Historically we have focused on veterinary diseases. However, the convergence of human and animal health has expanded our mission to the health of all species. This expertise was recently recognized by funding from the Bill and Melinda Gates Foundation for a single-shot vaccine for tuberculosis.
Since our inception, VIDO has helped Canadian producers compete globally and ensure the safety of our food supply by applied research into animal diseases and, more importantly, the commercial development of the resulting discoveries.
VIDO's success is quantified by several factors. First, we actually have seven vaccine products in the marketplace, including five world firsts for agricultural diseases of animals. One of these, termed Pneumostar, was the first recombinant vaccine for cattle--actually, for all animals. From 1975 to 2000, a total investment of $65 million into VIDO has resulted in economic savings of approximately $1.3 billion.
Recently we partnered with UBC and Bioniche Life Sciences Inc. in the development of a vaccine for cattle against E. coli 0157:H7. This is the bacteria that was implicated in the Walkerton water tragedy. In 2007, this vaccine was recognized internationally as the best new veterinary product for livestock as part of the Animal Pharm Industry Excellence Awards. It crosses the bridge between human and animal health, because the bacteria does not cause disease in cattle, only humans.
To complement this, we've had over 450 different research agreements since 2000, worth more than $55 million, and more than 80 U.S. patents issued. Most of these are licensed to major biotech and pharmaceutical companies, such as Merrell, Schering, Pfizer, Novartis, and Wyeth.
VIDO is also an active player in the Saskatchewan ag-biotech cluster. We have spun off three companies and helped several start-up agricultural companies get established. One of these was already mentioned, Saponin Inc. We are also partnering with international initiatives, particularly right now with India and China.
With the convergence of human and animal health, our research and development is focusing on platform technologies that apply to these species. Moving forward, VIDO will continue with our strategic vision through a combination of new initiatives. Some of these examples include the International Vaccine Centre. This $146 million biosafety level 3 facility will allow Canada to respond to emerging infectious diseases and enhance Canada's international reputation for vaccine research.
Recent reports suggest that between 60% and 80% of disease outbreaks have animal origins. This includes agricultural animals. InterVac will be one of the most advanced facilities in the world and, certainly, one of the top five in Canada. The annual operating funds required for VIDO InterVac are expected to exceed $20 million.
The Pan-Provincial Vaccine Enterprise, PREVENT, was incorporated after a successful application to the Networks of Centres of Excellence for Commercialization and Research. Its success demonstrates the close alignment between VIDO's strategic objectives and Canada's science and technology strategy. PREVENT will enhance the commercialization of vaccines by moving the technologies further along the value chain and reducing the risk for potential licensors, filling the so-called funding gap. By helping take innovations from the lab to the market, society as a whole benefits. VIDO's role will be focused on vaccines for food and water safety.
The Research Alliance for the Prevention of Infectious Disease, RAPID, was recently funded by the Saskatchewan Health Research Foundation. RAPID has links to prevalent diseases, particularly in high-risk populations. One such disease with direct animal associations is the West Nile virus.
It is my thought that the government has been visionary in its funding of large-scale capital projects for science. However, there are challenges associated with these projects. For example, the cost of capital projects in western Canada has increased dramatically. Specifically, the cost of InterVac increased over two and a half times, and we now have a funding shortfall approaching $20 million.
In addition, it is essential to implement a mechanism for providing secured operating funds for these facilities, such as VIDO InterVac, if they are to be effective in promoting Canada's science and technology strategy. It is not practical to expect these facilities to function at maximum capacity through traditional competitive operating grants.
In closing, I would suggest that VIDO is one of the foremost vaccine research organizations in the world, regardless of the way you determine success. The addition of InterVac will strengthen Canada's competitive advantage in vaccine and infectious disease research, an area identified as strategically important to our country.
Thank you, Mr. Chair.