Vaccines for pandemics. Cheaper and more effective health care. Cleaner air. Purer water. Bigger crops. Safer food. Better environmental safeguards. Protection against bioterrorism.

Canadians have high expectations that Canada's biotechnology industry will be able to deliver timely solutions to achieve these goals, according to a recent poll conducted by Pollara Research.

On Tuesday, however, 50 leaders of Canada's biotech sector descended on federal politicians and bureaucrats all over Parliament Hill in a series of 60 different meetings to drive home a sombre message: unless they create a better business and regulatory climate for the biotechnology industry, it will not be able to meet Canadians' expectations. Indeed, if the current situation continues, Canada will not keep pace with global biotech developments and markets.

The blitz on federal decision-makers in Ottawa is one of many activities planned by BIOTECanada, an association which represents a broad spectrum of 170 firms, as well as academic and research players in the biotech sector, to mark National Biotechnology Week (Sept. 26 to 30).

BIOTECanada's President and CEO Peter Brenders describes biotechnology as "transformative" whose imminent impact on society "can be likened to that of the industrial revolution over a century ago, or the arrival of the computer age more than 30 years ago."

In an interview last week, Mr. Brender said Pollara's "Consumer Perspectives Ominbus" survey on biotechnology revealed that eight out of 10 Canadians support further research in biotechnology, and that "the majority of Canadians believe that biotechnology is going to benefit health sciences, genetics, agriculture, their personal health and the economy." He said that almost 70 per cent of those who did not support further research "still expected to personally benefit from biotech."

Despite this optimism, only 10 per cent of respondents considered Canada to be a leader in biotechnology, whereas one third sees Canada as "falling behind the rest of the world."

"We as an industry need to do more to educate Canadians about the economic benefits and what Canada has to offer," Mr. Brenders said.

Canada has a number of strengths in "world-class research, world-class expertise in science in a host of areas, from vaccines to health technologies to agriculture." He said Ottawa in particular "has a host of world-leading companies in health biotechnology and the new bioproducts field," such as Iogen's bio-diesel and industrial enzyme work. He also said Canada has "a competitive cost advantage among the G-8 countries in terms of research."

However, growth of Canada's biotech industry faces two challenges. The first "is further support for capital formation, to make sure our companies can get the investments they need to survive." Mr. Brenders said this would involve "getting our Canadian tax law to recognize a U.S. corporate entity called a 'limited liability corporation'. Because if they are not recognized, it is a tax burden for them to come to this country."

The second challenge concerns regulatory impediments. "As we get beyond the great research support that we have, and go to development or commercialization, we need to ensure our regulatory environment is as aligned with international standards and reviews as possible," Mr. Brenders said. "Why duplicate, why replicate, why make it more complicated to bring products to this market or introduce them here?"

If we don't make progress in this area, he says, "it will get to a point where companies will say, 'Why bother?'"

Ken Lawless, President and CEO of the Ottawa Life Sciences Council, says raising the profile and viability of Canada's biotechnology sector is especially critical for Ottawa-area firms and the regional economy.

Mr. Lawless said Ottawa's biotech sector is comprised of more than 140 companies which together employ approximately 6,000 highly-skilled workers and professionals. He noted these include larger, well-established companies such as MDS Nordion, and promising up-and-comers like Zelos Therapeutics and Liponex which just went public. "Our spectrum is quite diverse," he said, adding that OLSC spins out six to 10 companies per year.

"We have a very strong research and development capacity," Mr. Lawless said, which includes over 40 research centres and institutions in the city, and which together employ 5,000 people and conduct over $300 million worth of research and development annually.

"Between public bodies and private companies, about 10,000 families in Ottawa owe their living directly to the biotech sector," he said.

In addition to the importance on the city's employment picture, Mr. Lawless said that about $80 million in venture capital has been secured so far this year, which is a new high for the sector.

"However, we recognize that to continue the growth of these companies over the coming years, we're going to have to double the amount of capital available."

Echoing Mr. Brender's message, Mr. Lawless said "Capital is becoming increasingly important, and decisions around capital formation pools are of great interest to our sector," such as labour-sponsored investment funds and limited liability corporations, which he calls "critical."

"We have fairly weak capital markets in Canada," he said, making it a challenge to secure follow-on financing for startups.

An important part of National Biotechnology Week is to dialogue with governments and raise awareness about the sector and the benefits of the technology. "This is a very positive thing for Canada from an economic point of view, from return on investment, for our research capacity, but also how these products are impacting health care, the environment and quality of life," Mr. Lawless said.

"The critical thing is that people just don't realize how pervasive this technology is and will become in their everyday lives."

By Jeff Esau

Special to the Ottawa Business Journal