What it takes to be in Canada’s bio-economy

1. What it takes to be in Canada’s bio-economy Presenter: Colette Rivet, Executive Director June 2007 Meeting of Canadian Council of Deans of Science

2. Biotechnology “Definition” Biotechnology is comprised of such core technologies as: • DNA/RNA applications, • protein and peptides/enzymes, • cell and tissue culture and engineering, • gene and RNA vectors, • bioinformatics, • nanobiotechnology, • process biotechnologies and • sub-cellular processes.

3. The bioeconomy involves such sub-sectors as: • human health, • agriculture, • food processing, • natural resources, • environment, • aquaculture, • bioinformatics, • bioenergy and others. The bioeconomy also encompasses such areas as life sciences, biosciences, pharmaceuticals and medical devices.

4. Selected Applications of Biotechnology • Mining, Energy, and Environmental • Chemicals • Food and Beverage • Aquaculture • Forestry • Agriculture • Medical and Pharmaceutical

5. Biotechnological Megaprojects & Systems Biology • Genome Sequencing • Proteomics • Bioinformatics • Combinatorial Libraries and High Throughput Screening • Nanobiotechnology

6. BioTalent Canada BioTalent Canada helps Canada’s bio-economy industry thrive globally. As a non-profit national organization of innovators leading our bio-economy, BioTalent Canada anticipates needs and creates new opportunities, delivering human resources tools, information and skills development to ensure the industry has access to job-ready people.

7. BioTalent Canada’s Mission BioTalent Canada is the leader in human capital development in Canada’s biotechnology industry. In partnership with industry, government and academia, BioTalent Canada assists in attracting, developing and retaining a highly-skilled Canadian workforce essential for the sector’s sustainable growth and international competitiveness.

8. BioTalent Canada’s Mandate • Help Canadian companies and academia develop the highly skilled staff necessary for commercial success. • Facilitate industry involvement in skills training and knowledge upgrading for employees. • Help the Canadian biotechnology sector strategically manage its workforce with human resource tools and human resource intelligence services. • Facilitate the entry of new workers to the biotechnology sector through the communication of job opportunities to a broad audience.

9. Sector Council Program Sector Councils provide an industry-specific focus that highlights the technological advancements, human resource planning, training opportunities & industry forecasting, enabling businesses to better prepare for current & future developments.

10. Sector Council Program Sector Councils work as a uniting element to engage business, workers, educators, professional associations & government in a strategic alliance that is focused on determining the specific skills & human resource needs that will enable the sector to thrive.

11. Media articles…… • “Scientists don't always make the best CEOs”-National Post • “The HR Challenge: Growth and competitiveness of biotech hinges on Canada’s ability to address skills shortage and regulatory hurdles.” – BioBusiness • “Une usine de production d’éthanol s’installe dans l’Est ontarien” - L’Actualité • Citizen: • “Budget item bodes well for Iogen” • “Canadian scientists harness the enormous possibilities of thinking small” • “UN predicts global boom in population over 60” • “Pharmaceutical giant gives up patents, profits in battle against malaria” • “A machine built on a scientist’s dream” • “Vaccine Hunter: Gates outlines plans for remaking biotech”

12. Biotechnology “Platform” Canada needs to act quickly in order to capitalize on biotechnology. We are beyond the point of discussing whether or not Canada should embrace biotechnology as a technology platform for growth. It would be like discussing whether or not we should embrace electricity or the Internet. It is no longer a matter of if we should establish a biotechnology platform, but how we will establish it.1 1 Biotechnology in Canada: A Technology Platform for Growth. The Conference Board of Canada, Briefing October 2005.

13. A wake-up call on science literacy: Canada’s future depends on it According to the OECD Scorecard from 2005, Canada ranks 20th in the proportion of science and engineering graduates, behind countries such as Korea, Sweden, Germany, Ireland and Mexico, and behind the averages for the EU and the OECD countries. At the post-secondary level, data from Statistics Canada (2003) says that the proportion of science and engineering graduates is only 16.5 percent of total graduates. Kenneth Knox and Bonnie Schmidt

14. The Basis of Competence: Skills for Lifelong Learning and EmployabilityF.T. Evers, J.C. Rush & I. Berdrow The essential competencies needed by college graduates for the workplace are Managing Self, Communicating, Managing People and Tasks, and Mobilizing Innovation and Change.

15. A skills gulf exists between education and employment. • Learning is a lifelong process. • Learners are self-motivated & collaborative. • The fundamental motives for learning are interest and belonging. • The humbling effect of the workplace can be overcome. • Skill development is enhanced by the context of learning.

16. Canada’s biotechnology industry is undergoing rapid growth and constant change. Flexibility, adaptability, and an ability to manage a multi-talented workforce are fundamental human resource needs…This is due in part to the global nature of modern biotechnology businesses, the fierce competition for highly specialized candidates, the necessity of foreign-trained talent, and the diversity of companies incorporating biotechnology.

17. So, what’s happened? • Industry is 30+ years old, generating over $85 billion in revenues • 5000 companies worldwide, 600 public companies • Life sciences has a strong performance record, even in difficult economic and political times; outperformed Dow and NASDAQ • Over 100 products on the market (many > $1 billion drugs); 350 biotech drugs are in late stage clinical trials (strong pipeline) • Agbio products are now grown on 200 million acres world wide and growing at 20% per year; over 1 billion acres have been planted • Patents protect product/technology exclusivity, rewarding innovation and limiting competition • Broad applications in healthcare (cure & provention), food and agriculture, industrial (chemicals, fuels & materials) Source: Burrill & Company

18. Biotechnology’s Globalness Begins Day 1 • Science/technology • Intellectual property/patents/FTO • People • Communications • Competition • Capital • Markets—diseases know no borders Even the smallest biotechnology is a global player from Day One Source: Burrill & Company

19. 140 Years of Drug Discovery Technology

20. Pharmacogenomics shapes the healthcare business in 2000+

21. Today’s medicine challenge: One size doesn’t fit all

22. Predictive/Preventative (Wellness) Personalized Medicine Stratifying into risk categoriesDiabetes type 1: What’s becoming possible?

23. Analyzing The Molecular Profiles (Biosignatures) of Body Functions in Health and Disease Individual Genetic Variation The Molecular Basis of Biological Processes The Molecular Heterogeneity of Disease Disease Predisposition Pharmaco- genetics Disease Subtypes Alterations in Disease PDx PRx New Targets for Dx, Rx, Vx Right Rx for Disease New Targets for Dx, Rx, Vx Source: Burrill & Company

24. Market Trends and Drivers: Revolutionary Technologies& Evolutionary Practices

25. Confluence of Technology/Tools/Knowledge Source: Burrill & Company

26. Medicines in Development for Older People* Source: Burrill & Company

27. Obesity Related Diseases • Diabetes – Costs $98 billion • 90% of Type II diabetics are obese • 70% of those at risk are obese • Heart Disease – Costs $8.8 billion • Stroke • Hypertension - $4.1 billion • Doubles incidence of hypertension • Gall bladder disease – $3.4 Billion • Osteoarthritis - $21 billion • Sleep apnea – more prevalent then diabetes ! • Some forms of cancer Source: Burrill & Company

28. Healthcare costs are growing much faster than productivity (revenue per employee) CAGR=3% GM Cannot Compete Healthcare costs per car are $1700 more then Toyota Source: Burrill & Company

29. Wellness: Its time has come • Rising healthcare costs are impacting individuals • Rising incidence of chronic disease • Recognition of the importance of genetic variation • Scientific knowledge base for: • Personalization • Cost effective technologies • Financial markets beginning to recognize opportunity Source: Burrill & Company

30. What you eat – “or what your mother ate” can determine your health! Genetically identical mice from genetically identical mothers were fed different amounts of specific nutrients during pregnancy Source: Burrill & Company

31. The Emerging Health & Wellness Market Science Based bioactives Genotyping Biomarkermonitoring Prognosis of Predisposition Diet Functional Foods Medical Foods Drugs Health & Wellness management against a set of personalized biomarkers Personalized nutrition Source: Burrill & Company

32. …by the way, the Global Nutraceuticals Industry is $196 Billion Source: Nutrition Business Journal/Burrill & Company

33. Big “new” markets • Obesity/diabetes/metabolic disease • Alzheimer's/memory • Anti-aging • Anti infectives (antibiotic resistance) • Wellness (preventative/predictive cure) Source: Burrill & Company

34. Many New Players in an Emerging Market Agriculture Companies Biotechs Genomics Food Companies Bioactives Functional Foods Biomarkers Targets Health and Wellness Market Personal Care Products Pharmaceutical Companies Medical Foods Consumer Products Companies Dietary supplements Alternative Health DS Companies Source: Burrill & Company

35. The “evolution” of corn through selective breeding 3 m 60 cm Teosinte Maize

36. Animal genomics: Its time has finally come • Chicken, Cow sequenced with pig in progress • Marker assisted breeding now possible • Traceability and animal sorting creating value • Comparative genomics brings validity and funding • Major opportunity in emerging infectious diseases: SARS, BSE, Avian Flu Source: Burrill & Company

37. The Demands for Agriculture Stay the Same 1999-United Nations More food on less land with half the water Source: Burrill & Company

39. Global Area of Biotech Crops 1996 to 2005 by Crop

40. Straw-bale construction

42. Clothes

43. Loss of Energy Security • Geopolitical unrest wherever oil is produced • Extreme weather demonstrated the vulnerability of supply Source: Burrill & Company

44. The Biorefinery Platform Using Agricultural Feed Stocks

45. Selected FDA Approved Plants Outside the U.S. 61 60 25 22 9 5 7 Source: Burrill & Company

46. Biotechnology is a global business…the competition is aggressive & bold • The time is now for life sciences • Confluence of technologies is changing biotechnology and the healthcare world • Personalized, predictive and preventative medicine is changing healthcare • Market opportunities are different today (pandemic diseases, memory, obesity, aging, and wellness) • Wellness is a huge growth market • AgBio is back, animal genomics is ready • Industrial biotechnology’s time has arrived • Capital markets worldwide are robust, but expensive Source: Burrill & Company

47. Unique business challenges for companies 75% small companies intense competition & manufacturing off-shore new “technology” limited focus & funds available to address human resources and skills issue Limited access to financing Key Issues

48. Biotechnology Drug Development Process Discovery: (2-10 years) Preclinical Testing: (Lab & animal testing) Phase I: (20-30 healthy volunteers used to check for safety & side effects) Phase II: (100-300 patient volunteers used to check for efficacy & side effects) Phase III: (1,000-5,000 patient volunteers used to monitor reactions to long-term drug use) FDA Review & Approval Postmarketing Testing 0 2 4 6 8 10 12 14 16 Year Source: Ernst & Young LLP

49. Drug Development Costs Escalate Source: Burrill & Company

50. Shortage of people with specific competencies Unknown specialized skills due to continuous advancements Different human resources and skills issues depending on what stage of product development & commercialization the company is currently operating in Need for “job-ready” skills in employees Investment in Human Resources