Transcript Slide 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
Overview
• The pharmaceutical industry in Canada
• Key issues
• A healthy living program
• Why Canada is a great place to do business
• Questions
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
The Pharmaceutical Industry in Canada
• Pharmaceutical innovation makes a significant contribution to our
economy, resulting in:
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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
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
R&D investments
(2006)
$1.21 B
$545 M
$496 M
Land, facilities &
equipment
$2.45 B
$533.2 M
$1.2 B
Taxes Paid (2005)
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$89 M
$59 M
Rx&D – A National Association
• Canada’s Research-Based Pharmaceutical Companies, Rx&D, 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.
Industry Code of Conduct
• Celebrating its 20th Anniversary on
October 20, 2008
• A living document that is
continually improved
• Based on 11 guiding principles
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
Key Stakeholders
• Federal government
• Provincial governments
• Patient groups
• Academic community
About
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Founded in 1896 in Basel
Active in 150 countries on all continents
About 80,000 employees world-wide
Roche Canada founded in 1931
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Head offices:
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827 employees
Pharmaceuticals – Mississauga, Ontario
Diagnostics – Laval, Quebec
Invested $12M in community and patient
organizations
National partner of Breakfast for Learning
Founding Sponsor – Canada’s Corporate
Roundtable on Cancer Control
Named one of Canada’s 50 Best Employers
for the 5th year in a row
Pharmaceuticals
Diagnostics
About
• Founded in 1996 from the merger of Sandoz and Ciba-Geigy
• (Sandoz AG was founded in Basel in 1886)
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Presence in 140 countries around the world
98,000 employees globally
800 employees in Canada
One of Canada’s 50 Best Employers
$86M in R&D investment in Canada
$15M in grants/donations to Canadian Patient & Community groups
Our Divisions (totalling 2,130 employees in Canada)
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Pharmaceuticals head office – Dorval, Quebec
OTC, Ciba-Vision (eye care) – Mississauga, Ontario
Animal Health – Mississauga and Prince Edward Island
Sandoz Canada (generics) – Boucherville, Quebec
Key Issues – Access to New Medicines
Only 1 in 5 new
medicines approved
by Health Canada is
listed by provinces
Key Issues - New drug approvals not keeping pace
with R&D spending
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45
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New Drug Approvals
20
15
0
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1963
1970
1977
1984
1991
R&D expenditures through 2004 are adjusted for inflation
Source: Tufts CSDD Approved NCE Database, PhRMA, 2007
1998
R&D Expenditures
(Billions of 2004$)
New Drug Approvals
R&D Expenditures
2005
13
Key Issues – Attract R&D Investments
• Fierce competition to attract
pharmaceutical R&D, 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
Positive Signals
• Biopharmaceutical Investment
Fund in Ontario
• British Columbia
Pharmaceutical Task Force
Report
• Quebec’s Drug Policy
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
Knowledge is the best medicine
Our Partners:
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
Questions
Thank you