Canadian Start-Ups continue to change the game within the Big Pharma industry.
Having a significant research arm in Canada, BlueRock Therapeutics was recently sold to Germany’s Bayer for a $1 billion valuation. This startup developed a new Parkison’s disease drug as well as an innovative approach to drug discovery.
Although start-ups often receive backlash for selling their creations too quickly, it’s important to consider the opportunities that come from the sale. Canadian entrepreneurs adapted to the current pharmaceutical landscape, profiting greatly from selling in house innovations.
With Big Pharma now doing less in-house R&D, start-ups are taking advantage of these market spaces. Leaders in the Pharma industry are looking beyond their usual companies to partner with start-ups and gain access to modern research.
Fortunately, companies with significant Canadian ventures, like Bluerock, are gaining billion-dollar payouts. Benefitting the life-science fields with greater budgets, equipment, and labs. Investors are now focused on start-ups now more than ever, because of their skyrocketing potential in pharma.
Greater diversification in the Pharma landscape means R&D is generating better ideas at improved efficiencies. Now large pharmaceutical companies focus on their strengths, including a clinical trial, branding, and sales. Likewise, start-ups are focusing on their own niche strengths including focused research and greater quality results due to decreased production pressures.
Investors are becoming keen on professional risk takers – innovative entrepreneurs in this industry. Not only are investors seeking to back Canadian entrepreneurs but so is the Canadian government through grant programs. SR&ED tax incentive claims use tax incentives to encourage Canadian businesses to conduct R&D.
The changing dynamic of the pharma scene is because of the (slight) decrease in Big Pharma’s ownership of drug platform. Their high failure rate due to risky, large investments made in hopes of creating a single viable drug meant they were losing millions to billions of dollars.
Now, research begins with start-ups, governmentally or privately funded researchers that pursue big ideas more efficiently than big pharma has done in the past. They don’t approach research and pharmaceutical development with pressures and interests of corporations, instead, they are focused on solving real work problems.
Incubators in Toronto, JLABS and Montreal’s, Med Institute, nurture ideas and minds with cutting-edge software, artificial intelligence, data, and biologics. Canadian companies are not only selling pharmaceuticals to the global pharma, but they are also selling ideas. In cities such as Toronto, Montreal and Vancouver filled with start-ups this new R&D model creates greater opportunities.
Do you want to know all the R&D Grants and Incentives your company is eligible for? Feel free to reach out to EVAMAX today for a no-obligation consultation.