BIOTECH &
CLINICAL TRIALS. A PROMISING FUTURE.
Canada finished first in the G7 with
a 10.1 percentage point biotechnology cost advantage and a 16 percentage
point clinical trials cost advantage over the U.S. These are findings
from the Competitive Alternatives: KPMG’s Guide to International
Business Costs, 2006 edition which provides a comprehensive analysis of
biotech research and development (R&D;) and clinical trials management
costs in nine countries and 128 cities in North America, Europe and Asia-Pacific.
Canada is a global player in biotechnology with 490 companies and in 2003,
this sector generated revenues of Cdn$3.8 billion. In 2003 there were
over 1,400 clinical trials conducted in Canada representing 2.8 percent
of global activity.
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KPMG’S biotechnology model examined a pure biomedical research facility
with no commercial sales, while its clinical trials model examined a clinical
trials management firm.
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THE BOTTOM
LINE:
- Canada ranks No. 1 in the G7 as the most cost-competitive investment
location in biomedical R&D; and clinical trials management.
- Both industry sectors benefit significantly from the cost advantages
of the Canadian pharmaceutical industry in which Canada ranks No. 1
in the G7 as well.
- Canada offers the lowest labour and benefit costs in the G7 for biotechnology.
- Canada also offers the biotech sector the lowest effective income
tax rate in the G7, while providing the second lowest for clinical trials.
- Eight Canadian cities rank among the top 10 low-cost G7 locations
in biotechnology.
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LOW-COST HOT SPOTS
1. Sherbrooke
2. Moncton
3. St. John’s
4. Halifax
5. Quebec City
6. Chilliwack
7. Saskatoon
8. Charlottetown
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