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OANADlAN BlOPHAPMAOEÜTlOA|S SEOTOP
Oanada p|ays a key ro|e |n the g|oba| b|opharmaoeut|oa| |ndustry, w|th part|ou|ar
strengths |n researoh and deve|opment |P&Dì, o||n|oa| tr|a|s and manufaotur|ng. A|| of
the top 10 g|oba| pharmaoeut|oa| oompan|es, |n terms of revenues, have operat|ons |n
Oanada, severa| w|th P&D and manufaotur|ng mandates.
ln 2007, g|oba| b|opharmaoeut|oa| sa|es amounted to ÜS$663.5 b||||on. That same year,
the Oanad|an b|opharmaoeut|oa|s seotor reoorded sa|es of $17.6 b||||on
1
and exports of
near|y $6.3 b||||on. Approx|mate|y 80 peroent of these exports were ohanne||ed to the
Ü.S. market. ln 2007, Oanada was home to 397 pharmaoeut|oa| and 404 b|oteohno|ogy
estab||shments, emp|oy|ng near|y 29,000 peop|e aoross the oountry.
Oanada offers a dynam|o and |nnovat|ve env|ronment for g|oba| b|opharmaoeut|oa|
oompan|es, w|th |ts frst-rate aoadem|o |nst|tut|ons, wor|d-o|ass |nnovat|ve so|enoe,
researoh and o||n|oa| networks, h|gh|y sk|||ed workforoe, support|ve |nnovat|on o||mate,
and numerous partnersh|p opportun|t|es.
Key Capabi|ities
Research & development: From d|soovery to fu|| Phase 3 p|vota| tr|a|s, the Oanad|an
P&D seotor |s known for qu|ok|y reoru|t|ng pat|ents, adher|ng str|ot|y to good o||n|oa|
praot|oe |GOPì protooo|s and generat|ng h|gh-qua||ty, robust data. ln 2007, over
$1.3 b||||on was spent on b|opharmaoeut|oa|-re|ated P&D |n Oanada, wh|oh boasts a
researoh oommun|ty of approx|mate|y 30,000 |nvest|gators aoross 17 med|oa| sohoo|s
and more than 100 teaoh|ng hosp|ta|s. Oanada |eads the G7 |n growth of hea|th
researoh patents and ranks fourth |nternat|ona||y |n terms of |ts overa|| share of g|oba|
o||n|oa| tr|a|s.
Manufacturing: Many major pharmaoeut|oa| oompan|es have manufaotur|ng fao|||t|es |n
Oanada. W|th easy aooess to Ü.S. markets, Oanada represents a h|gh-qua||ty, oost-
oompet|t|ve |ooat|on for North Amer|oan manufaotur|ng. Oanada a|so possesses wor|d-
o|ass expert|se |n good manufaotur|ng praot|oe |GMPì sma|| mo|eou|e and b|o|og|os
manufaotur|ng from p||ot to fu|| soa|e-up app||oat|ons, and |s home to one of the wor|d`s
|argest gener|o drug manufaoturers, Apotex.
Pharmaceutical services: Many wor|d-o|ass oontraot serv|oe oompan|es are |ooated
|n Oanada, prov|d|ng h|gh-qua||ty support |n P&D, o||n|oa| tr|a|s, manufaotur|ng and
oount|ess other serv|oes requ|red to support the ||fe so|enoes |ndustry.
Unless otherwise noted, all values are in Canadian dollars.
1 lN8 Health Canada.
RECENT INVESTMENTS IN CANADA
w #HARLES2IVER,ABORATORIES
)NTERNATIONAL, of Massachusetts, will
open a preclinical services facility in
Quebec in 2009, which is ultimately
expected to employ 1,000 people.
w French frm 3ANOl0ASTEUR invested
$100 million in a new R&D facility in
Ontario in 2008.
w 'LAXO3MITH+LINE invested more than
$178 million in Canadian R&D in 2007
alone. GSK has operations throughout
Canada, with facilities in Nova Scotia,
Quebec, Ontario, Alberta and British
Columbia.
w 3ANDOZ, a Division of the Novartis
Group, opened a manufacturing plant in
Quebec in 2008, part of its $80 million
investment announced in 2007.
w German frm"OEHRINGER)NGELHEIM
completed a $36 million investment
in new, leading-edge laboratories in
Quebec in 2008.
MAJOR GLOBAL INVESTORS
IN CANADA
Amgen
AstraZeneca
Bayer
Bristol-Myers Squibb
Eli Lilly
GlaxoSmithKline
Hoffman-LaRoche
Johnson & Johnson
Jubilant Organosys
Merck Frosst
Novartis
Novopharm
Pfzer
Sandoz
sanof-aventis
LEADING CANADIAN COMPANIES
Angiotech Pharmaceuticals
Apotex
BioMS
Bioniche Life Sciences
Biovail
Cangene
Cardiome Pharma Corp.
lmmunovaccine Technologies
Medicure lnc.
Theratechnologies
Transition Therapeutics lnc.
Trillium Therapeutics

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British Co|umbia
Br|t|sh Oo|umb|a`s b|opharmaoeut|oa|s seotor oons|sts of over 90 oompan|es w|th a
tota| of 2,200 emp|oyees and annua| revenues of approx|mate|y $779 m||||on. The
prov|noe`s b|opharmaoeut|oa| seotor |s anohored by two of the wor|d`s frst proftab|e
b|opharmaoeut|oa| oompan|es: Q|T and Ang|oteoh. The B.O. Oanoer Agenoy, the
B.O. Oentre for D|sease Oontro| and the Ün|vers|ty of Br|t|sh Oo|umb|a, |ooated |n
vancouver, house some of the prov|noe`s wor|d-|ead|ng researoh fao|||t|es.
KEY OANADlAN O|ÜSTEPS
KEY O KEY O KEY O

Saskatchewan
A number of outstand|ng researoh fao|||t|es are |ooated |n
Saskatohewan, many |nvo|ved |n o||n|oa| tr|a|s and outt|ng-edge work
deve|op|ng vaoo|nes and fnd|ng oures for ooronary d|sease, oanoer,
d|abetes and v|ra| |nfeot|ons. The prov|noe |s home to many |ndustry-
|ead|ng frms, |no|ud|ng B|on|ohe ||fe So|enoes lno. and POS P||ot P|ant.
Saskatoon's Nat|ona| Pesearoh Oouno|| - P|ant B|oteohno|ogy lnst|tute foouses on
deve|op|ng p|ant-based produots to |mprove the hea|th and we||ness of Oanad|ans. The
non-proft vaoo|ne and lnfeot|ous D|sease Organ|zat|on, ored|ted w|th fve wor|d frsts |n
an|ma| vaoo|ne researoh, has expanded |nto human hea|th app||oat|ons |n an effort to ease
the suffer|ng oaused by |nfuenza and hepat|t|s O and address the |aok of effeot|ve vaoo|nes
for newborns and peop|e |n deve|op|ng oountr|es.
A|berta
Edmonton hosts wor|d-renowned researohers and pub||o|y supported
state-of-the-art fao|||t|es that prov|de a wea|th of b|omed|oa| researoh
oapao|ty. Edmonton`s Ün|vers|ty of A|berta and the un|vers|t|es of Oa|gary
and |ethbr|dge offer an unpara||e|ed env|ronment for pr|mary researoh.
Suooesses |no|ude the Edmonton Protooo| treatment for Type 1 d|abetes,
advanoed oanoer |mag|ng and treatment, neuro|og|oa| |mag|ng, and outt|ng-
edge researoh |nto treatments for oard|ao and |nfeot|ous d|seases.
Pr|vate-seotor oompan|es add depth to the researoh env|ronment |n A|berta.
Examp|es |no|ude B|oMS Med|oa| Oorporat|on, deve|op|ng therapeut|os to treat
mu|t|p|e so|eros|s; Onoo|yt|os B|oteoh lno., foous|ng on deve|op|ng produots
to treat oanoer; oontraot P&D frms NAEJA Pharmaoeut|oa|s and Ohemroutes
Oorporat|on; and QSv B|o|og|os, a GMP oontraot manufaotur|ng |fermentat|onì
frm. G||ead So|enoes a|so operates a manufaotur|ng fao|||ty |n Edmonton.
Manitoba
W|th over 40 oompan|es, 30 P&D estab||shments, 23 serv|oe frms, and
4,200 emp|oyees, Winnipeg's ||fe so|enoes o|uster offers s|gn|foant oapab|||t|es |n
b|opharmaoeut|oa| P&D and produot|on, |no|ud|ng three of Oanada`s top 10 ||fe so|enoes
oompan|es |n 2008: D|amed|a, Kane B|oteoh and Samune. As Oanada`s th|rd-|argest
exporter of pharmaoeut|oa|s, the reg|on`s manufaotur|ng aot|v|ty |s oentred on frms suoh
as Oangene Oorporat|on, Apotex Fermentat|on, B|ova|| and v|ta Hea|th.
Home to the Pub||o Hea|th Agenoy of Oanada, Man|toba |s a g|oba| oentre
of exoe||enoe |n |nfeot|ous d|sease |dent|foat|on and management, w|th
Oanada`s on|y |eve| 4 oonta|nment |aboratory. The b|opharmaoeut|oa|
o|uster`s areas of foous here |no|ude |nfeot|ous d|seases; oard|ovasou|ar
and resp|ratory d|seases; onoo|ogy; neuroso|enoe; nutraoeut|oa|s and
funot|ona| foods; and d|agnost|os.
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OANADlAN O|ÜS OANADlAN O|ÜS OANADlAN O|ÜS
Quebec
Montréal boasts one of the |argest and most |mportant b|opharmaoeut|oa| o|usters |n
North Amer|oa. As a top |ooat|on for bas|o researoh and oontraot researoh, Montrea| |s a|so
very aot|ve |n the deve|opment and oommero|a||zat|on of |nnovat|ve produots, as we|| as |n
venture oap|ta| fund|ng for b|oteohno|ogy frms. Emp|oy|ng approx|mate|y 15,000 peop|e,
the o|ty`s o|uster benefts from a wea|th of expert|se |n o||n|oa| researoh, a oore of dynam|o
entrepreneurs |n b|o|nformat|os and med|oa| teohno|og|es, and |s home to manufaoturers
of patented and gener|o produots. Boast|ng top |eve| expert|se |n vaoo|ne researoh and |n
the b|o-manufaotur|ng of therapeut|o prote|ns, Montrea| a|so has a |ead|ng reputat|on |n
P&D, host|ng a number of renowned |nternat|ona| researoh oentres, suoh as the MoG|||
Ün|vers|ty and Genome Quebeo lnnovat|on Oentre, and the B|oteohno|ogy
Pesearoh lnst|tute. Wor|d-o|ass frms suoh as AstraZeneoa, GSK, Merok
Frosst, Novart|s, Pfzer, sanof-avent|s and Wyeth operate |n Montrea|.
The City of Québec's hea|th seotor has a |arge oonoentrat|on of
jobs |n vaoo|ne produot|on, oontraot researoh, d|agnost|os
and the manufaoture of med|oa| equ|pment and med|oa|
teohno|og|es. S|noe 2006, pharmaoeut|oa| oompan|es
have |nvested o|ose to $1 b||||on |n the|r produot|on
un|ts |ooated |n the prov|noe of Quebeo, due |n |arge
part to the abundant poo| of ava||ab|e aoadem|o,
teohn|oa| and speo|a||zed |abour. The O|ty of Quebeo
reg|on |s home to many |ndustry-|ead|ng frms, |no|ud|ng
Æterna Zentar|s, Anapharm, and GSK, as we|| as to seven
researoh oentres that foous on outt|ng-edge researoh |n oard|o|ogy,
genom|os, |nfeot|ous d|seases, |mmuno|ogy, obes|ty, onoo|ogy,
neuroso|enoe, funot|ona| foods and nutraoeut|oa|s.
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Nova Scotia
Halifax |s home to a number of |ead|ng oompan|es |nvo|ved |n the
deve|opment of therapeut|o produots and the manufaotur|ng and
d|str|but|on of natura| hea|th produots. Suoh frms |no|ude Merok Frosst
Oanada, Kytogen|os Pharmaoeut|oa|s, Ooean Nutr|t|on and Asoenta
Hea|th, a frm that ho|ds the |argest share of Oanada`s market for
omega-3 supp|ements. Ha||fax a|so boasts The Bra|n Pepa|r Oentre,
a mu|t|d|so|p||nary oo||aborat|on ||nk|ng more than 100 wor|d-o|ass
researohers and phys|o|ans speo|a||z|ng |n groundbreak|ng treatments and
teohno|og|es |n the fe|d of bra|n repa|r.
Ontario
Toronto |s home to one of the |argest b|opharmaoeut|oa| o|usters and one of the b|ggest med|oa|
oommun|t|es |n North Amer|oa. At the heart of the o|uster |s the D|soovery D|str|ot, wh|oh
enoompasses the MaPS Oentre, the Donne||y Oentre for Oe||u|ar and B|omo|eou|ar Pesearoh,
researoh hosp|ta|s, speo|a||zed |nst|tut|ons and |nnovat|ve ||fe so|enoes frms. A|| have he|ped
to make the Greater Toronto Area a |ead|ng oentre for researoh |n genom|os, proteom|os and
b|o|nformat|os. Peoogn|zed as a d|str|but|on hub w|th a network of med|oa| supp||ers, the reg|on
has a|so deve|oped s|gn|foant expert|se |n drug manufaotur|ng. The Greater Toronto Area attraots
many wor|d-|ead|ng b|opharmaoeut|oa| frms suoh as Bayer, E|| ||||y, GSK and Sanof Pasteur.
Ottawa |s one of the frst o|t|es |n Oanada to oap|ta||ze on the vast bus|ness potent|a| of
b|oteohno|ogy. As a thr|v|ng P&D, o||n|oa| researoh, and manufaotur|ng oentre, the o|ty |s home
to the Nat|ona| Pesearoh Oouno|| and to 20 ||fe so|enoes-re|ated researoh |nst|tutes that annua||y
|nvest an est|mated $350 m||||on |n P&D. Oompan|es operat|ng |n Ottawa |no|ude MDS Nord|on,
var|at|on B|oteohno|og|es, Abbott Po|nt-of-Oare and Best Med|oa| Oanada.
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lNvESTMENT |OOATlON BENOHMAPKlNG
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METHODOLOGY
Th|s benohmark|ng study assesses the oompet|t|veness of a number of Oanad|an o|usters
aga|nst oompet|ng |nternat|ona| bus|ness |ooat|ons. Based on an |nvestor`s perspeot|ve, the
researoh and ana|ys|s uses a representat|ve |nvestment projeot prototype |a b|oteohno|ogy
P&D fao|||ty fooused on drug d|soovery and o||n|oa| tr|a|s, as we|| as a fu||y |ntegrated
pharmaoeut|oa| operat|on |nvo|ved w|th P&D and produot|on of oommero|a| produots-see
prof|e on page 5ì to assess or|ter|a that oorporate deo|s|on makers typ|oa||y exam|ne when
eva|uat|ng |ooat|on a|ternat|ves for fore|gn |nvestment.
Th|s |nternat|ona| |ooat|on benohmark|ng exero|se was oonduoted by lBM-P|ant |ooat|on
lnternat|ona| |lBM-P|lì, a renowned g|oba| |ooat|on oonsu|tanoy. lBM-P|l performed
objeot|ve researoh to assess the oomparat|ve oost and qua||ty of do|ng bus|ness |n var|ous
|ooat|ons, s|mu|at|ng the approaoh used by |nvestors when soreen|ng oand|dates for
oorporate |nvestment projeots. The benohmark|ng study exam|ned 250 to 300 fnano|a| and
qua||tat|ve |ooat|on |nd|oators |n the assessment of eaoh |ndustry subseotor.
To assess the qua||ty of a |ooat|on`s operat|ng bus|ness env|ronment, data were oo||eoted
from a var|ety of souroes for the d|fferent subfaotors |n eaoh of the oategor|es featured |n the
operat|ng env|ronment tab|e |page 5ì. Data for the qua||tat|ve assessment were trans|ated
|nto oomparab|e soor|ngs |zero to 10ì for eaoh oategory and subfaotor us|ng a we|ghted
sooreboard approaoh. We|ghts were ass|gned to eaoh |ooat|on oategory and subfaotor
to demonstrate the|r re|at|ve |mportanoe |n the |ooat|on se|eot|on prooess. These we|ghts
are speo|fo to eaoh |ndustry subseotor and are based on lBM-P|l`s exper|enoe |n he|p|ng
|nvestors make strateg|o deo|s|ons when ohoos|ng |ooat|ons.
A h|gh-|eve| fnano|a| ana|ys|s was a|so oonduoted to take |nto aooount major |ooat|on-
sens|t|ve |nvestment and operat|ng oosts and revenues for eaoh representat|ve projeot
prof|e. Operat|ng oost and oash fow projeot|ons have been oa|ou|ated and d|soounted over
a 10-year per|od, |noorporat|ng ant|o|pated |nfat|on rates, to determ|ne the|r net present
va|ue.
lNvESTMENT |OOA

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REPRESENTATIVE PROJECT PROFILE
OPERATING ENVIRONMENT
*Factor catedor] weidht, correspondind location factors are ranked in order of importance.
6£h£8AL 0£$08|PT|0h
0F 0P£8AT|0h$
B|oteoh P&D fao|||ty
fooused on drug
d|soovery and o||n|oa|
tr|a|s
k£Y P80J£0T 08|V£8$
· Ava||ab|||ty of h|gh|y
sk|||ed personne|:
|aboratory
speo|a||sts,
researohers, eto.
· Aooess to
researoh and
teohno|ogy
|un|vers|t|es,
|noubators, P&D
fund|ng, eto.ì

LA8008
|HEADOOÜNT = 96ì
B|o|ogy
So|ent|sts: 20
|aboratory
Speo|a||sts and
Teohn|o|ans: 50
O||n|oa|
Pesearohers: 15
Operat|ons
Managers:1
Genera| Offoe
O|erks: 10

P80P£8TY
|and: 2 aores
Bu||d|ng:
7,500 sq. ft.
0T|L|T|£$
Power:
|Month|y
Oonsumpt|onì
60,000 kWh
Water:
|Da||y
Oonsumpt|onì
12,000 ga|
0P£8AT|h6 00$T AhALY$|$
P80J£0T 8£00|8£N£hT$ F08
F|hAh0|AL N00£LL|h6
6£h£8AL 0£$08|PT|0h
0F 0P£8AT|0h$
Pesearoh, deve|opment
and produot|on of
oommero|a| human
pharmaoeut|oa|
produots
k£Y P80J£0T 08|V£8$
· Ava||ab|||ty of
sk|||ed |abour:
so|ent|sts,
teohn|o|ans,
produot|on
operat|ves
· Attraot|veness for
|nternat|ona|
reoru|ts
· Aooess to
researoh and
teohno|ogy
|un|vers|t|es,
|noubators, P&D
fund|ng, eto.ì
LA8008
|HEADOOÜNT = 400ì
Produot|on
Operat|ves: 250
Sen|or
So|ent|sts: 50
|aboratory
Teohn|o|ans: 45
Eng|neers: 30
Management and
Adm|n|strat|on: 25

NA0h|h£8Y Ah0
£00|PN£hT
O$ 200,000,000
$AL£$
O$ 120,000,000
P80P£8TY
|and: 50 aores
Bu||d|ng:
270,000 sq. ft.
0T|L|T|£$
Power:
|Month|y
Oonsumpt|onì
400,000 kWh
Gas:
|Month|y
Oonsumpt|onì
8,000 Mof
Water:
|Da||y
Oonsumpt|onì
200,000 ga|
0P£8AT|h6 00$T AhALY$|$
P80J£0T 8£00|8£N£hT$ F08
F|hAh0|AL N00£LL|h6
B|otech R&D Fu||y Integrated Pharmaceut|ca| Operat|on
6£h£8AL 80$|h£$$ £hV|80hN£hT » 10%*
» Ava||ab|||ty of fnano|a| support & |noent|ves; » Qua||ty of support from |ooa|
government & deve|opment ageno|es; » Oomp||anoe w|th proteot|on of
pr|vaoy regu|at|ons, |nformat|on seour|ty, lP r|ghts; » Po||t|oa| stab|||ty;
» Eoonom|o and fnano|a| stab|||ty
L00AL P0T£hT|AL T0 8£080|T $k|LL£0 $TAFF » 30%*
» Presenoe of exper|enoed emp|oyees |pharmaoeut|oa| and b|oteoh re|atedì;
» Presenoe of student popu|at|on; » Overa|| s|ze of |abour poo|;
» Overa|| t|ghtness |n the |abour market |unemp|oymentì
P8£$£h0£ 0F |h00$T8Y/0L0$T£8 » 30%*
» lmportanoe of P&D; » Prox|m|ty to fnanoe/regu|ators;
» Presenoe of |ndustry base;
» Market prox|m|ty |aooess to oustomers/supp||ersì
FL£X|8|L|TY 0F LA8008 & 8£60LAT|0h$ » 5%*
» H|r|ng & fr|ng fex|b|||ty; » Work perm|ts; » Work|ng t|me regu|at|ons;
» lndustr|a| re|at|ons/att|tude of un|ons
|hF8A$T800T08£ & 00NN0h|0AT|0h$ » 10%*
» A|r aooess; » Qua||ty & re||ab|||ty of lT & te|eoommun|oat|ons; » Pub||o
transport; » H|ghway network & oongest|on; » Pe||ab|||ty of power supp|y
L|V|h6 £hV|80hN£hT » 15%*
» Attraot|veness for young |nternat|ona| reoru|ts;
» Attraot|veness for expatr|ates
6£h£8AL 80$|h£$$ £hV|80hN£hT » 15%*
» Qua||ty of support from |ooa| government & deve|opment ageno|es;
» Ava||ab|||ty of fnano|a| support & |noent|ves; » Bus|ness perm|tt|ng
prooedures; » Oomp||anoe w|th proteot|on of pr|vaoy regu|at|ons, |nformat|on
seour|ty, lP r|ghts; » Po||t|oa| stab|||ty; » Eoonom|o and fnano|a| stab|||ty
L00AL P0T£hT|AL T0 8£080|T $k|LL£0 $TAFF » 30%*
» Presenoe of exper|enoed pharmaoeut|oa| emp|oyees |P&D and
manufaotur|ngì; » Overa|| s|ze of |abour poo|; » Overa|| t|ghtness |n the
|abour market |unemp|oymentì; » Presenoe of student popu|at|on
P8£$£h0£ 0F |h00$T8Y/0L0$T£8 » 10%*
» Presenoe of |ndustry base; » Market prox|m|ty; » lmportanoe of P&D
FL£X|8|L|TY 0F LA8008 & 8£60LAT|0h$ » 15%*
» Work|ng t|me regu|at|ons; » H|r|ng & fr|ng fex|b|||ty;
» lndustr|a| re|at|ons/att|tude of un|ons
|hF8A$T800T08£ & 00NN0h|0AT|0h$ » 20%*
» H|ghway network & oongest|on; » A|r aooess; » Pe||ab|||ty of power
supp|y; » Qua||ty & re||ab|||ty of lT & te|eoommun|oat|ons; » Pub||o transport
8£AL £$TAT£ » 5%*
» Ava||ab|||ty of |arge |ndustr|a| s|tes
L|V|h6 £hV|80hN£hT » 5%*
» Attraot|veness for young |nternat|ona| reoru|ts;
» Attraot|veness for expatr|ates; » Oost of ||v|ng
lNvESTMENT |OOATlON BENOHMAPKlNG
REPRESENTATIVE PROJECT PROFILE
OPERATING ENVIRONMENT
0AP|TAL |hV£$TN£hT
O$ 3 m||||on
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o.ese.e o.¦.es ¦o g.o. s¦e·d'· ¦'·.'s ¦o 'e·d.gedge .ese·.' o.og.··s. ·.d
s¦.o.g | .·..g ·.d ve.¦.e·o¦·' o.og.··s. C·.·d· o||e.s ·. ·¦¦.·¦ve
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¦o |''· .¦eg.·¦ed o'·.··e¦·' | .·s 'oo'.g ¦o o.osoe..

OANADA`S vA|ÜE PPOPOSlTlON
OOST ASSESSMENT*
QÜA|lTATlvE ASSESSMENT OF OPEPATlNG ENvlPONMENT*
Living environment
Real estate
lnfrastructure &
communications
Flexibility of labour &
regulations
Presence of
industry/cluster
Local potential to
recruit skilled staff
General business
environment
Canadian
Non-Canadian
Oanada offers the most oost-oompet|t|ve |ooat|ons |n oompar|son
to other North Amer|oan and G7 opt|ons eva|uated |n lBM-P|l`s
benohmark|ng study. W|nn|peg, Saskatoon and the O|ty of Quebeo
are among the top Oanad|an |ooat|ons that offer s|gn|foant oost
advantages over oompet|ng o|t|es. A|| Oanad|an o|t|es benohmarked,
|no|ud|ng |arge b|opharmaoeut|oa| o|usters suoh as Montrea|
and Toronto, rank |n the top 10 based on a fnano|a| ana|ys|s of
oash fows and operat|ng oosts. W|th |ow oorporate tax rates
and generous P&D |noent|ves, Oanad|an |ooat|ons he|p |nvestors
opt|m|ze the|r oost struoture.
A better return on your investment
Apart from offer|ng oost-oompet|t|ve |nvestment |ooat|ons, Oanada
a|so offers b|opharmaoeut|oa| frms some of the wor|d`s best
operat|ng env|ronments. Toronto and Montrea|, both home to many
of the top b|opharmaoeut|oa| frms, rank among |ead|ng North
Amer|oan opt|ons. Other Oanad|an |ooat|ons, notab|y the O|ty of
Quebeo and vanoouver, a|so offer strong qua||tat|ve env|ronments.
The ab|||ty to h|re emp|oyees sk|||ed |n the pharmaoeut|oa| |ndustry
|s an |mportant faotor |n th|s assessment; Toronto, Montrea| and the
O|ty of Quebeo a|| soore h|gh|y |n th|s respeot. Oanad|an |ooat|ons
as a who|e a|so ga|n exoe||ent soores for P&D and for the qua||ty
of |nfrastruoture, |no|ud|ng easy h|ghway aooess, |ow oongest|on,
and re||ab|||ty of the |ooa| power supp|y, a|| key |nvestment dr|vers
|n th|s |ndustry seotor. The new EÜ-Oanada av|at|on agreement w|||
support Oanada`s grow|ng transat|ant|o trade, fao|||tat|ng the effo|ent
fow of peop|e and va|uab|e goods.
Strong c|usters with a wea|th of expertise
*Unless otherwise noted, draphs represent lBN-Pll assessment scores.
C$1 = U8$O.8G2
OANADA`S vA|ÜE PPOPOSlTlON
Est|mated annua| |abour oosts of a b|oteohno|ogy P&D
operat|on |h|ghest-rank|ng o|t|esì **
Favourab|e |abour costs
A oa|ou|at|on of the est|mated annua| |abour oosts for a typ|oa|
P&D fao|||ty fooused on drug d|soovery and o||n|oa| tr|a|s shows
the potent|a| for s|gn|foant oost sav|ngs of Oanad|an |ooat|ons.
A|| Oanad|an o|t|es exam|ned |n lBM-P|l`s study rank |n the
top 10 and have |ower oosts than prom|nent Ü.S. oompet|tors
suoh as Ph||ade|ph|a, Boston and Jersey O|ty.
An |mportant oomponent of Oanada`s |abour oost advantage
re|at|ve to the Ün|ted States stems from the |ower oosts of
prov|d|ng emp|oyee benefts. Oanada`s nat|ona| hea|thoare
system |mp||es that most med|oa| |nsuranoe oosts are pub||o|y
funded rather than pa|d by the emp|oyer, wh|oh oan resu|t |n
s|gn|foant sav|ngs for emp|oyers.
Thriving biopharmaceutica| c|usters
O|usters of pharmaoeut|oa| oompan|es a||ow o|ose ||nkages
w|th buyers, supp||ers and other |nst|tut|ons to offer advantages
that |ead not on|y to greater effo|enoy, but a|so to aooe|erated
produot |mprovement and |nnovat|on.
Oanada has the seoond h|ghest number of b|oteohno|ogy
oompan|es |n the wor|d and |s home to some of the |argest
estab||shed o|usters |n the pharmaoeut|oa| |ndustry. Offo|a|
oounts of estab||shments o|ass|fed as pharmaoeut|oa|
manufaotur|ng
2
show Toronto and Montrea| oompar|ng
we|| to Jersey O|ty, New Jersey, one of the most prom|nent
pharmaoeut|oa| |ndustry bases |n North Amer|oa.
|ooa| potent|a| to reoru|t sk|||ed staff
|h|ghest-rank|ng o|t|esì*
A deep ta|ent poo|
The presenoe of exper|enoed o||n|o|ans and researohers
oontr|butes to the suooess of P&D aot|v|t|es. Prox|m|ty to
un|vers|t|es and a student popu|at|on are |mportant |n prov|d|ng
a souroe of eduoated |abour, as we|| as |nd|v|dua|s to serve
as test popu|at|ons for hea|th researoh and stud|es. Panked
frst |n the wor|d for h|gher eduoat|on,
3
Oanada |s home to an
exoept|ona||y we||-eduoated, mot|vated and d|verse workforoe.
Toronto, Montrea|, the O|ty of Quebeo and vanoouver a||
host |arge popu|at|ons of exper|enoed emp|oyees work|ng |n
pharmaoeut|oa| and b|omed|oa|-re|ated oompan|es, as we|| as
|arge student popu|at|ons, ensur|ng a steady fow of new ta|ent.
Presenoe of pharmaoeut|oa| |ndustry base
|h|ghest-rank|ng o|t|esì*

Canadian
Non-Canadian
Canadian
Non-Canadian
Canadian
Non-Canadian
*Unless otherwise noted, draphs represent lBN-Pll assessment scores. ** lBN-Pll calculations oased on watson w]att 2OO7/2OO8 & Economic Research lnstitute (ERlì 2OO8. 2 Estaolishments oelondind to hAlC8 8254.
8 lND world Competitiveness Yearoook 2OO7.
C$1 = U8$O.8G2
Student popu|at|on |h|ghest-rank|ng o|t|esì***
The peop|e advantage
Oanada be||eves |n |nvest|ng |n peop|e and we|oom|ng ta|ent
from around the wor|d. Th|s he|ps exp|a|n why Oanada has the
wor|d`s h|ghest peroentage of oo||ege and un|vers|ty graduates
and a we||-eduoated, ta|ented and d|verse workforoe, mot|vated
to he|p bus|nesses suooeed.
lBM-P|l`s benohmark|ng study rates fve Oanad|an o|t|es
at the top of the rank|ngs for the number of ||fe so|enoe-
re|ated graduates. Toronto, Montrea|, vanoouver, Ottawa
and Edmonton a|| host s|zeab|e un|vers|t|es w|th faou|t|es |n
b|o|og|oa|, b|omed|oa| and genera| ||fe so|enoes, resu|t|ng |n a
|arge and oonstant fow of new ta|ent for the |ndustry.
Best p|ace to do business in the G7
Oanada has a so||d and dynam|o eoonomy, |ow oorporate tax
rates and generous P&D |noent|ves. Th|s, ooup|ed w|th the
support from |ooa| governments and deve|opment ageno|es,
pr|vaoy regu|at|ons, |nformat|on seour|ty and |nte||eotua|
property r|ghts, has he|ped to make Oanada an advantageous
bus|ness env|ronment for oompan|es to |nvest and four|sh.
As the number one oountry among the G7 for GDP growth
over the |ast deoade and w|th the wor|d`s soundest bank|ng
system,
4
Oanada prov|des a safe and strong bus|ness
env|ronment that offers tremendous growth potent|a| and peaoe
of m|nd for your |nvestment.
Genera| bus|ness env|ronment |h|ghest-rank|ng o|t|esì*
Generous R&D incentives
Oanada understands that P&D and |nnovat|on are or|t|oa| to
the growth of b|opharmaoeut|oa| frms; therefore b||||ons of
do||ars are |nvested |n P&D eaoh year to ensure that |nvestors
have aooess to the best ta|ent and |nfrastruoture |n the wor|d.
Oanada prov|des a system of federa| and prov|no|a| tax ored|ts
and aooe|erated tax deduot|ons for a w|de var|ety of P&D
expend|tures to a||ow g|oba| frms to s|gn|foant|y reduoe oosts.
Oanada`s So|ent|fo Pesearoh and Exper|menta| Deve|opment
|SP&EDì program |s an open-ended tax |noent|ve |n|t|at|ve
that oovers 20 peroent of var|ous P&D-re|ated oosts, suoh
as sa|ar|es, overhead, oap|ta| equ|pment and mater|a|s. The
SP&ED |noent|ve perm|ts frms to reduoe P&D oosts through
d|reot |nvestment or suboontraot|ng |n Oanada.
The rate of tax subs|d|es for ÜS$1 of P&D,
|arge frms and SMEs |G7 oountr|esì**

OANADA`S vA|ÜE PPOPOSlTlON
Canadian
Non-Canadian
Canadian
Non-Canadian
Canadian
Non-Canadian
*Unless otherwise noted, draphs represent lBN-Pll assessment scores. **0ECD 8cience, Technolod] and lndustr]. 8coreooard 2OO7. ***8ources include hational Center for Education
8tatistics and lntedrated Postsecondar] Education Data. 4 world Economic Forum 0looal Competitiveness Report 2OO8-2OO9, 0ctooer 2OO8.
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This publication was prepared by lnvest in Canada in cooperation with lBM-PLl. The document covers a wide range of issues and is not intended to be a
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