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Trends, Issues and Developments in Canadian Life Science BI O BUSINESS SPRING 2006 www.biobusinessmag.com Generex Biotechnology’s ANNA GLUSKIN Canada strengthen+s its leadership in infectious disease research pg 14 7 6 5 3 6 0 0 4 t IP protection of human n e m e e genetic material in Canada r genetic material g A s pg 28 e l a S — t c u d o r P l i a Italy’s bio sector connects M s n o i t academic and business worlds a c i l b u pg 34 P n a i d a n a C reply online at www.biobusinessmag.com BI O BUSINESS Contents 20 Business Management The HR Challenge: Canada’s to-do list includes developing the sector’s employee base by easing the financial— thus recruiting—constraints faced by most of Canada’s small companies; eliminating regulatory hurdles; increasing mentoring opportunities; and helping students acquire the skills in demand by industry. Addressing these hurdles is key to achieving sustainable growth and international competitiveness, say pundits. L L 14 DISCOVERIES Infectious disease research emerges as a Canadian strong suit. Witness this sampling of achievements and innovations also inside 25 QUESTION & ANSWER Anna Gluskin, president and CEO of Toronto-based Generex Biotechnology discusses her 10-year-old company’s progress 28 IP & PATENTING A look at Canada’s intellectual property regime with respect to human genetic materials—making it work for the health of Canadians 34 REGIONAL PROFILE 38 IN PERSON Stronger ties between Award-recipient, and University of Guelph Ph.D. candidate Jamie Doran academia and business focuses his entrepreneurial efforts on launching an innovative company are transforming Italy’s burgeoning biotech sector standards 5 EDITOR’S NOTE 7 NEWS 12 BUSINESS BRIEFS Cover photo credit: Yanka Van der Kolk Imaging & Photography 36 NEW PRODUCTS Spring 2006 BIO BUSINESS 3 f reply online at www.biobusinessmag.com BI O BUSINESS Editor’s Note Trends, Issues and Developments in Canadian Life Science Publisher Christopher J. Forbes Bon & CEO [email protected] Voyage Managing Bernadette Johnson Editor [email protected] Art Tammy White Director [email protected] s we wrap this issue, it almost A feels like we’ve been around Contributors Nancy Dorrance the world and back…from Italy to Laura Eggertson Vancouver, and now Chicago. Sarah Fischer I had the pleasure of attending the Mitch Ritter Amie Sergas 4th annual BioPartnering North America Conference (BPN) Feb. 5-7 in need to build on our presence.” Sales Beth Kukkonen Vancouver. This year, 900 delegates I suspect that’s precisely what is on Manager [email protected] (and almost 70 representatives of major the minds of many of those heading pharmaceutical companies) converged down to Chicago shortly for BIO 2006. Account Kirsty Tamaki to discuss and foster partnership oppor - According to Peter Brenders, president Manager [email protected] tunities. The two-day event, produced of BIOTECanada, the Canadian con - by California-based Technology Vision tingent is as strong as ever. The Promotion Nancy Sim Group LLC and hosted by BC Biotech, Signature event and even the Manager [email protected] BIOTECanada and Bio Alberta, spot - Canadian pavilion itself have basically lighted several key areas including sold out, he says. “Canada should be strategic research collaborations; merg - able to quite comfortably keep its pro - Production Roberta Dick Manager [email protected] ers and acquisitions; deal (and technolo - file up there as the second-largest gy) valuation and negotiation; and the biotech region in the world.” Production Sara Forget growth of the specialty pharma industry. For our part, BioBusiness has been Co-ordinator [email protected] BC Biotech’s executive director, busy lining up interviews and schedul - Karimah Es Sabar says several key deals ing meetings with various state agen - Bio Business is published 4 times per year by Jesmar were indeed initiated. “We had 50% cies and country representatives as part Communications Inc., 30 East Beaver Creek Rd., Suite more big pharma attend this year, and of our effort to bring you glimpses of 202, Richmond Hill, Ontario L4B 1J2. 905.886.5040 Fax: 905.886.6615 www.biobusinessmag.com much more senior people—those who various biotech strongholds in the com - One year subscription: Canada $35.00, US $55.00 and make the deals,” she says, adding, ing issues. Not only is it interesting to foreign $95. Single copies $9.00. Please add GST where “About 20 Japanese companies partici - see what others are up to, but perhaps applicable. Bio Business Subscription and circu - lation enquiries: Garth Atkinson, pated. They are hungry for pipelines. there’s a thing or two to be learned [email protected] Fax: And they are realizing that BC has all from other jurisdictions. 905.509.0735 Subscriptions to business address only. this talent and innovation. We’re getting So sit back and relax, as we dim the On occasion, our list is made available to organizations whose products or services may be of interest to you. If a lot of interest from Europe and Japan.” cabin lights… you’d rather not receive information, write to us at the Only weeks before BPN, Es Sabar address above or call 905.509.3511 The contents of this travelled to Italy on a biotech trade tour publication may not be reproduced either in part or in whole without the written consent of the publisher. GST (see Regional Profile, page 34). Registration #R124380270. Spearheaded by the B.C. Ministry of Economic Development, the mission PUBLICATIONS MAIL AGREEMENT NO. 40063567 leveraged the Olympics as a business RETURN UNDELIVERABLE CANADIAN development event, and showcased the ADDRESSES TO B.C. biotech sector to about 26 Northern Cheers, CIRCULATION DEPT. 202-30 EAST BEAVER CREEK RD Italian biotech companies. Bernadette RICHMOND HILL, ON L4B 1J2 “It was very well-received,” says Es email: [email protected] Sabar. “People were amazed because they don’t know what we do in Canada, JESMAR COMMUNICATIONS INC. Publisher of let alone what we do in B.C. Many knew LAB BUSINESS Magazine about our strong science and academia LAB BUSINESS Cards BIO BUSINESS Magazine but didn’t realize the success of our com - mercialization and business. There are Printed in Canada untapped opportunities for Canada. 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C8101-A112E-BBU.indd 1 Full page journal ad BioBusiness and Lab Business - BBU and LBU 2/2/06 12:04:17 PM News B.C. boasts best return on R&D spending in North America First-of-its-kind study compares output of venture capital across technology sectors in Canada and the U.S. ritish Columbia technology companies are delivering Bthe best return in North America for every dollar invest - ed in research and development, according to a new UBC Sauder School of Business study. The study also found B.C. is number one in Canada and fifth in North America for cre - ating value from each dollar of venture capital invested. The study, funded by Leading Edge BC, is the first of its kind to compare output, or “exits” of venture capital across major technology jurisdictions in Canada and the United States. During the period 1997 to 2004, 509 exits of Canadian venture capital backed companies generated a total exit value of US$30 billion, while 3047 American companies generated US$381 billion. Overall the research found the Canadian market performed surprisingly well when the dif - Other highlights from the report include: ferences—mainly size—between the U.S. and Canadian • B.C. is eighth in exit value in North America on per GDP basis economies and venture markets were taken into account. • Exits occur faster in Canada than in the U.S. When the total exit values from both countries were com - • Alberta is fastest from founding to exit in North America. B.C. pared on a GDP basis, Canada outperformed the U.S. by 3%. And when compared against the amount of venture is second and Ontario is third investment, Canada outperformed the U.S. by 15%. • Ontario is the fifth largest market in North America, with a “Our results challenge the notion that the Canadian ven - total exit value of US$14 billion ture capital market is significantly behind the U.S.,” says • Exits in Quebec (US$5 billion), B.C.