The hard pivot: anchoring a world-leading Canadian life sciences industry

By Gordon McCauley

Gordon McCauley is President and CEO of adMare BioInnovations, a national organization dedicated to accelerating Canadian life sciences venture creation and company growth with locations in Vancouver, Montreal and Toronto.  

In Ontario’s Fall Economic Statement, the provincial government announced an investment of $146 million to support the implementation of Phase 2 of its Life Sciences Strategy. The strategy’s goal is to harness Ontario’s strengths in R&D and manufacturing to capitalize on the growth potential of the sector.

Last fall, the federal government launched Health Emergency Readiness Canada (HERC). Recognizing that the best preparation for any emergency is a sustainable life sciences industry, a key objective of HERC is to bridge Canada’s commercialization gap and enable rapid development and access to vaccines, therapeutics and diagnostics.

This pivot towards life sciences commercialization makes sense.

Today, Canada’s life sciences are recognized for research excellence. We are home to startup companies that feed the global market with cutting-edge scientific advancements.

However, we are not yet known for commercializing biotech innovations on a global scale. If we are serious about defending against future health threats and becoming a world-class life sciences player, establishing more Canadian anchor companies in the life sciences industry is key.

A recent adMare Institute white paper, and subsequent engagement with 1,000 stakeholders representing 180+ organizations at nine events across the country, highlighted that anchor companies are key to fostering commercialization, productivity, economic resilience and global competitiveness.

Anchor companies make the difference between public policy-supported ecosystems and self-sustaining clusters like those of Boston and San Francisco. It is critical that we leverage these provincial and federal life science investments to take the next step by building Canadian anchor companies to transform the industry and ensure its long-term sustainability.

While there is no “silver bullet” to transform the industry, key stakeholders highlighted five interconnected strategies that should shape a pan-Canadian approach.

First, entrepreneurs should adopt an anchor-company mindset from day one, focusing on long-term growth instead of the quick exit. Building anchor companies requires aligned policies that foster expansion, promote access to domestic capital, and encourage businesses to scale up and stay in Canada. While only exceptional firms will become anchor companies, this mindset increases value, retains critical operations in Canada, and seeds future entrepreneurship. 

Second, Canada must fuel growth by building our domestic capital capacity. Global investors are already drawn to the country’s world-class research, but much of the wealth generated by successful biotech firms is exported to foreign investors. To build a sustainable industry, Canada needs to expand its venture capital community and absolutely engage institutional investors,  stop exporting our wins and retain significant financial returns in Canada.

Third, we need to lay the foundation. Anchor companies need access to top talent and cutting-edge facilities. Expanding our talent pool through targeted investments in education, training programs and essential infrastructure like wet labs and manufacturing facilities will accelerate progress and stretch investment dollars.

Fourth, we must focus and collaborate. Canada cannot be the best at everything. Rather, by focusing on key strengths, the government can support specialized clusters where anchor companies and smaller players can work together, creating a competitive interconnected network that fosters innovation and growth.

Finally, we must prioritize patients. The life sciences industry exists to improve patients’ lives. With patients at the heart of strategy, governments can drive innovation and commercialization that strengthen our health care system, attract investment and talent, and solidify Canada’s position as a global leader in healthcare solutions.

With smart, focused policies and a unified vision, Canada truly has the potential to finally emerge as a leader in the global life sciences industry. By taking bold action to foster the growth of anchor companies, Canada will be better prepared for future health emergencies, lead in commercialization and economic impact, and improve the lives of our citizens and patients around the world.

Let’s seize this moment and build a life sciences industry that benefits Canadians and stands strong on the world stage.

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