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obio in
OBIO News & Events,
Reports on
April 26, 2010
What Quebec/Ontario Government funded programs are most effective?
- First and foremost, as entrepreneurs our duty is to create shareholder wealth with products and services the marketplace demands. This cannot be substituted with or diverted by any government funding program.
- Quebec: Tax holidays for key employees; tax exemption for new products developed in Quebec
- Quebec’s SR&ED tax credit regime is a differentiator, especially when combined with the Investment Quebec loan guarantee program
- Ontario: Emerging Technology Fund has the potential to be very helpful if bioscience companies could access it.
- Federal: Amendment of Section 116 tax code, should increase access to capital by non-residents and in particular venture capital and private equity funds. This will help put Canadian companies on an even footing to compete globally
As a Quebec/Ontario CEO what are the strengths of your sector?
- In Quebec the creation of Teralys Capital is seen as beneficial as long as the venture captil funds that it finances invest in the life science sector
- In Ontario the formation of OBIO to represent the CEOs of the industry helps move the agenda of the bioscience industry forward so companies can get beyond life-support
What advantages do other jurisdictions (i.e. USA) have?
- The US government procurement policy is very nurturing to small business and innovative early-stage businesses. The SBIR program is a massive engine that fuels hundreds of life science start-ups per year.
- US companies do not go public as early and are better capitalized when they do
- Germany has invested heavily for the last decade in the biotechnology and has a strong industry with over 400 health-related biotech companies
What opportunities does the Quebec-Ontario biocorridor represent?
- Encourage mergers and acquisitions to leverage strengths and build stronger companies
- As a biocluster Quebec and Ontario become one of the largest clusters in North America and increase their marketing strength to outside investors
- Increase understanding in both provinces of the amount of money and time required to take a product to commercialization
- Expand the value proposition that bioscience offers to the economy of both provinces and to Canada
What single action can we take to build the Quebec-Ontario biocluster?
- Ontario spends $46B on healthcare – challenge is making the spend more effective
- Ontario, as both a healthcare payer and provider should be:
- A funder of life science companies that can help improve the effectiveness and efficiency of our $46B healthcare spend
- A lead customer and early adopter of these products and services
- Provide more grant money to life science companies
- Make public companies eligible for SR&ED
- Flow through share programs used successfully in mining represent a model for a program that could be both feasible from a public funds perspective and compelling to industry
- Flow through shares to biotech companies
- Re-engage Canadian investors in this sector
- More events like this evening’s dinner to encourage discussion and create natural opportunities for mentoring.
