Introduction
Canada has put much focus on the biotechnology industry. The government, as well as private companies have committed tremendous amount of time and resources into the industry, specifically, into research and development. The novel food, and pharmaceutical industry are the main focus of biotechnology in Canada, but there is also significant development in life sciences as well. This essay will discuss these specific aspects of the industry, the Canadian biotechnology industry as a whole, the regulation of the the industry in Canada, and Canada’s standing in the international biotechnology community.
Industry Overview
Canada is one of the world leaders in biotechnology especially in terms of research and development. Canada is second only to the U.S.A. in terms of total biotechnology companies, at 450 companies as of 2006 (Littlehales, 2006). The country contributes almost 10% of the worlds total biotechnology revenues (Health Canada, 2010), bringing in 4.0 billion in revenues in 2009. This is projected to grow to $4.6 billion by 20014 (Biotechnology Industry Profile: Canada, 2010). Of this 4.0 billion in current revenues, the main contributor by far is the health care industry, making up just under 70% of the total revenue; this is closely followed by the agricultural industry which contributed around 25% (Biotechnology Industry Profile: Canada, 2010).
Canada is one of the world leaders in biotechnology especially in terms of research and development. Canada is second only to the U.S.A. in terms of total biotechnology companies, at 450 companies as of 2006 (Littlehales, 2006). The country contributes almost 10% of the worlds total biotechnology revenues (Health Canada, 2010), bringing in 4.0 billion in revenues in 2009. This is projected to grow to $4.6 billion by 20014 (Biotechnology Industry Profile: Canada, 2010). Of this 4.0 billion in current revenues, the main contributor by far is the health care industry, making up just under 70% of the total revenue; this is closely followed by the agricultural industry which contributed around 25% (Biotechnology Industry Profile: Canada, 2010).
Health Care Biotechnology Industry
As mentioned earlier, the main focus of biotechnology in Canada is on health care, with 58% of Biotechnology companies in Canada focusing on this sector (Industry Canada, 2008) . Developments in human health care accounts for 90% of research and development investments in Canada (Health Canada, 2010).
The major focus of the biotechnology-health care industry in Canada is reflected by the number of products currently in development in each field. The following are therapeutic products (pharmaceuticals are covered later), and the numbers are current as of 2006. Cancer is the leading focus of health care related biotechnology research, with sixty three therapeutic products in development. Heart diseases is the next in line, with twenty seven products in development, followed by twenty neurological therapeutic products in development (Industry Canada, 2008).
Biopharmaceutical sales make up the majority of the biotechnology related health care revenue in Canada, with sales of $2.1 billion in 2005 (Government of Canada, 2010). There are three main markets for the pharmaceutical industry in Canada. These markets are: medicines that treat the cardiovascular system, which make up 31.80% of the market value, medicines that treat the central nervous system, which make up 26.20% of the market value, and medicines that treat alimentary or metabolism related illnesses which make up 18.90% of the market value. the remaining market is shared by medications treating respiratory, oncology, and miscellaneous illnesses. (Pharmaceuticals Industry Profile: Canada, 2010).
Agricultural Biotechnology Industry
The second largest biotechnology field in Canada is the agricultural industry, with 24% of biotechnology firms focusing on this field (Industry Canada, 2010). New food products are referred to as “novel foods”(Health Canada. 2010). If a food item meets any of the following three criteria, it is labelled as a novel food item; the food is a result of a process not previously used for food, it is a product that has never before been used as food, and genetically modified organisms. The criteria most relevant to biotechnology is the third one, and this refers to both plants, and animals.
Over 70 novel food products have been approved for sale in Canada (Health Canada, 2010). This includes potatoes resistant to pests, omega 3 enhanced pork, as well as many other genetically modified organisms.
Biotechnology is used in the agricultural industry in more ways than just novel food products. Biopesticides, Bioherbicides, Novel fertilizer, livestock feed, and veterinary drugs are all segments of the industry that biotechnology contributes to (Canadian Food Inspection Agency, 2010).
Research and Development
Many important biotechnology discoveries have been made in Canada. This is due to the strong focus the government has put into this field. Research and development is supported by.
A notable recent discovery in the medical field was made by a neuroscientist in British Columbia. He has developed a blood test that will allow for the detection of many diseases, including Alzheimer’s, Parkinson’s, and Lou Gehrigs. (Government of Canada, 2010) It is possible that the test will be available in two years.
A notable recent discovery in the medical field was made by a neuroscientist in British Columbia. He has developed a blood test that will allow for the detection of many diseases, including Alzheimer’s, Parkinson’s, and Lou Gehrigs. (Government of Canada, 2010) It is possible that the test will be available in two years.
Another notable discovery was made by an international team led by three Canadian Microbiologists. They successfully completed mapping the DNA of a soil bacterium that is capable of breaking down PCB’s and other toxic substances (Government of Canada, 2010). This work has very valuable applications for the us of environmental toxicity clean up efforts.
The policies in Canada make it an ideal place for research in biotechnology, as well as many other fields. Canada had the lowest effective tax rate on biotechnology research and development investments among all major competitors, at 1.5% (Industry Canada, 2008). This is very impressive when compared to the competitors. You can see the comparison in the table below.
Regulations
The regulation of biotechnology products in Canada are relatively strict, and these regulations are based on scientific methods. Multiple agencies are involved in regulating these products, including Health Canada, the Canadian food Inspection Agency, Fisheries and Oceans Canada, and Environment Canada(Health Canada, 2010).
A company looking to market or develop a new drug in Canada, must go through Health Canada. In order to perform clinical trials on the Canadian public, a company must apply for a Clinical Trial Application from Health Canada first (Katers, 2010). Health Canada also controls the labelling standards of the country. Medications and must comply with these standards if their parent company wishes to sell them in Canada. Health Canada is also the organization that deals with any complaints, side effects, or other issues reported by Canadian consumers in regards to the medication sold.
If a Canadian company wants to bring a new food product to the market, they have to go through an approval process that involves both Health Canada and the Canadian Food Inspection Agency. Environment Canada is also involved in the regulation of agricultural related biotechnology products. The new food product must have data to support a safety assessment that will be carried out by the two agencies. The information that must to be included in this data is as follows: a description of the genetic change on a molecular level, a comparison of the novel food item and traditional food item it originated from, potential negative effects, and nutritional information of the food.
The labelling of food items is handles by both Health Canada, and the Canadian Food Inspection Agency. Health Canada sets the standards for the labelling of products in regards to health, safety, nutritional composition, and other mandatory labelling. The Canadian Food Inspection agency is responsible for regulation of voluntary labelling practices and consumer fraud issues. (Canadian Food Inspection Agency, 2010)
There is an interesting comparison between the regulation of genetically modified organisms in Canada and the United States, compared to European countries. The comparison states that North American regulation is product based, while the European regulation is processed based (Andrée, 2006). What this means is that the North American approach looks at the risks of the product in it’s intended use, rather than the development of that product. Europe's regulation focuses more on the processes that go into creating these genetically modified products, and the risks involved to the environment and food supply both during and after their development (Andrée, 2006). This difference has caused some difficulties in trade between the two regions.
Conclusion
Canada has a very nurturing environment for Biotechnology companies. The government makes Canada a very good place to open, and run a biotechnology company. This has helped Canada become one of the world leaders in the industry, especially in terms of research and development. Biotechnology's is a strong industry in Canada, and it’s future in the country continues to look promising.
References
Andrée, P. (2006). An analysis of efforts to improve genetically modified food regulation in Canada.Science & Public Policy (SPP), 33(5), 377-389. Retrieved from Academic Search Premier database:
(2010). Biotechnology Industry Profile: Canada. Biotechnology Industry Profile: Canada, 1. Retrieved from Business Source Premier Database: http://web.ebscohost.com/ehost/detail?vid=1&hid=12&sid=d1b6c180-d7f2-40f9-9ae7-7ac88f87c7dc%40sessionmgr10&bdata=JnNpdGU9ZWhvc3QtbGl2ZQ%3d%3d#db=buh&AN=51689375
(2010) Canadian Food Inspection Agency. Regulating Agricultural Biotechnology in Canada: An Overview:
(2010) Government of Canada. Biotechnology:
(2010) Health Canada. Canada’s Biotechnology Strategy: http://www.hc-sc.gc.ca/sr-sr/biotech/role/strateg-eng.php
(2008) Industry Canada. Canada’s Biotechnology Industry:
Katers, N.(2010) www.eHow.com. Drug Regulation in Canada:
Littlehales, C. (2006) www.nature.com. Canada’s Biotech Conundrum:
(2010). Pharmaceuticals Industry Profile: Canada. Pharmaceuticals Industry Profile: Canada, 1. Retrieved from Business Source Premier Database:
http://web.ebscohost.com/ehost/detail?vid=1&hid=13&sid=51b35eaf-d499-4546-81f7-ad977a832870%40sessionmgr4&bdata=JnNpdGU9ZWhvc3QtbGl2ZQ%3d%3d#db=buh&AN=47196244
No comments:
Post a Comment