Thank you, Mr. Chairman, and good afternoon.
My name is Wendy Zatylny, and I'm vice-president of government affairs at Rx&D, Canada's Research-Based Pharmaceutical Companies.
With me today is Rob Livingston, director of government relations at Merck Frosst Canada Ltd.
We are very pleased to have the opportunity to be here today. You already have our written proposal, so I will use my time to tell you about our recommendations.
We are a national association representing 15,000 people who work in highly skilled positions for 50 innovative biopharmaceutical companies in Canada. Our objective is to develop new medicines and vaccines that are essential to Canadians so they can enjoy longer, healthier and more productive lives.
Rx&D companies are leading investors in private sector health science and technology-based R and D in Canada. In 2009, our members invested $1 billion in scientific research and development. Our network of partnerships and collaborations has represented tens of thousands of jobs and an investment of more than $20 billion in this country over the last two decades.
These are major achievements, and they create a uniquely Canadian platform for future success. But our industry's capacity to continue these investments and to maintain and build our presence here in Canada is under significant threat. Canada is facing increasing global, competitive pressures, because other countries have acted aggressively to capture the economic value created by our sector and to seize the health benefits that come with a strong research-based biopharmaceutical industry. The plain fact is that if Canada does not keep up with the advantages offered by other economies, we will fall behind, and indeed we are falling behind.
We would like to commend the government on its recently announced review of private sector research and development. Canada must equip itself with the policies and programs that allow it to compete on the global stage. I cannot overstate the need. Such policies are urgent.
In our brief we have proposed four key ways in which Canada can improve the policy environment for our sector.
First, Canada needs a more globally competitive intellectual property regime. This would involve implementation of an effective right of appeal for innovators within Canada's patent regulations. Canada needs a vigorous defence by the federal government of the current data protection regulations in the event of adverse court decisions. And we need the creation of a patent term restoration regime that is competitive with those of our G-7 competitors.
It is important to note that these proposals are aimed only at getting Canada back to parity with our key trading partners. For example, the European Community, with which Canada is negotiating a comprehensive trade agreement, already provides innovators with two years more data protection than Canada does. And Canada is the only G-7 country that does not have any form of patent term restoration, placing us at a distinct disadvantage relative to key competitors for jobs and investments.
Second, because Canada's former leadership in clinical research is being eroded, we propose expanding the SR&ED credit to better capture all aspects of clinical research and clinical trials.
Third, we are calling for more efficient Health Canada review processes for drugs and biologics. Submissions to Health Canada currently take 390 days, more than the 350 days in the United States and almost 100 days more than Europe's 275 days.
Fourth, since vaccines have saved more lives in Canada over the last 50 years than any other health intervention, we recommend the development of a more predictable funding mechanism for vaccines to be added to public immunization programs.
These four priorities we are advancing today can be summarized in two points: access to new medicines for patients, and growing the Canadian economy.
When development dollars and expertise flow to other countries because of Canada's weak intellectual property regime, innovative research focuses on the priorities of others instead of on the needs of Canadians. When clinical research is done elsewhere, Canadians have to wait longer to realize the benefits of new drugs and therapies.
Our country has a strong research base to build upon. We have many of the key ingredients for success in an increasingly competitive global research environment. This base includes multi-year investments by governments in public research enterprise, private investments by our members, averaging over $1 billion per year, and globally recognized clinical research capacity.
In conclusion, Canada cannot rest on its laurels. It must constantly strive to maintain its competitive edge if it wants to capitalize on the innovative potential of its own innovative companies.
Our industry is prepared to work with the federal government to create the kind of stable and predictable environment described, so that the research-based pharmaceutical sector can be competitive and contribute to Canada's economic development.
Thank you.
Thank you for your time.