With the public markets closed and venture funds in short supply, BIOTECanada is calling for more government support of the Canadian life science industry. In a survey conducted by BIOTECanada and PricewaterhouseCoopers, 78 percent of respondents said raising capital is the greatest challenge for the Canadian industry. But in the difficult economic environment, it is likely that many companies won't be able to find the cash they need to stay in business.
Peter Brenders, President and CEO of BIOTECanada, says that the government should step in with incentives for risk capital and more favorable tax treatment for biotechs. This, they group says, will help Canada remain competitive globally. "Our report is a wake-up call for both government and industry to do more, now, to sustain this important future sector of the economy," said Brenders. Survey respondents also believe continuing to focus on success in their own business and recruiting experienced senior management are the most important actions companies can take.
Gord Jans, National Leader, Life Sciences Group at PwC in Canada, emphasized the importance of investing in the biotech industry now, before it's too late for Canada's life science sector to recover. "Access to capital has always presented a challenge as the industry competes for capital with other sectors," he noted. "However, the situation has been exacerbated by the current economic crisis to the point where there will likely be a significant impact in Canada's ability to emerge as a strong player, post-recession, in this globally competitive industry."
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