The challenge of attracting and balancing Pharma investment in Canada
Christine Lennon of Incyte Biosciences describes how policy updates can shape the Pharma market’s potential (700 words, 3.5 minutes)
The Covid-19 pandemic has provided evidence that the Canadian government can mobilize to gain access to innovations, according to Christine Lennon, general manager of Incyte Biosciences Canada.
During a virtual presentation at the 15th National Pharmaceutical Congress, Lennon (photo below) noted the federal government has demonstrated it can remove layers of bureaucracy without compromising patient safety.
Lennon described the delicate art and science of attracting and balancing investment in Canada. These actions include job creation, clinical trials activity, and securing expedient and sustainable access to new and innovative medicines for Canadian patients in an increasingly constrained market.
“In Canada, we’re competing with our colleagues around the world for internal investments into clinical trials,” Lennon said. “There is also a looming threat of Patented Medicine Prices Review Board reform in Canada, which is the prequel to health technology assessments, negotiated reimbursement, and listing agreements.”
All of this creates pressure on ultimately improving patient care. Biotech specialty Pharma, larger Pharma, and healthcare each face their own challenges, said Lennon.
The challenge is to raise money, attract talent, and advance the pipeline at the early biotech stage, usually at significant monetary investment and losses before gaining regulatory approval, Lennon explained.
“In larger Pharma, the challenge is to continue to deliver innovations and returns in an increasingly restrictive environment where time to recuperate investment is eroded,” she added. “Publicly traded companies like Incyte often need to invest at significant losses for at least a few years before possibly gaining regulatory approvals and reimbursement in Canada.”
Some pharmaceutical companies look at Canada and decide to invest their money elsewhere, resulting in this country falling behind on launches, said Lennon.
“[Incyte] needs to be strategic, and we are trying to attract and balance investment in Canada with the potential of approvals and sales so we can become a true healthcare partner for Canadians,” continued Lennon.
“We need to find efficiencies to provide Canadian patients access to trials and ultimately improved innovations. This means we need to adapt and remove layers of bureaucracy in our system, which would be progressive, innovative, and adaptive.”
Further reading: In an op-ed for the Financial Post, prominent IP lawyer Richard Owens described how restrictive government policies are stifling innovation in the Canadian pharmaceutical industry. Read more.
THIS WEEK 11/23/21
Yale University researchers reported they have developed a novel vaccine that could offer protection against Lyme disease and other tick-borne diseases. The vaccine proved to be effective in animal trials and is delivered by the same mRNA technology as some Covid-19 vaccines.
Pfizer announced that the European Commission has approved Xeljanz (tofacitinib) to treat active ankylosing spondylitis (AS) in adults who have inadequately responded to conventional treatments. The approval of Xeljanz for AS is based on results from a Phase 3, multicentre, randomized, double-blind, placebo-controlled clinical trial.
Nexviazyme (avalglucosidase alfa for injection) has been approved in Canada for the long-term treatment of patients with late-onset Pompe disease, a rare autosomal recessive metabolic disorder characterized by a deficiency of acid α-glucosidase (GAA). Nexviazyme is an enzyme replacement therapy (ERT) that provides the body with an external source of GAA to increase cellular enzyme uptake and glycogen elimination in target tissues.
Pfizer Canada and BioNTech announced that Health Canada has approved Comirnaty, the companies’ Covid-19 vaccine for children five to under 12 years of age. This is the first Covid-19 vaccine authorized in Canada for children under 12.
IN CASE YOU MISSED IT
Season Five of the NPC Podcast explored Pharma’s purpose, process, and people with a diverse list of guests across eight episodes. Podcast host Peter Brenders spoke with guests on clinical trials, laws and regulations, investments in life sci, manufacturing, working with the Canadian government, and implications of Covid-19. Did you miss an episode? Catch up now.
CANADIAN HEALTHCARE MARKETING HALL OF FAME
The Canadian Healthcare Marketing Hall of Fame awards were established in 2002 to honour healthcare marketers who have contributed to our vocation and inspire others.
More than 100 honourees have been selected during the past 18 years. In the selection committee’s view, they stand for a representative cross-section of the qualities that make our business unique and fulfilling. Each week, NPC Healthbiz Weekly will acknowledge one past Hall of Fame Honouree.
2014 Inductee
Jonathan Goodman
Montreal
Editor’s Note: Goodman became Executive Chairman of Knight Therapeutics Inc. on Sept. 1, 2021. Samira Sakhia is currently the company’s President and Chief Executive Officer.
The world of pharmaceuticals is in Jonathan Goodman’s blood. His father, Morris, founded Pharmascience Inc. and Goodman, now the founder, president and CEO of yet another publically traded specialty pharmaceutical company, says his father had a significant impact on his career path. “Growing up, instead of having Sports Illustrated around the house, we had the New England Journal of Medicine, so that is what I grew up reading,” says Goodman. “Thankfully, he was in pharmaceuticals and not making widgets because that is probably what I would be doing now. In life, it is always better to be lucky than smart.”
While he loves his father and his older brother, David (CEO of Pharmascience), he says that too many control freaks are a sure recipe for disaster. Given that David was already in the business, Goodman would start something new.
Goodman graduated with a Bachelor of Economics and Art History from McGill University in Montreal and The London School of Economics, and a law degree and an MBA, both from McGill. He worked for Bain & Co. as a consultant and for Procter & Gamble in brand management. Then in 1995, Goodman, at age 26, decided to start his own pharmaceutical company, Paladin Labs Inc.
“I think that the best time to start a business is when you have nothing to lose. I had no kids, and failure would only have been emotionally hard to recover from,” he says.
The company was a remarkable success and Goodman sold it in February 2014 to Endo Health Solutions for $3.2 billion. The same day that he sold Paladin, he started Knight Therapeutics Inc., with the goal of duplicating his success. “I joke that it took 19 years at Paladin to be an overnight success. I am hoping to do it at Knight in 10 years.”
Goodman says he has had luck on his side but that he has also worked hard. He is passionate about touching people’s lives with lifesaving medicine and earning 40 per cent EBITDA margins in the process. This drive to help was definitely propelled by personal experiences. In his twenties, he was diagnosed with cancer. “Because of the good research that was done by people before me, they had the drugs to treat me and I was alive to suffer a bicycle accident about 20 years later,” says Goodman. In Aug. 2011, after Paladin had just acquired Labopharm Inc., Goodman headed out with his management team for a celebratory bicycle ride, and he had a bad crash.
“I had a traumatic brain injury, two heart attacks, a pulmonary embolism, septic shock, and my wife was told twice that I was not going to live,” says Goodman. “But thanks to luck and the brilliant care by the physicians at Hopital du Sacré Coeur in Montreal, I survived and sold Paladin and founded Knight.”
NEXT WEEK
In the 11/30 edition of the NPC Healthbiz Weekly, more from the stellar faculty of the 15th Annual National Pharmaceutical Congress. It’s easy to get your no-charge subscription and have the issue sent to your phone or inbox each Tuesday at 6:00 a.m. sharp.
Stay safe, stay sure, and stay on your game. We’ll see you again next week.