There are huge opportunities for an increase in pharmaceutical-driven research and development in Alberta — but the industry still faces challenges, says the head of the association which represents brand-name drug makers.
Murray Elston, president of Canada’s Research-Based Pharmaceutical Companies, says lengthy delays in approvals and inadequate patent protection on new medicines are creating longer waiting periods for new drugs and potentially discouraging companies from investing in research in Canada.
“The question has to be: Why do patients in Canada have to wait so much longer?” Elston asked at a Calgary Chamber of Commerce luncheon last week.
Elston noted it can take up to 15 years to bring a new drug to market at a cost of about $750 million, while the waiting time for government approval for new medicines eats up an average of 591 days — compared to 384 days in the U.S.
He added that, in some cases, quick approvals can save lives. In the recent case of water contamination in Walkerton, Ont., a Calgary-based pharmaceutical company was called on to ship emergency supplies of its experimental E.coli drug to area hospitals. Health authorities permitted release of the SYNSORB PK drug on a “compassionate” basis, saying it was the only one advanced enough to arrest the onset of kidney failure and other life-threatening symptoms of E.coli.
Drug pricing also remains a thorn in the side of many pharma companies, and Elston says listed prices of patented medicines in Canada are, on average, 11 per cent below the international median price. The product listing process must also be repeated in each province and territory.
“When you put these issues all together, it really means we are up against it as an industry, and up against it as a group of patients when it comes to getting the timely access we need” to bring new medicines to market efficiently and effectively, Elston said.
The association is also lobbying for better patent protection for new discoveries, which Elston said is an incentive for companies to spend research dollars in Canada. Funding of such research, he added, must be a continuing commitment even in tough economic times, or companies will quickly move elsewhere.
Currently, the pharmaceutical companies invest about $1 billion every year on drug research and development in Canada, up from $60 million in 1987 — yet the figure still represents less than five per cent of what the industry invests in the U.S.
Member companies of the R&D employ more than 700 in Alberta, and contribute more than $122 million to Alberta’s economy through program and research funding. The association represents 58 brand-name drug companies, including giants GlaxoSmithKline, Merck Frosst, Pfizer Canada and Eli Lilly Canada.
“We have an important stake in this economy, and we are interested in rolling forward with positive contributions to your economy,” said Elston, adding Alberta is home to several promising biotech companies.
The biotech industry sometimes gets overlooked in Alberta “because you have bigger revenue makers at the current time,” he said.
“But these people are huge resources that will help you to diversify your economy.”
