Biotechnology in Canada - A Regional View. February 2004 Life Sciences Branch Industry Canada

Transcription

1 Biotechnology in Canada - A Regional View February 2004 Life Sciences Branch Industry Canada

2 Objective and Contents Objective: This presentation compares key biotechnology statistics across Canadian regions Atlantic, Quebec, Ontario, the Prairies and B.C. It provides a quick reference tool for those looking for statistical data on Canadian biotechnology from a regional perspective. Contents: 1. Statistical Overview by Region 2. Sector Overview 3. Growth in Firms and Employment 4. Growth in Revenues and R& D 5. Patents 6. Bibliometrics Cluster Identification 7. Spin-off Firms 8. Corporate Alliances 9. The Product Pipeline 10. Financial Overview 11. Federal Spending 12. Human Resources 13. Clusters 14. Summary

3 Statistical Overview by Region Biotech Activity spans the country, with Quebec leading the way British Columbia 1,746 (15%) employed in 69 biotech companies $414 M in biotech revenues $420 M in biotech R&D Atlantic Canada 402 (3.4%) employed in 23 biotech companies $22 M in biotech revenues $14 M in biotech R&D Prairies 1,693 (14%) employed in 52 biotech companies $242 M in biotech revenues $159 M in biotech R&D = Life Science cluster Ontario: 3,346 (28%) employed in 101 biotech companies $1,376 M in biotech revenues $395 M in biotech R&D Quebec 4,710 (40%) employed in 130 biotech companies $1,515 M in biotech revenues $349 M in biotech R&D

4 Sector Overview Human health continues to predominate Canadian Biotechnology The human health sector accounts for 52% of the total biotech firms and for 88% of the total $1,337M in R&D spending The human health sector is followed closest by agriculture biotech sector, which accounts for 17% of firms and 4% of R&D spending Number of Firms by Sector, 2001 R&D distribution by Sector, % 3% 3% 9% 3% Food Processing Bioinformatics Aquaculture Environment Natural Resources 4% 2% 1% 0% 1% 4% Food Processing Bioinformatics Aquaculture Environment Natural Resources 52% 17% Agriculture Biotech 88% Agriculture Biotech Human Health Human Health Note: A regional breakdown is not available

5 Growth in Firms and Employment CAGR ( ) 14.0% 12.0% 10.0% 8.0% 6.0% 4.0% 2.0% Biotechnology Firm Growth by Region (CAGR) 13.3% 7.3% 7.4% 3.6% 3.8% 4.3% Of the 375 biotech firms in Canada 71% are small firms (< 50 employees) Quebec has the highest growth in the number of biotechnology firms; B.C. is second CAGR ( ) 0.0% 20.0% 15.0% 10.0% 5.0% 0.0% Atlantic Quebec Ontario Prairies B.C. Canada Biotechnology Employment by Region (CAGR) 14.7% 5.8% 13.8% 7.2% -5.0% Atlantic Quebec Ontario Prairies B.C Canada -4.8% -0.5% -10.0% Regions Total number of employees with biotech-related responsibilities in Canada is 11,897 Again, Quebec and B.C. have the highest growth in biotechnology employment, with Ontario and Atlantic experiencing negative growth. *CAGR: Compound Annual Growth Rate

6 Growth in Revenues and R&D CAGR ( ) 80.0% 70.0% 60.0% 50.0% 40.0% 30.0% 20.0% 10.0% 0.0% -10.0% -20.0% Biotechnology Revenues by Region (CAGR) 61.3% 39.5% 13.7% 72.3% 44.7% Atlantic Quebec Ontario Prairies B.C. Canada -10.3% Canadian biotech revenues amounted to $3.6B in 2001, with 67% (up 2% from 1999) of firms reporting revenues from biotech products and processes Average annual growth in biotechnology revenues has been increasing at 44.7% since 1997 B.C. has the highest growth in biotech revenues, with Quebec and Ontario second and third Biotechnology R&D by Region (CAGR) CAGR ( ) 60.0% 50.0% 40.0% 30.0% 20.0% 10.0% 0.0% 0.0% 32.9% 27.5% 28.3% 15.8% 52.8% Atlantic Quebec Ontario Prairies B.C. Canada $1.3B was spent on biotechnology R&D in 2001 with an average annual growth rate of 28.3% B.C. s growth in biotech R&D spending stands out, with the Prairies and Quebec closer to the Canadian average, Ontario s below the average, and Atlantic Canada with no growth over this period

7 Patents 6,000 5,000 Biotechnology-related Patents Held By Canadian Biotech Firms, 2001 Existing Pending 4,661 5,922 From 1999 to 2001, the number of existing and pending patents for Canadian biotech firms increased by 26% and 39%, respectively Number of Patents 4,000 3,000 2,000 1, ,842 2, ,710 2,416 1, Atlantic Quebec Ontario Prairies B.C. Canada Regions Quebec and B.C. lead in both existing and pending patents Ontario is third, the Prairies fourth and the Atlantic Region fifth in existing and pending patents The majority of Canada s patents are in the human health sector followed by the agricultural sector

8 Bibliometrics: Cluster Identification Publications par p rovin ces, Public ations Clusters 0 Ontario Quebec British Columbia Alberta Manitoba Saskatchewan Nova Scotia New Brunswick P.E.I. Newfoundland Territories A total of 6,827 scientific publications relating to biotechnology were published in Canada between 1996 and 2000 The majority of publications were in Ontario(40.9%), Quebec (28.7%), B.C.(13.7%) and Alberta (11.7%) Most of publications come from clusters (cities) within the provinces The number of yearly publications has remained stable since In 2000, there were 1,291 publications and in 1996 there were 1,258. Source: Canadian Science and Innovation Indicators Consortium (CSIIC), État de la recherche en biotechnologie au Canada: portrait bibliométrique par cluster, Avril 2003

9 Spin-off Firms Regions Biotechnology Spin-off Firms in Canada Number of spin-off firms Number of employees 2001 Total revenues ($ 000 s) 2001 Atlantic 6 43 N/A Quebec 48 1, ,325 Ontario ,516 Prairies ,479 B.C. 33 1, ,412 Canada 140 3,610 $840,000 % of total 37% 30% 24% Most spin-offs were from Canadian universities and hospitals Quebec and B.C lead in terms of number of spin offs, employees and revenues Ontario has one more spin-off firm than the Prairies but the latter has close to double the number of employees and about 8 times the revenues The Atlantic Region has a handful of spin-off firms and employees The total number of spin-offs reported increased by 14% from 1999 to 2001, with the majority of them being in the small firm category in both years

10 Corporate Alliances Percentage Percentage Of Firms By Region With Alliances Ontario Quebec BC Alberta Prairies Atlantic Region In 2001, Canadian biotech firms had over 120 corporate alliances (up six-fold from 1993), mainly with U.S. firms Corporate alliances are indicators of cluster strength (more innovations) and the maturity of firms Quebec, BC, Ontario and Alberta have more mature firms. Firms in the Prairies and Atlantic Canada are in a comparatively early stage of development Most corporate alliances in Canadian biotechnology involved licensing and R&D Number of Firms Distribution of Alliances Ontario Quebec BC Alberta Prairies Atlantic Region 1-5 Alliances 6-10 Alliances 11+ Alliances In most regions, firms have predominately 1-5 alliances Firms with more than 5 alliances typically have platform technologies that they license to other firms; (i.e., monoclonal antibodies, photodynamic therapy, etc.) 30% of firms in Ontario, Quebec, BC and Alberta have alliances and average roughly 2 alliances per firm. In the Prairies and Atlantic regions 15% or fewer firms have alliances Source: SECOR, Canadian Alliances in Biotechnology, April 2003

11 The Product Pipeline Products Biotech Products/Processes In Development, Atlantic Quebec Ontario Prairies B.C. Products Biotech Products/Processes Approved, on the Market or in Production, Atlantic Quebec* Ontario Prairies B.C. The product pipeline is an indicator of future growth of the biotechnology sector. The anticipated revenue growth in the sector is dependant on the new products/processes entering the market place 46% (8,359) of Canada s 18,020 products/processes are in development and 54% (9,661) are approved, on the market or in production Quebec has the largest number of products/processes in development, followed by the Prairies and Ontario. Note that Quebec s dominance* in products/products approved, on the market, or in production can be attributed to a few firms that, according to their web site, have large numbers (hundreds or thousands) of products in the areas of cosmetics and nutraceuticals, drug screening tools and technologies, and novel research reagents

12 Financial Overview Prairies 14% Distribution of Total Capital Raised by Region, 2001 B.C. 13% Atlantic 1% Quebec 49% Quebec raised almost half of the total capital in Canada Ontario raised almost one quarter of the total capital in Canada and the remainder was split between the Prairies and B.C. Ontario 23% R&D/Revenues 100.0% 80.0% 60.0% 40.0% 20.0% 0.0% Biotech R&D/Revenues by Region, % 63.6% 65.7% 37.5% 23.0% 28.7% Atlantic Quebec Ontario Prairies B.C. Canada Regions B.C. has the highest research intensity in Canada, with Atlantic region and the Prairies being above the Canadian average Ontario and Quebec are below the Canadian average in research intensity because their revenues far exceed the other regions

13 Financial Overview, Cont d 100% 80% Distribution of Sources of Funding by Region, % 32% 51% 11% 21% 36% Quebec and B.C. have the highest proportion of funding from Canadian V.C.s, while the Atlantic region appears to have little venture capital (Canadian or U.S.) 60% 40% 20% 0% 22% 42% 8% 9% 51% 12% 10% 27% 19% 49% 13% 15% 37% Atlantic Quebec Ontario B.C. Canada Other: U.S. V.C., Conventional, Misc. Government Angel Investors Canadian V.C. Government funding is most significant for Atlantic and B.C. Ontario has the largest proportion of funding from Other sources (U.S. V.C., Conventional, and Misc.) There was difficulty in gathering complete data for the Prairie region

14 Federal Spending Federal biotech S&T expenditures increased by 29% to $513M by 2001/2002 Department/Agency Biotech S&T Expenditures Biotech PYs (thousands of dollars) Agriculture and Agri-Food Canada 63, Canadian Institute of Health Research 176, Environment 1,576 7 Fisheries and Oceans 3, Genome Canada 34, Health Canada 7, Industry Canada (CFI, TPC) 34, National Research Council 130, Natural Resources 9, Natural Sciences and Engineering Research Council Social Sciences and Humanities Research Council 48, ,530 1 Total Expenditures 512,904 1,500 Note: A regional breakdown is not available Source: Statistics Canada, Science Statistics Vol. 27, No.1, February 2003

15 100% 80% 60% 40% 20% Distribution of Biotechnology Employees in Canada by Sector, 2001 Human Resources: Regional Distribution by Sector Biotech Employment by Region Atlantic Quebec Ontario Prairies B.C. Canada 402 4,710 3,346 1,692 1,746 11,897 3% 40% 28% 14% 15% 100% The majority (73%) of Canada s biotechnology employees work in the human health sector All regions except for Atlantic have the largest proportion of their workforce in the human health sector, with Ontario being most dominant Most Prairie region biotech workers are in the human health and agricultural sectors 0% Atlantic Quebec Ontario Prairies B.C. Canada Human Health Food Processing Environment Agriculture Other Note: Other includes natural resources, aquaculture and bioinformatics as well as environment and food processing where these are not shown separately Atlantic Canada has most of its biotech workforce in the agricultural sector Most food processing workers are in Quebec and B.C. Quebec and Ontario are the only regions with significant employment in the environment sector

16 Human Resources: Regional Distribution by Type of Position 100% Employment Distribution in Biotech Firms in Canada by Type of Position, 2001 Skill-intensive positions (scientific research/direction & technicians) make up the bulk of biotech employment in Canada, with 52% in 1999 and 49% in % 60% 40% 20% 0% Quebec Ontario Prairies B.C. Canada Scientific Research & Direction Technicians Regulatory/Clinical Production Finance/Marketing Management Quebec, the Prairies and B.C. have more that half of its biotech workforce in scientific research and technician jobs; these categories account for only one third of biotech jobs in Ontario Ontario has the largest portion of its workforce in finance and marketing positions, a sign of its growing maturity Almost half of the Prairie workforce is in scientific research jobs B.C. and Ontario have the majority of regulatory/clinical positions Other Note: Atlantic figures are not available The proportion of management jobs is similar across Canada at about 8% of the total

17 Human Resources: Recruitment Sources Recruitment sources for biotech positions are similar across Canada Pharmaceutical Firms Temporary/Contract Internal Training Professional Associations Incentive Programs Sources of Recruitment For Canadian Biotech Firms, 2001 Other Bio Firms Student Internship Agencies/Headhunters Newspaper/Journal University 7% 13% 14% 17% 19% 20% 24% 29% 42% 52% 0% 10% 20% 30% 40% 50% 60% The top two recruitment sources for biotech positions in all Canadian regions are universities and newspapers/journals Agencies/headhunters are in third place as a recruitment source in Quebec, Ontario and B.C. Student internships and professional associations are the third most used recruitment source in the Prairies and Atlantic region 91% of firms in Canada are successful at recruiting biotech employees

18 Human Resources: Factors Affecting Hiring Factors affecting hiring for biotech positions vary by region Factors Affecting Hiring for Biotechnology Positions in Canada, 2001 Unwilling to relocate 21% The number 1 factor affecting hiring: Atlantic Insufficient capital/resources 46% Quebec Competition 62% Compensation 22% Ontario Unqualified candidates 55% Prairies Lack of experience 42% Competition 35% B.C. Compensation 44% Insufficient capital/resources Lack of experience Unqualified candidates 39% 44% 55% Lack of experience is the only factor in the top 3 for all regions Most of the 953 vacant Canadian positions are in Quebec (58%), followed by Ontario (19%) and B.C. (12%) 0% 10% 20% 30% 40% 50% 60%

19 HR Summary 2001 Survey Atlantic Quebec Ontario Prairies B.C. Sector Strengths Agriculture Human health Human health Food processing Environment Human health Food processing Environment Human health Agriculture Human health Predominate Types of Positions Not Available Scientific, research & technical Finance & marketing Regulatory/ Clinical Scientific, research & technical Scientific, research & technical Recruitment Sources Universities and Newspapers/journals Impediments to Hiring Competition Unqualified candidates Compensation Lack of experience Insufficient capital/ resources

20 Clusters A Qualitative Tool For Measuring Cluster Success Staying power Education and R&D institutions Recognition of potential 6 10 Regional strengths Hypothetical Cluster Champions Entrepreneurship Clusters foster innovation and growth in the industry Web diagrams can be used to compare clusters or to follow the growth of a cluster over time Understanding the operational dynamics of a cluster helps to frame policy issues in a readily comprehendible and accessible manner Toronto, Montreal and Vancouver are the biggest biotech clusters in Canada Information networks Financing Ideal Cluster Web Resources: Canadian Biotechnology Clusters (Strategis) Biotech Ontario - Regional Clusters Bio Quebec BC Biotech - Industry Overview Source: Dr. Roger Voyer

21 Summary Quebec, Ontario and B.C. are at the forefront of Canadian biotechnology Quebec is the clear leader, largest in terms of number of firms (including spin-offs), employment, revenues, patents, products and capital raised. More growth in R&D spending is needed to maintain this lead Ontario is second largest in terms of number of firms, employment, revenues and capital raised and strongest in R&D spending and number of publications. However, growth is slower than expected in key variables as is the number of alliances, spin-offs, patents and products, both in development and on the market B.C. is the region to watch. It is third largest in terms of number of firms, employment, revenues and R&D spending and exhibiting very

22 Summary, Cont d Quebec, Ontario and B.C. are at the forefront of Canadian biotechnology strong growth in R&D spending and revenues as well as strong growth in number of firms and employment. B.C. is second in number of patents, spin-offs and products on the market but needs more capital, publications and products in development The Prairies ranked fourth in terms of number of firms, employment, revenues, R&D spending, products on the market, patents and number of spin-off firms. The Prairies are growing strongly in R&D spending and placed first in number of corporate alliances and second in number of products in development The Atlantic region ranked fifth, likely due to its smaller population. Substantial recent investments should be reflected in 2003 results