canadian life sciences industry forecast 2009

8/14/2019 Canadian Life Sciences Industry Forecast 2009

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Canadian Lie SciencesIndustry Forecast 2009


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Table o contents

1 Introduction

3 Key Findings

4 Survey Respondent Prole

5 Outlook & Challenges

7 Funding

9 Government Support

10 Products & Protability

11 Mergers & Acquisitions

12 Alliances & Collaborations

14 People & Places

17 Reerences & Contributors


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Introduction

We are pleased to present the ndings rom PricewaterhouseCoopers (PwC)Canadian Lie Sciences Industry Forecast 2009, completed in collaboration withBIOTECanada. This report is designed to help stakeholders in the Canadian liesciences and biotechnology industry understand the challenges and concerns otheir peers, especially in light o recent economic conditions.

Canadas world-renowned lie sciences and biotechnology companies areproven leaders in innovation, but they also ace increasing global competition an

challenging economic conditions. Tightening credit has urther limited access tocapital, while the volatility in the markets increases valuation risk, putting pressuon share prices and asset values.

Through an online survey conducted in October and November 2008,167 stakeholders rom corporate, academic, government and other organizationin the Canadian lie sciences and biotechnology industry were asked a series oquestions intended to capture their thoughts on a variety o issues impacting theindustry today and in the uture.

This is our third report and our ndings continue to build on the ndings romour 2006 and 2007 Forecast Reports. In our view, the data gathered providesimportant inormation on where eorts should be placed to improve Canadiansuccess. We trust you will nd the inormation valuable or broadening the

dialogue on these issues.

Peter Brenders Gord JansPresident and CEO National Leader, Lie Sciences GroupBIOTECanada PricewaterhouseCoopers LLP

Canadian Lie Sciences Industry Forecast 2009

PricewaterhouseCoopers


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2 PricewaterhouseCoo


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Key Findings

There are a number o key ndings rom the orecast that canbe used by industry and government to shape the uture or theCanadian lie sciences and biotechnology industry.

1. Outlook & ChallengesCondence is low with two-thirds o respondents saying they are somewhatto not at all condent in the short term outlook or the Canadian industry. The

biggest challenge continues to be raising capital.2. Funding

Respondents are expecting nancing rounds o less than $10 million and theris an increasing pessimism about venture capital as a source o unding.

3. Government SupportMost respondents are looking to the government to create incentives orrisk capital and to create more avourable tax incentives. Given the currenteconomic environment, government will need to act quickly to maximizeCanadas potential or success in this globally competitive industry.

4. Products & ProtabilityAmongst respondents not earning revenues, 25% believe it will take over

5 years or their companies to earn revenue. For respondents who do notcurrently have products or sale, 73% indicated that they are not expecting tohave products or sale within the next two years.

5. Mergers & AcquisitionsM&A continues to be the leading exit strategy oreseen or the industry andthe choice o building a sustainable business continues to be the least populastrategy. The main barrier to implementing M&A is valuation issues.

6. Alliances & CollaborationsRespondents believe collaborative networks will play a key role in businessmodels in the uture, however, their current usage and views on potential to

achieve business objectives is not as robust as PwCs ndings globally.

7. People & PlacesRecruiting experienced senior management is the second most importantaction industry should take to improve Canadas global competitiveness butrespondents are not intending to invest resources to accomplish this goal. Anoverwhelming majority expects to keep their business operations in Canadabut more R&D will be spent outside Canada.


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Survey Respondent Prole

A total o 167 respondents contributed to this years Canadian Lie Sciences Industrysurvey. The respondents rom public and private lie sciences and biotechnology

businesses represent a total o approximately 5,000 employees across Canadaand have revenues o approximately $2 billion.

All regions o Canada were represented in this years surveywith 47% o companies head oces based in Ontario, 30%in Western Canada (Manitoba, Saskatchewan, Alberta andBritish Columbia), 11% in Quebec, 8% in Atlantic Canada,and 4% rom other international locations.

Eighty-three percent o the lie science and biotechnologyorganizations surveyed have less than 100 ull-time

employees and 25% o respondents surveyed state thatthey have 5 or ewer ull-time employees.

Fity percent o survey respondents consisted o ChieExecutive Ocers or Presidents o the organization, 13%were Chie Financial Ocers, and the remainder was romvarious positions such as Chie Operating Ocer, BusinessDevelopment, Regulatory Aairs, etc.

Out o the 125 companies which disclosed whether ornot they generated revenues, nearly 60% o respondentsreported that they currently generate revenues. Fity-ourpercent o revenue generating companies reported revenueo less than $5 million annually.

Companies that were privately held accounted or nearlyone-hal o all respondents, while public companies

represented approximately one-quarter. The remaindero respondents consisted o government/non-protorganizations, providers o nancing to lie science orbiotechnology companies as well as research institutesor academia (Figure 1).

The respondents surveyed oer a wide variety o solutionsand products. The largest area o ocus or surveyrespondents in 2009 are Therapeutics (22%), ollowedby Branded Pharmaceuticals (16%) and Agricultural (9%).

Figure 1: Respondent Business

Life Science/

Biotechnology

Private 48%

Life Science/

Biotechnology

Public 27%

Government or

Not-for-Profit 9%

Provider of Financial

Capital 4%

Research or Academic

Institute 3%

Other 9%


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1. Outlook & Challenges

Industry Condence

Two thirds o survey respondents say they are somewhat to not at all condent in theCanadian industrys short term outlook.

The main driver or this sentiment can likely be attributed tothe current economic crisis. The lie sciences industry as awhole is one that is heavily dependent on cash to supportresearch and commercialization o products, so it is notsurprising that the industry is heavily impacted by currenteconomic conditions. By comparison, pharmaceutical CEOswho participated in PwCs 12th Annual Global CEO Survey1were much more condent than their Canadian counterparts.

As seen in Figure 2, the top three most challenging actorsor respondents organizations over the next two yearsinclude raising capital (54%, similar to 2007s result o 53%),product development, (31%, similar to 2007s result o 29%)and attracting and retaining key employees (25%, comparedto 2007s result o 39%). The act that attracting andretaining key employees continues to be one o the top threeindicates that talent is highly valued and that respondentsrecognize the importance o key employees during tough

economic times. It is also interesting to note that protectingintellectual property (IP) has increased rom 12% in 2007,to 20% in 2009, in percentage o respondents who rank itas a challenging actor, suggesting growing complexity inmanaging IP portolios.

The biggest challenge or the Canadian lie science andbiotechnology industry continues to be the ability to access

capital (78% o respondents as per Figure 3), which hasconsistently been the top choice in all PwC Canadian LieScience Forecast reports to date. Other challenges includeaccess to strategic partners (47%) and development oexperienced entrepreneurs (41%). Access to strategicpartners is a new selection or the 2009 survey; however,there was little change in the importance o the developmeo experienced entrepreneurs, compared to 2007, whichagain suggests that people do make a dierence in tougheconomic times.

Protecting intellectual property

Managing the regulatory process

Attracting a licensing or strategic partner

Attracting and retaining key employees

Product development

Raising capital

Figure 2: Which of the following issues do you feel will be the most

challenging over the next two years for your organization? (respondents

were asked to select top 3 choices)

12%

29%

33%

39%

29%

53%

20%

21%

22%

25%

31%

54%

20092007

38%

76%

41%

47%

78%

Development of experienced entrepreneurs

Ability to access strategic partners

Ability to access capital

Figure 3: What do you believe are the key challenges for the Canadian life

sciences and biotechnology industry to become a stronger global

competitor? (respondents were asked to select top 3 choices)

2020

1. PwCs 12th Annual Global CEO Survey was released in January 2009 and is hereinater reerred to as the 2009 PwC Global CEO Survey.


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Outlook & Challenges

Finally, as seen in Figure 4, the top rated critical successactors or the industry continues to be access to capital,access to talent and tax incentives along with a return topositive nancial markets.

Figure 4: How would you rank the following critical success factors for th

Canadian life science and biotechnology industry now? (respondents we

asked to select top 3 choices)

202011%

26%

24%

35%

6

33%

46%

50%

7%

10%

15%

25%

26%

28%

33%

33%

38%

40%

41%

Other

Robust environment for exits

Reduced regulatory burdens in Canada

Efficiency and effectiveness of R&D

More success stories from existingCanadian life sciences businesses

Access to strategic partners

Increased Canadian venture capital

Positive financial markets

Tax incentives that encourage investmentby providers of capital

Access to experienced talent pool

Access to capital from any source


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The importance o capital is strongly supported by our datain gures 2, 3 and 4. Moreover, highlighting current economicconditions, 64% responded that unavourable industryand market conditions is the top challenge to successullyraising capital or Canadian lie science and biotechnologybusinesses (Figure 5). Accessing capital has alwayspresented a challenge as the industry competes or riskcapital with other sectors; however, this situation has beenexacerbated by the current economic crisis and the overalldecrease in available capital.

Forty-three percent o survey business respondents arecurrently seeking unding, with an additional 35% seekingunding within the next two years. The dollar amountrespondents are seeking is similar to 2007. Only 39%o respondents are seeking over $10 million in unding(Figure 6) and less than $5 million continues to be themost popular choice or respondents (44% in 2009, 42% in2007). In our view, the unding expectations refect a weakcapital raising environment and unding at this level is clearinsucient or long term growth.

2. Funding

Changing Expectations

Access to capital plays a critical role in the short term success o the industry.

Figure 5:What do you perceive to be the top three challenges to

successfully raising capital for a Canadian li fe sciences or biotechnology

business? (respondents were asked to select top 3 choices)

31%

38%

64%

Investors inability to understandthe value proposition

Too many business risks for the investors

Unfavorable industry/market conditionsfor raising capital

Figure 6: Approximately how much funding will you be seeking in your neround of funding?

2020

42%

16%

8%

22%

5%

4

17%

23%

12%

4%

$0 to $5 Million

$5+ to $10 Million

$10+ to $25 Million

$25+ to $100 Million

$100+ Million


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Where do survey respondents believe this money will comerom? One-third o respondents expect unding to comerom strategic partners (Figure 7). Other major sourcesinclude private equity unds (20%), venture capitalists(19%), angel investors (18%) and government (16%). Withthe public markets being closed, one wonders where theindustry will be able to attract the risk capital required tosuccessully commercialize existing programs i it does notcome rom venture capital sources. Clearly the expectationso respondents is that strategic partners and private equityunds will ll the gap.

Figure 7 also reveals a disturbing decline in the numbero respondents expecting unding rom venture capitalistsrom 48% in 2006, to 19% in 2009. While venture capitalunding has always been limited in Canada, it is even morepronounced in this current economic climate. Accordingto Thomson Reuters, 2008 saw the lowest level o venture

capital unding in 12 years with $1.3 billion o venture capitunds invested in Canada, compared to $2.1 billion in 2007 a 38% decline. 27% o the total o these amounts went the lie sciences sector in 2008, compared to 31% in 2007.

By comparison, venture capitalists invested $28 billion inthe U.S. in 2008, according to the MoneyTree Report2. Thisrepresents an 8% decrease in dollars invested and a 4%

decrease in deal volume, compared to 2007. Venture capitainvestment in the lie sciences sector decreased to $8 billioin 2008 compared to 9.3 billion in 2007 a 15% decline.However, the number o lie sciences deals only ell by 3%indicating that deals are still getting done albeit at smalleramounts. Lie sciences represented 28% o all venturecapital investments in the U.S. the highest o any sectorNot surprisingly, the decline in dollar amounts and dealvolumes was the greatest in the ourth quarter o 2008 when capital market troubles gained momentum.

2. The Moneytree Report by PricewaterhouseCoopers and the National Venture Capital Association based on data rom Thomson Reuters

Funding

Figure 7: From what sources do you expect to get this funding?

(respondents were asked to select top 3 choices)

202020Mergers and acquisitions

Secondary public offering

Debt financing

Government federal and provincial

Angel investors

Venture capitalists

Private equity funds

Strategic partners

15%

12%

34%

13%

4

14%

17%

20%

14%

24%

17%

27%

20%

30%

11%

12%

14%

16%

18%

19%

20%

35%

There is no venture capital or liesciences; FIX THAT! Where thereis money, there will be peopleand deals.2009 Canadian Lie Sciences IndustryForecast respondent


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Respondents also indicate that the ederal or provincialgovernments can also contribute by creating more avorabletax incentives (62%), and providing research grants tocompanies (38%) (Figure 8). Creating incentives or riskcapital is a new choice on the survey this year; in previousyears the majority o respondents indicated that creatingmore avorable tax incentives is the most important actionthat government can take to improve Canadas ability tocompete globally in this sector (67% in 2007 and 84% in2006). Tax incentives that encourage investment by providerso capital was also the third highest critical success actor orthe industry (Figure 4). I government cannot provide supportthrough these primary initiatives, it will likely present theindustry with urther challenges in competing successullyon the global stage.

While there has been some improvement on the tax ront

since our 2007 report (notably the increase to reundableR&D tax credits or certain companies and some relaxationo cross-border investment reporting and withholdingobligations), these changes are unlikely to sustain theindustry in the long-term. Unortunately, despite signicantlobbying eorts, the 2009 Federal budget did not containany tax or risk capital incentives that will help the industry.

When asked whether the Canadian government should octheir support to specic sub-sectors o the lie science andbiotechnology industry, one-hal responded yes. This isan increase rom prior year surveys, where only one-thirdbelieved sub-sector support was important and suggestsa growing view that specialization is the best way tocompete globally. Sub-sectors noted as important torespondents included therapeutics, diagnostic, agriculturaland medical devices.

3. Government Support

Incentives or Risk Capital

Three quarters o respondents believe that creating incentives or risk capital is the mostimportant action government can take to improve Canadas ability to compete globally i

the lie science and biotechnology sector.

While governments provide mucneeded grant unding, the proceand time involved is too long aninecient.2009 Canadian Lie Sciences Industry

Forecast respondent

Figure 8: What do you believe are the most important actions that governmentcan take to improve Canadas ability to compete globally in the life sciences

and biotechnology industry? (respondents were asked to select top 3 choices)

20092007200615%

23%

22%

42%

45%

84%

15%

21%

25%

40%

51%

67%

16%

25%

22%

37%

38%

62%

75%

Improve intellectual property rules

Leverage regulatory policies to provide

advantages to Canadian companies

Increase funding of research institutions

Improve the speed of the regulatory process

Research grants to companies

Create more favorable tax incentives

Create incentives for risk capital


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Nearly 25% o non-revenue earning companies believe itwill take over 5 years or their companies to earn revenue(similar to 2007). When respondents, who do not currentlyhave products or sale, were asked i their organization plansto have products or sale within the next two years, 73%answered no. This is similar to previous years responseswhere 71% in 2007 and 62% in 2006 answered no to thesame question.

For companies who do not currently earn prots, more than70% believe it will take over three years to generate a prot,with more than 30% responding that it will take over 5 years.

These gures have remained relatively consistent over thepast 2 years.

Further evidence o the long timeline to revenues and protcomes rom the Canadian Lie Sciences Database3 whichindicates that 90% o current products are in the preclinicato Phase II stage o development (Figure 9).

The expected time delay until revenues and prots occuris likely the primary reason survey respondents identiedaccess to capital as one o the top key challenges or theCanadian lie science and biotechnology industry.

4. Products & Protability

The Waiting Game

Nearly three-quarters o companies not currently selling products expect that it willtake over two years to bring a product to market.

3. Data as at February 2009.

I you would have asked whatI preer I would say buildingand maintaining a sustainablebusiness. Not enough o thatin Canada investors aretoo quick to push companies

to sell2009 Canadian Lie Sciences IndustryForecast respondent

Figure 9: Number of Biotechnology Therapeutic Products in

Canadas Pipeline

77

76

36

Phase I

Phase II

Phase III

Discovery and Preclinical


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In addition, almost hal believe that licensing or sellingIP or co-development/partnerships is also a likely option(Figure 10). Again, this is likely refective o current economicconditions, as access to capital is limited and companieswill likely seek to pool resources. From a longer termperspective, the relatively low ranking o Build or maintaina sustainable business in all o our PwC Canadian Lie

Science Forecast reports to date suggests that the Canadianindustry may never achieve the critical mass and scalerequired to eectively compete on the global stage withouta signicant change in operating environment.

Furthermore, respondents believe that strategic alliances willplay a more signicant role in the growth o their businessthan M&A (50% versus slightly less than 40%). In contrast,the 11th Annual Global CEO Survey4 reported equalweighting to these two choices, suggesting a lower

bias to implementing M&A in the Canadian market versusthe global view.

47% o respondents indicate that valuation issues are themain barriers to M&A in the industry (Figure 11). Valuationissues were also highly rated choices in 2007 and 2006.Other signicant barriers to M&A include confictingmanagement personalities (34% in 2009; 49% in 2007),

unding (29% in 2009; 30% in 2007), and lack o interestrom large rms (27% in 2009; 32% in 2007).

Given the impact o the current economic crisis onvaluations, the views o respondents towards M&A andthe low priority or acquisitions rom new unds raised(Figure 15), our data suggests 2009 may be another yearo relative quiet on the M&A ront. However, the currenteconomic situation may orce more companies to considerM&A as a survival strategy.

5. Mergers & Acquisitions

Another Quiet Year?

Nearly two-thirds o respondents indicate that being acquired or participatingin a merger is the most likely scenario or a successul Canadian lie sciences or

biotechnology business.

4. The 11th Annual Global CEO Survey was released in January 2008 and is hereinater reerred to as the 2008 PwC Global CEO Survey.

Figure 10: What do you consider to be the most likely scenario for the

typical successful Canadian life sciences or biotechnology business?


2009200720065%

73%

43%

74%

94%

5%

44%

38%

64%

80%

5%

12%

22%

46%

48%

66%

Other

Going public

Build or maintain a sustainable business

Licensing or selling intellectual property

Co-development/partnerships

Being acquired/merger

Figure 11: What do you see as the most significant barriers to mergers

and acquisitions in the life sciences and biotechnology industry?


20202020%

23%

15%

37%

41%

17%

32%

30%

49%

62%

12%

27%

29%

34%

47%

Incompatible Technologies

Lack of Interest on the Part of Large Firms

Funding

Conflicting Management Personalities

Valuation Issues


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A large majority o Canadian respondents (70%) believe thatcollaborative networks will play a key role in uture businessmodels in the industry, with the belie that the benets ocollaboration outweigh the costs and risks associated withit. However, as seen in Figure 12, Canadian respondentscurrently use collaborations ar less than their globalcounterparts in a variety o areas including using networks toshare best practices, using networks to mitigate operationalrisk, using networks to reduce costs, using networks to ndtalent and using networks to address macro-threats.

Moreover, as seen in Figure 13, Canadian respondentsgenerally have a less optimistic view o the potential orcollaborations to achieve various business objectives versusglobal data including critical areas such as learning bestpractices, increasing innovation and accessing new skillsor scarce talent. The survey results imply that in some key

areas, although collaboration is a good idea in theory, thepractice is not widespread. This may change in the uturegiven the importance o collaborations, strategic alliancesand sharing o resources in tough economic times.

As a point o interest, the Netherlands, South Korea,Australia, Israel and the U.S. are known to eectively usecollaborative networks by encouraging the ormation o

centres o excellence and organizations whose mandateis to promote cooperation, sharing o resources andbringing together innovators and investors. By leveragingcollaborative networks, these jurisdictions are leaders incommercialization o innovation, as measured by grossexpenditure on research and development per capita andnumber o triadic patent amilies. Thereore, collaborativenetworks in these jurisdictions appear to add value andrepresent a model or Canada to replicate.

6. Alliances & Collaborations

Canada vs. Global Perspectives

The results o the 2008 PwC Global CEO Survey indicate the number and variety ocollaborations in the sector are on the rise. Although collaborations are viewed avourab

by Canadian respondents, collaborations are not ully embraced in practice.

Figure 12: To what extent does your organization participate in each of the

following types of collaboration across business networks? (Choose one for

each statement) (results shown for moderate to significant responses)

CanadaGlobal38%

52%

57%

53%

69%

56%

61%

26%

29%

29%

30%

46%

51%

63%

Networks that address macro-threats

Networks designed to find talent

Networks that reduce costs

Networks that mitigate operational risk

Networks that share best practices

Networks that influence policy

Networks that create innovation

Figure 13: How effective are collaborations across business networks in

achieving the following range of objectives (Choose one for each stateme

(results shown for quite to very effective responses)

CanaGlo42%

31%

38%

47%

44%

54%

55%

56%

71%

60%

8

14%

30%

33%

34%

36%

39%

42%

43%

45%

49%

62%

Controlling costs

Tackling macro-risks

Implementing strategy

Accessing new skills or scarce talent

Accessing new markets or customers

Improving corporate citizenship

Increasing innovation in your company

Enhancing reputation or brand

Learning best practice

Influencing government and regulatory policy

Creating and sharing knowledge


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Do you support initiatives to change thetraditional drug development model towardsa live licensing concept?

Live licensing reers to the issuance o a live license to marketa product on a limited basis once it has demonstrated sucientecacy, value and saety in an initial trial population, as opposedto the traditional license granted ater a lengthy regulatory approvalprocess. The majority o respondents in this survey (63%) areundecided. However, there is a large variance between those who dosupport (33%) and those who dont (4%). This suggests a sentimentamong respondents that there needs to be a shit in the regulatoryand approval process to bring products to market aster, withinthe connes o patient saety. PwCs publication Pharma 2020:Which Path Will You Take? orecasts that live licensing will bemore prevalent in the uture, in order to make more therapiesavailable to a wider group o patients, in a shorter period o time.


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Since hiring and recruiting experienced management is highon the radar or survey respondents (Figure 14), one wouldexpect their organizations to invest in such recruiting eorts.However, there is an apparent disconnect in the surveyresults (similar to 2006) in that only 11% seek to use theirunds to attract and hire key management expertise. As seenin Figure 15, this was the second lowest response to the useo unds question and represents a signicant decline rom2007 and 2006 survey results. Respondents note that the

top three positions they nd most challenging to hire are:Director o Clinical Development and Director o Regulatory

Aairs ollowed by VP o Business Development and ChieScientic Ocer, which are tied or third.

I recruiting experienced senior management really is thetop action industry thinks it must take to improve Canadasability to compete, companies need to spend the dollars

required to attract and retain the best and the brightestminds in the industry.

7. People & Places

Staying Competitive

Survey respondents indicate the second most important action industry should take toimprove Canadas ability to compete is recruiting experienced senior management.

Figure 14: What do you believe are the most important actions that industry

can take to improve Canada's ability to compete globally in the life sciences

and biotechnology industry (respondents were asked to select top 3 choices)

200920072006

14%

27%

28%

36%

47%

49%

61%

15%1%

24%

25%

27%

27%

41%

49%

36%

15%

17%

19%

21%

35%

38%

40%

47%

65%

Other (please specify)

Active involvement in mentoring programs

Support local, regional or national

industry associations

Concentrate businesses withinregional clusters

Implement mergers or acquisitions

Increase volume of in-licensing andout-licensing of IP

Effective lobbying to government

Recruit experienced senior management

Continued focus on success in

current business

Figure 15: What is the most likely use of funds from your round of funding


20202015%

17%

6%

12%

13%

16%

35%

43%

8%

23%

17%

23%

16%

21%

38%

5

3%

9%

11%

13%

14%

15%

20%

29%

42%

Other

In-Licensing of IP

Hiring Key Management Expertise

Capital Expansion

Manufacturing

Acquisitions

Marketing/Sales

Working capital/operations

R&D


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O the 20% o respondents planning to relocate, nearly 85%plan to head south to the United States. Primarily, they planto relocate their sales department (48%) and head oce(20%), compared to entire operations (4%). Reasons orplanning to move appear to be access to capital, a largercustomer market, and a larger talent pool (Figure 16).

Survey respondents also oresee a large decline in the use

o unding directed towards R&D. Only 42% ranked R&Din their top three use o unds (Figure 15) and only 62%

intend to perorm their R&D activities in Canada over thenext two years (75% in 2007 and 58% in 2006). Thesestatistics suggest a declining environment or Canadianbased research which is unlikely to help build critical massin the sector. This will likely be urther exacerbated bythe government o Canadas 2009 ederal budget whichallocated relatively ew unds or public sector research inlie sciences.

Places

Staying Close to Home

80% o survey respondents have no plans to relocate some or all o their businessoutside o Canada in the next 2 years.

Figure 16: What are your main reasons for relocating your business?


20092007200656%

44%

75%

17%

38%

55%

44%

44%

64%

Access to Experience Talent Pool

Access to Larger Customer Markets

Access to Capital


18/20

The entire global health care system is undergoing a seismic shit. Theindustry is being held ar more accountable or products that demonstrateoutcomes at reasonable prices by all players across the continuum. Tofourish, companies will need to invest more in research, understand anddemonstrate the value o their products, lower the cost o distribution,collaborate with partners at home and abroad, and provide value-addedservices to customers. Eectively meeting these challenges will deliver

enormous rewards in terms o human health and business success.Simon Friend, PwC Global Pharmaceuticals & Lie Sciences Industry Leader11th Annual PwC Global CEO Survey


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About PricewaterhouseCoopers

In Canada, PricewaterhouseCoopers has more than 5,200partners and sta in locations rom St. Johns, Newoundlandto Vancouver, British Columbia.

Now celebrating 100 years o excellence in Canada,PwC provides industry ocused assurance, advisory and

tax services or public, private and government clients incorporate accountability, risk management, structuring,mergers and acquisitions, and perormance and processimprovement.

As part o a larger network o over 154,000 people in 153countries, PwC works to provide clients with the best o itscollective thinking, experience and solutions to build publictrust and enhance value or clients and their stakeholders.

PricewaterhouseCoopers Pharmaceuticals and

Life Sciences Practice

PricewaterhouseCoopers LLP has extensive experienceworking with organizations across the industry, including:

proprietary and generic drug manuacturers, specialtydrug makers, medical device and diagnostics suppliers,biotechnology companies, wholesalers, pharmacy benetmanagers, contract research organizations, and industryassociations. The rm also authors numerous thoughtleadership papers on emerging industry issues.For additional inormation, please go online towww.pwc.com/ca/liesciences

About BIOTECanada

BIOTECanada is the national industry-unded associationrepresenting the broad spectrum o biotech constituentsincluding emerging, established and related servicecompanies in the health, agricultural, and industrial sectors2007 marked the 20th year o the national associationdedicated to the promotion and awareness o biotechnolog

and its public policy issues. Incorporated in 1987 as theIndustrial Biotechnology Association o Canada, our nationassociation continues to serve as the voice or industryleadership to build a sustainable environment or thecommunity o researchers and innovators. BIOTECanadais dedicated to the sustainable commercial development obiotechnology in Canada. For additional inormation, pleasgo online to www.biotech.ca

For additional inormation regarding this report, please contact:

Peter Brenders Gord JansPresident and CEO National Leader, Lie Sciences GroupBIOTECanada PricewaterhouseCoopers LLP613 230 5585 ext 229 905 897 4527

Canadas Venture Capital Industry in Q4, 2008, Thomson Reuters

2008 The Moneytree Report by PricewaterhouseCoopers and theNational Venture Capital Association based on data rom Thomson Reuters

2008 11th Annual PwC Global CEO Survey

2009 12th Annual PwC Global CEO Survey

Pharma 2020: Which Path Will You Take?

Canadian Lie Sciences Database

PricewaterhouseCoopers LLP BIOTECanada

Gord Jans Peter BrendersLisa Simeoni Cate McCreadyLiane KimLauren LeechShivang Chawla

Reerences Contributors


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www.pwc.com/ca/liesciences

canadian life sciences industry forecast 2009

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