Thank you for inviting me to appear today. My name is Ubaka Ogbogu and I'm an assistant professor in the faculties of law, and pharmacy and pharmaceutical sciences at the University of Alberta. I'm also the Katz research fellow in health law and science policy. I'm here to represent the Stem Cell Network. I have long been a member of this organization, first as a student trainee, and now as a legal and policy researcher and scholar investigating the ethical, legal, and social issues associated with stem cell research.
Since its inception in 2001, the Stem Cell Network has been leading and building Canada's stem cell research community. Over the past 16 years, the Stem Cell Network has built a national community that has transformed stem cell research in Canada, and has pushed the boundaries of what was a basic research area towards translational outcomes for the clinic and the marketplace. This has been achieved in areas such as cancer, diabetes, heart failure, and multiple sclerosis.
From 2002 to date, the Stem Cell Network has supported 160 world-class research groups across Canada with approximately 5,000 full-time employees working on Stem Cell Network-supported stem cell research projects. As of 2016, the Stem Cell Network has provided over $90 million for innovative translational research, resulting in partner contributions of $100 million. I'm proud to say that the Stem Cell Network is the main driver behind the emergence of Canada's regenerative medicine sector.
Regenerative medicine, as you may know, uses stem cell-based therapies and technologies to regrow, repair, or replace damaged or diseased cells, organs, or tissues. Just this past spring, the “Global Regenerative Medicine Market Analysis & Forecast to 2021” indicated that the global regenerative medicine market was worth $18.9 billion in 2016, and will grow to $53.7 billion by 2021. This is a market that Canada is well positioned to actively participate in, especially with strategic investments in growth areas such as biomanufacturing, technology scale-up, clinical trials, and translational research.
Countries around the world such as the U.S., Japan, Germany, and the U.K. are making strategic investments in stem cell research because they understand the major health and economic benefits that will result from this research. Canada is well positioned to be part of this global picture. However, it is not just pure economics that will drive our investments in research. There's also a health imperative for being involved in regenerative medicine.
Chronic illness is costing the Canadian economy approximately $190 billion per year in health care costs, not to mention income and productivity losses. Health care expenditures are expected to outpace economic growth by 2020. Regenerative medicine powered by stem cells has the potential to change the narrative in the years to come. That said, new therapies, technologies, and treatments must be proven safe and efficacious before they enter the marketplace. This means that it takes time, patience, and an unwavering commitment by all of us if we are going to succeed in getting novel regenerative medicine to our loved ones.
When you are talking about the health of your mother, your daughter, your husband, or your neighbour, we must ensure the risks have all been accounted for while balancing this timely access to new therapies.
On a personal note, my involvement in the Stem Cell Network, along with my colleagues who work in the health law and science policy fields, has been to provide evidence-based advice to regulators, including Health Canada, on how to address the regulatory and policy issues in this field. We also provide advice to government that would help to ensure that our regulatory system is effective and permits research to move from bench to bedside as efficiently as possible.
I know the government is most interested in how to support productivity in this country. It is a complex question but also a straightforward one. Invest in innovative sectors like regenerative medicine. It is the field that is the future of health care. It is also an area where investors are paying greater attention and putting their money where their mouths are.
A clear example of this is the 2016 announcement of BlueRock Therapeutics, a joint venture between Bayer and Versant Ventures, valued at $225 million U.S. It is one of the largest ever series A financing for a regenerative medicine biotech company. This company has offices and labs in Toronto, Kyoto, and Boston. BlueRock is looking to bring some of these therapies to the market. Its first area of focus is to develop therapies that address heart attacks and chronic heart failure. These are conditions that cost more than $2.8 billion per year to treat, and 50,000 Canadians are diagnosed with them annually.
The two scientist founders of BlueRock are Canadians: Michael LaFlamme and Gordon Keller. Dr. Keller is a member of the Stem Cell Network and has benefited from the Stem Cell Network's support over the years. Dr. Michael LaFlamme is globally respected as a cardiac cell therapy pioneer.
Many impressive scientific minds reside across the country, too many to name. If it were not for strategic investment in stem cell research, they may have chosen to move elsewhere to pursue their careers and their passion. However, because Dr. Keller and Dr. LaFlamme were able to pursue their research in Canada, we can declare BlueRock to be a homegrown success. As Michael Rudnicki, the scientific director and CEO of the Stem Cell Network, likes to say, Canada is at a tipping point and now is the time to double down and invest in regenerative medicine. I agree with this statement and would add that without this support, we run the risk of losing the next generation of young researchers, biologists, engineers, ethicists, and lawyers like me. These are the people that this government understands will drive Canada's knowledge economy.
In conclusion, if you want to provide incentives that will spur productivity and create high-quality jobs, you don't need to look very hard. I encourage the government to invest in this sector that is ready to make a difference for Canada and Canadians.
Thank you very much for the opportunity to speak with this committee. I look forward to your questions.