Anchor companies and 'sticky capital': Biotechnology Focus

In the latest issue of Biotechnology Focus, OBIO President and CEO Gail Garland contributed a special report. 

Anchor Companies and 'Sticky Capital'

A prescription for attracting bioscience investment to Ontario

Gail Garland, OBIO President and CEO

Despite the presence of many emerging leading-edge, health science companies in Ontario, we continue to struggle to anchor and grow these companies here at home. What’s holding them back? Why can’t Ontario become the home of world leading health science technology companies?

Those were the driving questions behind our effort to bring health science industry thought leaders together to examine ways to make Ontario a world leader in a $9 trillion global market. Yes, you’re reading that right. The global health sciences economy is a $9 trillion annual market – and to put that in perspective, the global automotive industry is a little over $1 trillion.

While many of our research institutes and universities are world class and turn out leading-edge research and innovation, and Ontario boasts 1,900 life science companies that contribute $21.6 billion in GDP and provide 60,000 well-paying jobs, we’re lagging on our potential. Despite the presence of many emerging companies, we don’t yet have a homegrown “anchor” company that is a global brand and dominant leader in its field. We need one.

When looking at other jurisdictions around the world that have strong and growing health science sectors, a common key feature is an “anchor company” that attracts talent and capital and spins off other companies, research and investment that grow the local ecosystem. Look at Medtronic in the Minneapolis/St. Paul area, or Pfizer in Connecticut, or Novartis in Basel. These companies anchor a cluster of innovation and economic activity in their regions that, in turn, spins off thousands of other companies and jobs. Ontario has companies that may someday become these anchors, but we need multiple companies that can make Ontario a world leader and attract even more investment. The question becomes, how do we get there?

When we brought together 50 industry leaders, investors, government leaders, academics and health system leaders together for a summit on this topic, we concluded that the key driver is access to capital – and in particular, “sticky capital”. We need investments that not only grow companies, but also reinvest returns in new ventures.

We need to move from a model of selling our early stage innovation assets, to one that invests and grows innovation assets within the province to a point where they can supply a global market. In other words, Ontario needs to build a health sciences economy that will facilitate capital investment, and generate returns from novel technologies and Ontario-based companies that can export to a global market.

To accomplish this, our group advised that the answers lie in close partnership and cooperation between academic institutions, hospitals and healthcare delivery agencies, the private sector and government – players that all have slightly different agendas and have not always worked together. All these players have a big role to play and a key driver of success will be coordinated action.

More specifically, for our universities and research institutes to encourage the commercialization of the innovation residing in these academic institutions, we need a set of intellectual property commercialization terms that compare favourably to competitors around the world and are standardized across the province.

Ontario’s hospitals and health care providers need to be key partners in adopting innovative technologies by shedding all barriers that might prevent them from being early adopters of technology. Being an early adopter of any innovation carries a degree of risk, but these risks can be mitigated and the rewards can be very high. Having a robust domestic market for innovative technology will provide the early market data and proving ground innovations need to thrive and attract global investors, and it means Ontario patients will have access to the very latest technologies and treatments. A true win-win.

To attract capital, Ontario must continue to build an ecosystem that supports high growth health sciences business that export to a global marketplace and generate above-average returns for these innovative technologies. How do we do that? Continue to turn out the highest quality graduates in science and business from our post-secondary institutions and attract talent from around the world; continue to invest in the labs and commercialization infrastructure that is turning out innovative technologies; continue to showcase Ontario companies and innovations to markets around the world; and continue to build a business-friendly environment that is consistent, predictable and doesn’t penalize high-risk investments.

On paper, it sounds like a simple prescription, but if we execute on this strategy – and stay focused on it – the potential rewards of improved patient outcomes, increased health care efficiency and greater prosperity for all are achievable. Let’s get started.

- Gail Garland, OBIO President and CEO

To view a PDF version, click here

OBIO at BIO 2017

Gail Garland, President and CEO of OBIO, travelled to San Diego for BIO 2017, one of the largest annual conventions in the biotechnology industry.

Hosted at the San Diego Convention Center between June 19-22, BIO 2017 welcomed over 1,800 exhibitors, more than 800 speakers at 400 educational sessions and presentations, and seven fireside chats.

For details and a Blog by Ovensa CAAP Company CEO Stephane Gagne click here

Be in the Know: Finding the Right Candidate

Enjoy this week's blog on Finding the Right Candidate by Sean Peel, H2BB™ Business Development Manager & Ryan Ball, H2BB™ Program Associate.

Sean and Ryan take a Deep Dive on their candidate selection process that ultimately delivers a positive ROI for companies that hire an H2BB intern.

Click here for the full blog

Be in the Know: Investments in Digital Health - Lessons from FCA Venture Partners

On May 12th, Grant Blevins and Andrew Bouldin of FCA Venture Partners, of Nashville, Tennessee, gave a workshop on the financing landscape of the digital health industry. FCA Venture Partners provides early stage capital for innovative digital health companies focusing on B2B SaaS.

Enjoy this blog recap by Jordan Cork, OBIO's Market Research Associate.

Click here for the full blog

Tackling the Anchor Company Challenge: OBIO® Leadership Summit Report 2017

The “Tackling the Anchor Company Challenge Summit”, assembled industry, academic, government and investment leaders committed to working together to create a mandate of action for anchoring health science companies in Ontario.

Click here for a PDF of the full report

Watch video summaries of the Leadership Summit

Tax Incentives for Growing Health Science Companies 2017

In 2017, the Ontario Bioscience Innovation Organization convened a working group (‘OBIO Tax Policy Working Group’, OTPWG) of health science industry leaders and tax experts from academia and the private sector to examine Canada’s tax incentives and their effectiveness in stimulating growth in the health science industry.

Click here for a PDF of the full report

Be in the Know: The Health to Business Bridge™ Program Changes the ROI Equation on Interns

Enjoy this week's blog by Sean Peel, OBIO's H2BB™ Business Development Manager. Sean describes how OBIO's H2BB™ program minimizes the risk, maximizes the return on hiring interns. For the full blog click here

Be in the Know with OBIO: Part II RESI Reflections by Klaus Fiebig, VP Strategic Programs

Enjoy Part II of the RESI Recap series authored by OBIO's Klaus Fiebig, VP Strategic Programs, who shares his thoughts and impressions gathered at RESI on MaRS 2017.

This weeks blog focuses on the Healthcare IT Investors session with Sam Ifergan, President & CEO, iGan Partners, Aaron Nelson, General Partner, dRx Capital, Richard Osborn, Managing Patner, TELUS Ventures, Samer Abughannam, VP, Persistence Capital Partners and Sid Paquette, Manging Director, OMERS Ventures.

Click HERE to read the Blog

Be in the Know with OBIO: RESI Recap by Klaus Fiebig, VP Strategic Programs

OBIO's own Klaus Fiebig, VP Strategic Programs, shares his impressions and advice garnered from RESI on MaRS last week highlighting some of the trends and sentiments about early stage fundraising.

This is a two part series so be sure to open up your OBIO Member Update next week!

This weeks blog focuses on the Tales from the Road session with OBIO CAAP company Stephane Langevin, CCO, Pathcore, Michael Tippie, CEO, Lipidomics, Christopher Kent, President & CEO, ODS Medical and Tyler Wanke, CEO, Innoblative.

Click HERE to read the blog

OBIO CAAP® 2017 Kicks Off Just As Toronto Health Innovation Week Launches

OBIO kicked off its 2017 Capital Access Advisory Program (CAAP®) on March 29, 2017, hosted at sponsor Norton Rose Fulbright LLP (NRF) Canada, just as Toronto’s first inaugural Health Innovation Week launches. Now in its fifth year, this year’s cohort of 10 high potential health science companies will work with OBIO and a vast network of expert advisors to address key goals and objectives which will position them for successful financing. OBIO CAAP companies are advancing and accelerating the development and commercialization of therapeutics, diagnostics, medical devices and health IT products and services to benefit Ontario and global human health.

“OBIO CAAP is a unique program for health science companies who receive personalized coaching, advisor and investor introductions ultimately driving fundraising success leading to business development and growth.”

— Gail Garland, CEO, OBIO

Read the Full Press Release HERE

Ontario's First Chief Science Officer

OBIO has provided feedback to the Ministry of Research Innovation and Science on the the Province's request to recruit Ontario's First Chief Science Officer.  The submission will be used to develop the mandate for the Chief Science Officer.

To read the Submission Click HERE

Canadian Bioscience Advances Industry Building Solutions

OBIO hosted a summit of industry, academic, government and investment leaders about the future of health science innovation in Canada. Attendees engaged in group discussions and heard from subject matter experts to extrapolate a mandate of action for anchoring health science companies in Ontario. The outcome of the summit lays a foundation for actionable business cases for private and public sector solutions to the health science industry’s biggest challenges: Innovation Pull, Adoption and Capital Attraction.

“This Summit is a great opportunity to discuss the challenges, successes, and the future of bioscience in Ontario. Our shared goal to grow our life science companies, entrepreneurs, and scale ups can only be reached by working together.”

— The Honourable Reza Moridi, Minister of Research, Innovation and Science

Read the Full Press Release HERE

Ontario Bioscience Supports Member Growth

HOWE&WYE is proud to announce its new partnership with the Ontario Bioscience Innovation Organization (OBIO®). As a part of OBIO's new member benefit, HOWE&WYE will provide strategic public relations and communications services to OBIO's broad membership of world-class start-ups and bioscience companies. OBIO members will benefit from special access to top-tier agency support with optimized pricing to strengthen PR and marketing to fulfill strategic business outcomes for awareness, investment and commercialization.

“As an upstart PR and Public Affairs firm, HOWE&WYE is thrilled to be chosen as the PR partner by OBIO for the Ontario Bioscience Innovation Organization’s membership. The new partnership is proof of our commitment to business growth and delivering surprising results for our clients. Bioscience innovation in Ontario is well-positioned to lead the future of investment in a global economy.”

— Steve Virtue, President & CEO, HOWE&WYE

Read the Full Press Release HERE

OBIO Launches the Health 2 Business Bridge H2BB Program Improving Access to Business Trained Talent in Ontario’s Health Science Industry

OBIO hosted its Annual Public Meeting with the theme centered on “Bridging the Access to Talent Gap” at Norton Rose Fulbright LLP yesterday. The OBIO Annual Public Meeting provided a platform to highlight OBIO’s accomplishments made in 2016, upcoming initiatives for 2017 and an opportunity to hear from Parliamentary Assistant to the Minister of Economic Development and Growth, Cristina Martins and Members of the OBIO MPP Health Science Caucus, MPP Shafiq Qaadri and MPP Bill Walker, who welcomed networking with over 60 health science industry professionals.

“OBIO’s ongoing dialogue with industry has identified access to industry ready business talent as a challenge for health science companies seeking to scale up and commercialize their technologies.”

— Gail Garland, CEO, OBIO

Read the Full Press Release HERE

OBIO Announces a Call for Applications for the 2017 Capital Access Advisory Program

OBIO is pleased to announce a call for applications for the 2017 OBIO Capital Access Advisory Program (CAAP®).

OBIO CAAP is a unique, industry-led initiative that provides selected high-potential Ontario health science companies with mentoring, strategic guidance and access to an expansive network of health science industry experts and investors to enhance the ability of OBIO CAAP Companies to secure financing. Through CAAP, OBIO is advancing and accelerating the development and commercialization of therapeutics, diagnostics, medical devices, and health IT products and services to benefit Ontario and global human health.

Read the Full Press Release HERE