Tariffs and the effect on Canadian pharma
Paul Levesque provides his take on innovation in biopharma, the effects of tariffs on supply chains and pharma manufacturing, and cross-border development. (Issue #329, 1,100 words, 5.3 minutes)
Good morning, and welcome to the NPC Healthbiz Weekly e-newsletter from the National Pharmaceutical Congress and Chronicle Companies.
The biopharmaceutical industry is facing significant challenges, including innovation hurdles, supply chain disruptions, and global business dynamics. Executives must balance scientific advancement with practical strategies. In a recent NPC Podcast episode, Paul Levesque, CEO of Theratechnologies Inc., highlighted challenges like pricing pressures and global instability, stressing the importance of pragmatism and discipline in addressing these issues.
Under Levesque’s leadership, Theratechnologies has shifted to a model where external partners handle much of the research and development, allowing the company to focus on market execution. “We’re going to do less and less clinical development ourselves and rely more on others to handle research and clinical work,” he said. “That’s perfectly fine because the companies that excel at scientific research and clinical development aren’t as strong as we are in commercialization.” He mentioned recent collaborations with American biotech firms as a model, where Theratechnologies leverages its commercial expertise to bring innovative therapies to market, particularly in Canada.
According to Levesque [pictured below], tariffs have become a significant concern for pharmaceutical manufacturing and supply chains. He noted that tariffs could add unnecessary challenges to an already complex situation. “The ingredients and components are crossing the border several times. So they will be taxed in Canada, and they will be taxed in the U.S. when they go back for final assembly,” he said. “[These tariffs are] counterproductive and a huge distraction.” He said that localizing manufacturing and diversifying the company’s portfolio is essential to mitigate the risks that excessive tariffs may pose.
During the podcast episode, Levesque noted that cross-border business development remains essential to his strategy. Drawing on his international experience, he approaches partnerships by focusing on solid value propositions and thorough research into customer and patient needs. “Whenever I try to do business development and get closer to other companies and opportunities, I always look for one thing: ‘What is your value proposition?’ Then I make up my mind,” he said. “I do some research. I ask doctors, customers, and patients, and when I see that we have a solid value proposition, I’m in.”
Levesque also clarified that adapting to industry shifts, whether related to innovation pathways, supply chain strategies, or cross-border collaborations, is essential for long-term success. He said assembling high-performing teams has been a consistent focus throughout his career. “When I arrived at Thera, there was already a strong group of people in place,” he said. “With my network, it was fairly easy to recruit high-quality talent across areas like HR, commercial sales, access, communications, and investor relations. I believe we now have the platform and capabilities to generate far more than $90 million in sales.”
THIS WEEK 04/29/25
Health Canada issued a Notice of Compliance with Conditions to Ipsen Biopharmaceuticals Canada’s elafibranor (Iqirvo) for the treatment of primary biliary cholangitis in combination with ursodeoxycholic acid (UDCA) in adults with an inadequate response to UDCA, or as monotherapy in adults unable to tolerate UDCA.
The U.S. FDA approved Akeso’s differentiated PD-1 monoclonal antibody, penpulimab-kcqx, in combination with cisplatin or carboplatin and gemcitabine for the first-line treatment of adult recurrent or metastatic non-keratinizing nasopharyngeal carcinoma. The U.S. FDA also approved penpulimab-kcqx as a single agent for adults with metastatic non-keratinizing NPC with disease progression on or after platinum-based chemotherapy and with at least one other prior line of therapy.
Merck announced that Health Canada approved pembrolizumab (Keytruda) in combination with pemetrexed and platinum chemotherapy for first-line treatment of adult patients with unresectable advanced or metastatic malignant pleural mesothelioma.
The U.S. FDA completed its 30-day review of the Delcath Systems Investigational New Drug application for a Phase 2 clinical trial evaluating melphalan (Hepzato) combined with standard of care for liver-dominant metastatic breast cancer.
NOW, LISTEN UP: HERE’S BETTINA HAMELIN OF INNOVATIVE MEDICINES CANADA
In season 14 of the NPC Podcast, Dr. Bettina Hamelin, President of Innovative Medicines Canada, gives insights into the adoption of innovative technologies, domestic supply chain for pharmaceuticals, and excluding medicines as retaliatory measures for tariffs. Hear her in conversation with podcast hosts Mitch Shannon, Jim Shea, and Mark McElwain.
HEALTHBIZ REWIND
This feature of NPC Healthbiz Weekly looks back at some of the most insightful moments from previous NPC Podcast episodes. You can listen to the podcast here.
Jonathan Soong
Vice President, Commercial
BioScript Solutions
Scarborough, Ont.
Season 13, episode 04
Listen to this episode here
What bold predictions do you have for the life sciences industry during the coming 12 or 24 months?
I think we’re seeing a lot of movement on the pharmacare front right now. This will probably date this conversation, but at the end of the day, I fully support the idea of better access to medicines. I think it’s going to be really important that, as a country, we get this right—that any changes we make to how we access medicines actually improve the system. I believe we’ll see a lot of changes to health care over the next 10 to 24 months and beyond, because COVID really showed how fragile the system is. As Canadians, we're proud of our health care. It’s incredible that you can walk into an ER and get the care you need, even if it takes a while. But we’re also seeing ERs close, and the pressure is obvious. We have to figure out how to make this sustainable for the future. Specifically, in the rare disease space, call me an eternal optimist, but I think the commitment to rare disease funding will lead to better and faster access to therapies in Canada. That’s a great thing for patients, and hopefully, it means they'll get the treatments they need sooner, without having to watch other countries get access first.
NEXT WEEK
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