCH CENTRE IN THE MENTAL HEALTH FIELD AND THE SECOND LARGEST OF ITS KIND IN CANADA, WITH 300 WORLD RENOWNED RESEARCHERS AND STATE-OF-THE-ART INFRASTRUCTURE. THE CENTRE IS KNOWN FOR ITS SCIENTIFIC BREAKTHROUGHS AND INNOVATIVE PROJECTS IN BOTH RESEARCH AND CLINICAL PRACTICE. ITS INVESTIGATORS ARE PARTICULARLY INTERESTED IN THE MECHANISMS AND CAUSES OF MENTAL DISORDERS SUCH AS ALZHEIMER'S DISEASE, SCHIZOPHRENIA, DEPRESSIVE DISORDERS AND AUTISM.

JOHN BREITNER Director of the Centre and professor of psychiatry in the McGill University Faculty of Medicine

STUDIES ON ALZHEIMER'S PREVENTION The Douglas Institute will soon open the new Centre for Studies on Prevention of Alzheimer's Disease. "This Centre, the only one of its kind in North America, will assess the efficacy of preventive therapies for persons having biomarkers known to increase the risk of developing Alzheimer's disease," explains John Breitner, director of the Centre and professor of psychiatry in the McGill University Faculty of Medicine.

The studies produced through this wideranging new project will shed more light on the risk factors associated with Alzheimer's in order to slow the onset and progression of the disease.

BRAIN IMAGING CENTRE Creation of a brand new Brain Imaging Centre will considerably facilitate the Douglas Institute's research efforts. As Martin Lepage, director of the Centre, points out, "The new equipment will provide the researchers with leading-edge infraMARTIN LEPAGE Brain Imaging Centre, Douglas structure supporting the Institute Research Centre development of already remarkable expertise. Québec will join the world leaders in basic and applied research into psychiatry and mental health." Thanks to $20 million in joint funding from the provincial and federal levels of government, the Institute will become Québec's first psychiatric facility with its own brain imaging capability.

This ultramodern platform will house many state-of-theart technologies, including two new magnetic resonance imaging (MRI) scanners, one for studying humans and the other for animal research. This will make it easier for the scientists to examine brain development, understand the different forms of mental illness and improve diagnostic and prognostic accuracy. These brain imaging techniques open up new prospects for mental health research.

Since 1982, the Douglas Institute Research Centre, a McGill University affiliate, has been a World Health Organization (WHO) Collaborating Centre. It also works with the Pan American Health Organization (PAHO) to improve access to mental health care around the world.

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LIFE SCIENCES

The Biotech City

PHOTO : LAVAL TECHNOPOLE

THE BIOTECH CITY, METROPOLITAN MONTRÉAL'S HUB OF BIOTECHNOLOGY AND HUMAN HEALTH, EMERGED TEN YEARS AGO FROM A PARTNERSHIP BETWEEN LAVAL TECHNOPOLE AND INRS–INSTITUT ARMANDFRAPPIER. ITS DYNAMIC MIRRORS THAT OF THE MONTRÉAL METROPOLIS. "WE STAND OUT ESPECIALLY FOR OUR STRONG TRADITION OF EXCELLENCE IN RESEARCH INTO INFECTIOUS DISEASES AND ANTIVIRAL SOLUTIONS," EXPLAINS DR. SAMIR MOUNIR, BIOTECH CITY DIRECTOR.

SAMIR MOUNIR Director of BIOPOLE and The Biotech City

48

Biochem Pharma, "one of Canada's greatest biotech success stories" owing to its now inestimable treatment for HIV, grew out of the Institut Armand-Frappier, named after a pioneer in tuberculosis vaccination in North America. The Biotech City is also home to ViroChem Pharma, which has specialized since the early 2000s in treatments for hepatitis C and HIV. It now hosts world giant GlaxoSmithKline, which develops and manufactures a flu vaccine. The tradition is well established.

cent years, especially on the heels of the financial crisis of fall 2008. Dr. Mounir offers a different interpretation for those who bemoan this situation. "For example, we held onto the jobs when the U.S. company Vertex Pharmaceuticals bought out ViroChem Pharma in 2009. The company stayed here, and we are reaping the benefit of that investment." Another case in point is Laboratoire Dr Renaud, acquired in 2010 by the Canadian division of Valeant Pharmaceutical International. "The buyers chose to stay here and position the biotech as a unit of excellence in dermatology," the Biotech City director continues. "This makes them active stakeholders in economic development.

The same scenario is playing out for Biosyntech, known for its CarGel™ product and recently acquired (see page 46), recently acquired by Piramal, an Indian company that invests in our institutions." Then there are the financial woes of LAB Recherche, a firm providing preclinical testing services for pharmaceutical companies? Dr. Mounir, ever the optimist, advises patience. "The company hasn't declared bankruptcy. Let's wait and see. There could be an acquisition or merger in the offing..."

The Biotech City business and science centre: more than 5000 people working in more than 80 businesses located within a four-kilometre radius.

Construction of an oncology treatment centre at Laval's Hôpital Cité-de-la-santé, a $37.5 million project with an added $40 million for equipment and $29 million for operating costs, will boost Greater Montréal's oncology sector. "We're aiming for complementarity in this field as well," Dr. Mounir states.

COURTING THE BEST It is no accident that New World Laboratories, whose founder was named businessman of the year in the U.S. back in 2004, set itself up in Laval in 2007. "We were looking to attract a high level firm in the field of stem cells, regenerative medicine and personalized medicine," Samir Mounir says.

ACQUISITIONS THAT PAY OFF Quite a few venture capitalists are opting to concentrate on financing later-stage companies. Given this, "there is no denying that the smallest businesses find it harder to raise capital and that venture financing needed to make up the shortfall is not really available in Québec these days. This situation promotes mergers and acquisitions."

As a result, acquisitions of high-performance or promising Québec biotechs by foreign interests have grown in re-

"Patience doesn't rule out the proactive approach, and Biotech City managers are busy finding and courting the top players in life sciences and health technologies, both here and abroad. The selling points are our universities' interest in this sector, the concentration of resources in the Greater Montréal area and lower R&D costs here.

We intend to continue our efforts along these lines and have current agreements with groups in Germany, Spain, France and Canada."

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Information and Communications Technology

PHOTO : PROJECTION HOLOGRAPHIQUE PAR SPACE & DREAM

ICT : Montréal Thinks Big Feature Report by Catherine Flores

MONTRÉAL-BASED INFORMATION AND COMMUNICATIONS TECHNOLOGY COMPANIES KEEP THE QUÉBEC ECONOMY HUMMING With 5,000 companies, 120,000 jobs and $25 billion in revenue, information and communications technologies (ICT) in the Greater Montréal area are powering the prosperity of the Québec economy. This dynamic sector, which alone accounts for 70% of jobs in Montréal, puts this city in fifth place on the list of North American cities with the highest concentration of high-tech jobs – tied with Seattle, Boston and San Francisco.

The presence of ICT companies in Montréal dates back to the 1970s and ‘80s, when the Québec economy was in a period of steady growth. To sustain that growth, the financial institutions sector has a huge need for technological tools and skills that promote the development of local consulting firms specializing in this area. Such factors as the telecom boom, the IBM plant opening in Bromont, barely an hour from Montréal, and of course the academic strengths of this city have all contributed to the concentration of technical expertise.

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INFORMATION AND COMMUNICATIONS TECHNOLOGY

YVES PELLETIER Senior vice-president, business and information technologies, DMR and chairman of the TechnoMontréal Board of Directors

“MONTRÉAL HAS MANY ASSETS TO SET ITSELF APART ON THE INTERNATIONAL SCENE.” – Yves Pelletier

A diversified critical mass of companies, a qualified creative workforce, competitive operating costs and great tax benefits combine to explain the vigour of the ICT industry in Québec. Despite the economic downturn, in recent years the industry has registered twice the growth rate of the economy as a whole, accounting for no less than two-thirds of Montréal International’s foreign investments between 2005 and 2008.

The Montréal ICT industrial cluster refuses to rest on its laurels, however. Facing increased international competition, it’s mobilizing to maintain its position as an international innovator and be recognized beyond our national borders.

Under the banner of TechnoMontréal, which was launched in 2007, ICT companies have come together to implement broad-based projects designed to optimize growth and outreach, notably by facilitating matches between the private and public sectors.

TechnoMontréal is ambitious, to say the least. Its proactive work on four key strategic pathways – the workforce, funding, marketing and innovation –is helping Montréal’s ICT industry meet some sizeable challenges.

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A (TOO) CLOSELY GUARDED SECRET Yves Pelletier, senior vice-president, business and information technologies, with DMR and chairman of the TechnoMontréal Board of Directors, feels that Montréal’s leadership in ICTs remains “a secret that’s too closely guarded.”

“Montréal has many assets to set itself apart on the international scene,” says Mr. Pelletier. “The critical mass of companies is divided among complementary sectors: manufacturing, software, computer services, telecommunications services and multimedia. Montréal has more university students per capita than any other city in North America, so we can offer a pool of highly trained workers known for their creativity. And let’s not forget that we have a wide array of assistance programs for business.

Québec offers the strongest support for R&D in Canada; rents are relatively low; and we have many research centres and public support for collaboration between business and university researchers.”

All the same, Montréal is rather discreet when it comes to proclaiming its assets on the international scene. Worse still, Mr. Pelletier points out, “Many local companies carry out their projects elsewhere, not knowing what resources are available locally or having trouble gaining access to local resources. We must rectify that situation if we hope to maintain Montréal’s creative talents, expertise and technological advances. And that will mean projects that mobilize people – which is exactly what TechnoMontréal is committed to promoting.”

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“MANY LOCAL COMPANIES CARRY OUT THEIR PROJECTS ELSEWHERE, NOT KNOWING WHAT RESOURCES ARE AVAILABLE LOCALLY OR HAVING TROUBLE GAINING ACCESS TO LOCAL RESOURCES. WE MUST RECTIFY THAT SITUATION IF WE HOPE TO MAINTAIN MONTRÉAL’S CREATIVE TALENTS, EXPERTISE AND TECHNOLOGICAL ADVANCES. »

THE “DIGITAL METROPOLIS” The most ambitious of these projects is turning Montréal into a true digital metropolis by equipping the city with world-class ICT infrastructures and functionalities.

– Yves Pelletier

“This project emerged from consultation with all the active players in the industry in the metropolitan area,” says Mr. Pelletier. “What’s at stake is creating a technological creative hub that will give everyone in the industry an opportunity to share their knowledge and keep moving forward.” Among other things, that type of project requires omnipresent access to architectural communications infrastructures and high-speed wireless connections.

TechnoMontréal hopes to complete this project before Montréal hosts the next edition of the World Congress on Information Technology (WCIT) in May 2012. “That will provide the perfect opportunity for showcasing the expertise we have in Montréal on the world scene by demonstrating the innovation, knowledge and ‘savoirfaire’ we have here,” says Mr. Pelletier enthusiastically.

There’s nothing utopian about all this, Mr. Pelletier points out. “Worldwide, there’s a trend to manage open innovation among organizations and their potential partners, startups, developers, university researchers, clients, suppliers, even competitors. We want to make sure Montréal is part of that trend. That’s why technological infrastructures that make it possible to exchange digital content instantly, as well as setting up mechanisms to enable players in the industry to work together, are absolutely indispensable.”

PHOTO : ISTOCKPHOTO BY ANDRZEJ BURAK

TechnoMontréal is currently working with the provincial and federal governments and players in the industry to fund a project called Montréal Technopole. Pelletier is optimistic about the outcome and spin-offs in terms of visibility and business opportunities. Besides attracting more foreign companies and investments to Montréal, the project should be especially beneficial for the most promising niches, such as online video games, mobile technology and cloud computing1, all of which require substantial processing capacity and broad-based high-speed access.

SHORTAGE OF MANPOWER: A BURNING QUESTION Montréal’s capacity for setting up a technological infrastructure should accelerate the development of ICT, but there’s one major hurdle: a shortage of quality manpower.

That challenge is a priority for TechnoMontréal, says general manager Lidia Divry: “Over the next five years, there will be 25,000 jobs to fill. The industry’s capacity for innovation and attraction is limited by the capacity to train and attract new talents.”

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INFORMATION AND COMMUNICATIONS TECHNOLOGY

A HELPING HAND FOR SMBs Optimizing growth in the ICT sector also requires supporting SMBs, which make up 75% of the local sector – most of them small companies with no more than 10 employees.

That’s just what TechnoMontréal’s Funding and Marketing programs are aiming to do.

LIDIA DIVRY General manager TechnoMontréal

“OVER THE NEXT FIVE YEARS, THERE WILL BE 25,000 JOBS TO FILL. THE INDUSTRY’S CAPACITY FOR INNOVATION AND ATTRACTION IS LIMITED BY THE CAPACITY TO TRAIN AND ATTRACT NEW TALENTS.” – Lidia Divry

TechnoMontréal hopes to boost ICT’s profile with young people and their parents and promote educational programs in that sphere. Working alongside companies in the sector and such organizations as TechnoCompétences (the Sector Committee for the Information and Communication Technology Workforce) and the Canadian Coalition for Tomorrow’s ICT Skills, it is setting up all sorts of information activities at academic institutions. “To develop the pool of specialized workers in the short term, we also need to turn to other solutions, such as immigration and career reorientation through training,” says Ms. Divry.

That’s why TechnoMontréal is helping to set up programs designed to get immigrants working in IT through various professional training programs and recruitment missions abroad.

“We act as an interface between SMBs and potential funders. Funding strategies have changed; we need to adapt and review our business models,” says Ms. Divry. The Capital Innovation project, for instance, brings together investors and companies that are in start-up or growth mode. The entrepreneurs selected by a committee of experts are given training and support in preparing their presentations to investors and signing agreements.

In 2010, the project generated $2.8 million in funding for projects up to $750,000. “Techno Financing Cocktail” events promote linkages among ITC entrepreneurs who are seeking funding, representatives from the financial sector and suppliers of services to the industry.

When it comes to marketing, one of TechnoMontréal’s most original initiatives is the “Croissance Québec Techno” project, in partnership with the Fondation de l’entrepreneurship, which gives the heads of selected high-potential technology companies top-notch training and support in implementing strategies for rapid growth. The project, which includes sessions on business management given by trainers from the MIT Entrepreneurship Center, winds up with a big networking event. “The 30 entrepreneurs we’ve trained to date have seen their business rise by 9% the first year, and even more the second year,” Ms. Divry reports with pride.

1. Cloud computing is a model for enabling applications and storing data on thousands of distant interconnected servers – on a “cloud” of servers, rather than on the user’s server, with data accessible over the Internet. With this architecture, multiple data processing operations can be performed with no risk of congestion.

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PHOTO : ISTOCKPHOTO BY ANDRZEJ BURAK

Technology SMEs, Champions of Innovation BOLDNESS AND ORIGINALITY—THIS IS THE VITAL RECIPE FOR SUCCESS FOR THE SMES COMPRISING MONTRÉAL'S TECHNOLOGY CLUSTER. THOSE SMALL AND MEDIUM-SIZE ENTERPRISES FORM A HIGHLY DIVERSE CLUSTER OWING TO THEIR MANY AND VARIED SPHERES OF ACTIVITY. ON THE OTHER HAND, THEY SHARE REMARKABLE CREATIVITY AND THE DETERMINATION TO DEVELOP UNIQUE AND INNOVATIVE KNOW HOW IN VERY SPECIFIC NICHES. THE COMPANIES FEATURED HERE STAND OUT IN THEIR RESPECTIVE FIELDS AND EXEMPLIFY THIS TREND.

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INFORMATION AND COMMUNICATIONS TECHNOLOGY

Revolver 3 Interaction, the key to powerful marketing When Stéphane Dumont and two friends founded Revolver 3 in 2002, They planned to incorporate the human and emotional elements into marketing, which back then was focused on e commerce and triumphant technology. The young entrepreneurs patiently built their network of clients and partners. By 2005, the Revolver 3 team had grown to 15 people and was starting to earn recognition as a player in interactive marketing. Fido signed it to a big project the next year, enabling the agency to fully harness its creative energies and win a dozen Boomerang awards.

“Today's technology can be used for highly personalized, two-way communication media," Revolver 3 president Stéphane Dumont points out. "Our solutions can guide consumers through their entire purchasing process, stimulate interaction with them, generate real-time consumer feedback and adjust campaigns accordingly.”

“Strange Matter”, a theme created for a Montréal Science Centre exhibition, is one of Revolver 3's most representative achievements.

MindHabits When psychology and video gaming meet up MindHabits, a company born of exhaustive social cognition research headed by Mark Baldwin of McGill University, produces video games intended to alleviate stress and bolster self-confidence. “Our games are designed for emotional brain training,” Mr. Baldwin states. “This unique approach helps players build on their social experiences. The games were developed from my team's observations as part of our academic research showing how certain exercises positively affect mood and the ability to manage stress. The academic community welcomed our project from the beginning. Industry was somewhat more sceptical.

But then the success of Nintendo's Brain Age popularized mind training games.

That opened the door for us.”

Founded in 2005, MindHabits lost no time in winning the Great Canadian Video Game Competition. That piqued the interest of distributors and investors. "People were enthusiastic about our approach once they understood it," Mark Baldwin recalls. With its four games offering a hundred levels to choose from, the company is now adapting its product range to a number of different platforms.

"Our next step will be to develop games based on psychological principles,” he announces.

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ArchiDATA Dynamic data for real property management Dominique Dubuc, architect by training and computer buff, had the foresight to identify a need in the area of building and plan management. That need was access to reliable data for use by professionals involved in construction or building management projects. Mr. Dubuc founded ArchiDATA in 1995 to provide integrated management tools for all phases of an asset life cycle, from design to construction and even to leasing and operation. The Bonsecours Market rehabilitation plan under way at that time gave the company the chance to successfully test those tools.

“Our solution is a collaborative tool based on unique GIS technology providing a secure Virtual Plan Room and a BIM (Building Information Model-3D),” Mr. Dubuc explains. “The ArchiDATA platform dynamically converts paper or AutoCAD plans into alphanumeric data. The resulting databases can be integrated into existing management systems and support use of the plans throughout the building life cycle.” Consistent current data (in the form of 3D plans and technical documents) of guaranteed reliability make it much easier to plan real property management and manage inventory or equipment.

ArchiDATA has doubled its workforce in the past five years. It now manages more than 170 million square feet of space, or more than 3000 buildings, and its sales have increased 66%. Its client base includes hospitals, universities, banks and municipalities, and the company has opened offices in Québec City, Toronto, New York, Brazil and India.

It spends more than $250,000 a year on R&D and is broadening its client base. “We are targeting private managers of large property inventories,” Mr. Dubuc notes.

Space & Dream Welcome to the virutal world!

Merging the technologies of video gaming, 360° all around projection and interactivity was what motivated young computer engineer Guillaume Langlois to found Space & Dream in 2007.

“Space & Dream provides total immersion into the virtual universe by merging art, technology and communication,” he states.

The solutions developed by Space & Dream include interactive holographic projections, POS and public space terminals, digital signage, motion and touch sensor interfaces, touch screen applications and 3D interactive immersion. Montréalers recently had a chance to appreciate some Space & Dream productions: large light spheres set up near the Place des Arts for the Montréal High Lights Festival.

Those spectacular, captivating solutions must be adaptable to client needs and imaging. The challenge for the company's creative team is to equip its clients with technological know how at their level so as to guarantee a solid consulting and design process. Finding workers with the command of technology, creativity and capacity to communicate with customers is a challenge. “The challenges are never just a matter of technology; they are human as well,” Guillaume Langlois points out.

A partner of Montréal International, Space & Dream wants to reach beyond Québec's borders, but is proceeding with caution. “We first want to solidify our foundation here at home,” Mr. Dubuc says. “The showcase provided by the Montréal Science Centre and this spring's exhibition at the Canada Aviation Museum in Ottawa will help us boost our visibility.”

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INFORMATION AND COMMUNICATIONS TECHNOLOGY

8D Technologies Intelligent machines for easier urban living 8D Technologies appeared on the scene in the late '90s as a provider of professional services for application and software development. In 2000, the young company headed by Isabelle Bettez made a radical shift by choosing to commercialize solutions. "We had developed a generic platform for the Machine-to-Machine (M2M)/Point-of-Sale market and thought it worthwhile to produce a solution based on that platform and fully adaptable to specific client needs," Ms. Bettez comments.

A parking terminal manufacturer then gave 8D Technologies a chance to demonstrate its powerful solution. That led to a wireless interactive terminal system of units powered by solar cells and batteries. Not only does that system process payments; it manages parking spaces and terminals as well. It also has an embedded application on a PDA for real-time verification of the status of parking spaces.

This unique technology soon cornered Montréal's parking market and began a successful entry into the United States. When the city of Montréal launched the BIXI self-serve bicycle rental solution, it retained 8D Technologies to develop the necessary interactive payment terminal system. "We already had the technology and understood the needs," Isabelle Bettez explains.

"It took us less than a year to find the solution for BIXI." Large cities in England, the U.S. and Australia have since adopted 8D Technologies' self-serve bicycle terminal system, which has garnered a host of awards.

Today, the company is eyeing new markets. "Everything that can be purchased or leased via a terminal—from show tickets to train tickets—represents a possible application of our solution," Ms. Bettez is pleased to say.

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Aerospace

Montréal Aerospace Flying High!

Feature Report by Mathieu-Robert Sauvé

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very morning, one in 95 people in the Greater Montréal area, or one Quebecer out of 185, heads for an office or plant directly tied to the aerospace industry. To put it another way, more than 40,000 people owe their jobs to this sector in the metropolitan area. "Given the expertise available in the Montréal region, an entire aircraft can be made and assembled here within a 30-kilometre radius.

This is the only place in the world where that can happen, "proudly states" exclaims Gilles Labbé, president of Héroux-Devtek, a Longueuil-based company specialized in aircraft landing gear systems.

"If we add indirect jobs to the mix, the aerospace sector employs more than 100,000 people," says Mr. Labbé, who never tires of singing the praises of Montréal as a hub of the industry.

Québec's aerospace industry has posted 9.2% annual growth for nearly 25 years, and Greater Montréal accounts for 98% of Québec's activity in the sector. The city ranks second in the world for aerospace job density, putting Canada among the top five countries for aerospace sales, behind the United States, the U.K., France and Germany.

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Rolls-Royce Canada, extraordinary every day engines.

Every day, Rolls-Royce Canada repairs and overhauls aerospace engines for over 600 operators around the world. Every day, Rolls-Royce Canada designs, manufactures and supports industrial gas turbines operating in more than 120 countries.

Trusted to deliver excellence

www.rolls-royce.com

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The city is home to the head offices of international organizations such as the International Air Transport Association (IATA), the International Business Aviation Council (IBAC) and the International Civil Aviation Organization (ICAO), whose presence bears testimony to Montréal's and Québec's leadership in aerospace.

POSTING GROWTH DESPITE THE RECESSION The aerospace industry was hit by the last economic recession, but not as severely as other sectors—manufacturing, for one. "Aircraft sales slipped, and some plants have had to close. But with all the development projects we have in mind, we also hire hundreds of engineers a year," notes Mr. Labbé, adding that the economic crisis definitely affected the commercial sector, but not the military side. "Military orders didn't slack off, even during the recession. The part of our industry which serves the military has not suffered. On the contrary." It seems safe to say that the aerospace sector will grow in the years ahead. A 5% increase in air traffic is expected on the commercial side alone.

The career of Gilles Labbé, chairman of the Board of the Aéro Montréal industrial cluster, reflects the industry's advancement. He joined Héroux more than 30 years ago.

The company already had a good track record and a big feather in its cap, having built the landing gear of the Apollo Lunar Module, the first vehicle to carry humans to the Moon, in 1969. Mr. Labbé went on to climb the rungs of the corporate ladder at the same pace as the industry took flight in the Canadian economy. The company, which he now heads, employs a workforce of 1,512 in Québec, Ontario, Ohio and Texas.

is on solid footing in Québec. "While we can never be sure that a head office won't move away, it usually happens that foreign companies want to settle here," adds Ms. Benoit, who earned an MBA and then worked in public and private-sector economic and industrial development before joining Aéro Montréal.

GILLES LABBÉ Chairman of the Board of Aéro Montréal and president of Héroux-Devtek

The giant of giants is Bombardier.

Founded in 1930 to produce the snowmobiles designed by "handyman" Joseph-Armand Bombardier (1907-1964), the company set out to conquer the world aviation market in 1986. Today, Bombardier Aerospace is recognized as the leading builder of regional aircraft and business twin-engines and has

"WHILE WE CAN NEVER BE SURE THAT A HEAD OFFICE WON'T MOVE AWAY, IT USUALLY HAPPENS THAT FOREIGN COMPANIES WANT TO SETTLE HERE" – Suzanne Benoit

FIRST-RATE PLAYERS What explains Montréal's excellent position? "The concentration of skilled labour, an education system closely tuned to the industry's needs, and proximity to major international networks," says Suzanne Benoit, chief executive officer of Aéro Montréal.

Ms. Benoit explains that Québec aerospace is a local force sustained by four principal industry contractors, 15 equipment makers and more than 200 SMEs. Despite a few hiccups owing to fluxes in the world economy, the industry

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AEROSPACE

"MILITARY ORDERS DIDN'T SLACK OFF, EVEN DURING THE RECESSION. THE PART OF OUR INDUSTRY WHICH SERVES THE MILITARY HAS NOT SUFFERED. ON THE CONTRARY. " – Gilles Labbé

become the world's third largest player in the sector— behind Boeing and Airbus—with $19 billion in sales and more than 62,000 workers. The major leagues include engine builder Pratt & Whitney Canada; Bell Helicopter Textron Canada, the world's leading builder of civilian helicopters; and CAE, the world leader in flight simulators – all located between Saint-Hubert and Mirabel in Greater Montréal.

The equipment makers revolving around them supply the manufacturing plants with high-tech products. For example, Aveos Fleet Performance, located in Saint-Laurent with a workforce of more than 2,000, repairs and overhauls engines and engine parts, among other activities. MDA of Sainte-Anne-de-Bellevue, which has 400 employees, is a world leader in space robotics and makes satellite parts.

Rolls-Royce Canada, which has its plant on Côte-deLiesse Road in Montréal, makes aircraft engines and gas turbines for industrial applications. Its 1,400 workers also repair and recondition commercial and military aircraft.

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Among the small and medium-size enterprises that cater mostly to the direct needs of the industry, some specialize in aerospace components (see page 69). They are represented by the Québec Aerospace Association (AQA), which promotes and facilitates business development for its members.

Québec's aerospace industry posts sales upwards of $12 billion, or 60% of total Canadian aerospace production.

AÉRO MONTRÉAL IN ACTION Aéro Montréal, Québec's aerospace cluster, is a strategic think tank that brings together all the aerospace decisionmakers in Greater Montréal, including companies, educational institutions, research centres, associations and unions. It was established to optimize the competitiveness, growth and outreach of the aerospace sector. The activities of Aéro Montréal are driven by five strategic thrusts and mobilize the players for structuring initiatives in the areas of innovation, the supply chain, image, visibility and outreach, national security and defence, workforce renewal and human capital. "We have enough skilled labour for now," Mr. Labbé says. "But we have to train the next generation now to avoid a shortage down the road," he adds.

Greater Montréal has much to offer, with six post-secondary institutions, including Concordia, the École Polytechnique, the École de technologie supérieure and McGill University,

as well as the Montréal Aerospace Institute, the National Aerotechnical School and the Montréal Aerospace Trade School. Each year in Québec, more than 3,600 graduates of technical, vocational or university programs join the aerospace workforce, where salaries are 30% above the Québec average for the manufacturing sector.1

SUZANNE BENOIT Executive Director Aéro Montréal

The aerospace industry is not only a large market for Québec universities.

It also provides training and research, with academics and industrialists working together to deliver many training programs focused on aerospace industry needs and on innovation.

In November 2008, Aéro Montréal held a summit at the École de technologie supérieure de Montréal on the training of aerospace engineers and specialists. The meeting clearly showed that joint efforts were flourishing. For example, the aerospace industry workforce committee comprises six universities and 12 companies; the Montréal Aerospace Training Institute comprises three university aerospace institutes and more than 20 companies.

Journal de l’aérospatiale du Québec, AéroMontréal.

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OVERVIEW

Québec’s Aerospace Industry >> Montréal is one of the world's three leading aerospace centres, along with Seattle and Toulouse. >> Montréal is the heart of Québec's aerospace operations, which account for $12.4 billion in revenue (2009). >> 70% of Canada's aerospace R&D takes place in Greater Montréal. >> 234 companies employ 40,200 workers, or more than half of Canada's aerospace workforce. >> 80% of Québec aerospace production is exported. >> More than 60% of Canada's aerospace output originates in Québec.

Source: Ministry of Economic Development, Innovation and Export Trade (MDEIE), 2009.

©2011 Parker Hannifin Corporation

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There is room for improvement, of course. Several solutions have been suggested for the problems raised, and initiatives have been taken to resolve those issues.

This includes having more graduate scholarship programs and setting up recruitment projects to raise young people's awareness of aerospace careers while they are halfway through high school.

Evidently, it is never too early to stir up interest in the trades. Last year, Aéro Montréal invested in a project that took place . . . in an elementary school. It joined with the

Conseil du loisir scientifique de la région métropolitaine to organize a competition dubbed "Ça plane pour moi!" (Jet Boy, Jet Girl) As part of their classroom activities, the children were asked to build gliders in accordance with certain laws of aerodynamics. Pratt & Whitney Canada technicians and engineers took part in the activities and shared their experience with the youngsters.

It was a big hit in the Grade 5 and 6 classes, and 750 young people were involved. How many will wind up working as engineers? We'll see 15 years from now.

AEROSPACE RESEARCH

The sector has more than ten highly regarded public and parapublic research centres, including the following: INCLUDING THE FOLLOWING: >> The Consortium for Research and Innovation in Aerospace in Québec (CRIAQ) is the world's only innovation network for partnerships between industry, universities and centres for collaborative research. It funds and structures numerous projects, in all specialized fields of aerospace (materials, environment, life cycles, acoustics, fabrication, avionics, aircraft health).

Several international projects are also in progress. >> The Aerospace Manufacturing Technology Centre (AMTC) is one of five laboratories at the Institute for Aerospace Research (IRA), a component of Canada's National Research Council (NRC). It seeks to develop a nucleus of skills, as well as modern aerospace manufacturing methods. >> The NRC Industrial Materials Institute (IMI) conducts R&D focused on materials and their formulation, forming and process control, with special attention to metals, polymers and ceramics, including their composites and alloys. >> The Centre technologique en aérospatiale (CTA) is a college technology transfer centre (CCTT) associated with the École nationale d’aérotechnique (ÉNA). It helps companies learn to use new manufacturing technologies, including high performance machining and composite materials. It also offers them the use of a technology incubation centre. >> The Centre de développement des composites du Québec (CDCQ) is a college technology transfer centre (CCTT) associated with the Saint-Jérôme CEGEP. Its R&D and technology transfer activities are intended for composites companies.

Source : Aéro Montréal website.

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ENVIRONMENTAL

Trends THE FUTURE BELONGS TO COMPANIES MINDFUL OF SUSTAINABLE DEVELOPMENT. THIS ALSO HOLDS TRUE FOR AEROSPACE. "A MORE ECOLOGICAL AIRCRAFT IS ON THE WAY," SAYS AÉRO MONTRÉAL CEO SUZANNE BENOIT. A more environment-friendly aircraft is fitted with a nextgeneration engine that pollutes less than the conventional version. Pratt & Whitney Canada estimates that thanks to a new gear system, the Pure Power engine will consume between12 to 15% less fuel, cut CO2 emissions by 12 to 15% and reduce nitrous oxide emissions, a factor in smog and poor air quality, by 55%. The Pure Power engine is also quieter, reducing noise emissions by 50%.

The Bombardier CSeries will feature the latest technological breakthroughs for this type of engine. "There's no such thing as a non-polluting airplane, but great strides have been made in terms of energy conservation and reducing atmospheric emissions," Ms. Benoit points out.

The maiden flight of the CSeries is set for 2012, and the plane should be in service by late 2013.

Pratt & Whitney will soon complete construction of its Mirabel plant, where the revolutionary engine will be assembled. More than 300 people will be working at that facility.

As regards R&D, the École polytechnique de Montréal hosts the Industrial Research Chair in Integrated Design toward Efficient Aircraft (IDEA). Funded by Canada's National Sciences and Engineering Research Council (NSERC), the J.-A.-Bombardier Foundation, Bombardier Aerospace and Pratt & Whitney Canada, the chair is dedicated to improving energy efficiency. According to the chairholder, Jean-Yves Trépanier, breakthroughs in the offing will involve fuel economy, reduction of polluting emissions and noise abatement.

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Aerospace SMEs MORE THAN 200 SMALL AND MID-SIZED ENTERPRISES PROVIDE A LIVING FOR OVER 9000 PEOPLE AND POST SALES TOTALLING $1.2 BILLION.

In

1990, Delastek, a company based in GrandMère, made the transition from water navigation to air navigation. "We've never regretted it," exclaims Claude Lessard, company president and sole shareholder, together with his wife, Lucie McCutcheon.

This electrical engineer, a graduate of the Université du Québec à Trois-Rivières, discovered Delastek during a summer job in 1986 and witnessed the company's hard times in the late 1980s. "Our workforce dropped from 40 to only six," he says.

Focused on fabricating instrument panels for yachts and motor boats, "a sector that was taking on water," Claude Lessard jokes, the company would have gone under if it had not shifted direction and turned to aircraft. "Basically, we specialized in developing electronic components for instrument panels. We were able to apply that expertise to aircraft and helicopters in addition to boats."

"BASICALLY, WE SPECIALIZED IN DEVELOPING ELECTRONIC COMPONENTS FOR INSTRUMENT PANELS. WE WERE ABLE TO APPLY THAT EXPERTISE TO AIRCRAFT AND HELICOPTERS IN ADDITION TO BOATS." – Claude Lessard

Delastek, an acronym for "développement d'assemblage électronique," ranks today among the thriving SMEs supplying the aerospace industry in Greater Montréal.

Considering that 98% of those SMEs are located within the metropolitan

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region, this company based in the Mauricie region is an exception. "Our personnel is happy with their quality of life and can continue living in the region. I myself go to Montréal two or three times a week to negotiate contracts."

With $10 million in sales, Delastek currently has 115 employees in Grand-Mère and Shawinigan (Mauricie region) and in Valcourt (Eastern Townships). The skilled workforce in those locations includes engineers and technicians. Such diversification is appreciated in a region where forestry drives the local economy.

Did the economic crisis affect the company? Yes, it did.

Sales were stagnant where they had previously been growing by leaps and bounds. "We capitalized on the situation to put together new projects," Mr. Lessard informs us. "R&D saved us, and we're still investing along those lines."

Delastek is the company picked to supply the cockpit package for Bombardier's CSeries aircraft, meaning that its workers are guaranteed steady employment for several years. "Bombardier is a great calling card for us, but we also have other irons in the fire," Mr. Lessard concludes.

OTHER THRIVING SMEs Marquez, a company founded in 1981, is another SME active in the aerospace industry. "We manufacture thermoplastic or composite components for interior aircraft systems and ventilation ducts," explains company president Éric Faucher. "We're a North American leader in our field and we develop systems having superior properties of design, light weight, impact resistance and flammability."

Marquez currently has a workforce of 125 and supplies parts for Volvo Group's Novabus and Prévost Car buses.

"Given the strength of the aerospace sector, we have an edge in a growth industry," says Mr. Faucher, who joined the company as an accountant in 2003.

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A major Boeing supplier picked Marquez to supply the air distribution pipes for the Boeing 787, dubbed Dreamliner.

The company's innovation was recognized in 2007 at the European Composites Association event held at the Musée d’Orsay in France. Marquez was among the finalists in the "aerospace innovation" category. "The parts have proved to be remarkably fire resistant, meaning better protection for the aircraft," the jury commented.

Other Québec companies have linked up with the aerospace industry to solidify their economic base. For instance, Avior uses sheet metal, composites and acrylic to make lightweight structures. It has two plants, in Laval and Granby. In March 2010, Bell Helicopter awarded Avior a major contract to supply the coupling formations for a new helicopter model (the "429"). That $35 million contract alone created 60 skilled jobs.

Montréal Powerhouse – 2011 edition

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