Sam Ricchezza of WellSpring Pharma Services wrote a blog a year or so ago, which we feel is still appropriate and worth repeating.
He said Canada’s pharmaceutical sector is one of the country’s most innovative industries. Comprised of companies developing new and generic prescription pharmaceuticals and biopharmaceuticals as well as over-the-counter drug products, the sector also includes contract research organizations (CROs) and contract development and manufacturing organizations (CDMOs). A lucrative market in its own right, Canada claims a 2.5 percent share of the global pharmaceutical market, making it the ninth largest in the world (IMS Health Pharmafocus 2018).
According to Industry Canada’s report, Canada’s Pharmaceutical Industry and Prospects, pharmaceutical companies are reorganizing in the wake of the patent cliff and adopting new business models built on external networks and third-party partnerships. This trend toward a model that relies on outsourcing many business functions, including manufacturing, Sam wrote, is providing pharmaceutical contract manufacturing service providers in Canada with growth opportunities.
Although global pharmaceutical production is shifting to emerging markets for cost savings and access to growing demand, the report continues, “Contract Service Providers (CSPs) in Canada are attractive alternatives due to complex manufacturing processes [required] for certain products as well as … proximity to the end market in Canada and the US. With intensifying international competition, CSPs based in Canada will seek to differentiate themselves in quality and advantages of scale in their services to appeal to and meet demands of global [sponsors] … Consolidation amongst CSPs is expected with global CSPs absorbing local CSPs, particularly those in manufacturing.”
Canada is well prepared to support the global strategies of the world’s pharmaceutical producers. As an important sector of the Canadian economy, the pharma industry is supported by the Canadian government, which provides a business-friendly environment in which pharma companies can leverage assets to great advantage for both short- and long-term business strategies.
When imagining a global contract manufacturing provider, it’s important to remember that Canada is politically stable and remains a stalwart of democracy, the rule of law and free-market economic policies. Those who do business with Canadians will be the first to acknowledge that our culture engenders a friendly openness supported by a tremendous work ethic that creates strong and lasting business affiliations — something any company seeking CDMO resources understands is key to the success of these complex relationships.