MONTREAL, June 19, 2012 /CNW Telbec/ - The Canadian biotech industry's
financial performance was down again in 2011, but a surge in positive
clinical news stimulated the sector nonetheless, generating a 53%
increase in financing which is a testament to the quality of Canadian
science, Ernst & Young says today in a new report.
"The Canadian biotech sector responded with cost-cutting measures and
improved their overall business practices in the wake of the 2008
crisis," says Paul Karamanoukian, National Life Sciences Leader and
Partner at Ernst & Young. "As a result, the stronger companies were
able to weather the storm and do more with less, as efficiency is the
name of the game in life science world of today!"
In 2011, the Canadian biotechnology industry raised slightly more than
US$740 million, an increase of US$257 million compared to 2010. Public
companies raised US$574 million, a US$178 million increase over 2010.
In 2011, 15 public companies raised 80% of the total public financings,
which is a clear improvement over 2010, when most of the public company
financings went to only eight companies. "There are more successful
companies this year than last, and this is sending a positive signal to
new potential investors," comments Karamanoukian.
As for private companies, they raised just under US$166 million, which
represents a 91% increase over 2010.
According to Karamanoukian, preliminary reviews of the first quarter of
2012 show an upward trend. With the Canadian government, and some
provinces, announcing stimulus programs, the sector could see a real
turnaround. "We're also seeing some of the major pharmaceutical
companies partnering with the public sector to create investment funds
that should result in further increases in investments, which
demonstrates the industries trust in our science."
The province of Quebec is now leading the pack in both total public
company financings and venture capital financings, surpassing the 2010
leader, British Colombia. Manitoba and Nova Scotia are also emerging as
players in the sector. The total public and private financing breakdown
by province is as follows:
Quebec: 50% of total financing, with US$372.6 million
Ontario: 24% of total financing, with US$177.3 million
BC: 15% of total financing, with US$112.2 million
Alberta: 9% of total financing, with US$62.9 million
Manitoba: 1% of total financing, with US$8.6 million
Nova Scotia: 1% of total financing, with US$6.4 million
Other highlights of the report include the following:
Once again in 2011 no IPOs.
The number of public companies remained virtually flat in Canada at 71
companies. The overall revenues decreased 21% from 2010 to US$998
The total R&D expenditures fell 4% in 2011 to US$431 million.
The overall employment in the sector also fell in 2011.
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