Evidence of meeting #30 for Health in the 45th Parliament, 1st session. (The original version is on Parliament’s site, as are the minutes.) The winning word was chi.

A recording is available from Parliament.

On the agenda

Members speaking

Before the committee

Thibeault  Executive Director, Government Affairs, Advocacy and Policy, Diabetes Canada
Donaldson  President and Chief Executive Officer, HealthPRO Canada
Leclerc  Director and Full Professor, CHU de Québec, Université Laval, VaxSynergy
Michaud  President and Chief Executive Officer, BioCanRx
Berg  President and Chief Executive Officer, Canadian Association for Pharmacy Distribution Management
Hanna  Chief Executive Officer, Neighbourhood Pharmacy Association of Canada

Sonia Sidhu Liberal Brampton South, ON

What are the main barriers to staying for those small companies and big companies? Is there any difference?

5:10 p.m.

President and Chief Executive Officer, BioCanRx

Stéphanie Michaud

A large part is investment. It is also about understanding that we need to have the right business conditions in order to support our companies. It means having different types of regulatory support as well.

We commissioned a study at the end of December that looks at governance and the gap of translation that exists in Canada. There really is a need for our innovators and our companies to more readily access Health Canada, for example. One of the recommendations we made in that study is a concierge service where assistance is provided to innovators to provide them with guidance on how to navigate the regulatory ecosystem at Health Canada and the CDA, ultimately to ensure that their products are sold here.

The Chair Liberal Hedy Fry

Thank you very much.

You have 18 seconds, Ms. Sidhu. Do you have a wrap-up word? No. Thank you.

I'll now go to Mr. Blanchette-Joncas for six minutes, please.

Maxime Blanchette-Joncas Bloc Rimouski—La Matapédia, QC

I welcome the witnesses who are joining us for the second hour of the hearing.

Ms. Michaud, I'll start with you. You mention that only 4% of immunotherapy clinical trials in Canada are based on innovation developed here. Is this an indicator that research isn't necessarily the problem, but rather, our inability to fund the transition to clinical trials?

5:10 p.m.

President and Chief Executive Officer, BioCanRx

Stéphanie Michaud

That's exactly right. When we coordinate bioproduction, along with the investment in the regulatory dossier required to submit a clinical trial application to Health Canada, that's where we're able to support these clinical outcomes. So it's absolutely essential, and it requires funding.

In fact, this type of funding isn't currently managed very well. That's why BioCanRx was created in 2015. It was created to bridge what is known as “the valley of death” that exists between discovery and these early-stage clinical trials, such as phase 1 and phase 1/2 trials.

Maxime Blanchette-Joncas Bloc Rimouski—La Matapédia, QC

Thank you.

Speaking of funding, your organization waited nearly two years to receive a response from the strategic science fund. You're now facing a confirmed reduction in funding.

I'd like you to explain the concrete impact this instability or suspension of funding has had on your ability to plan clinical trials, as well as to retain your teams.

5:10 p.m.

President and Chief Executive Officer, BioCanRx

Stéphanie Michaud

It hasn't been negotiated yet, nor have we received the agreement. We did, of course, receive a letter from the government informing us that our funding has been reduced by $860,000, which is a very significant amount for us.

At this time, the number of people on my team remains unchanged, and there will be no new hires.

However, we're definitely launching a new competition soon. Here's our plan. For the projects that will enter our therapeutic product pipeline, of which there are several and of different types, we'll likely have to cut one of the programs responsible for introducing new products into our pipeline. Of course, the goal is always to reach a clinical trial.

This will therefore have an impact on the support we're able to provide to our scientific community and the physicians we work with. Ultimately, it could also affect patients who, we hope, will receive these different types of products in the future.

Maxime Blanchette-Joncas Bloc Rimouski—La Matapédia, QC

Thank you.

You mentioned a structurally underfunded transnational capacity. Earlier, you spoke of the “valley of death”. At this stage, is Canada losing its innovations, intellectual property and economic benefits?

5:15 p.m.

President and Chief Executive Officer, BioCanRx

Stéphanie Michaud

The very short answer is yes.

It has a major impact. If we look at the investment stages of large companies, for example, we see that investments tend to occur after a phase 1 clinical trial.

If, in the end, we remain at the publication stage, or even the patent stage, and are unable to develop the necessary regulatory dossier required to knock on Health Canada's door, then there will most certainly be no clinical trials. This is what we observed while we were waiting for our funding from the strategic science fund. We had run out of money and were funded through the networks of centres of excellence program.

We asked that other funding sources be considered for our projects, and this was a resounding success. All three of our projects were funded at 100%. We weren't surprised, because these are excellent, well-developed projects. However, what those projects obtained was funding for clinical trials. We weren't able to submit an application to Health Canada for a clinical trial because there wasn't enough money to complete the studies required to meet Health Canada's expectations.

What happens as a result is that these funds remain frozen in the system, the clinical trial never gets off the ground, and patients don't receive treatment.

For example, one of these three projects is currently in a clinical trial. We're treating children and adults, very ill patients who have undergone multiple treatments. This is their last-line treatment.

When we talk about translational research, in our case, and especially in the field of cancer, we're talking about patients, we're talking about lives.

Maxime Blanchette-Joncas Bloc Rimouski—La Matapédia, QC

Since we're discussing essential matters, BioCanRx's track record shows that every dollar invested generates $3.70 in partner contributions.

In your opinion, is this an expense or a strategic investment?

April 23rd, 2026 / 5:15 p.m.

President and Chief Executive Officer, BioCanRx

Stéphanie Michaud

It is an absolutely strategic investment.

Maxime Blanchette-Joncas Bloc Rimouski—La Matapédia, QC

Can we talk about pharmaceutical sovereignty in Canada if Canada funds discovery, but doesn't sufficiently support development through to clinical trials and to the patient, in particular?

5:15 p.m.

President and Chief Executive Officer, BioCanRx

Stéphanie Michaud

Absolutely. I believe we have clearly demonstrated at BioCanRx what can be achieved when biomanufacturing is coordinated with the support required to submit clinical trial applications to Health Canada. We're seeing a huge increase in the number of clinical trials involving highly advanced therapies—new therapies that aren't yet available. This is new for Canada. First, our cancer patients need them. Second, they help drive investment in research in Canada. Third, they deserve it.

Maxime Blanchette-Joncas Bloc Rimouski—La Matapédia, QC

What's the most fundamental measure the government should implement immediately?

5:15 p.m.

President and Chief Executive Officer, BioCanRx

Stéphanie Michaud

It should implement a coordinated funding approach that recognizes that translational research currently falls between Health Canada and Innovation, Science and Economic Development, or ISED. We really need coordination. We need to see, as in our case, the impact that funding cuts can have in the end. This is a program led by ISED—

The Chair Liberal Hedy Fry

Ms. Michaud, you have gone over time. I'm sorry. Thank you very much. Maybe you can elaborate in the next round.

Maxime Blanchette-Joncas Bloc Rimouski—La Matapédia, QC

Madam Chair, if possible, I'd like to ask Ms. Michaud to provide us with a written response so that it is complete.

The Chair Liberal Hedy Fry

Ms. Michaud, please send your response in writing to the clerk, and she will distribute it to everyone else.

Now we'll move to the second round. It's a five-minute round.

We'll begin with Mr. Mazier from the Conservatives for five minutes.

5:15 p.m.

Conservative

Dan Mazier Conservative Riding Mountain, MB

Thank you, Chair.

Thank you to the witnesses for coming here today.

I'd like to follow up on Dr. Strauss's comments about PrescribeIT.

It's quite frustrating, actually. I don't know if the witnesses are aware that we discussed the program here last Tuesday. We had the CEO of Canada Health Infoway here, and he went about not answering any of our questions. Even the chair got into it, trying to get information about what was spent and where the money went. I am a Canadian taxpayer. I think everybody was quite shocked at how hesitant they were to reveal where the $300 million went.

This was $300 million for a program that went to a volunteer organization. It was just to “axe the fax” and try to get some streamlining going. They had nine years to figure it out. Then they turned around at the very end of it—Health Canada and Canada Health Infoway—and decided they were going to start charging pharmacies because the money was up. The government, I guess, and Health Canada had had enough, so they turned around and started charging you guys, which is absolutely insane. That $300 million has gone away. It is a program that didn't work.

For that reason, I would like to move to resume debate on my motion for the production of documents about PrescribeIT.

The Chair Liberal Hedy Fry

Thank you.

We now have a motion on the floor that was distributed at the last meeting. I will open debate on this. I will not ask the witnesses to leave just yet, because I don't know whether this is going to be quick and dirty or not.

Ms. Chi.

Maggie Chi Liberal Don Valley North, ON

What just happened?

The Chair Liberal Hedy Fry

We're going to debate this motion, so I'm entertaining a list.

Maggie Chi Liberal Don Valley North, ON

Can we pause or suspend for a quick moment?

The Chair Liberal Hedy Fry

Would you like to suspend?

Some hon. members

Yes.