Evidence of meeting #24 for Health in the 45th Parliament, 1st session. (The original version is on Parliament’s site, as are the minutes.) The winning word was companies.

A recording is available from Parliament.

On the agenda

Members speaking

Before the committee

Watson  President and Chief Executive Officer, Apotex Inc.
Bouvier  Professor, As an Individual
M. Somers  Full Professor, As an Individual
Keon  President, Canadian Generic Pharmaceutical Association
Creighton  President, Canadian Pharmaceutical Manufacturers and Exporters Alliance
Hamelin  President and Chief Executive Officer, Innovative Medicines Canada

Terry Creighton President, Canadian Pharmaceutical Manufacturers and Exporters Alliance

Mr. Vice-Chair and members of the standing committee, I want to thank the committee for investigating Canadian pharmaceutical sovereignty. This is a topic that is near and dear to our organization. Strong domestic drug manufacturing is necessary for Canada to secure its own pharmaceutical sovereignty.

The Canadian Pharmaceutical Manufacturers and Exporters Alliance is a coalition of generic and contract manufacturing pharmaceutical companies with manufacturing facilities based here in Canada. Our members are the largest producers of medicines in Canada and collectively represent more than 30% of all prescriptions dispensed in Canada, making essential prescription medicines used by patients and in hospitals every day right across the country.

In the past, Canada had a significant number of companies producing medicines for Canadians and for export. Sadly, domestic production has declined over the last two decades, and we have become overly dependent on imported medicines, mostly from India and China. The loss of local drug manufacturing is a cause for concern, especially during this time of increasing geopolitical tensions. If Canadians cannot depend on domestic drug production to meet our needs, we are facing a looming national security and public health crisis.

Most of the pharmaceutical production that still takes place in Canada is generics and contract manufacturing, without which we would be even more vulnerable. Other countries, most notably the U.S. and the European Union, are taking aggressive steps to reshore production, offering attractive regulatory and industrial policies aimed at supporting their domestic producers and luring others to relocate.

We are still waiting for the results of the U.S. section 232 investigation into trade in pharmaceuticals, which is imminent, which is expected to include tariffs or other measures to further encourage reshoring of medicine production in the U.S. Canada has the same opportunity to secure its pharmaceutical sovereignty, and that's why we're here today. We have some specific solutions that we would like to share.

First of all, we're very encouraged that this government has recognized that biomanufacturing is a strategic sector. The buy Canadian policy has committed to direct federal purchases to Canadian suppliers. Why not medicines, too?

The recent national defence industrial strategy promises investment in medical countermeasures and stockpiling; however, this recognition must translate to concrete policies that strengthen domestic pharmaceutical manufacturing.

The CPMEA has developed a five-point action plan for Canadian domestic pharmaceutical production that I encourage you to review in your deliberations. The first action is to prioritize the regulatory review of submissions from Canadian producers by Health Canada. We recommend a priority pathway for new generic drug applications submitted by Canadian manufacturers. As it stands now, there is no distinction between applications submitted by Canadian producers and those submitted by importers, even though domestic producers invest significantly in Canadian clinical development, workforces and production facilities.

Health Canada is currently consulting on the reliance program, which is intended to speed up approvals by relying on authorizations from foreign regulatory agencies. We are concerned that this process will inadvertently harm domestic producers by giving priority to importers' submissions and push submissions from Canadian producers to the back of the line. Those unintended consequences would seriously undermine Canada's goal of greater pharmaceutical sovereignty.

Our next recommendation recognizes that drug production is a very capital-intensive industry. Canada must maintain our industrial competitiveness and provide matching tax and economic policies to compete against the benefits that are being offered elsewhere and to recognize that it costs more to produce drugs here in Canada than it does in countries like India and China, where labour costs are so much lower.

Third, and I can't believe I'm saying this, access to pharmaceuticals can be weaponized and supply intentionally disrupted as a war measure. In addition to shipping disruptions caused by conflict, the blockade of the Strait of Hormuz where ships from India pass is an immediate cause for vigilance.

We recommend that the Department of National Defence treat domestic pharmaceutical producers as critical infrastructure within homeland defence planning. Mechanisms such as reservation contracts and dual-use technology should be explored with Canadian producers.

The next pillar builds on Canada-first procurement. By directing even a portion of public drug plan expenditures to medicines made by Canadian producers, governments—federal and provincial—can reduce dependence on imported medicines without incurring any additional costs.

Finally, we recognize that we cannot make everything we need and that we must have global partners, as others have said.

Canadians are very good at making medicines, and we are ready to expand our facilities, invest in new technologies and work to defend Canada's pharmaceutical sovereignty.

Thank you.

4:15 p.m.

Conservative

The Vice-Chair Conservative Dan Mazier

Thank you very much.

Our last presenter, from Innovative Medicines Canada, is Bettina Hamelin. Welcome.

Bettina Hamelin President and Chief Executive Officer, Innovative Medicines Canada

Thank you, Mr. Chair, and good afternoon. Good afternoon, committee members.

I am Bettina Hamelin, president and CEO of Innovative Medicines Canada.

Your study on Canada's pharmaceutical sovereignty comes at a pivotal moment for Canada's life sciences sector, for our national security and for Canadians.

Canada's access to new medicines is increasingly at risk. Recent global developments, including the introduction of the most favoured nation drug pricing in the United States, is already disrupting access to existing medicines, delaying or halting the launch of new medicines and undermining confidence in Canada's pharmaceutical market. For Canadians waiting for a new cancer therapy or a rare disease treatment, these aren't abstract policy debates: They have real consequences for patients and families.

The U.S. administration has argued that global pharmaceutical pricing needs to be rebalanced, and recent policy changes reflect that view. These developments are contributing to a broader global reset in how medicines are priced and valued, and they will have implications for markets like Canada. Canada must respond strategically and think creatively to ensure that our system is resilient and globally competitive and safeguards the dual-use biomanufacturing capacity that underpins our health security and defence readiness.

For too long, Canada has undervalued and underinvested in pharmaceutical innovation. We have world-class research institutions and a strong regulatory system, yet we lag behind peers in ensuring timely access to new medicines.

Canada faces a clear choice: wait and hope global changes spare us, or act now to strengthen our pharmaceutical sovereignty so that Canada remains a competitive market for innovative medicines and a reliable partner in the global life sciences ecosystem.

Inaction carries risk. A less competitive market leads to delayed launches, fewer clinical trials and decreased investment. This affects not only patient access; it also affects our economic security.

IMC member companies have made significant investments in Canada's life sciences sector. Sanofi's $800-million state-of-the-art vaccine manufacturing facility, AstraZeneca's $820-million expansion into a global clinical research hub, Roche Canada's $130-million global informatics hub expansion and Merck's digital sciences studio helping Canadian start-ups harness AI are just a few examples. The list goes on.

These are votes of confidence in Canada. They create high-value jobs, strengthen our health security through global partnerships and bring advanced manufacturing capacity to our economy. We need policies that keep them coming.

The impact of innovative medicines on health system sustainability is compelling. A 2025 study by Dr. Frank Lichtenberg at Columbia University shows that sustained investments in innovative medicines reduced hospitalizations in Canada by 55% in 2022, saving close to $80 billion. Lichtenberg also found that pharmaceutical innovations between 2002 and 2022 reduced premature mortality by 49% when compared to a scenario without those drugs.

Other countries are actively strengthening their life sciences strategies and investment environments. Canada must do the same. The U.K. has already reached a bilateral agreement with the U.S. Now is the time for Canada to act with clarity, with purpose and with a plan that protects patients, supports innovation and strengthens our partnerships. Canadians are counting on it and deserve nothing less.

Thank you, Mr. Chair. I look forward to your questions.

4:20 p.m.

Conservative

The Vice-Chair Conservative Dan Mazier

Thank you.

That summarizes the testimony. Now we'll get into asking questions.

To kick off the first round, it will be the Conservatives. That will be me. I'm in the chair today, which is a little different, but away we go.

Mr. Watson, you are here today representing Apotex. Is that correct?

4:20 p.m.

President and Chief Executive Officer, Apotex Inc.

Jeff Watson

Yes, that's correct.

4:20 p.m.

Conservative

The Vice-Chair Conservative Dan Mazier

Mr. Watson, I have a copy of the public settlement agreement from the opioid litigation in the United States involving Apotex Corp. According to the settlement, Apotex agreed to pay over $72 million U.S. to resolve opioid-related claims brought by the U.S. states.

Just so we're clear with the committee, Apotex Corp. referenced in this settlement is part of the same Apotex corporate group that you are representing today. Is that correct?

4:20 p.m.

President and Chief Executive Officer, Apotex Inc.

Jeff Watson

Yes. It's a U.S. subsidiary.

The Vice-Chair Conservative Dan Mazier

That is correct?

4:20 p.m.

President and Chief Executive Officer, Apotex Inc.

Jeff Watson

That's correct.

4:20 p.m.

Conservative

The Vice-Chair Conservative Dan Mazier

Mr. Watson, I also have here the original lawsuit filed by the Province of British Columbia against opioid manufacturers. It seeks to recover health care costs related to the opioid crisis. In this lawsuit, Apotex is listed as a defendant. That is the same Apotex that you are representing today. Is that correct?

4:20 p.m.

President and Chief Executive Officer, Apotex Inc.

Jeff Watson

Yes, that's correct.

4:20 p.m.

Conservative

The Vice-Chair Conservative Dan Mazier

Mr. Watson, Apotex manufactures opioid medications, including hydromorphone. Is that correct?

4:20 p.m.

President and Chief Executive Officer, Apotex Inc.

Jeff Watson

That's correct.

4:20 p.m.

Conservative

The Vice-Chair Conservative Dan Mazier

Are you aware that hydromorphone is one of the most prescribed drugs in the safe supply programs across Canada, yes or no?

4:20 p.m.

President and Chief Executive Officer, Apotex Inc.

Jeff Watson

I'm aware that it's a well-prescribed product. To indicate whether it's the most prescribed, I wouldn't know.

4:20 p.m.

Conservative

The Vice-Chair Conservative Dan Mazier

You don't know?

4:20 p.m.

President and Chief Executive Officer, Apotex Inc.

Jeff Watson

I would know that it is an actively prescribed product.

4:20 p.m.

Conservative

The Vice-Chair Conservative Dan Mazier

Those programs are designed to address addiction. Given that your company manufactures—

John-Paul Danko Liberal Hamilton West—Ancaster—Dundas, ON

I have a point of order, Mr. Chair.

I don't know who takes the point of order, because you're asking questions as chair. You should have handed the chair over.

4:20 p.m.

Conservative

The Vice-Chair Conservative Dan Mazier

That's not a point of order.

What standing order are you referring to?

John-Paul Danko Liberal Hamilton West—Ancaster—Dundas, ON

My point of order—

4:20 p.m.

Conservative

The Vice-Chair Conservative Dan Mazier

What standing order are you referring to?

John-Paul Danko Liberal Hamilton West—Ancaster—Dundas, ON

Relevance, sir. You're asking questions that have nothing to do with pharmaceutical sovereignty. I'd ask someone other than yourself to rule on the point of order and to bring your questions in line with the point of this study.

4:20 p.m.

Conservative

The Vice-Chair Conservative Dan Mazier

Duly noted.

John-Paul Danko Liberal Hamilton West—Ancaster—Dundas, ON

You can't rule on it as chair.