Around the Globe
n addition to obvious investments to support various sectors suffering as a result of the pandemic, Canada’s 2021 Federal budget continues its support of previous initiatives related to pharmaceutical policy.
With the view towards rebuilding, the budget also touches on investments in innovation and improving domestic capacity that may benefit the pharmaceutical sector in the long run.
Strengthening Canada’s Bio-Manufacturing and Life Sciences Sector
The budget proposes “foundational investments” of $2.2 billion over seven years intended to grow Canada’s domestic life sciences sector, targeting research systems development, expansion of human resources capacity, and supporting the growth of Canadian life sciences firms. The funding will flow through five entities, with specific purposes for each stream:
- Funding to the Canada Foundation for Innovation to support the bio-science capital and infrastructure needs of post-secondary institutions and research hospitals.
- Creating a new tri-council biomedical research fund by the existing federal research granting councils.
- Funding to adMare to support company creation, scale up, and training activities in the life sciences sector.
- Funding to the Vaccine and Infectious Disease Organization to support the development of its vaccine candidates and expand its facility in Saskatchewan.
- Funding to the Stem Cell Network to support stem cell and regenerative medicine research.
Of note in this budget is the government’s recognition of the important role of Canadian scientists and clinical trials in the broader health and innovation ecosystem. Being able to attract clinical trials to Canada supports the training and education of researchers and provides access to cutting-edge therapies for Canadian patients. The budget has earmarked $250 million over three years to increase clinical research capacity through a new Canadian Institutes of Health Research (CIHR) Clinical Trials Fund.
In addition to the CIHR announcement, additional targeted funding is proposed to support the life sciences and bio-manufacturing, representing direct government investments in the sector. Examples include $1 billion over seven years through the Strategic Innovation Fund, targeted toward promising domestic life sciences and bio-manufacturing firms; and $50 million over five years to create a life sciences stream in the Venture Capital Catalyst Initiative, as part of a larger venture capital investment initiative proposed in the budget.
These investments are intended to be complementary to and integrated with other budget measures seeking to ensure that research and development efforts are more closely connected to commercialization and business development supports (e.g., the Pan-Canadian Genomics Strategy, the Pan-Canadian Artificial Intelligence Strategy, and the Industrial Research Assistance Program).
Action to Address Antimicrobial Resistance
Moving Forward on National Universal Pharmacare
The federal government’s focus appears to be on the national rare disease strategy, with confirmation of its intention to move forward with its announced plan to provide funding for that program. The rare disease strategy is seen as a “foundational element” in the move toward a universal national drug program, but timing of the latter is likely at least five years in the future.
Conclusions
The remaining challenge is for the federal government to realize that there must be much better alignment of these innovation investments with pharmaceutical policies such as those related to patented drug pricing regulations. It is important to acknowledge that the latter, in fact, undercut the intended benefits of the broad life sciences investments outlined in the 2021 budget. This should prompt the federal government to reassess the scope of the proposed regulations. But it is not clear that such a re-evaluation is underway.