Ontario Bioscience Industry Organization » access to capital

Ontario’s Bioscience Industry – Translating Strategy into Action

obio — Fri, 27 May 2011 22:41:57 +0000

The Ontario Bioscience Industry Organization (OBIO) works to advance the development and growth of a sustainable, commercially – driven, life sciences industry in Ontario. OBIO is a private sector, membership-based organization representing Ontario’s human-health bioscience industry.

Key among Ontario’s bioscience strengths are a pipeline of high value, early stage intellectual property and start-up opportunities. In addition, Ontario boasts a strong academic research base with significant investment in intellectual-property generation and research training.

Ontario’s human health bioscience industry consists of almost 100 small and medium-size companies of which over 50 per cent are working on therapeutic products. Forty per cent of companies are located in the Greater Toronto Area with access to eight universities, 10 colleges, 60 hospitals and an innovative business incubator (MaRS Discovery District)… [more]

Click here to view the full article in PDF format, by Gail Garland in Vantage GTA, Spring Summer 2011.

Leveraging the $7 Million Fund – Designated for Ontario Bioscience Companies Announced in May 2010

obio — Fri, 27 May 2011 21:09:51 +0000

During the fall of 2009, with Ontario’s bioscience industry fighting for survival due to an inability to raise capital in the midst of a world-wide economic crisis, OBIO mobilized industry CEOs to take action. With a sense of urgency derived from the need for a plan to ensure the survival of the industry, OBIO organized its first province-wide consultation process ultimately generating a set of recommendations for industry survival and growth. These recommendations were provided to the Ontario provincial government and detailed changes to existing provincial capital and tax programs which when implemented would have a positive impact on biotech companies…

Click here to download a PDF version of the full article, by Gail Garland, as published in Biotechnology Focus, May 2011.

Q1 2010 Canadian Healthcare Review

obio — Wed, 28 Apr 2010 11:20:03 +0000

Financing
Public Canadian healthcare companies completed equity and convertible debt financings during this quarter for total gross proceeds of $236.0 million (Appendix 1). The largest financing in the sector was the only financing in the Services group, $86.3 million by Extendicare. The largest financing in the Therapeutics group was $34.5 million from a rights offering by Wex Pharmaceuticals, with 97.6% of the shares being issued to its largest shareholder. Excluding these two financings, the rest of the sector raised $115.2 million. Other financing vehicles also provided some current and future funds for companies. Merck advanced US$25 million to Cardiome under a secured, interest-bearing credit facility which is a component of their partnership for vernakalant. Allon Therapeutics and Resverlogix established Standby Equity Distribution Agreements (SEDAs) for $10 million and $25 million, respectively, but have not yet made any draw downs under these agreements. Bioniche Life Sciences received US$8 million in milestone payments under its partnership with Endo.

Click here to read the entire review

OBIO Releases Biotechnology Industry Consultation Report

admin — Wed, 20 Jan 2010 20:26:34 +0000

OBIO Biotechnology Industry Consultation Report
November 2009

(Download PDF / View Online)

Executive Summary
The Ontario government has recognized the importance of the emerging knowledge economy to the province’s future prosperity. The biotechnology industry is an important part of a knowledge economy. The confluence of external and internal factors has converged to create an unprecedented crisis in this sector. The combination of the recession, the high cost of research and development, decreased liquidity and absence of equity investment threatens the survival of many of our nascent companies. Many of our companies’ very survival are being challenged, specifically due to their inability to raise capital and maintain the necessary working capital to continue operations¹. A number of them have ceased operations due to the crisis.

Ontario’s biotechnology SMEs, of which 68% are privately owned, develop innovative drug therapeutics, diagnostics and medical devices. The Ontario government has shown commitment to the biotechnology sector, as part of their support for emerging technology industries. However, regulatory requirements and the lead-time between discovery and commercial revenue create unique challenges for SMEs in the bioscience sector, which are not always recognized. Both private and public biotechnology SMEs have come together to form the Ontario Bioscience Industry Organization (OBIO) with the mandate to provide input to the provincial government around actions designed to ensure the long-term commercial success of our industry, and the associated growth in R&D sector jobs and financial health.

This report provides five specific recommendations (see below) to government. The five recommendations focus on changes to existing provincial programs, all of which we believe could be modified within the next fiscal year, and target short-term relief for the Ontario industry. They are based on direct feedback from CEOs of Ontario biotechnology firms in a province-wide consultative process. The process was completed in two stages. Initially, 6 province-wide working groups enumerated CEOs’ concerns and suggestions. The second stage consisted of an online consultation and voting process involving CEOs in the industry. Finally, the report identifies several longer-term opportunities for strengthening the partnership between the Ontario biotechnology industry and government.

Specific Industry Generated Recommendations
1. Increase the 10% refundable Ontario Innovation Tax Credit (OITC) to be more in line with Quebec.
2. Establish a mechanism to monetize Tax Credits quickly, providing short-term cash flow
3. Modify the eligibility requirements of the OETF to allow for smaller funding rounds.
4. Establish a fund similar to OETF for small public companies unable to raise capital.
5. Change the eligibility requirements for BIP to:
a. Remove needs for current market activity
b. Expand the types of companies who can apply
c. Reduce the level of expenditure required

Click here to view the full report online, or click here to download the PDF version.

¹ http://www.biotech.ca/uploads/pwc%20survey/lifescienceforecastfinal.pdf

The Canadian Blueprint: Beyond Moose and Mountains — How we can build the world’s leading bio-based economy

obio — Wed, 20 Jan 2010 07:36:46 +0000

Biotechnology is creating products and processes that improve our quality of life. Just as importantly,
biotechnology is also creating high-quality jobs for Canadians in every part of the country; rewarding,
knowledge economy jobs.

No matter where we live, we all have a stake in the bio-based economy.

The “Canadian Blueprint” is a strategy that will enable us to take full advantage of all the opportunities
biotechnology has to offer, provided all stakeholders do what is required of them.

This document is a call to action. The Canadian Blueprint is vitally important because, the fact is,
biotechnology is critical to Canada’s future prosperity and economic security.

Click here to download the PDF. Click here to view online.