An innovative and dynamic Industry
Canada is the world’s 8th largest pharmaceutical market with an annual growth rate of more than 10 per cent. The total pharmaceutical market in Canada is approaching $10 billion in sales and about 1.8 per cent of the total world market. More than 30,000 people are employed in the pharmaceutical industry and the number is growing. ( See Table 1)
Biotech Boom
Canada also has the second highest global concentration of biotech companies in the world. Canadian biopharma companies have a strong product pipeline with about 160 therapeutics in Phase I-III trials.
Clinical Trials
Canada offers significant advantages as a location for conducting clinical trials. A study conducted for Industry Canada found that the international pharmaceutical industry could benefit significantly from Canadian expertise and overall cost savings that can be as high as 45% relative to the United States.
Research and Development
In 2001, Canada accounted for 10 per cent of the global new medicines discovered, despite representing only 1.8 per cent of the world pharmaceutical market. More then 30 per cent of the top research spenders in Canada are pharmaceutical companies. In recent years several important drugs were discovered and developed in Canada, including Vioxx™ (Merck Frosst), Singulair™ (Merck Frosst), and Visudine™ (QLT).
Brand Name Companies
- In 2000, Canada's brand-name pharmaceutical industry spent almost $1 billion on R&D.;
- About 20 per cent of this was on basic research conducted in company research facilities and across Canada in universities, hospitals and laboratories
- 65 percent of investments went to clinical research.
Generic Drug Manufacturers
- The generic manufacturers spend about $300 million annually on R&D; in Canada and have an R&D; to sales ratio of over 20 per cent.
- Most R&D; was focussed on the development work necessary to obtain product approvals.
Patent Protection
- Canada provides patent protection for innovation products such as brand-name pharmaceuticals for 20 years. Many drugs are often on the market for less than 10 years.
- Once patents no longer protect the product, generic firms can proceed to develop and market their versions of the brand-name product.
|
Table 1: Pharmaceuticals Sales in Canada |
|
Year |
1991 |
1994 |
1997 |
2000 |
2003 |
|
$(Billions) |
4.4 |
5.9 |
7 |
10 |
14.6 |
|
Source : IMS Health Canada |