Why Canada needs to build its biomanufacturing capacity

OBIO’s Maura Campbell shares what’s needed to foster a thriving biotech ecosystem.

The Building Biotech Series: Strengthening Canada’s Biomanufacturing Sector

Overview

The Building Biotech series investigates how Canada can position itself as a leader in life sciences by creating a smoother path for entrepreneurial ventures to reach commercialization.

Current Landscape

Canada boasts a rich history of health and life sciences innovation. However, the economic advantages of these innovations have frequently benefited other countries, leaving Canadian soil barren of the jobs and investments that a robust biomanufacturing sector could provide. In response to the COVID-19 pandemic, significant investments have been made in biomanufacturing infrastructure to rectify past inadequacies in the domestic production of essential vaccines and therapeutics.

Challenges Ahead

While constructing biomanufacturing facilities is an essential first step, the pressing challenge now lies in ensuring that these investments foster a flourishing ecosystem. According to Maura Campbell, President and CEO of OBIO, it is crucial to incentivize companies to maximize domestic manufacturing, despite the initial high costs, for long-term economic gains.

Investment in Biomanufacturing: Why It Matters

Capturing manufacturing operations within Canada will provide lasting benefits. It is vital to start investing in domestic firms to secure their manufacturing presence.

Progress Since the Pandemic

Investments have been made, particularly in academic infrastructures such as the CMPC in Alberta. However, many of these facilities remain underutilized. The initial funding was a reaction to the pandemic’s urgent needs, but merely constructing facilities is insufficient for sustainable growth.

Optimizing Investments for Impact

To ensure that biomanufacturing investments yield benefits, it’s necessary to support the companies that will utilize these facilities and to train the workforce that will operate them. Ontario alone aims to hire 85,000 people in biomanufacturing by 2030, yet there is a significant gap in adequately training graduates for these roles. Current training programs like CASTE and CATTI are limited and require further funding and resources to ensure graduates are ready for the industry.

Challenges for SMEs

Small and medium-sized firms in the biotech sector often struggle with funding, hindering their ability to invest in effective manufacturing processes. Many SMEs face difficulties transitioning from clinical-scale to commercial-scale production due to lack of capital and strategic planning early in the drug development process.

Learning from Australia

Australia is excelling in clinical trials by simplifying its regulatory processes and offering tax incentives. Their approach of streamlining the clinical trial agreement process and committing to training can provide valuable lessons for Canada.

Competitive Landscape with the U.S.

While the U.S. is actively trying to attract companies to its biomanufacturing sectors, Canada can enhance its competitiveness through financial incentives, such as the SR&ED grants, which lower operational costs for firms.

Pharmaceutical Pricing and Investment

To pull pharmaceutical companies into the Canadian market, competitive drug pricing is essential. Canada’s price caps could deter investment, particularly in light of rising pressures in the U.S. market.

Accelerating Growth in Biomanufacturing

With an eye on defense and dual-use applications for biotechnologies, Canada stands to gain significantly from upcoming investments aimed at meeting NATO requirements over the next few years.

Conclusion

As Canada aims to solidify its stature in the global life sciences market, addressing the challenges within its biomanufacturing sector will be pivotal. Continued investment in infrastructure, workforce training, and supportive regulatory frameworks will be crucial to nurture a dynamic ecosystem that can fully capitalize on Canada's innovative potential.

About This Series

The Building Biotech series assesses the barriers that biotech startups face in Canada, drawing insights from expert interviews, nationwide surveys, and sector discussions. For additional articles in the series, visit here.