The Canadian life science and biotech sector continue to show determination and resiliency even though, like other sectors of the Canadian economy, it has faced significant challenges as a result of the global economic slowdown. Nevertheless, the fundamentals remain strong.
According to the business respondents to Canadian Life Sciences Industry Forecast 2013, they are seeking in excess of CAD1 billion of capital and there is a strong view that governments need to help stimulate capital formation. 41% of respondents are moderately to extremely confident about the industry’s long term outlook.
The industry must remain at the leading edge of innovation, but it won’t happen in isolation. Canada has made progress in securing important building blocks for a growing bio-economy. The need for coordinated actions from all parties remains. 58% of respondents have indicated that the most challenging factor for their organizations over the next 2 years will be the raising of capital. Attracting a licensing or strategic partner has become an even more important issue. The top-rated critical success factor for the industry continues to be access to capital. Tax incentives that encourage investment by providers of capital is also critical. By working together, industry and governments can set in place a competitive market framework that will attract investment and allow the Canadian life sciences industry to play a significant role in the long-term health and prosperity of Canadians.
Philip Hui & Associates specializes in all aspects of the sale, merger, acquisition and valuation of businesses in British Columbia, Canada. Looking to buy a biotech company in Canada, check out www.buysellbusinessinbc.com for more details.
Source: PwC’s fifth Canadian Life Sciences Industry Forecast, presented in collaboration with BIOTECanada