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COMMERCIALIZATION
Q&A
with Peter Brenders Incorporated in 1987 as the Industrial Biotechnology Association of Canada, BIOTECanada serves as the national voice for industry leadership for Canada’s biotechnology sector. Through its national network of partner organizations, it works to provide solutions to the challenges faced by biotech firms today. As part of our special September Hot Button Issue, Biotechnology Focus sat down with BIOTECanada president and CEO Peter Brenders on the eve of National Biotech Week to get his views on the current state of the industry and what we should expect at Canada’s annual week-long celebration of the industry.
Biotechnology Focus: How is the business of biotech faring in Canada? Peter Brenders: The signs are positive as we’re seeing biotech rebound from the lows of 2009 with financings returning to more normal levels. Not to say that it’s been easy in any way, shape or form but biotech is on track to exceed last year’s numbers. Generally, we’re seeing a little more optimism in the field that money is out there and our good companies are certainly getting access to it. We’re seeing a number of mergers and acquisitions that are up, that’s leading to new life. Companies that adapted, that found ways to adapt are the ones surviving because they’ve come up with new business models to succeed and are finding creative ways to take their products to the next step. BF: How would you rate Canada’s current innovation performance? PB: We have a very strong history and record of innovation and certainly great potential. There’s very strong support in place for basic research in Canada, but I think our challenge becomes taking it to that next step and capturing the full return on that investment. We have the innovation, but it comes down to financing and being able to make sure that we can get the capital our companies need to be able to finish the job in Canada. BF: What are Canada’s strongest attributes when it comes to biotech, and its weakest? PB: Our strength is our science but we also have a strong entrepreneurial culture within our emerging companies. There is a real desire to create start-up companies in Canada. Our biggest weakness really comes down to early stage financings. Financing an early stage life science company in Canada is certainly not for the weak of heart. Venture 22 BIOTECHNOLOGY FOCUS SEPTEMBER 2010
money, and risk capital for biotechnology in Canada is virtually non-existent. In 2009, we saw the lowest levels for financing in over a decade. A lot of that venture money goes to other sectors, forcing biotech to go abroad to find money. Thankfully, we have many companies that have continued to fight the fight and are very successful at it. As tough as all the messaging is out there, we mustn’t lose sight of some of the great successes we’re having. There are successful companies in biotech and; there is money to be made in biotech, and big deals are being closed. The money is coming in, our companies are getting to milestones and we are seeing success, and we need to focus on highlighting this success and remind investors of the ongoing and long-term potential for growth of our sector and remind them that they’re missing out on this. BF: Are biotechs taking advantage of the programs available to them, and if not, what can be done to improve accessibility or communication of these programs? PB: For some of the really early stage programs like IRAP, sure companies are taking advantage of those. They’re accessing them. Would they like more? Absolutely. Would they like the funds to come faster? For sure. And that’s what we’re pushing for, that opportunity to be a little bit quicker, more flexible, to get cash back into the hands of Canadian biotech companies. What can be done to improve it, simply speed of execution and a focus on the objective not the bureaucracy and paper work. BF: Do you think Canada’s science policies are hindered by a lack of leadership from the top?
PB: Being without a chief science officer is one factor, but not necessarily the only factor that helps develop science policy. The federal government did come out with a science and technology strategy and they’ve announced in their budget earlier this year that they want to look at stimulating more domestic research and development. We laud the interest in the space. Part of the responsibility also comes back to us as an industry to clearly show what the future that can be, as we discuss in our Beyond Moose and Mountains Blueprint. We can be a world leading bio-based economy; we just need to have that goal in the forefront. Do we need leadership sure, but we need leadership all around. We need to be taking the message out to Canadians that biotechnology, this biobased economy, is Canada’s future. We need to show our government partners our value as an industry so that they can put the programs in place to help us with capital formation, to help us with people development, to help us with an operating environment. BF: What are some of the key hot button issues that BIOTECanada is lobbying both government and the industry for right now? PB: We’re continuing to focus on the three areas laid out in the Blueprint: finance, people and operating environment. If you take the sub-specifics within each, our pre-budget submission to the finance committee of the House of Commons examines the need to expand the flow-through shares into the biotechnology industry. Flow-through shares have worked well in oil and gas, and mining, and expanding this program for our small biotechs would assist in creating a more stable financing environment in Canada. Our second focus is how to keep the continued on page 30
