Evidence of meeting #9 for Science and Research in the 44th Parliament, 1st Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was triumf.

A recording is available from Parliament.

On the agenda

MPs speaking

Also speaking

Stéphanie Michaud  President and Chief Executive Officer, BioCanRx
John Bell  Scientific Director, BioCanRx
François Deschênes  Rector, Université du Québec à Rimouski, Université du Québec
Allen Eaves  President and Chief Executive Officer, STEMCELL Technologies Inc.
Jessie-Lee McIsaac  Assistant Professor, Canada Research Chair in Early Childhood: Diversity and Transitions, Mount Saint Vincent University, As an Individual
Victor Rafuse  Director and Professor, Dalhousie University, Brain Repair Centre
Nigel Smith  Executive Director, TRIUMF
Clerk of the Committee  Mr. Leif-Erik Aune

6:35 p.m.

Liberal

The Chair Liberal Kirsty Duncan

Dear colleagues, I call this meeting to order.

Welcome to the ninth meeting of the Standing Committee on Science and Research.

The Board of Internal Economy requires that committees adhere to the following health protocols, which are in effect until June 23, 2022. All individuals wishing to enter the parliamentary precinct must be fully vaccinated against COVID-19. All those attending in person must wear a mask, except for members who are at their place during proceedings. Please contact the clerk of the committee for further information on preventative measures for health and safety.

As the chair, I will enforce these measures. As always, colleagues, I thank you for your co-operation.

Today's meeting is taking place in a hybrid format pursuant to the House Order of November 25, 2021.

I would like to outline a few rules to follow. Interpretation services are available for this meeting. You may speak in the official language of your choice. At the bottom of your screen, you may choose to hear floor audio, English or French. The “raise hand” feature is on the main toolbar should you wish to speak. When you are not speaking, your microphone should be muted. The committee clerk and I will maintain a speaking list for all members.

Colleagues, I am delighted that we have wonderful witnesses joining us tonight.

From BioCanRx, we have Dr. Stéphanie Michaud, president and chief executive officer, and Dr. John Bell, scientific director; from STEMCELL Technologies Inc., Dr. Allen Eaves, president and chief executive officer; and from Université du Québec à Rimouski, François Deschênes, rector, and Dr. Étienne Carbonneau, director, support for internationalization and government relations senior adviser.

We will now hear from our witnesses. Each group will have five minutes.

We will begin tonight with BioCanRx for five minutes, please.

6:35 p.m.

Dr. Stéphanie Michaud President and Chief Executive Officer, BioCanRx

Thank you very much.

Madam Chair, committee members, first, we would like to thank you for this invitation. We hope that our testimony will provide a unique perspective and data for your important study on successes, challenges and opportunities for science in Canada.

My name is Stéphanie Michaud. I am president and CEO of BioCanRx, a not-for-profit launched in 2015 that is uniquely focused on accelerating the development of cancer immunotherapies for the benefit of patients. I am extremely pleased to be joined here today by Dr. John Bell, our scientific director and architect of the BioCanRx network.

BioCanRx works by connecting the dots around a technology and building out the connective tissue between sectors invested in and aligned with our mission to do what's needed to advance a technology towards a clinical trial. The result is a highly productive Canadian translational ecosystem in the area of oncology.

To provide the committee with an example of our dedication to our mission and ensuing productivity, from 2005 to 2015 less than one per cent of oncology clinical trials in Canada were based upon discoveries made in our own labs. As of 2020, BioCanRx had doubled this number.

I would now like to turn it over to Dr. Bell.

6:35 p.m.

Dr. John Bell Scientific Director, BioCanRx

Thanks, Stéphanie.

My name is John Bell. I'm a senior scientist with the Ottawa Hospital Research Institute and a professor of medicine at the University of Ottawa. I currently serve as the scientific director of BioCanRx.

Cancer remains the emperor of all maladies. It's causing over 85,000 Canadian deaths this year, and that number is rising. It's also leaving tremendous economic and sociological carnage in its wake.

The good news on the horizon, however, has been the development of a whole new strategy for treating cancer that involves training a patient's immune system to be able to recognize, attack and eliminate their own cancer. Canadian scientists have made key contributions to the development of this new field of cancer immunotherapy; however, what has been particularly frustrating for me is to see these Canadian discoveries being turned into products outside our borders and, even worse, seeing Canadian cancer patients having delayed, limited or no access to breakthrough drugs that were built upon Canadian-funded science.

It was apparent to me both as an academic scientist and an entrepreneur that there has been a major strategic funding and coordination gap in Canada, making it very difficult, if not impossible, for laboratory and biomedical discoveries to be developed into therapeutic molecules within our own country. This inspired me to apply to the Networks of Centres of Excellence program to form BioCanRx and to create what has become, by all measures, a very successful and effective translational ecosystem. Since we build on the existing excellence in science and clinical care in Canada, we are able to cost-effectively expedite discoveries out of the lab and into trials.

Now let me give you just two examples of how we've been able to rapidly respond to cancer patient needs in Canada.

First, in response to the pandemic, our ecosystem rapidly mobilized its engine of expertise in immunology in clinical trials for cancer patients undergoing treatment, to help them stave off a COVID-19 infection. The trial sought to recruit 1,500 Canadians, and from the ideation to the launch of the trial, it all happened in six weeks. This is really lightspeed for this kind of activity in the biotech sector. It could only happen because we have a very highly coordinated network of motivated scientists, clinicians and industry partners, supported by a nimble government system.

A second example is CAR T-cell therapy. This is a type of immune therapy that harnesses the power of a patient's own immune cells to treat their own cancer. Between 2016 and 2018, there were 63 clinical studies where U.S. patients had access to this life-saving therapy. In that same time frame, only two CAR T-cell clinical studies sponsored by pharma were conducted in Canada. These were in major urban centres and thus provided very limited access to the vast majority of Canadian patients who might have benefited.

BioCanRx scientists and clinicians felt compelled to use our skills, our know-how and our collective infrastructure to reverse the situation, and I can tell you that we are now manufacturing our own made-in-Canada CAR T-cell therapeutics for the treatment of Canadian patients in a very cost-effective fashion. Through this program, we pioneered the delivery of personalized point-of-care manufactured products for patients with refractory leukemia and lymphoma, with the goal of making these kinds of treatments accessible to Canadians wherever they live in our country.

It's our hope that our network will be able to continue enabling science innovators from all sectors to capitalize on existing Canadian infrastructure and expertise while developing their technologies on Canadian soil.

With the sunsetting of the NCE program, however, we are concerned that we'll no longer be able to sustain our support for preclinical to clinical development for those who need it most—the Canadian patient—and we strongly urge the government to consider this and to keep funding organizations with a demonstrated track record in addressing an unmet need in Canada, such as BioCanRx.

We really appreciate the chance to come and meet with you here today.

Thank you.

6:40 p.m.

Liberal

The Chair Liberal Kirsty Duncan

Thanks to both of you for presenting.

I just want to welcome all our witnesses again. As a committee, we are very grateful.

I'd also like to welcome Mr. Lawrence and Mr. Waugh and thank them for joining us.

Thank you so much.

We're still waiting for Dr. Eaves, so I think we will go to the Université du Québec.

We welcome you. The floor is yours for five minutes.

6:40 p.m.

François Deschênes Rector, Université du Québec à Rimouski, Université du Québec

Thank you, Madam Chair.

I would like to thank the committee members for inviting us here today.

My name is François Deschênes and I am the rector at UQAR, the Université du Québec à Rimouski. With me is Étienne Carbonneau, from the head office of the Université du Québec.

UQAR is a university located in the region of Est‑du‑Québec, in Rimouski, but in reality it covers a very large region that takes in Chaudière-Appalaches, Bas-Saint-Laurent, Gaspésie, Îles‑de‑la‑Madeleine and Côte-Nord. In other words, it is an area about the size of Iceland.

The university has about 6,700 students spread across this very large area, which is distinguished by its low population density and the number of rural communities. This means that about two thirds of the students at our institution are first-generation students whose parents did not attend university and do not hold university diplomas. We therefore hope that we are making an enormous contribution to the regions in terms of educating the next generation, but also of attracting and retaining people, so that organizations are able to expand, offer services of equivalent quality, and stay there. Our role is therefore an important one.

As was pointed out earlier, and as Étienne Carbonneau's presence here indicates, we are members of the big Université du Québec network, which consists of ten universities and has just over 97,000 students. This makes it a large network on the Canadian scene.

I want to note one important thing at the outset: I am here before you to talk to you about the research being done in the smaller and mid-sized universities that are often located outside the major centres, in what Quebec calls the regions.

Second, there is a myth I would like to dispel: there are not two categories of universities—research universities and others. Every university has professors whose jobs include doing training and research and offering services to the community. In order for these researchers to make progress, it is important that they have access to research funding.

For example, despite UQAR's relatively small size, it has ranked among the three best universities in its category in Canada for the last ten years in terms of research, intensity, productivity and funding dollars held, but also of quality. In terms of research funding growth, our university has ranked third in Canada, counting all categories, in the last 20 years, with 407% growth. That shows that there are not two categories of universities.

Obviously, we do research for training purposes, but also to develop leading edge knowledge. Our professors live in the community and are therefore well aware of the issues that are specific to the regions where they live, as well. Quite often, that research reflects the circumstances in the community, which means that we are developing knowledge that is transferrable within those regions, and that is important.

For example, we have studies on the organization of health care in remote and rural regions. We also do a lot of research on maritime issues, since we are located along the St. Lawrence River and its estuary. That is also reflected in our research, and as a result we were able to take a leadership role and create the Quebec Maritime Network.

What we have to recall is how difficult it is for small and mid-sized universities to access research funds. At our university, about one third or one quarter of our professors have no research funding. It is more difficult to access. Imagine that: post-docs in Canada do not have the resources to do research.

That illustrates the situation of the Université du Québec à Rimouski, but a number of other universities in Canada experience the same thing, and this deprives us of brains that might come up with new ideas. No one can predict where good ideas will come from. It is therefore important to have programs that are made to match our situations. The situation of a small university is that professors teach numerous, sometimes very different courses, rather than just one or two courses. They therefore have less time to devote to research. That must be adequately taken into consideration in developing programs, but also in evaluating projects, to support the diversity that exists.

In addition, the Canada-wide quotas established for the CFI, the Canada Foundation for Innovation, and for the Canada Research Chairs Program are often based on previous funding. There is therefore a built‑in bias that encourages the concentration of funding.

Studies show that the first dollars invested in research and the return on investments are significant. So let's give researchers everywhere the resources to do research.

That is the main message I want to send.

6:45 p.m.

Liberal

The Chair Liberal Kirsty Duncan

Thank you so much, Rector. We appreciate your being here and your comments.

Now we will go to Dr. Allen Eaves, the president and chief executive officer of STEMCELL Technologies.

Welcome, Dr. Eaves. We will give you the floor for five minutes. When you see the yellow card, you have 30 seconds left.

Sir, the floor is yours.

6:45 p.m.

Dr. Allen Eaves President and Chief Executive Officer, STEMCELL Technologies Inc.

Thank you, dear members of the Standing Committee of Science and Research.

Thank you, Madam Chair.

I will begin by acknowledging that I am speaking to you from the traditional, ancestral and unceded territories of the Musqueam, Squamish, and Tsleil-Waututh nations.

As president and CEO of STEMCELL Technologies, I welcome the opportunity to speak with members about the contributions STEMCELL is making for the Canadian science and research ecosystem.

STEMCELL Technologies is Canada's largest biotechnology company, with over 1,700 employees globally, of whom 1,200 are located in British Columbia. Research-focused, we make products that support the life sciences, including some of the ingredients that go into COVID tests and vaccines.

Since its founding in 1993, the company has always been profitable, with an average annual growth rate of 20%. This year, sales revenues will exceed $400 million. Export-oriented, 97% of our sales are outside of Canada, bringing in those export dollars that are two to three times more valuable than dollars generated within an economy.

At our present growth rate, sales will be $2 billion in 10 years. To manage this growth, we need to hire and train 4,000 new employees. Most require further on-job training, and they will have to take some of the 500 educational courses we offer internally in our company. This helps mitigate the shortage of people with biomanufacturing training in Canada. That said, STEMCELL benefits from countries like Ireland, which has a national biopharma training program. Presently, STEMCELL has over 80 Irish graduates, most of whom have that training and have worked in biopharma in Ireland.

STEMCELL is known globally for the novelty and quality of its products, which we research, design and make in Vancouver. In addition, we market products made by other companies. With thousands of customers globally, over 3,000 products are used for research in cell therapy, regenerative medicine, tissue engineering, immunotherapy and gene therapy.

Initially, our products were for research use only. Now, many of our products are in clinical trials with the expectation that they will be used in patients. To make clinical products, STEMCELL sought federal support to build the required facilities. Thus, in 2017, we had a loan of $22.5 million from the federal scientific innovation fund, which was matched by the Province of British Columbia. This $45 million was then matched 2:1 by STEMCELL with a $90 million loan from a bank consortium. This $138 million project, called “project railway”, is nearing a successful completion, with the creation of 675 biomanufacturing jobs.

Unfortunately, the COVID-19 pandemic has again highlighted Canada's dependence on foreign suppliers, this time for making the ingredients for viral testing and vaccines. STEMCELL has made a SIF proposal called “project bedrock” to make these ingredients. This has been submitted with the understanding that matching funding will come from British Columbia. Committee members present are asked to remind our colleagues in government that this investment is aligned with Canada's biomanufacturing and life sciences strategy to improve Canada's long-term pandemic resilience.

In conclusion, we are grateful that the federal government has made supporting biomanufacturing a priority. However, it should be noted that the leading G7 nations—the United States, Germany and Japan—each spend over 3% of their GDP on research. Canada spends half of this at 1.7% of GDP. STEMCELL suggests that it is imperative that Canada spends more on Canadian research-oriented businesses if we are to remain competitive with our G7 colleagues, as well as with China.

I thank members for this opportunity to address the committee today, and I look forward to answering any questions you may have.

6:50 p.m.

Liberal

The Chair Liberal Kirsty Duncan

Thank you, Dr. Eaves.

Once again, I would like to thank all our witnesses for your time, your effort and your expertise today. I would like you to know you have a really excited committee here. They are very interested in what you have to say.

With that, we will now go to hearing from our members. We will go to the six-minute round.

We will begin with Ms. Gladu, for six minutes. The floor is yours.

6:50 p.m.

Conservative

Marilyn Gladu Conservative Sarnia—Lambton, ON

Very good. Thank you, Chair.

Thank you to all the witnesses who have joined us today. We appreciate your testimony.

I'm going to start with Dr. Bell.

I note that you are excellent at getting preclinical trials to become clinical trials and become successful. I know there was discussion when the government decided it was going to implement the PMPRB rules to change the drug approval process in Canada to make it longer and more costly. At the time, they had suggested that would have a negative impact on clinical trials, in which Canada actually punches above its weight. I wonder if that will have an influence on your situation.

6:50 p.m.

Scientific Director, BioCanRx

Dr. John Bell

Stéphanie may have some thoughts about that, but I don't think I can really comment. I don't know enough about the PMPRB program to actually weigh in on that, to be honest.

Stéphanie, do you have any thoughts on it?

6:50 p.m.

President and Chief Executive Officer, BioCanRx

Dr. Stéphanie Michaud

Certainly.

With respect to the PMPRB regulations for the type of work we're currently carrying out, they are very much dedicated to early-stage clinical trials—phase one or phase one/two—at which point we wouldn't be approaching that territory of the PMPRB regulations. It's a long answer to say, in short, that it would not impact the clinical trials that we are bringing forward through the research.

6:50 p.m.

Conservative

Marilyn Gladu Conservative Sarnia—Lambton, ON

For either one of you, you mentioned that your funding is ending despite all the success you've had in getting preclinical trials to clinical trials. Why is it ending?

6:50 p.m.

Scientific Director, BioCanRx

Dr. John Bell

Go ahead, Stéphanie.

6:50 p.m.

President and Chief Executive Officer, BioCanRx

Dr. Stéphanie Michaud

Sure.

We are funded under the networks of centres of excellence program. This program has run for 30 years, but it was sunsetted in December of 2018. We were allowed to apply for a three-year extension, and that will take us to March 31 of 2023, at this time.

6:50 p.m.

Conservative

Marilyn Gladu Conservative Sarnia—Lambton, ON

You would recommend that the government extend that funding, especially for people as successful as you?

6:50 p.m.

President and Chief Executive Officer, BioCanRx

Dr. Stéphanie Michaud

We certainly would.

6:50 p.m.

Conservative

Marilyn Gladu Conservative Sarnia—Lambton, ON

Okay, very good.

I want to ask a question of Dr. Eaves.

You're in a position of showing Canada's leadership in stem cells. What should we be doing to help support you, to keep that leadership position for Canada?

6:50 p.m.

President and Chief Executive Officer, STEMCELL Technologies Inc.

Dr. Allen Eaves

We need more funding to support the growth of the industry and to create the jobs. We have a very good educational system. It isn't focused necessarily on this area of biomanufacturing yet. As I mentioned, in Ireland they have a really good system to do that, and they have all this biotechnology and pharma industry in Ireland. We'd like to get some of that in Canada to absorb our graduates. We have a good educational system, but it needs to be a little more focused. Then you need the industry to take up those jobs.

It's sad to say that STEMCELL is the biggest biotech company in Canada. No, we need many more [Technical difficulty—Editor] bringing in those export dollars. That's really what we need. We need funding to build the companies and some support for training.

6:55 p.m.

Conservative

Marilyn Gladu Conservative Sarnia—Lambton, ON

Excellent.

Mr. Deschênes, you said it was hard for smaller universities to get the funds they need in order to compete with the other universities in terms of funding applications.

Can you explain that further?

6:55 p.m.

Rector, Université du Québec à Rimouski, Université du Québec

François Deschênes

Yes, of course.

There are a number of examples. First, we need only think of access to funding for the Canada Research Chairs and the funding offered by the Canada Foundation for Innovation. Quotas are imposed based on the number of federal grants received in the past. So this necessarily puts an upper limit on access to funding in that field.

Second, when the committees evaluate research projects submitted by researchers, they don't always take into account the circumstances in which they conduct their research activities. There are researchers who have only one course to teach a year, and others who have four, but that doesn't mean that the ones who teach fewer courses are less productive when it comes to research. What is important is to evaluate potential, not past excellence, because there may be a lot of potential. That has to be taken into account in the evaluation criteria.

There is another unfavourable factor. Increasingly, a matching contribution is required. The university is asked what its commitment is, whether financial or in kind, for a particular project. The smaller institutions necessarily have fewer financial and human resources, so they are not on a level playing field for the evaluation. That doesn't mean at all that the project is less important. No correlation can be drawn between the two things.

We therefore have to be careful when it comes to the indicators used for doing a good assessment of potential and clearly identifying excellence, regardless of the form it takes. That goes well with the capacity to support diversity. We do see diversity within underrepresented groups, but it also exists among the researchers at the different institutions, and it has to be recognized.

6:55 p.m.

Conservative

Marilyn Gladu Conservative Sarnia—Lambton, ON

I have a last, quick question for anybody.

I see that you're all successful. What are the barriers—

6:55 p.m.

Liberal

The Chair Liberal Kirsty Duncan

You have 10 seconds, Ms. Gladu. I'm sorry.

Thank you for your very thoughtful, important questions.

With that, we'll go to Mr. Collins for six minutes.

6:55 p.m.

Liberal

Chad Collins Liberal Hamilton East—Stoney Creek, ON

Thank you, Madam Chair.

As you noted earlier, we have an incredible list of witnesses this evening. I'd like to start with BioCanRx and Dr. Michaud.

I assume that when the original funding was provided by the government for BioCanRx, there was an expectation that it would be able to leverage private funds.

Could you elaborate on your success in that area? What amount of funding have you leveraged with the original investment the government made?

6:55 p.m.

President and Chief Executive Officer, BioCanRx

Dr. Stéphanie Michaud

Thank you very much for the question, Madam Chair.

The original investment made in BioCanRx in 2015 was for $25 million. As I had mentioned, we were allowed to apply for reduced funding and we received another $15 million in 2020.

Currently, our spend is close to $30 million. We still have monies to put out in this upcoming year. With respect to attracting funding, the NCE program under which we were funded has an expectation of reaching a 1:1 funding match. Because of the space in which we operate and the ability to shepherd technologies and continue to add value as we bring them through the pre-clinical to clinical phase, we've been able to turn that $30-million spend into close to $96 million of leveraged funding going all the way back to 2015.

It's really because the type of engine we have built has been able to attract significant funding from a multitude of different sector partners.

6:55 p.m.

Liberal

Chad Collins Liberal Hamilton East—Stoney Creek, ON

Congratulations. That's an incredible number that you delivered versus what the expectations were.

I would ask then about the sunsetting of the program and some of the questions that Madam Gladu brought up about your current funding.

When does it expire? Is there a funding gap between the funds that you have now and the timeline that you have to reapply for additional funding?