An%20Overview%20of%20the%20Canadian%20Pharmaceutical%20Industry

1
An Overview of the Canadian Pharmaceutical
Industry

• Ronnie Miller, President and CEO, Roche Canada
• David Meek, President and CEO, Novartis Canada
• Swiss Canadian Chamber of Commerce Luncheon
• October 16, 2008

2
Overview

• The pharmaceutical industry in Canada
• Key issues
• A healthy living program
• Why Canada is a great place to do business
• Questions

3
The Pharmaceutical Industry in Canada

• More than 22,000 employees
• Responsible for creation of 100,000 jobs
  (spin-off)
• Invest 1 billion in research and development in
  Canada yearly
• Companies inject 5 billion annually into
  Canadian economy

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The Pharmaceutical Industry in Canada

• Pharmaceutical innovation makes a significant
  contribution to our economy, resulting in
• highly-skilled job creation,
• increased scientific knowledge
• growth in the Gross Domestic Product (GDP), and
• elevation of our international ranking on
  innovation.
• Encourage and support our employees to be active
  volunteers in the communities in which they live
  and work.
• Provided 86 M (2005) in donations and grants to
  charities, community associations, hospitals, and
  universities across Canada

5
The Pharmaceutical Industry in Canada An
Economic Driver
Canada Ontario Quebec
Number of employees 22,000 10,390 10,048
Economic contribution (2005) 5 B 1.74 B 1.68 B
RD investments (2006) 1.21 B 545 M 496 M
Land, facilities equipment 2.45 B 533.2 M 1.2 B
Taxes Paid (2005) ---------- 89 M 59 M
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RxD A National Association

• Canadas Research-Based Pharmaceutical Companies,
  RxD, is an association of members - including
  Roche Novartis - dedicated to improving the
  health of all Canadians.
• Established in 1914.
• Our mission To improve the quality of life of
  all Canadians and enhance our health care system
  by fostering the discovery, development and
  availability of new medicines and vaccines.

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Industry Code of Conduct

• Celebrating its 20th Anniversary on October 20,
  2008
• A living document that is continually improved
• Based on 11 guiding principles

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We are a Partner in the Health Care System

• The pharmaceutical industry is an integral part
  of the health care system
• New medicines and vaccines help save money
• They reduce hospitalisations and surgeries
• They reduce death rates

9
Key Stakeholders

• Federal government
• Provincial governments
• Patient groups
• Academic community

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About

• Founded in 1896 in Basel
• Active in 150 countries on all continents
• About 80,000 employees world-wide
• Roche Canada founded in 1931
• 827 employees
• Head offices
• Pharmaceuticals Mississauga, Ontario
• Diagnostics Laval, Quebec
• Invested 12M in community and patient
  organizations
• National partner of Breakfast for Learning
• Founding Sponsor Canadas Corporate Roundtable
  on Cancer Control
• Named one of Canadas 50 Best Employers for the
  5th year in a row

Pharmaceuticals
Diagnostics
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About

• Founded in 1996 from the merger of Sandoz and
  Ciba-Geigy
• (Sandoz AG was founded in Basel in 1886)
• Presence in 140 countries around the world
• 98,000 employees globally
• 800 employees in Canada
• One of Canadas 50 Best Employers
• 86M in RD investment in Canada
• 15M in grants/donations to Canadian Patient
  Community groups
• Our Divisions (totalling 2,130 employees in
  Canada)
• Pharmaceuticals head office Dorval, Quebec
• OTC, Ciba-Vision (eye care) Mississauga,
  Ontario
• Animal Health Mississauga and Prince Edward
  Island
• Sandoz Canada (generics) Boucherville, Quebec

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Key Issues Access to New Medicines
Only 1 in 5 new medicines approved by Health
Canada is listed by provinces
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Key Issues - New drug approvals not keeping pace
with RD spending
RD Expenditures
New Drug Approvals
RD expenditures through 2004 are adjusted for
inflation Source Tufts CSDD Approved NCE
Database, PhRMA, 2007
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Key Issues Attract RD Investments

• Fierce competition to attract pharmaceutical RD,
  especially from Brazil, Russia, India, China,
  Mexico, South Korea and Turkey.
• Need to create an environment where innovation
  can flourish
• Bring stability to the Canadian intellectual
  property regime
• Reward the risk associated with innovation

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Positive Signals

• Biopharmaceutical Investment Fund in Ontario
• British Columbia Pharmaceutical Task Force Report
  
• Quebecs Drug Policy

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Knowledge is the best medicine

• Consumer education program on appropriate and
  safe use of medications, improving health through
  healthy living
• 14 years, 3.5 million copies distributed
• In partnership with 2,500 organizations
• throughout Canada

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Knowledge is the best medicine

• Our Partners

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Why Canada is a great place for 2 Swiss Pharmas

• Improving intellectual property and patent
  protection
• Large clinical trial centres large pool of
  patients/clinical trial subjects for
  international trials
• Access to key global opinion leaders and
  researchers
• Large talent pool of skilled employees and
  leaders
• Basel often recruits from our affiliates

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Questions
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Thank you