Q And A Across Canada

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Question and Answer with Dale Patterson, BCO chair and executive vice president Canadian Medical Discoveries Fund and Nora Cutcliffe, Ph.D., BioPharma consultant

The background of the Biotechnology Council of Ontario(BCO)

DP: The Biotechnology Council of Ontario (BCO) was formed in 2002, following a very successful Bio 2002 Conference in Toronto. Janet Lambert, Lorne Meikle and I began discussions around the need for a public policy voice in Ontario for the biotech/life sciences industry. This resulted in the legal formation of the BCO and the establishment of an Ontario wide board of directors of leading industry players.

BCO is a grass roots organization of industry practitioners and experts designed to work in partnership with the government on public policy issues.
We began with the commissioning of a study called OnTRAC, which articulated the four public policy 'Pillars' of Talent, Regulation, Alliances and Capital in 2003.

Following an industry workshop to confirm the industry findings the BCO's first public policy forum was conducted in 2004, which led to the first set of recommendations to the premier, which we presented prior to the Bio 2005 conference in Chicago, and also prior to the formation of the now Ontario Ministry of Research and Innovation later that summer.

In the fall of 2005, on the heels of a very constructive discussion of a provincial strategy presented to the premier by Canada's Research-Based Pharmaceutical Companies (Rx&D), Rx&D was then requested to seek broader life sciences industry participation to include all aspects of the life sciences sector in Ontario and present an overall Ontario life sciences industry strategy. Enter the BCO and the August 2005 report.

What is the purpose of the recommendations?

DP: The purpose of the recommendations is to provide the province with a public policy 'roadmap' with which to inform their policy development initiatives in partnership with the broad life sciences industry in Ontario.

The practical, grass roots, industry recommendation not only fills any government/industry public policy gaps, but will inform, enlighten and encourage the premier and his colleagues, as we all move the MRI and commercialization agenda forward, for the benefit of all Ontarians.

Who worked on the recommendations and what were their expertise?

DP: With the goal of capturing multi-stakeholder views, the 2006 BCO Working Committee included representation from a broad cross-section of life sciences organizations from every region of the province.

In addition to my own role as BCO chair, we involved senior executives from the Toronto Regional Research Alliance (TRRA), Toronto Biotechnology Initiative (TBI), Ottawa Life Sciences Council (OLSC), MaRS Discovery District, BioFinance Canada, Rx&D and several major pharma companies including Merck, GlaxoSmithKline, AstraZeneca and Pfizer. We had additional industry support through participation by RBC Royal Bank, PricewaterhouseCoopers, Borden Ladner Gervais and the City of Toronto.

We also brought in Dr. Nora Cutcliffe as the lead writer, based on her extensive biopharmaceutical industry knowledge.

How long did these recommendations take
to formulate?

DP: The latest set of industry deliberations and consultations began in the fall of 2005 when the Premier requested that we provide him with a broadly-based, life sciences industry strategy. The BCO working committee met at least monthly during this time.

These meetings and conference calls were devoted to reinventing and refining the evolving document, including sufficient general debate and discussion to achieve consensus regarding the final recommendations.

What are the key recommendations
on the report?

NC: Our view is that the Ontario government has a critical role to play in promoting life sciences research and innovation in the province, in partnership with the industry and thus we put forward four key recommendations to address the critical needs of the sector.
The BCO recommends that the Ontario government should:

1. Support alignment of economic and health policy in serving the best interests of Ontarians.
2. Promote increased capital investment in Ontario's Life Science sector.
3. Improve commercialization and market environment for biopharmaceutical products in Ontario.
4. Provide tax incentives to attract domestic, foreign and venture capital investment in Ontario.

We believe that by implementing these changes and by recognizing the life sciences innovation strategy as a primary driver of the province's economic and health agendas, the Ontario government has an excellent opportunity to align industrial policy with a sustainable economy.

DP: More specifically the BCO is proposing:

1. The creation of a cabinet committee on life sciences including the introduction of an 'innovation filter' process.
2. The creation of 'Trillium Life Sciences Council'.
3. The introduction (or provision) of new incentives for pharmaceutical companies to contribute to a pool of risk-based investment capital.
4. The promotion of Ontario as a leading life sciences jurisdiction to live, work and invest in.

Can you provide an overview of the key
findings or themes of the BCO report?

NC: In building the business case to support the Ontario government's focus on the broadly based biotechnology and life sciences sector, this report highlights the fact that biopharmaceutical innovation fits well within Ontario's MRI mandate.

This sector offers Ontario an excellent chance to compete successfully with other jurisdictions in the new global economy - as driven by knowledge, ingenuity and human capital as primary resources. In terms of advancing Ontario's innovation mandate, a well-supported life sciences sector holds the promise of enhancing company creation and competitiveness, while increasing employment, tax revenues, new business and clinical trial development.

Investment in the life sciences sector may also help drive Ontario's health mandate, particularly as the provincial government urgently seeks solutions to temper health care costs. For example, many novel biopharmaceuticals (and their associated disease management programs) have untapped potential in reducing overall health care system costs, i.e. by reducing the number of surgeries and/or hospital stays, while also enhancing patient health status.

In this context, investment in the province's life science sector should be viewed as a potential solution in offsetting rising health care costs, especially against the backdrop of aging populations and emerging disease trends. Overall, such investment can contribute to cost containment within - and hence sustainability of - the provincial health care system.

What did you do with the recommendations?

DP: The report and its recommendations have been widely distributed within the life sciences community in Ontario. In early October we were invited to present the report and its recommendations in person to two key audiences:

1. Representatives of the Premier's Office and the Ministry of Research and Innovation, including the Deputy Minister.
2. The chair of the health sciences sub-committee of the Ontario Research and Innovation Council (ORIC).

How was your letter received by the Premier?

DP: Although we have not had a direct conversation with the Premier, we have been assured that the BCO recommendations have been taken into account in the development of the Deputy Minster's life science's strategy, as well as the Ontario Research & Innovation Council's deliberations.

NC: In general, the report has been extremely well received by the life sciences community, with specific feedback indicating that stakeholders are impressed with the quality of the report, the depth of its research and the compelling arguments made.

Did the Premier agree with the recommendations?

DP: Only time will tell. The last thing we want is for this comprehensive strategy document to sit on the shelf and gather dust. In the coming months the Premier and his staff will be evaluating the recommendations from strategic papers currently before him and drawing specific public policy conclusions. As an industry we look forward to the dialogue that we trust will result.

So what is the next step?

NC: Building on its many strengths, Ontario’s life sciences sector is poised to seek world-class regional status. However, much work remains to be done, with a sharper future focus, including the creation of appropriate incentive structures for innovation, continued high investment in R&D, increased pools of venture capital and adapting government infrastructure to optimize commercialization.

In considering the recommendations proposed by the BCO in this 2006 report, the current government will be challenged to implement additional programs to augment Ontario's leadership position in the life sciences industry - acknowledging innovation not only as a key driver of high-value jobs and future economic prosperity, but also as an essential force in improving quality of life for Ontario families.

What are your overall feelings?

DP: We are very pleased with the broad industry content presented in this report, the quality of the organization and participants making up the BCO and its positive reception within the life sciences community.

As the broadly based, regionally represented, public policy voice for the industry in Ontario, I believe we have the basics of a sound, pragmatic and effective public policy partnership with the province and we look forward to an ongoing dialogue.

Do either of you have anything extra to add?

NC: We are particularly proud of the unique historical perspective provided by the 2006 BCO report, which includes a concise synopsis of the history of Ontario government initiatives within the biopharmaceutical sector.

During the past two decades, provincial governments (consisting of three different parties) have placed progressive emphasis on expanding the highly qualified labour force and investing in R&D, underscoring the need to cultivate and sustain an innovation culture. Reinforcing this foundation, the current government has strategically positioned this sector to rise to the next level of success.

With adequate government support moving forward, we believe the life sciences sector is now poised to leverage Ontario's research capacity in achieving an international level of excellence, permitting competitiveness in global markets.

DP: With the thoughtfulness and subsistence of the strategy document, and the goodwill that exists within our industry, we believe that the life science sector will continue to be a significant factor in the commercialization of our world class research, which will, as the Premier said, "make innovation inevitable" in Ontario.