LifeSciences BC Sector Report 2015 (Final)

The Life Sciences Sector in BC

Economic Impact Now and in the Future

October 2015

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Table of Contents

Foreword ...........................................................................................................................................4

Executive Summary ........................................................................................................................... 5

Life Science in BC – At a Glance ................................................................................................................... 5

What is Life Science? .........................................................................................................................6

Defining the Life Sciences Sector .................................................................................................................. 6

Overall Canadian Landscape of Life Sciences ................................................................................................ 7

Life Sciences Metrics by Province ................................................................................................................. 9

Trends – Life Sciences Metrics between 2010 and 2014 ............................................................................... 14

Value Added Impacts of Life Sciences in BC ................................................................................................ 15

Government – Synchronizing Initiatives, Resources, and Funding............................................................... 15

Access to Funding and Capital ..................................................................................................................... 21

Access to Talent & Knowledge .................................................................................................................... 22

Startup Lifecycle for Life Sciences .............................................................................................................. 23

Conclusion ....................................................................................................................................... 26

What is the collective provincial ambition for life sciences in BC now and in the future? ............................. 26

Appendix.......................................................................................................................................... 27

i. Glossary and Acronyms ............................................................................................................................27

ii. List of Applicable Life Science NAICS Codes ........................................................................................... 28

iii. Life Science Classification Methodology ................................................................................................ 29

iv. Enrolment Calculations ......................................................................................................................... 33

v. Funding Calculations .............................................................................................................................. 34

vi. Payroll Calculations ................................................................................................................................37

vii. Largest Life Science Companies in BC (by # of BC Staff) ....................................................................... 38

viii. LSBC Membership List (Alphabetical) ................................................................................................. 39

ix. Contacts ................................................................................................................................................. 41

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This report has been prepared for the sole use of LifeSciences British Columbia in accordance with the terms of our General Service Agreement and for no other purpose. The report is meant to be viewed in its entirety and not to be disassembled. This information has been prepared solely for the use and benefit of Life Sciences British Columbia. PwC disclaims any contractual or other responsibility to others based on its use and, accordingly, this information may not be relied upon by anyone other than by LifeSciences British Columbia.

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Foreword

British Columbia’s life sciences sector is a significant contributor to the economy and health of British Columbia. Our industry brings innovation to patients through diverse organizations, growth of a skilled workforce and development of a knowledge-based bio-economy.

Our life sciences industry is embedded in the larger life sciences community in British Columbia, which brings together scientists, health institutions, hospitals and government. LifeSciences BC represents a vibrant community of innovative organizations. The innovation that powers our industry relies on a chain of purposeful events that drive ideas to commercialization. This starts with supporting our scientists who discover and develop innovation, assisting in the rapid identification of commercial potential to defining where pre-clinical and clinical research are performed to the final stage of

commercialization where innovation can be used to improve the lives of patients locally and globally.

British Columbia has the necessary ingredients to commercialize innovation. We are home to one of the most entrepreneur-rich regions in North America and we have a pipeline of world-class scientists with big ideas supported by one of the best healthcare systems in the world. This report was commissioned to support the improved definition of the life sciences community in BC, provide comparison to other provincial life sciences communities in Canada, and articulate some of the challenges that our sector are faced with in achieving our collective ambitions.

Our success will be contributing to healthier lives, improved patient outcomes, a thriving life sciences community, and a growing knowledge-based economy. This can only be achieved if we are working together to prioritize and coordinate the development of life science companies, community, and cluster. Our ability to work collaboratively will enable us to establish

the foundation of our future bio-economy that will deliver both economic value and better health for British Columbians.

Paul Drohan President and CEO LifeSciences BC

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Executive Summary Innovations in life sciences have an ability to transform health systems, create skilled jobs, and grow a knowledge-based economy. Annually, the life sciences sector in British Columbia (BC) employs almost 180,000 people and contributes $14.4 B to BC’s gross domestic product (GDP) while contributing $606 M in direct tax (based on 2014 figures). Impressively, the life sciences sector has continued to grow over the past five years with increases in all areas including: direct employment, annual wages, payroll impact, and BC taxes paid. It is important to note the

unique attributes of the life sciences sector as distinct from the high tech sector, which it is occasionally included as a subgroup of. Specifically, the maturity of the pharmaceutical and biopharmaceutical product lifecycle requires a lengthy clinical trials period (pre-clinical, phase 1, phase 2, and phase 3) to determine safety and efficacy in patients before commercial sales begin. The clinical trials phases create gating opportunities for investors to determine risk level before investments are made but also lengthens the return on investment timeline versus the high tech sector.

Life Science in BC – At a Glance

Through our analysis we identified several challenges that may inhibit continued growth in BC’s life science sector:

1. Access to Capital – Increased levels of investment from all credible sources is required at all phases of product development and BC has a lower level of capital access than Ontario (venture capital and private equity investments totaled $352 M in BC in 2014 vs. $2,336 M in Ontario), while Canada generally needs greater investment to compete globally.

2. Access to Talent – This includes developing talent in life sciences through our universities and academic centers, attracting experienced talent to a highly livable but expensive city like Vancouver. Our talent pool would drive expansion, improve our ability to compete, and developing experienced entrepreneurs to grow multiple businesses.

3. Synchronization of various government initiatives and regulatory processes – National, provincial, and local initiatives would potentially have greater impact with increased coordination of efforts in areas of regulatory, policy and funding.

4. Access to Licensing and Strategic Partners – A significant majority of life sciences companies in BC have under 10 employees (84%), the three options available for growth are 1) organic growth requiring greater funding access, 2) licensing the product or technology to a larger organization to improve market development and commercialization opportunities, and 3) improved access to strategic partners who intend to support fledgling organizations to develop their products, market, and commercialization capabilities.

An important question has also been raised through this analysis: What is the collective provincial ambition for life sciences in BC now and in the future?

Core Definition

2010 2011 2012 2013 2014 5-Year CAGR

Number of Establishments*

N/A 1,142 1,170 1,212 1,154 0.4%

Direct Employment

10,233 10,707 11,054 11,167 11,172 2.2%

Average Annual Wage

64,730 63,204 63,249 72,170 65,376 0.3%

Estimated Payroll Impact

$0.66 B $0.68 B $0.70 B $0.81 B $0.73 B 2.5%

Estimated BC Tax Paid

$27 M $33 M $31 M $31 M $38 M 8.6%

* Establishments with indeterminate size (by employees) were excluded for comparison purposes as this information was unavailab le in 2014 (CANSIM 552-0001). ** Note that the remainder of this report will use data from the expanded definition.

Expanded Definition**

2010 2011 2012 2013 2014 5-Year CAGR

Number of Establishments*

N/A 15,810 16,152 17,567 17,451 3.4%

Direct Employment

155,587 162,695 165,129 169,625 177,914 3.4%

Average Annual Wage

47,061 53,018 49,359 48,572 57,117 5.0%

Estimated Payroll Impact

$7.32 B $8.63 B $8.15 B $8.24 B $10.16B 8.5%

Estimated BC Tax Paid

$417 M $509 M $466 M $466 M $606 M 9.8%

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What is Life Science?

Defining the Life Sciences Sector Life sciences is comprised of scientific fields that

involve the scientific study of living organisms. However, the life science sector is inherently difficult to define as it contains companies that cross multiple industry verticals such as healthcare, technology, manufacturing, etc.

The diagram below depicts the overall methodology used to determine the definition of life sciences in BC for this sector report according to the following steps (refer to Appendix iii – Life Science Classification Methodology for details):

1. Determine the core definition of life sciences in BC

2. Include additional industries in the expanded definition as applicable to life sciences in BC

3. Gather raw data from Statistics Canada 4. Due to data limitations, determine weighting

to be assigned to each industry group 5. Calculate relevant life science metrics

LifeSciences BC and its Membership LifeSciences BC (LSBC) is a not-for-profit, non-government, industry association that supports and represents the life sciences community of British Columbia through leadership, facilitation of investment and partnering, advocacy, and promotion of our world-class science and industry locally and internationally. LSBC’s membership is comprised of over 200

organizations and individuals across a wide array of businesses that support life sciences and businesses with a specific focus on: (1) Research, Testing, and Medical Laboratories, (2) Drugs and Pharmaceuticals, and (3) Medical Devices and Equipment. Note that detailed employee information was not available for LSBC members and as such, the impact on GDP, employment, and payroll tax could not be specifically delineated for the LSBC

membership group at this time.

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Overall Canadian Landscape of Life Sciences The Canadian economy is comprised of many different industry groups including real estate, manufacturing, mining, construction, etc. but there is no formal definition of a life sciences industry group. The distinctness of this industry and its definition is important in recognizing its significant contributions

to the Canadian economy, scientific advancement, and benefit to Canadians and patients world-wide.

As such, based on the methodology as described in Appendix iii – Life Science Classification Methodology, a life sciences industry group has been “carved out” of the existing North American Industry Classification System (NAICS) industry groups in Canada. NAICS codes were used as they provided the

best available Canadian data by industry sector.

As in the following table, life sciences is embedded within five of the major industry groups based on GDP (share of industry group GDP related to life science is noted in brackets):

1. Health Care and Social Assistance (71%) 2. Wholesale Trade (21%) 3. Retail Trade (11%) 4. Professional, Scientific, and Technical

Services (6%) 5. Manufacturing (3%)

If life sciences were a standalone industry group, it would be the fifth largest industry group in Canada based on 2014 GDP of $117 billion. Although the life sciences sector is growing and gaining more prominence in Canada, it is still a relatively small portion of the overall Canadian economy (7% of overall GDP). Furthermore, the number of Canadians that are employed by life science companies as well as the number of life science establishments are both at 8% and 9% of their respective overall totals. This indicates that these three metrics appear to be correlated.

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# Industry Group 2014 GDP

($ M)

# Industry Group 2014 GDP

($ M)

1 Real Estate Rental and Leasing 206,367 12 Transportation and Warehousing 68,160

2 Manufacturing (non-Life Science) 168,066 13 Information 52,322

3 Mining 136,916 14 Administrative and Support and Waste Management and Remediation Services

41,173

4 Construction 117,570

5 Life Science 117,221 15 Utilities 39,532

6 Finance and Insurance 110,968 16 Accommodation and Food Services 34,181

7 Public Administration 109,262 17 Other Services (except Public Administration)

32,538

8 Educational Services 84,516

9 Professional, Scientific, and Technical Services (non-Life Science)

82,146 18 Health Care and Social Assistance (non-Life Science)

32,282

10 Retail Trade (non-Life Science) 79,572 19 Agriculture, Forestry, Fishing and Hunting

25,977

11 Wholesale Trade (non-Life Science) 72,226 20 Management of Companies and Enterprises

11,833

21 Arts, Entertainment, and Recreation 11,427

Total Canadian GDP (2014): $1.63 T

Total # of Canadian Establishments (2014):

1.2 M

Total Canadian Employment (2014):

15.3 M

All Other Industries

93%

Life Science Only7%

Life Science GDP vs. Total Canadian GDP (2014)

All Other Industries

92%

Life Science Only8%

Life Science Employment vs. Total Canadian Employment (2014)

($0.12 T)

($1.51 T)

(1.3 M)

(14.0 M) All Other Industries

91%

Life Science Only9%

# of Life Science Establishments vs. Total # of Canadian Establishments

(2014)(0.1 M)

(1.1 M)

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0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

AB BC MB NB NL NS NT NU ON PE QC SK YT

% o

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ve

rall

Ca

na

dia

n E

mp

loy

me

nt

/ G

DP

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Life Science Metrics by Province

GDP Employment Establishments

Life Sciences Metrics by Province As described in the above section, it appears that life

science-related GDP, direct employment, and number of establishments should be relatively consistent across the country. However, as can be seen in the following graph, BC and Quebec present data to the contrary.

The total number of BC life science establishments comprises 17% of the total number of life science establishments across Canada but BC’s share of life science GDP is only 12% of the overall Canadian life science GDP total. This suggests that BC has relatively more small companies that generate relatively less GDP.

However, Quebec’s life sciences sector contributes to 24% of overall Canadian life science GDP. Furthermore, the number of Quebec’s life science establishments comprise only 16% of the Canadian total which is even less than that of BC. This means that Quebec has less life science establishments than BC but generates twice the amount of GDP from them and is likely an indicator of larger and more mature companies in Quebec. A possible explanation

is that a significant number of large pharmaceuticals have Canadian headquarters based in the Toronto and Montreal areas.

In addition, the below table indicates that the majority of Canadian life science activity is concentrated in four provinces: Ontario, Quebec, British Columbia, and Alberta. Therefore, the remainder of this report will only focus on the comparisons and the economic impacts associated with these four provinces. The below table provides a summary that shows minimal life science activity in the rest of Canada.

Province GDP Direct Employment

# of Establishments

Ontario 41% 40% 41%

Quebec 24% 25% 16%

British Columbia

12% 14% 17%

Alberta 13% 11% 13%

Rest of

Canada

10% 10% 13%

Quebec has a much lower

establishment to GDP ratio which

indicates that there are a fewer

number of large companies.

BC has the highest establishment to

GDP ratio, signaling a large number

of small companies.

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Snapshot – Life Sciences Metrics in British Columbia in 2014

In terms of GDP related to life sciences in BC, a significant portion (45%) is related to two significant areas: (1) general medical and surgical hospitals and (2) health and personal care stores. Similarly, these two areas comprise 53% of direct life science employment in BC.

In line with the direct employment figures above, the total number of establishments in these two areas comprises 54% of all life science establishments in BC.

It is also important to note that BC’s life science sector is concentrated in small companies (84% of life science companies have less than 10 employees). However, there are still a small number of large companies in BC (refer to Appendix vi – Largest Life Science Companies in

BC).

Based on the above metrics, life sciences in BC has room to grow in order to catch up to Ontario and Quebec in terms of size and maturity.

General Medical and

Surgical Hospitals , 30%

Health and Personal Care Stores , 15%

Offices of Physicians , 10%

Outpatient Care Centers , 8%

Offices of Dentists , 7%

Offices of Other Health

Practitioners , 7%

Home Health Care Services ,

5%

2014 LS GDP in BC

General Medical and







Practitioners , 5%

2014 LS Direct Employment in BC

1 to 9 employees

, 84%

10 to 49 employees,

13%

50+ employees,

2%

General Medical and







Practitioners , 14%

2014 LS Establishment Distribution in BC

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Snapshot – Life Sciences Metrics in Ontario in 2014

A significant portion (43%) of life sciences in Ontario is related to two significant areas: (1) general medical and surgical hospitals and (2) health and personal care stores. Similarly, these two areas comprise 50% of direct life science employment in Ontario.

In line with the direct employment figures above, the

total number of establishments in these two areas comprises 52% of all life science establishments in Ontario.

Ontario’s life science establishment distribution is similar to BC in that 83% of establishments have less than 10 employees (vs. 84% in BC).

Based on the above metrics, Ontario’s life science sector is the clear leader in the Canadian marketplace in terms of size and potential funding available.

General Medical and




Outpatie…



Practitioners , 6%


5%

2014 LS GDP in ONGeneral

Medical and Surgical

Hospitals , 37%






Practitioners , 6%


6%

2014 LS Direct Employment in ON

1 to 9 employees

, 83%

10 to 49 employees,

14%

50+ employees, 3%

General Medical and







Practitioners , 14%

2014 LS Establishment Distribution in ON

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Snapshot – Life Sciences Metrics in Quebec in 2014

A significant portion (42%) of life sciences in Quebec is related to two significant areas: (1) general medical and surgical hospitals and (2) health and personal care stores. Similarly, these two areas comprise 54% of direct life science employment in Quebec.

In line with the direct employment figures above, the total number of establishments in these two areas comprises 51% of all life science establishments in Quebec.

Although life sciences in Quebec drives similar figures in terms of % of overall GDP and % of overall employment vs. BC and Ontario, Quebec does so with fewer small size companies that have less than 10 employees (only 77%). This suggests a movement up the maturity curve from startup companies to more established companies.

Based on the above metrics, Quebec has a large life science footprint but appears to suffer from a lack of direct funding from VC and PE investors in recent years.

General Medical and




Outpatient Care Centers ,

8%



Practitioners , 6%


5%

Other Ambulatory Health Care Services , 5%

2014 LS GDP in QC

General Medical and


Health and Personal Care Stores , 14%Offices of

Physicians , 11%




Practitioners , 4%


4%

2014 LS Direct Employment in QC

1 to 9 employees,

77%

10 to 49 employees,

19%

50+ employees, 4%

General Medical and







Practitioners , 17%

2014 LS Establishment Distribution in QC

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Snapshot – Life Sciences Metrics in Alberta in 2014

A significant portion (46%) of life sciences in Alberta is related to two significant areas: (1) general medical and surgical hospitals and (2) health and personal care stores. Similarly, these two areas comprise 53% of direct life science employment in Alberta.

In line with the direct employment figures above, the total number of establishments in these two areas comprises 48% of all life science establishments in Alberta.

Based on the above metrics, the life sciences sector in Alberta is relatively similar to that of BC, Quebec, and Ontario but on a smaller absolute scale with the exception of PE funding.

General Medical and


Health and Personal Care Stores , 16%Offices of

Physicians , 14%

Outpatient Care …



Practitioners , 6%


5%

2014 LS GDP in AB

General Medical and







Practitioners , 5%


4%

2014 LS Direct Employment in AB

1 to 9 employees, 81%

10 to 49 employees, 16%

50+ employees, 3%

General Medical and







Practitioners , 17%

2014 LS Establishment Distribution in AB

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Trends – Life Sciences Metrics between 2010 and 2014 Compared to average Canadian life sciences employment compound annual growth rate (CAGR) of 2.2% over the last five years, BC is growing at a CAGR of 3.4% which indicates that BC is outpacing national growth. It is important to note that life science employment is below the Canadian average in Ontario and Quebec which

indicates slowing growth in those provinces.

Similarly, BC and Alberta are both above the Canadian average life science GDP growth of 2.2% (2.4% and 4.3%, respectively) while Ontario and Quebec are below the national average.

100%

102%

104%

106%

108%

110%

112%

114%

116%

118%

2010 2011 2012 2013 2014

Growth Rate of Life Science Employment

Canadian Average BC ON QC AB

100%

102%

104%

106%

108%

110%

112%

114%

116%

118%

120%

2010 2011 2012 2013 2014

Growth Rate of Life Science GDP

Canadian Average BC ON QC AB

3.9% CAGR

3.4% CAGR

2.1% CAGR

Canadian Average: 2.2% CAGR

1.3% CAGR

1.4% CAGR

4.3% CAGR

2.4% CAGR

1.6% CAGR

Canadian Average: 2.2% CAGR

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Value Added Impacts of Life Sciences in BC Although GDP is a widely used metric to determine

overall economic output, GDP does not take into account any indirect or induced effects. It is important to account for these additional effects in order to determine the overall economic impact of life sciences in BC.

Direct GDP – The money spent in the region by the business itself (e.g., salaries, supplies, raw materials, and operating expenses).

Indirect GDP – The increase in business-to-business activity.

Induced GDP – the increase in personal income caused by direct and indirect increases in GDP which means that households will spend more money at local businesses.

The graphic below indicates that the total 2014 GDP impact in BC was $25.7 billion. Note that the indirect and induced GDP multipliers are no longer publicly listed by Statistics Canada. As such, it was assumed that the Ontario multipliers (from the Life Sciences Ontario sector report) would approximate the multipliers in BC.1

1 Life Sciences Ontario. (2015, February 25). Life Sciences Ontario Sector Report 2015. Retrieved from http://www.lifesciencesontario.ca/_files/file.php?fileid=fileMEGmaMmMlc&filename=file_LSO_Sector_Report_2015_FINAL___2015_02_25.pdf

Government – Synchronizing Initiatives, Resources, and Funding Coordinated government support and engagement are crucial to encourage investment and develop the conditions to grow the life sciences sector. Federal, provincial, and local governments all conduct various initiatives to support industry development. Some are directed to high tech with life sciences included as a subsector and some are directed generally to innovation.

Globally, many developed nations with socialized healthcare systems have announced or are delivering on significant coordinated strategic plans to

prioritize, develop, and grow their life sciences sectors. Growth of the sector in social healthcare systems provides mutual benefit by supporting innovations that will ultimately benefit patients treated in government-run facilities. Some of these countries include: the United Kingdom, Australia, France, China, India, Norway, and Singapore. These countries are all working in a coordinated way within their health economies to develop policies that will

encourage investment in their life sciences sector which they have all acknowledged will grow their economies, create jobs, and improve the lives of patients.

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The level of Canadian federal and provincial tax incentives and credits awarded for investments in R&D by life sciences companies have remained stagnant over the last few years. In fact, the 2012 Federal Budget had proposed changes to reduce the Scientific Research and Experimental Development (SR&ED) tax credit for large corporations from 20% to 15%. The 35% refundable tax credit for Canadian Controlled Private Companies (CCPC) meeting the required size tests on their first $3 million of SR&ED expenditures remained untouched as a key source of capital for smaller Canadian life sciences companies.2

There are alternative approaches to support access to capital in other industrial sectors through the use of tax incentives. For example, a junior mining natural resource company can issue flow-through shares which allows the company to transfer resource expenses to the investor so that the investor receives tax credits on these expenses, thereby reducing the net investment cost.3

Current Initiatives & Incentive Programs in BC There are currently a number of initiatives and incentive programs in place to promote innovation in BC, some are specific to life science and some are broader across innovative industries. However, these initiatives are spread out across many different companies, government bodies, and non-profit organizations without a single organization that is championing a province-wide coordinated life science strategy. The following examples describe some of the

different programs available.

2 PwC. (2013). The Missing Ingredient. Retrieved on October 3, 2015 from http://www.pwc.com/ca/en/pharma-life-sciences/publications/pwc-canadian-life-sciences-industry-forecast-2013-03-en.pdf 3 Canada Revenue Agency. (2015). Flow-through shares (FTSs). Retrieved on October 5, 2015 from http://www.cra-arc.gc.ca/tx/bsnss/tpcs/fts-paa/menu-eng.html

Ministry of Technology, Innovation, and Citizens’ Services (MTIC) MTIC has the provincial responsibility for research and innovation with the goal of supporting job creation and providing a long-term foundation for the province. MTIC established the BC Knowledge Development Fund (BCKDF) in 1998 to provide funding for public post-secondary institutions, research hospitals, and affiliated non-profit agencies.4 Specifically, the BCKDF provides restricted funding for capital projects and does not cover operating and research costs. Furthermore, the BCKDF is aligned with the BC Jobs Plan in which Health and life sciences is a key focus area. In

2013/2014, the BCKDF awarded $22.8 million to Simon Fraser University and the University of British Columbia for 10 major research or innovation infrastructure projects.5

Secondly, MTIC is working with the BC Technology Industry Association to encourage the federal government to adopt the Small Business Venture Tax Credit program which would allow for a possible

doubling of tax credits available for BC firms (a possible increase of $5 million in 2015/2016).

Lastly, a province-wide alliance of 10 non-profit organizations has banded together to create the BC Acceleration Network (BCAN) to deliver the BC Venture Acceleration Program (VAP). From inception through to December 2013, VAP has been used by 202 new companies, created 523 jobs, generated $9.9 million in revenue, and attracted $39.6 million in funding.

4 Ministry of Technology, Innovation and Citizens’ Services. (2015). British Columbia Knowledge Development Fund. Retrieved on October 5, 2015 from http://www.gov.bc.ca/citz/technologyandinnovation/Funding/BCKDF/index.html 5 Ministry of Technology, Innovation and Citizens’ Services. (2014, June 19). 2013/2015 Annual Service Plan Report. Retrieved on October 5, 2015 from http://www.bcbudget.gov.bc.ca/Annual_Reports/2013_2014/pdf/ministry/mtics.pdf

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Ministry of Advanced Education Under Canada Starts Here: The BC Jobs Plan, the Ministry of Advanced Education has developed an International Education Strategy to attract more

international students to BC and to send more BC students abroad.6 A key objective of this strategy is to attract students who will stay in BC after finishing their studies and help meet BC’s labour market needs, especially in high demand areas such as in health occupations. In order to further incentivize international students, a database of post-secondary scholarships for non-Canadian students has been developed as well as the Vanier Canada Graduate Scholarships program for international doctoral students.

In addition, Mitacs, a non-profit organization that delivers research and training programs, provides several programs aimed at integrating international students with local industry, government, and academia:7

Accelerate – Graduate student-led industrial research and development internships to allow students to develop experiential skills in real-world environments.

Elevate – A program that supports PhD

graduates to work on a joint industry-academia research project for two years.

Globalink – A program that matches

international students with a university faculty member, local entrepreneurs, and business leaders in order to build professional and networking skills.

Step – A program that trains graduate students and postdoctoral fellows in interpersonal, project management, and entrepreneurial skills.

6 Ministry of Advanced Education. (2012). British Columbia’s International Education Strategy. Retrieved on October 8, 2015 from http://www.aved.gov.bc.ca/internationaleducation/forms/InternationalEducationStrategy_WEB.PDF 7 LearnLive BC. (2015). Scholarships and special programs. Retrieved on October 8, 2015 from http://www.learnlivebc.ca/learn/scholarships

Ministry of International Trade and Responsible for Asia Pacific Strategy and Multiculturalism There are also two tax incentive programs in place for BC resident investors (individuals and corporations) through the Ministry of International Trade - Investment Capital Branch: (1) Venture Capital Corporation and (2) Eligible Business Corporation. These two programs allow BC-based individuals and corporations to receive a 30% refundable (non-refundable for corporations) tax credit on the value of their investments up to an annual maximum tax credit of $60,000.8

8 Ministry of International Trade and Responsible for Asia Pacific Strategy and Multiculturalism. (2015). Venture Capital Programs. Retrieved on October 12, 2015 from http://www.mit.gov.bc.ca/icp/vcp/

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Genome BC Genome BC is a non-profit research organization that invests in and manages large-scale genomics and proteomics research projects and enabling

technologies.9 Genome BC invests in the following strategic areas:

Forestry

Human health Energy, mining and the environment Agri-food Fishers and aquaculture

Technology

There are also other funding opportunities available through Genome BC such as the 2015 Large-Scale Applied Research Project Competition and the 2015 Disruptive Innovation in Genomics Competition.

Michael Smith Foundation for Health Research (MSFHR) MSFHR is a non-profit organization that supports active researchers in BC to produce innovative solutions to health problems and has invested more than $360 million since 2001.10 MSFHR currently has many active programs but the two largest are the Scholar Awards and the Trainee Awards. The Scholar Awards help BC attract top research talent by

providing funding to new researchers for launching independent research careers and building strong research programs. In addition, the Trainee Awards support highly qualified applicants at the post-PhD and post-health professional degree stages to prepare for careers as independent health researchers.

The Centre for Drug Research and Development (CDRD) & CVI The CDRD is an independent, non-profit organization with the de-risking discoveries stemming from publicly funded research to create viable investment opportunities for the private sector.11 The CDRD has established Innovation Funds with some of the world’s top pharmaceutical

9 Genome British Columbia (2015). Genome BC at a Glance. Retrieved on October 8, 2015 from http://www.genomebc.ca/about/ 10 Michael Smith Foundation for Health Research. (2015). About. Retrieved on October 8, 2015 from http://www.msfhr.org/about 11 The Centre for Drug Research and Development. (2015). About Us. Retrieved on October 8, 2015 from http://www.cdrd.ca/about-us/

companies, undertaken over 200 research projects, launched five startup companies, out-licensed five novel therapies, and moved five additional technologies through commercialization.

Some of the CDRD’s current initiatives include:

Support for industry activities o Providing incubator activities that are

focused on the evaluation, validation, development, and de-risking of commercially/therapeutically promising early-stage technologies.

o Providing accelerator activities that provide entrepreneurs and small/mid-sized entities with the additional commercial expertise, support, resources, and connections to strategic partners and seed funding required to actively grow.

Support for research partners o Providing principal investigators and

trainees access to a fully equipped/staffed drug development platform shared across three sites in BC.

CDRD Drug Development Program o A program that offers hands-on training to

emerging health researchers in state-of-the-art research labs complemented by

scientific and business workshops.

CDRD Ventures Inc. (CVI)

o CVI is a commercial arm of CDRD that acts

as the interface between CDRD and industry to accelerate drug development and technology commercialization. CVI supports this through in-licensing selected intellectual property generated from CDRD projects directly from the inventor or affiliated institution. This is for the purpose of forming strategic partnerships with pharmaceutical and biotechnology companies to develop promising drug research into medical therapeutics for commercialization. Potential profits from CVI are then reinvested to CDRD in order to support future drug development projects.

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Vancouver Coastal Health (VCH) Research Institute VCH Research Institute has over 1,500 personnel in

seven research centres who are involved in various activities from laboratory-based research to gain understanding about the human body and health conditions, to clinical research focused on evaluating new ways to provide patient care.12 Currently active research programs include: community-based translational research, emergency medicine research, and the rehabilitation research program.

Life Sciences Institute (LSI) LSI is an organization with a vision of maintaining and improving on its international standing in basic life science research and becoming the technological driver for the implementation of personalized medicine in BC.13 LSI is actively involved in championing personalized medicine projects,

supporting research groups, and generating academic publications. Furthermore, LSI has a strategic focus on commercialization and has engaged in knowledge translation with its industrial partners including: over 20 spinoffs, 250 granted patents, 80 technologies, 60 commercial partners, 3 approved drugs, and 10 drugs currently in trials.

12 Vancouver Coastal Health Research Institute. (2015). Who We Are. Retrieved on October 10, 2015 from http://www.vchri.ca/about-us/who-we-are 13 Life Sciences Institute. (2015). Our Vision. Retrieved on October 10, 2015 from http://lsi.ubc.ca/our-vision/

Prevention of Organ Failure (PROOF) PROOF is a not-for-profit organization that aims to

efficiently develop blood tests to better predict, diagnose, manage, and treat heart, lung, and kidney disease. PROOF’s current programs focus on heart failure, chronic obstructive pulmonary disease, and chronic kidney disease.14 PROOF also has a service arm that provides computational expertise to organizations who are seeking to discover, develop, and implement blood-based molecular biomarkers in a clinical setting.

Accel-Rx The Accel-Rx Health Sciences Accelerator is a national organization focused on maximizing the creation of new health science companies in Canada and ensuring that they have the necessary resources to enable them to become the new generation of

health science “anchor companies”. Accel-Rx has partnered with the Business Development Bank of Canada (BDC) to provide seed capital. In addition, Accel-Rx offers the following resources to support the creation of new companies:

National network of entrepreneurs to drive and guide company creation

Partnerships with the venture capital Access to and commercial input from industry partners

Access to business/finance/development expertise

Specialized entrepreneurial training

Regular meetings and events to bring together investors, entrepreneurs, researchers, industry partners, and technology developers

14 Proof Centre. (2015). About. Retrieved on October 12, 2015 from http://www.proofcentre.ca/about/

20

Innovation Boulevard A partnership has recently been founded by Fraser Health, Simon Fraser University, and the City of Surrey with the objective of developing a life science

cluster in a concentrated area of Surrey. The hope is that the collection of talent, knowledge, expertise, and funding will create a life science centre of excellence in British Columbia. The vision of Innovation Boulevard is to: (1) improve health outcomes, (2) implement intelligent solutions for the healthcare system, (3) attract talented clinicians and researchers, and (4) grow companies in healthcare related technology and services sectors.15

15 Innovation Boulevard. (2015). Homepage. Retrieved on October 8, 2015 from http://www.innovationboulevard.ca/

HQ Vancouver HQ Vancouver is a partnership and funding agreement between the Business Council of British Columbia (BCBC), the Government of Canada, and

the Province of British Columbia.16 The goal of HQ Vancouver is to attract expanding medium to large-sized Asian corporations to establish their North American head offices in BC. HQ Vancouver has also highlighted the life sciences sector as a sector that is “showcasing innovation and growth” and that biopharmaceuticals is the fastest growing sector in Canada by number of companies.17

16 HQ Vancouver. (2015). About. Retrieved on October 8, 2015 from http://www.hqvancouver.ca/#About 17 HQ Vancouver. (2015, February 5). BCTI BC Head Office HQ Brochure. Retrieved on October 8, 2015 from http://www.hqvancouver.ca/wp-content/uploads/2015/04/BCTI_BCHeadOfficeHQ-Brochure-Feb2015_English-Print-Draft2.pdf

21

Access to Funding and Capital Capital funding consists of two primary sources: (1)

venture capital and (2) private equity. Furthermore, the Business Development Bank of Canada (BDC) is a federal Crown corporation and a dedicated bank for Canadian entrepreneurs that also provides venture capital.

It is important to note the different objectives of venture capital (VC) investors vs. private equity (PE) investors. The majority of venture capital investors tend to purchase smaller holdings in more companies and have a long-term view whereby profit is realized as the company grows. On the other hand, private equity investors tend to purchase large holdings (oftentimes 100%) in fewer companies and have a shorter-term view whereby they generate profit based on turning the company around and selling it for more than they paid.

18 Business Development Bank of Canada. (2015). BDC Annual Report 2015. Retrieved on October 3, 2015 from http://www.bdc.ca/EN/Documents/annualreport/BDC_AnnualReport_2015.pdf 19 Canadian Venture Capital & Private Equity Association. (2014, July). 2014 Canadian Venture Capital Market Overview. Retrieved on October 3, 2015 from http://www.cvca.ca/wp-content/uploads/2014/07/CVCA-2014-VC-data-deck1.pdf

BC received a total of $554 M in VC funding in 2014 across all industries with an estimated $122.1 M dedicated to life sciences which is only second to Ontario’s $205.4 M. Furthermore, every dollar of VC investment is expected to generate between a 3% and 15% return and equates to a real dollar return of between $3.4 M and $18.8 M for BC life science VC investors in 2014. For reference, investing in the S&P 500 Index has yielded a 9.60% average since inception.20

In terms of PE funding, BC is estimated to have received a total of $2.2 B in PE funding in 2014 with $229.7 M attributable to life sciences. Based on average exit value to average capital invested, it is estimated that the BC life science sector returned $297.2 M in profit to PE investors in 2014.

20 New York University (NYU) Stern. (2015). Annual Returns on Stock, T. Bonds and T. Bills: 1928 – Current. Retrieved on October 3, 2015 from http://pages.stern.nyu.edu/~adamodar/New_Home_Page/datafile/histretSP.html

Province

2014 VC Funding

(excluding BDC)

2014 VC Funding

(BDC Only)18

Total 2014 VC Funding

19

Estimated Life Science Portion of

VC Funding

Esti-mated Annual

ROE

Potential Return to VC

Life Science Investors

(Low)

Potential Return to VC

Life Science Investors

(High)

BC $509.1 $44.9 $554.0 $122.1

3% to 15%

$3.4 $18.8

AB 47.8 4.2 52.0 11.5 0.3 1.8

SK 20.2 1.8 22.0 4.8 0.1 0.7

MB 29.4 2.6 32.0 7.1 0.2 1.1

ON 856.5 75.5 932.0 205.4 5.7 31.7

QC 271.1 23.9 295.0 65.0 1.8 10.0

NB 8.3 0.7 9.0 2.0 0.1 0.3

NS 16.5 1.5 18.0 4.0 0.1 0.6

PE 0.1 0.0 0.2 0.0 0.0 0.0

NL 2.8 0.2 3.0 0.7 0.0 0.1

Total $1,761.9 $155.3 $1,917.2 $422.5 $11.8 $65.1

22

Access to Talent & Knowledge Talent and knowledge are key foundational components in developing a successful life sciences ecosystem. Although the Ministry of Advanced Education does not provide direct enrolment data on life sciences, it was possible to derive life science enrolment (refer to Appendix iv – Enrolment Calculations for details).21

Life science, as a standalone enrolment group, would be the largest subject grouping in BC with total 2013/2014 domestic and foreign enrolment of 56,113 and 1,735, respectively.

However, the overall four-year growth rate shows a stark contrast between domestic and foreign student enrolment. As in the below graph, domestic enrolment in all cases is experiencing a negative compound annual growth rate (CAGR) between 2010 and 2014. On the other hand, foreign enrolment is experiencing strong positive growth across the board.

Alarmingly, our universities are training a growing number of foreign life sciences students who may go back to their home countries upon graduation, while the decreasing number of domestic students enrolling in life sciences could lead to shortage of skilled employees in BC who can meet the life sciences 21 Ministry of Advanced Education. (2015, May). Post-Secondary Central Data Warehouse Standard Reports. Retrieved on October 3, 2015 from http://www.aved.gov.bc.ca/datawarehouse/documents/program_area.pdf

sector’s growing demands. This may present a significant opportunity for life sciences in BC to capitalize on the foreign enrolment trend in order to develop and retain foreign talent in BC.

Province Total 2014 PE

Funding

Estimated Life Science Portion of PE Funding

Average Exit Multiple

Estimated Exit Value for Life

Science Investments

Potential Return to PE Life

Science Investors

BC $2,200.0 $229.7

2.35

$517.2 $297.2

AB 12,400.0 1,294.8 2,914.9 1,674.9

SK 314.0 32.8 73.8 42.4

MB 82.3 8.6 19.3 11.1

ON 20,400.0 2,130.2 4,795.5 2,755.5

QC 5,700.0 595.2 1,339.9 769.9

NB - - - -

NS - - - -

PE - - - -

NL 112.3 11.7 26.4 15.2

Total $41,208.6 $4,303.0 $9,687.1 $5,566.2

23

-10%

-5%

0%

5%

10%

15%

20%

25%

30%

Life Science Business andManagement

Developmental Art Trades Human andSocial Services

PersonalImprovementand Leisure

Engineeringand Applied

Sciences

Other

Co

mp

ou

nd

An

nu

al G

row

th R

ate

(C

AG

R)

Four-Year Enrolment Growth Rates

Domestic 4-year Growth Rate Foreign 4-year Growth Rate

0

10,000

20,000

30,000

40,000

50,000

60,000

Life Science Business andManagement

Developmental Art Trades Human andSocial Services

PersonalImprovementand Leisure

Engineeringand Applied

Sciences

Other

# o

f S

tud

en

ts

Domestic vs. Foreign Student Enrolment by Subject - 2013/2014

Domestic 2013-2014 Foreign 2013-2014

Positive growth

Negative growth

Largest subject area

24

Startup Lifecycle for Life Sciences

Although the life sciences industry is often compared to the high tech industry, there are specific differences that must be highlighted. One of the most significant differences is that a life science startup company goes through an elongated startup development phase that is typically more capital-intensive than a comparable high tech startup

company. As a result, this creates significant barriers of entry for life science companies that want to move past the startup phase which further supports the finding that 84% of BC’s life science companies have less than 10 employees.

Based on the above graphic, the typical high tech startup will move through six stages in its lifecycle to go from ideation all the way to becoming an established company.22 The entire lifecycle is usually very short and may only last a few years or less.

Conversely, a life science biopharmaceutical or

pharmaceutical startup will not only need to go through a similar startup lifecycle but will spend a significant amount of time in clinical trials and regulatory review which could take between 5 and 10 years before product launch (commercialization).23

22 Startup Commons. (2015). Startup Development Phases. Retrieved on October 1, 2015 from http://www.startupcommons.org/startup-development-phases.html 23 Mayer Brown. (2009, March). Pharma & Biotech – Drug Development Valuing the Pipeline – A UK Study. Retrieved on September 25, 2015 from https://www.mayerbrown.com/files/Publication/53189dc5-d8f8-45aa-9d4d-62646b17c2e8/Presentation/PublicationAttachment/c7199cda-f73d-4377-a09d-cc26afc93408/0728ten_Valuation_Report.pdf

25

The other difference is patent protection. Pharmaceuticals in Canada may receive up to 20 years of patent protection from the patent filing date which improves commercialization time for investors before compulsory licensing (generic market entry). High tech patents also provide protection for up to a maximum of 20 years, but the patent holders must maintain their patent and are required to re-evaluate the economic value of their maintenance application on a yearly basis.24

24 Canadian Intellectual Property Office. (2015). A Guide to Patents. Retrieved on October 13, 2015 from https://www.ic.gc.ca/eic/site/cipointernet-internetopic.nsf/eng/h_wr03652.html

Furthermore, a medical device company will go through similar lifecycle steps but the clinical trial testing phase is generally shorter than a biopharmaceutical/pharmaceutical company and is device-dependent.25 For example, an in-body device such as a cardiovascular stent may require more clinical trials than an external device such as a diagnostic imaging machine.

25 Medical Device Regulatory Solutions. (2015). US Medical Device Development Life Cycle Overview. Retrieved on October 13, 2015 from http://www.mdrsllc.com/Device-Development-Life-Cycle.html

26

Conclusion

What is the collective provincial ambition for life sciences in BC now and in the future?

The life sciences sector in British Columbia is in the early stages of maturity and is currently growing organically. Through the analysis of data collected for British Columbia’s life sciences sector, the following conclusions have been made based on the information cited in this report:

1. The life sciences sector is a significant contributor to the BC economy with $117 billion in GDP, direct employment of 177,914, and provincial tax revenues of $606 million. There is potential for

this sector to make greater contributions to the BC economy as it is currently outpacing both the Canadian life sciences average compound annual growth (CAGR) in employment (2.2% nationally vs. 3.4% in BC) and in GDP (2.2% nationally vs. 2.4% in BC).

2. Getting past 10 employees to gain critical mass to commercialize. BC has the highest

percentage (84%) in Canada (for major life sciences clusters) of life science companies that have less than 10 employees. This signals that a very large number of BC life science companies are still in the startup phase of development. Many of these companies have difficulty finding a route to progress to the next stage of development (i.e. post-startup stage). As such, these small companies are required to seek strategic partners or licensing agreements to access bigger markets and commercialize their brands as they do not have critical mass and have difficulty in accessing target markets and capital without significant support.

3. Substantial future gains for the life sciences sector will be dependent on coordinated efforts by industry, scientists, and government. Through our analysis, we have observed that many countries with government funded health systems such as the United Kingdom and Australia, have committed to leadership of

coordinated strategies to develop their respective life sciences sectors. These health economies have

determined that there are reciprocal benefits gained from a sector that develops innovation which can then be used to improve patient outcomes within their universal healthcare systems. This coordinated strategic effort can support problem solving for sector-specific challenges including:

Access to capital from all sources and at all stages of organizational growth with improved visibility from private investors including synchronized government programs that provide resources to increase life sciences innovation and that generate capital investments through tax incentives.

Developing, attracting and retaining talent through world class programs and research at BC universities and post-secondary schools as well as supporting life sciences employees through the development of future opportunities and continued improvement of livability standards to make BC an attractive place to live. Alarmingly, foreign students that are enrolled in four-year life sciences programs are growing at just under 7% compound annual growth while domestic student enrollment exhibits a downward trend (-1%). This could leave BC with a skills gap in life sciences as foreign students may return to their home countries upon graduation. Students will need encouragement to enroll in the life sciences if we are to grow a local knowledge-based workforce.

Creating the “right” environment that encourages research and development to attract world-class scientists, researchers, entrepreneurs, and business people by nurturing innovations that will grow into future companies. This can be potentially achieved through the development of a dynamic life sciences ecosystem (network) that prioritizes innovative research, rewards innovation, focuses on BC’s strengths, and removes/minimizes barriers to growth.

27

Appendix

i. Glossary and Acronyms BDC: Business Development Bank of Canada.

CAGR: Compound annual growth rate. CAGR is the mean annual growth rate based on the beginning and ending values over a specified time period.

CDRD: The Centre for Drug Research and Development.

GDP: Gross domestic product. A primary measure used to gauge the health of the economy.

High tech: Refers to the high tech industry which is mainly associated with advanced computing electronics. Life sciences is distinct from, but also overlaps with, the high tech industry.

Life sciences: Life sciences is comprised of scientific fields that involve the scientific study of living organisms.

LSBC: LifeSciences BC.

LSI: Life Sciences Institute.

LSO: Life Sciences Ontario.

MSFHR: Michael Smith Foundation for Health Research.

MTIC: Ministry of Technology, Innovation, and Citizens’ Services.

NAICS: North American Industry Classification System. A classification system used by the Canadian, US, and Mexican governments to classify business establishments according to the type of economic activity.

PROOF: Prevention of Organ Failure Centre.

PE: Private equity. PE investment refers to private investments (equity securities or debt) that are not publicly traded on a stock exchange.

VC: Venture capital. VC investment refers to initial seed capital to emerging growth companies/startups in exchange for an equity stake in the company.

28

ii. List of Applicable Life Science NAICS Codes Refer to the “LSBC” column for the list of applicable NAICS codes that were used to formulate the findings and conclusions in this report.

Agricultural Feedstock and Chemicals BIO LSO LSBC

311221 - Wet Corn Milling ● ●

311222 - Soybean processing ●

311223 - Other Oilseed Processing ●

311224 - Oilseed processing CAN

●

325190 - Other basic organic chemical

manufacturing ●

325193 - Ethyl Alcohol Manufacturing ●

325220 - Artificial and synthetic fibres and

filaments manufacturing ●

325221 - Cellulosic Organic Fiber Manufacturing ●

325311 - Nitrogenous Fertilizer Manufacturing ●

325312 - Phosphatic Fertilizer Manufacturing ●

325313 - Chemical fertilizer (except potash)

manufacturing ●

325314 - Mixed fertilizer manufacturing ● ●

325320 - Pesticide and other agricultural

chemical manufacturing ● ●

418320 - Seed merchant wholesalers

●

418390 - Agricultural chemical and other farm

supplies merchant wholesalers ●

424910 - Farm Supplies Merchant Wholesalers ●

Drugs and Pharmaceuticals BIO LSO LSBC

325410 - Pharmaceutical and medicine

manufacturing CAN ● ●

325411 - Medicinal and Botanical Manufacturing ●

●

325412 - Pharmaceutical Preparation

Manufacturing ●

●

325413 - In-Vitro Diagnostic Substance

Manufacturing ●

●

325414 - Biological Product (except Diagnostic)

Manufacturing ●

●

414510 - Pharmaceuticals and pharmacy supplies

merchant wholesalers CAN ● ●

424210 - Drugs and Druggists' Sundries

Merchant Wholesalers ●

●

Medical Devices and Equipment BIO LSO LSBC

334510 - Electromedical and Electrotherapeutic

Apparatus Manufacturing ●

●

334516 - Analytical Laboratory manufacturing ●

●

334517 - Irradiation Apparatus manufacturing ●

●

339110 - Medical equipment and supplies

manufacturing ● ●

339112 - Surgical and Medical Instrument

Manufacturing ●

●

339113 - Surgical Appliance and Supplies

Manufacturing ●

●

339114 -Dental Equipment and Supplies

Manufacturing ●

●

417930 - Professional machinery, equipment and

supplies merchant wholesalers CAN ● ●

423450 - Medical, Dental, and Hospital

Equipment and Supplies Merchant Wholesalers ●

●

Research, Testing, and Medical

Laboratories BIO LSO LSBC

541380 - Testing laboratories ● ● ●

541710 - Research and development in the

physical, engineering and Life Sciences ● ● ●

621510 - Medical and diagnostic laboratories

CAN ● ● ●

621511 - Medical Laboratories ●

●

Additional industries included in the

expanded definition BIO LSO LSBC

3114 - Fruit and vegetable preserving and

specialty food manufacturing ●

3115 - Dairy product manufacturing

●

3118 - Bakeries and tortilla manufacturing

●

31212, 31213, 31214 - Breweries, Wineries and

Distilleries ●

4464461 - Health and personal care stores

● ●

621 - Ambulatory health care services

● ●

622 - Hospitals

● ●

541690 - Other scientific and technical

consulting services ● ●

541711 - R&D biotech research

● ●

541712 - Research and development laboratories

541720 - R & D Life Science ● ●

29

iii. Life Science Classification Methodology With respect to available data from Statistics Canada, there is no defined “life science” category classification. As such, it is necessary to develop and apply a consistent methodology to determine which companies are related to life sciences (refer to Appendix ii – List of Applicable Life Science NAICS Codes). Although there is no agreed upon

industry definition of the life science sector, other organizations such as Battelle/BIO State Bioscience and Life Sciences Ontario (LSO) have already attempted to define the sector.

Battelle/BIO State Bioscience first proposed a classification whereby the life science sector would encompass the following key areas:

Agricultural feedstock and chemicals Drugs and pharmaceuticals

Medical devices and equipment Research, testing, and medical labs Bioscience-related distribution

Furthermore, LSO also used the above classification as the basis for defining the life science sector in Ontario and also included several additional industries in an “expanded definition” of life sciences. LSBC reviewed the approach and methodology by these two organizations and has further refined the definition of life sciences as it pertains to BC. LSBC’s definition of life sciences does not include any agricultural feedstock and chemicals companies but does include several additional categories such as: hospitals, R&D, and ambulatory health care services. Refer to Appendix ii – List of Applicable Life Science NAICS Codes for additional details on NAICS codes that are in scope for life sciences.

The following Statistics Canada CANSIM tables were used as the underlying data for this report:

CANSIM Table Description

281-002426 Survey of Employment, Payrolls and Hours (SEPH), employment by type of employee and

detailed North American Industry Classification System (NAICS)

281-002727 Survey of Employment, Payrolls and Hours (SEPH), average weekly earnings by type of employee, overtime status and detailed North American Industry Classification System

(NAICS)

379-003028 Gross domestic product (GDP) at basic prices, by North American Industry Classification System (NAICS), provinces and territories

551-000129 Canadian business patterns, location counts, employment size and North American Industry Classification System (NAICS), national industries, by Canada and provinces, Decembre 2011

26 Statistics Canada. (2014). Survey of Employment, Payrolls and Hours (SEPH), employment by type of employee and detailed North American Industry Classification System (NAICS). Retrieved on September 15, 2015 from http://www5.statcan.gc.ca/cansim/a26?lang=eng&id=2810024 27 Statistics Canada. (2014). Survey of Employment, Payrolls and Hours (SEPH), average weekly earnings by type of employee, overtime status and detailed North American Industry Classification System (NAICS). Retrieved on September 15, 2015 from http://www5.statcan.gc.ca/cansim/a26?lang=eng&id=2810027 28 Statistics Canada. (2014). Gross domestic product (GDP) at basic prices, by North American Industry Classification System (NAICS), provinces and territories. Retrieved on September 15, 2015 from http://www5.statcan.gc.ca/cansim/a26?lang=eng&id=3790030 29 Statistics Canada. (2011). Canadian business patterns, location counts, employment size and North American Industry Classification System (NAICS), national industries, by Canada and provinces, December 2011. Retrieved on September 15, 2015 from http://www5.statcan.gc.ca/cansim/a26?lang=eng&id=5510001

30

551-000330 Canadian business patterns, location counts, employment size and North American Industry Classification System (NAICS), national industries, by Canada and provinces, December 2012

551-000531 Canadian business patterns, location counts, employment size and North American Industry

Classification System (NAICS), national industries, by Canada and provinces, December 2013

552-000132 Canadian business patterns, location counts with employees, by employment size and North American Industry Classification System (NAICS), Canada and provinces, December 2014

A limitation of the CANSIM data above is that detailed information is only available to a precision of 4-digit NAICS codes. For example, data is aggregated to a 4-digit NAICS code (5413 - Architectural, Engineering and Related Services) and cannot be split into its constituent six-digit NAICS codes such as:

Four-Digit NAICS Code

Six-Digit NAICS Code

Description Related to Life Science?

5413

541380 Testing Laboratories Yes

541310 Architectural Services No

541320 Landscape Architectural Services No

541330 Engineering Services No

541340 Drafting Services No

541350 Building Inspection Services No

541360 Geophysical Surveying and Mapping Services No

541370 Surveying and Mapping (Except Geophysical) Services No

As in the table above, using a four-digit NAICS code to develop life science metrics would result in significant overstatement as only a small proportion of NAICS 5413 specifically relates to life science. As such, it is necessary to derive weighting factors to more precisely approximate the relevant life sciences portion of each four-digit NAICS code. In order to determine an appropriate weighting, CANSIM Table 551-0005 was used because it contained data on six-digit NAICS codes with respect to the number of establishments based on employee size.

As an example, a midpoint value was used to weight the employee size categories and was applied to the total number of employees in NAICS 541380 (to yield a life science-specific weight) as well as NAICS 5413 (to yield an overall industry group weight). Finally, dividing the life science-specific weight by the overall industry group weight yields a weighting factor 0.115 that is applied to NAICS 5413 data in order to derive the relevant life sciences portion.

30 Statistics Canada. (2012). Canadian business patterns, location counts, employment size and North American Industry Classification System (NAICS), national industries, by Canada and provinces, December 2012. Retrieved on September 15, 2015 from http://www5.statcan.gc.ca/cansim/a26?lang=eng&id=5510003 31 Statistics Canada. (2013). Canadian business patterns, location counts, employment size and North American Industry Classification System (NAICS), national industries, by Canada and provinces, December 2013. Retrieved on September 15, 2015 from http://www5.statcan.gc.ca/cansim/a26?lang=eng&id=5510005 32 Statistics Canada. (2014). Canadian business patterns, location counts with employees, by employment size and North American Industry Classification System (NAICS), Canada and provinces, December 2014. Retrieved on September 15, 2015 from http://www5.statcan.gc.ca/cansim/a26?lang=eng&id=5520001

31

# of Employees

Midpoint # of

Employees

# of Establishments NAICS 541380

(Six-Digit)

# of Establishments

NAICS 5413 (Four-Digit)

NAICS 541380 – Life Science-

Specific Weight

NAICS 5413 – Overall Industry

Group Weight

1 to 4 2.5 861 14,516 2,153 36,290

5 to 9 7.0 219 2,605 1,533 18,235

10 to 19 14.5 186 1,919 2,697 27,826

20 to 49 34.5 196 1,618 6,762 55,821

50 to 99 74.5 97 541 7,227 40,305

100 to 199 149.5 28 218 4,186 32,5951

200 to 499 349.5 12 111 4,194 38,795

500+ 500.0 2 17 1,000 8,500

29,751 258,362

Weighting Factor: 0.115

The weighting methodology described above has been consistently applied to the other four-digit NAICS codes contained in this report and the below table provides a summary of the weights.

Four-Digit NAICS Code Description Weight

3254 Pharmaceutical and Medicine Manufacturing 1.000

3345* Navigational, Measuring, Electromedical, and Control Instruments Manufacturing

-

3391 Medical Equipment and Supplies Manufacturing 1.000

4145 Other Machinery, Toiletries, Cosmetics, and Sundries Merchant Wholesalers

0.617

4179 Other Machinery, Equipment and Supplies Merchant Wholesalers

0.433

4234** Professional and Commercial Equipment and Supplies Merchants Wholesalers

-

4242** Drugs and Druggists’ Sundries Merchant Wholesaler -

4461 Health and Personal Care Stores 1.000

5413 Architectural, Engineering, and Related Services

0.115

5416 Management, Scientific, and Technical Consulting Services

0.213

32

5417*** Scientific Research and Development Services 0.161

621**** Ambulatory Health Care Services 1.000

622**** Hospitals 1.000

* CANSIM Table 551-0005 only includes NAICS 334511 and NAICS 334512. No additional info was available for the following specific life science NAICS codes: 334510, 334516, and 334517. As such, no weight will be assigned to the 3345 four-digit NAICS code.

** CANSIM information was not available for NAICS 4234 and NAICS 4242.

*** NAICS 5417 is a significant category that includes many broad industries that are not related to life science and only limited data is available to further refine the weighting. As such, LSO obtained a customized report from Statistics Canada based on National Occupation Code and calculated an employment weighting factor of 0.161 for NAICS 5417.33 For the purposes of this report, it is assumed that the BC also has a similar employment weighting factor.

**** NAICS 621 and NAICS 622 are three-digit codes and all sub-codes are considered to be relevant to life science. Therefore, the weighting is considered to be 1.000 for these codes.

33 Life Sciences Ontario. (2015, February 25). Life Sciences Ontario Sector Report 2015. Retrieved from: http://www.lifesciencesontario.ca/_files/file.php?fileid=fileMEGmaMmMlc&filename=file_LSO_Sector_Report_2015_FINAL___2015_02_ 25.pdf

33

iv. Enrolment Calculations The Ministry of Advanced Education publishes post-secondary enrolment statistics based on various program areas but does not currently define life sciences as a separate area. The most appropriate proxy for defining life science enrolment would be to combine the enrolment statistics for the Art and Science area as well as the Health area. In

order to isolate the Science students from Art students, a ratio was applied based on the total 2014/2015 enrolment figures from the Faculty of Art vs. the Faculty of Science at the University of British Columbia (UBC).34 Note that enrolment figures in the Science program area may contain enrolment in other non-life science sciences.

Program Area 2010-2011 2011-2012 2012-2013 2013-2014 5-Year CAGR

Domestic Enrolment

Art and Science 67,985 67,490 64,545 61,670 -3.2%

Science (38.2%, see chart below) 25,981 25,792 24,667 23,568 -3.2%

Health 31,355 30,785 31,295 32,545 1.2%

Total Life Science Enrolment: 57,336 56,577 55,962 56,113 -0.7%

Foreign Enrolment

Art and Science 4,010 4,205 4,380 4,780 6.0%

Science (38.2%, see chart below) 1,475 1,529 1,569 1,735 6.0%

Health 150 205 275 240 17.0%

Total Life Science Enrolment: 1,625 1,734 1,844 1,975 6.7%

2014/2015 UBC Enrolment Figures and Weighting

Rank 2014/2015 Enrolment Relative %

Faculty of Science 7,459 38.2%

Faculty of Art 12,059 61.8%

Total: 19,518 100.0%

34 University of British Columbia. (2015). Vancouver Academic Calendar 2015/16. Retrieved on October 6, 2015 from http://www.calendar.ubc.ca/Vancouver/index.cfm?page=appendix1

34

v. Funding Calculations The methodology below attempts to quantify the amount of Canadian VC funding and PE funding that is directed toward life sciences and the estimated returns to VC and PE investors.

Total VC funding in 2014 was obtained by province (refer to table below) but a life science breakdown by province was unavailable. As such, it was necessary to extrapolate this information based on a ratio of 22% (derived from the total life science VC funding of $422 M as a proportion of total 2014 VC funding of $1.92 B). Note that the 22% figure for life science VC funding was derived from the Canadian Venture Capital and Private Equity Association’s (CVCA) definition of life sciences and may not directly align with LSBC’s definition of life sciences.35

Furthermore, the potential return to VC investors has been estimated as a range based on the average return on equity (ROE) of the top 10 life science companies (by market capitalization) listed on the TSX as well as on the TSX Venture Exchange. The high end of the range is drawn from the TSX because these companies are well established and tend to provide higher returns as they have already moved past the capital-intensive startup phase; the high end of the figure provides an estimate of long-run return on invested venture capital. Oppositely, the low end of the range is drawn from the TSX Venture Exchange as these companies are in the startup stage and typically have lower

revenues/net income while still requiring significant capital investments in order to grow the business.

Venture Capital Funding Summary (in $ millions)

Province

2014 VC Funding

(excluding BDC)

2014 VC Funding

(BDC Only)36

Total 2014 VC Funding

37

Estimated Life Science Portion of

VC Funding

Esti-mated Annual

ROE

Potential Return to

VC Investors

(Low)

Potential Return to

VC Investors

(High)

BC 509.1 44.9 554.0 122.1

3% to 15%

(see tables

below)

3.4 18.8

AB 47.8 4.2 52.0 11.5 0.3 1.8

SK 20.2 1.8 22.0 4.8 0.1 0.7

MB 29.4 2.6 32.0 7.1 0.2 1.1

ON 856.5 75.5 932.0 205.4 5.7 31.7

QC 271.1 23.9 295.0 65.0 1.8 10.0

NB 8.3 0.7 9.0 2.0 0.1 0.3

NS 16.5 1.5 18.0 4.0 0.1 0.6

PE 0.1 0.0 0.2 0.0 0.0 0.0

NL 2.8 0.2 3.0 0.7 0.0 0.1

Total 1,761.9 155.3 1,917.2 422.5 11.8 65.1

35 Canadian Venture Capital & Private Equity Association. (2014, July). 2014 Canadian Venture Capital Market Overview. Retrieved on October 3, 2015 from http://www.cvca.ca/wp-content/uploads/2014/07/CVCA-2014-VC-data-deck1.pdf 36 Business Development Bank of Canada. (2015). BDC Annual Report 2015. Retrieved on October 3, 2015 from http://www.bdc.ca/EN/Documents/annualreport/BDC_AnnualReport_2015.pdf 37 Canadian Venture Capital & Private Equity Association. (2014, July). 2014 Canadian Venture Capital Market Overview. Retrieved on October 3, 2015 from http://www.cvca.ca/wp-content/uploads/2014/07/CVCA-2014-VC-data-deck1.pdf

35

Return on Equity (TSX)

# Company Name HQ

Quoted Market Value

(in $ millions, Aug. 31, 2015)

2014 Net Income (in $

millions)

2014 Shareholders’

Equity (in $ millions)

1 Valeant Pharmaceuticals International Inc.

QC 104,060 912 5,436

2 Endo International plc Ireland 20,592 (1) 2

3 Concordia Healthcare Corp. ON 3,434 12 258

4 ProMetic Life Sciences Inc. QC 1,109 3 104

5 Novadaq Technologies Inc. ON 847 (24) 162

6 Knight Therapeutics Inc. QC 656 126 479

7 Neovasc Inc. BC 491 (19) 21

8 Nobilis Health Corp. USA 458 13 65

9 CRH Medical Corporation BC 322 1 19

10 Cynapsus Therapeutics Inc. ON 246 (11) 15

Total: 1,012 6,562

Total Return on Equity: 15%

Return on Equity (TSX Venture Exchange)

# Company Name HQ

Quoted Market Value

(in $ millions, Aug. 31, 2015)

2014 Net Income (in $

millions)

2014 Shareholders’

Equity (in $ millions)

1 Patient Home Monitoring Corp. BC 251 (2) 14

2 Tribute Pharmaceuticals Canada Inc.

ON 182 (6) 30

3 BioSyent Inc. ON 97 3 8

4 Stellar Biotechnologies Inc. BC 89 (8) 8

5 Tweed Marijuana Inc. ON 72 Financial Information Unavailable

6 Convalo Health International, Corp. USA 67 (2) 2

7 Eyecarrot Innovations Corp. ON 65 (1) (0)

8 Prism Medical Ltd. ON 53 23 26

9 biOasis Technologies Inc. BC 45 (3) 2

10 IntelGenx Technologies Corp. QC 44 (2) 5

Total: 3 95

Total Return on Equity: 3%

36

A similar methodology to the VC calculations above were used for PE funding. Total 2014 PE funding was obtained by province but a life science breakdown was unavailable. As such, the life science portion of PE funding by province was extrapolated using a ratio of 10% based on total 2014 life science PE funding of $4.3 B vs. total 2014 PE funding of $41.2 B. Note that the 10% figure for life science PE funding was derived from the CVCA’s definition of life sciences and may not directly align with LSBC’s definition of life sciences.38

As previously discussed, PE investors typically will earn a return based on the difference between the exit value of their investments vs. the initial price paid for the investment. A 5-year average exit multiple of 2.35 was calculated based on the average capital invested and exited per deal between 2010 and 2014. Applying the 5-year average exit multiple to the life science portion of PE funding yields an expected exit value for life science investments. Lastly, the initial PE funding amount must be subtracted from the estimated exit value to determine the potential return for a PE investor.

Private Equity Funding Summary (in $ millions)

Province Total 2014 PE

Funding

Estimated Life Science Portion of PE Funding

Average Exit

Multiple

Estimated Exit Value for Life

Science Investments

Potential Return to PE Investors

BC 2,200.0 229.7

2.35 (see table

below)

517.2 297.2

AB 12,400.0 1,294.8 2,914.9 1,674.9

SK 314.0 32.8 73.8 42.4

MB 82.3 8.6 19.3 11.1

ON 20,400.0 2,130.2 4,795.5 2,755.5

QC 5,700.0 595.2 1,339.9 769.9

NB - - - -

NS - - - -

PE - - - -

NL 112.3 11.7 26.4 15.2

Total 41,208.6 4,303.0 9,687.1 5,566.2

2010 2011 2012 2013 2014 Total

Capital Invested (in $ millions) 15,000 26,000 32,000 31,000 41,000 145,000

# of Deals 157 213 238 312 273 1,193

5-Year Average Capital Invested per Deal (in $ millions): 122

Capital Exited (in $ millions) 6,000 11,000 20,000 12,000 29,000 78,000

# of Exits 38 48 48 72 67 273

5-Year Average Exit Value per Deal (in $ millions): 286

5-Year Average Exit Multiple: 2.35

38 Canadian Venture Capital & Private Equity Association. (2014, July). 2014 Canadian Private Equity Market Overview. Retrieved on October 5, 2015 from http://www.cvca.ca/wp-content/uploads/2014/07/CVCA-2014-PE-data-deck.pdf

37

vi. Payroll Calculations Weekly payroll data was obtained from Statistics Canada (CANSIM Table 281-0027)39 and was aggregated to derive the average annual life science wage per employee between 2010 and 2014. BC provincial tax bracket information40 was then applied to the wages to determine the amount of provincial tax paid by each employee.

39 Statistics Canada. (2014). Survey of Employment, Payrolls and Hours (SEPH), average weekly earnings by type of employee, overtime status and detailed North American Industry Classification System (NAICS). Retrieved on September 30, 2015 from http://www5.statcan.gc.ca/cansim/a26?lang=eng&id=2810027 40 Canada Revenue Agency. (2015). Canadian income tax rates for Individuals – current and previous years. Retrieved on September 30, 2015 from http://www.cra-arc.gc.ca/tx/ndvdls/fq/txrts-eng.html

Summary (refer to graphs below for detail) 2010 2011 2012 2013 2014 5-Year CAGR

Average Annual Life Science Wage $47,061 $53,018 $49,359 $48,572 $57,117 4.96%

Provincial Taxes Paid per Employee $2,677 $3,128 $2,823 $2,748 $3,083 9.82%

2014 BC Tax Bracket

Effective Tax Rate

Income

per Bracket

Tax Paid

2013 BC Tax Bracket Effective Tax Rate

Income

per Bracket

Tax Paid

< $37,869 5.06% 37,606 1,903 < $37,869 5.06% 37,568 1,901

$37,870 to $75,740 7.70% 19,511 1,502 $37,870 to $75,740 7.70% 11,004 847

$75,741 to $86,958 10.50% - - $75,741 to $86,958 10.50% - -

$86,959 to $105,592 12.29% - - $86,959 to $105,592 12.29% - -

$105,593 to $151,050 14.70% - - $105,593 to $151,050 14.70% - -

> $151,050 16.80% - - > $151,050 16.80% - -

2014 Totals: 57,117 3,083 2013 Totals: 48,572 2,748

2012 BC Tax Bracket

Effective Tax Rate

Income per

Bracket

Tax Paid

2011 BC Tax Bracket Effective Tax Rate

Income per

Bracket

Tax Paid

< $37,869 5.06% 37,013 1,873 < $37,869 5.06% 36,146 1,829

$37,870 to $75,740 7.70% 12,346 951 $37,870 to $75,740 7.70% 16,872 1,299

$75,741 to $86,958 10.50% - - $75,741 to $86,958 10.50% - -

$86,959 to $105,592 12.29% - - $86,959 to $105,592 12.29% - -

$105,593 to $151,050 14.70% - - $105,593 to $151,050 14.70% - -

> $151,050 16.80% - - > $151,050 16.80% - -

2012 Totals: 49,359 2,823 2011 Totals: 53,018 3,128

2014 BC Tax Bracket

Effective Tax Rate

Income per

Bracket

Tax Paid

< $37,869 5.06% 35,859 1,814

$37,870 to $75,740 7.70% 11,202 863

$75,741 to $86,958 10.50% - -

$86,959 to $105,592 12.29% - -

$105,593 to $151,050 14.70% - -

> $151,050 16.80% - -

2010 Totals: 47,061 2,677

38

vii. Largest Life Science Companies in BC (by # of BC Staff)41

Rank Company Areas of Research Year

Founded

# Global Staff

(2014)

# BC Staff

(2014)

1 STEMCELL Technologies Inc

Stem cell biology focused on hematology, immunology, neurobiology, breast, prostate, pancreas, regenerative medicine and tissue engineering

1993 496 482

2 Neovasc Inc Develops, manufactures and markets

innovative vascular devices offering pericardial tissue processing, vascular product development and design and manufacturing solutions to industry partners

2000 133 132

3 Arbutus Biopharma (formerly Tekmira Pharmaceuticals Corp)

RNA interference therapeutics 1992 103 99

4 Kardium Inc Cardiovascular 2007 86 89

5 Xenon Pharmaceuticals Inc

Pain, epilepsy, dermatology 1996 71 71

6 Response Biomedical Corp

Rapid immunoassay diagnostics for clinical cardiovascular applications, environmental infectious disease testing and bio-threat identification

1991 66 65

7 Amgen British

Columbia Inc

Antibody therapeutics for the treatment

of oncology, inflammation, and infectious diseases

1980 20,000 63

8 Zymeworks Inc Antibody and protein therapeutics development for oncology, autoimmunity

and anti-inflammation applications

2003 52 46

9 ABM Applied Biological Materials Inc

Expression libraries for ORF, siRNA, and miRNA; lentivirus and adenovirus systems; cell immortalization; stem cells; next generation sequencing

2004 71 46

10 Celator Pharmaceuticals

Advanced cancer therapies 2000 35 18

41 Business in Vancouver. (2015, April 28). Biggest Life Sciences companies in B.C. in 2015. Retrieved on October 9, 2015 from https://www.biv.com/datatables/biggest-life-sciences-companies-in-bc-in-2015/

39

viii. LSBC Membership List (Alphabetical) Note that the below table does not include any individuals who are members of LSBC.

Name Name Name Name Name Name Name

AbbVie Corporation

Biolux Research Ltd.

CPG Systems Inc. ImStar Therapeutics Inc.

MRM Proteomics Inc.

Qu Biologics Inc. The Clinical Trial Company (Canada) Ltd.

AbCellera Biopep Solutions Inc.

Curatio Inception Sciences Canada

MSI Methylation Sciences Inc.

ReFleX Wireless Inc.

Trinity Western University

Abnousi Corporate Finance

BioPharma Solutions

DelMar Pharmaceuticals, Inc.

Inliant Dental Technologies

National Research Council Canada

RepliCel Life Sciences Inc.

TRIUMF

Accel-Rx BioTalent Canada

DigiBC - The Digital Media and Wireless Association of BC

InMed Pharmaceuticals Inc.

Neovasc Inc. Research Universities' Council of British Columbia

True North Synergy Inc.

ACCT Canada BIOTECanada Discovery Parks Realty Corp

Innovatek Medical Inc.

Network Immunology Inc.

Response Biomedical Corp.

UCB Canada Inc.

ACETECH Blake, Cassels & Graydon LLP

DTG Partners Innovation Boulevard

Neurodyn Life Sciences Inc.

Reva Solutions (Canada) Ltd.

University of British Columbia

AdvantageBC Blender Media DuMoulin Black LLP

Innovative Targeting Solutions Inc.

New B Innovation Limited

Rick Hansen Institute

University of British Columbia - Faculty of Pharmaceutical Sciences

Aequus Pharmaceuticals

Boehringer Ingelheim (Canada) Ltd.

E-Fund IonsGate Preclinical Services Inc.

NEXSM Inc. Rostrum Medical Innovations Inc.

University of British Columbia - Sauder School of Business

Ag-West Bio Inc. Borden Ladner Gervais LLP

Eli Lilly Canada Inc.

iProgen Biotech Inc. Northern Lipids Inc.

Samuel Mercer Consulting

University of British Columbia - UILO

Alectos Therapeutics Inc.

Boreal Genomics Inc.

Emergo Group Jackson Laboratory Northview Ventures

Sanofi Canada University of Northern BC

Amgen British Columbia

Bovicor Pharmatech Inc.

EMMES Canada Janssen Inc. Novartis Pharmaceuticals Canada Inc.

Seed Intellectual Property Law Group PLLC

University of Victoria

AON BRI Biopharmaceutical Research Inc.

ESSA Pharma Inc.

JBL Group Inc. NSERC Pacific Simon Fraser University

Urban Select Capital Corporation

Aquila Veterinary Diagnostics Ltd.

Bridge Solutions Group

Eupraxia Pharmaceuticals Inc.

Kardium Inc. OGEE Finance Solutions Corp.

Simon Fraser University - UILO

Vancouver Board of Trade

Aquinox Pharmaceuticals Inc.

British Columbia Centre for Excellence in HIV/AIDS

Farabloc Development Corp.

KPMG LLP OncoGenex Pharmaceuticals, Inc.

Sirona Biochem Corp.

Vancouver Coastal Health Research Institute (VCHRI)

ARC Medical Devices Inc.

Bull, Housser & Tupper LLP

Farris, Vaughan, Wills & Murphy LLP

Leapfrog Innovators Consultancy Inc.

Ondine Biomedical Inc.

Sitka Biopharma Inc.

Vancouver Economic Commission

Aspect Biosystems Ltd.

Business In Vancouver

Fasken Martineau DuMoulin LLP

LifeScan Canada Ltd.

OXIPITA INC. SOHO Biotech Inc.

VANTEC (Vancouver Angel Technology Network)

Aspera, an IBM company

Canada Tidybio Science and Technolocy Co

Flanders Investment & Trade (Consulate-General of Belgium)

LightIntegra Technology Inc.

Oyen Wiggs Green & Mutala LLP

Sorin Group Canada Inc.

Verisante Technology, Inc.

40

AstraZeneca Canada Inc.

Canada's Research-Based Pharmaceutical Companies

Fusion Genomics Corporation

LionsGate Technologies Inc. (LGTmedical)

Patheon StarFish Medical VERSANT Ventures

Augurex Life Sciences Corp.

Canadian External Quality Assessment Laboratory (CEQAL)

GE Healthcare Life Sciences

Lipont Pharmaceuticals Inc.

Pfizer Canada Inc.

STEMCELL Technologies Inc.

Viable Healthworks Corp.

Aurin Biotech Inc.

Cardiome Pharma Corp.

Genome British Columbia

Lungpacer Medical Inc.

PHEMI Health Systems Inc.

Student Biotechnology Network (SBN)

viDA Therapeutics Inc.

Aurinia Pharmaceuticals Inc.

Celator Pharmaceuticals

GenomeDx Biosciences Inc.

Malachite Management Inc.

Phoenix Molecular Diagnostics

Symvivo Incorporated

ViewsIQ Inc.

Aurora Biomed Inc.

Celgene Corporation

Genzyme Canada McCarthy Tetrault LLP

PI Pharma Inventor Inc.

Tait Laboratories Inc

VWR International Ltd.

BC Cancer Agency

Centre for Heart Lung Innovation

GlaxoSmithKline Inc.

MedGenesis Therapeutix, Inc.

PR1ME Takeda Canada Inc.

Washington Biotechnology & Biomedical Association (WBBA)

BC Clinical Research Infrastructure Network

Chernoff Thompson Architects

Gowling Lafleur Henderson LLP

MedThree Insurance Group

Precision NanoSystems Inc.

Tantalus Medical Communications

Wavefront Wireless Innovation Society of British Columbia

BC Innovation Council

Christensen O'Connor Johnson Kindness

Health Tech Connex Inc.

Merck Canada Inc. ProNAi Therapeutics, Inc.

Tekmira Pharmaceuticals Corporation

Wax-it Histology Services Inc.

BC Preclinical Research Consortium (BCPRC)

Christie Consulting Service

Hoffmann-La Roche Ltd.

MetaMixis Inc. PROOF Centre of Excellence

Tel-Array Diagnostics Inc.

World Courier, an AmerisourceBergen company

BC Technology Industry Association (BCTIA)

Conquer Mobile iCo Therapeutics Inc.

Michael Smith Foundation for Health Research

Providence Health Care Research Institute

Telus Health Solutions

Xenon Pharmaceuticals Inc.

Biocan Diagnostics Inc.

Contextual Genomics Inc.

ICORD MPI Research, Inc. PwC The Centre for Drug Research and Development (CDRD)

Zymeworks Inc.

41

ix. Contacts

Paul Drohan

President and CEO LifeSciences BC [email protected]

Joyce Drohan Jason Low, CPA, CA

BC Healthcare Leader Finance and Healthcare Consulting PwC PwC [email protected] [email protected]

mailto:[email protected]



42

Acknowledgements

Life Sciences British Columbia would like to acknowledge our Members, Sponsors, Strategic Partners and our Board of Directors whose support

made this report possible.

LifeSciences BC Suite 580 – 1285 West Broadway Vancouver, BC V6H 3X8 Tel: (604) 669-9909 Fax: (604) 669-9912 [email protected]
