PHARMACEUTICALS. A HEALTHY GROWTH PLAN.
Canada finished first in the G7 with a 4.4 percentage point cost advantage over the U.S. — making a huge difference to your bottom line. These are findings from the Competitive Alternatives: KPMG’s Guide to International Business Costs, 2006 edition which provides a comprehensive analysis of pharmaceutical production costs in nine countries and 128 cities in North America, Europe and Asia-Pacific. With an annual growth rate of 8 percent, Canada is the fourth fastest growing market in the world for pharmaceuticals. This sector also benefits from the existence of a thriving biotechnology industry.
KPMG’s pharmaceuticals model focussed on an independent plant producing prescription drugs on behalf of brand-name or generic distributors. The production workforce was weighted toward skilled operators, while also including significant professional/technical staff.
THE BOTTOM LINE:
- Canada ranks No. 1 in the G7 as the most cost-competitive investment location in the pharmaceuticals industry sector.
- Canada’s pharmaceuticals sector draws upon the country’s leadership position in biotech research and development and clinical trials in which it ranks No. 1 in the G7 as well.
- Furthermore, Canada offers the lowest labour and benefit costs and the second lowest utilities cost in the G7 in this sector.
- Nine Canadian cities rank among the top 10 low-cost G7 locations for pharmaceuticals with Moncton leading the way.
LOW-COST HOT SPOTS
- Moncton
- Sherbrooke
- St. John’s
- Halifax
- Charlottetown
- Saskatoon
- Quebec City
- Edmonton
- Winnipeg
- Montreal
