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Global Pharmaceutical Companies That Have Chosen Canada

Global Pharmaceutical Companies That Have Chosen Canada. Access to World’s Largest Healthcare Market. The North American healthcare market consists of: 400 million people US$9.4 trillion combined GDP NAFTA market for pharmaceuticals and biopharmaceuticals $143 billion or 34% of world market.

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Global Pharmaceutical Companies That Have Chosen Canada

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  1. Global Pharmaceutical Companies That Have Chosen Canada

  2. Access to World’s Largest Healthcare Market The North American healthcare market consists of: • 400 million people • US$9.4 trillion combined GDP NAFTA market for pharmaceuticals and biopharmaceuticals • $143 billion or 34% of world market NAFTA Share of global Pharmaceutical Market Half of this market is within one day’s trucking of central Canadian cities NAFTA provides tariff-free preferential access to the entire North American market Source: World Pharmaceutical Fact Book 2000, Volume 1

  3. Expanding Trade in High-Growth Global Markets Pharmaceutical Exports ($ millions) Canadian Exporters are increasingly active in the $305 billion global pharmaceuticals and biopharmaceuticals market Pharmaceutical exports grew at an average annual rate of 19% between 1993 and 2000 Increasing access to Europe, Latin America through trade agreements. Source: Statistics Canada

  4. Supports for Industry Growth Canada offers lowest R&D costs of G-7 countries Relative Competitiveness of R&D Tax System Competitive protection of intellectual property under Canadian law 1.05 Germany 1.03 Italy 1.02 Sweden Generous government research-support programs 1.01 Japan 1.00 U.-K. 0.97 Mexico Active and ongoing process of regulatory improvement for pharmaceuticals 0.92 Korea 0.91 France 0.89 Australia 0.88 U.S. Competitive corporate and payroll taxes 0.70 Canada The B-index represents a ratio of the after-tax cost of a $1 expenditure on R&D divided by 1 less the corporate tax rate. A lower B-index indicates a more competitive R&D tax system Source: Conference Board of Canada, June 1999.

  5. Canada - The Best Choice for Pharmaceutical Investment The Advantages: • Access to the world’s largest and richest market • Skilled workforce • Cost-competitive environment • World-class research infrastructure • Protection of intellectual property The Result: • Major corporate Investments Major Corporate Investments

  6. The Canadian Advantage - Research & Development 14% of Canada’s total R&D spending is in health Canadian Pharmaceutical R&D Spending From 1987 to 1999 • Research strengths in: • genomics • proteomics • bio-informatics • immunotherapies • protein engineering • new drug delivery systems Networks of expertise in a number of disease areas e.g. • cancer • cardiovascular • central nervous system • arthritis Rx&D Annual Review 2000-2001*Refers only to R&D by brand name companies

  7. The Canadian Advantage - A Quality Workforce Canada’s workforce ranks first among G7 countries in skills 25,000 graduates in maths, engineering and sciences join Canada’s workforce each year Canada’s health-sciences research community includes: • 30,000 investigators • 16 medical schools • 100 teaching hospitals and research institutes North America’s 4th-largest medical R & D community is located in Toronto * Tertiary education enrollment standing among the 53 countries considered in the World Competitiveness Report, 1998 Canada has low labor turnover, reducing training, hiring and separation costs

  8. The Canadian Advantage - Cost Competitiveness Canada/US Comparison: Total Costs for Life Sciences Canadian cities are significantly more cost- competitive than comparable US cities A 6.6% business cost advantage over the USA for pharmaceutical manufacturing (KPMG1999) Source: KPMG, The Competitive Alternatives, 1999

  9. Positive Business Climate • The Economist Intelligence Unit ranks Canada highly in terms of its overall business climate. • And this is even before the acceleration of tax cuts announced in the Economic Statement and Budget Update. • Moreover, Canadian laws are among the best in the world at preventing unfair competition. Note: The business environment is based on several indicators including market potential, tax and labour market policies, and the political background. Source: The Economist (EIU), May 20th, 2000 “Canada is a very business friendly country, and Ottawa is an excellent environment for knowledge based industry. The physical environment is outstanding, education leads are high, the work ethic is strong and costs are very competitive. It’s just a great place to expand our business .” Roderick Bryden, President & CEO of World Heart Corporation Source: World Competitiveness Yearbook 2000

  10. For More Information Life Sciences Branch Linda Leinan Tel. (613) 954-3068 Fax (613) 952-4209 E-mail: leinan.linda@ic.gc.ca Paul Vaillancourt Tel. (613) 952-7700 Fax (613) 952-5822 E-mail: vaillancourt.paul@ic.gc.ca Website: http://strategis.ic.gc.ca/lsb

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