AstraZeneca PLC AZN-Q is investing $820-million and creating more than 700 jobs in Ontario’s life sciences industry, stimulating growth within a national research and development sector that has been in decline for decades.
The British pharmaceutical giant made the announcement Thursday at its Canadian headquarters in Mississauga. It said its investment will support a move to a larger facility within the Greater Toronto Area and contribute to its goal of bringing 20 new medicines to global patients by 2030, eight of which have already been delivered.
“This investment is a reflection of our growing clinical pipeline, our strong belief in Canada’s potential as a global hub for life sciences innovation, and the value of public-private collaboration with the Ontario government,” chief executive Pascal Soriot said in a press release Thursday.
Invest Ontario, a provincial government agency, will contribute $16.1-million to the expansion.
“We’re so proud to invest $16.1-million to support the investments here in Ontario, and friends, the life science sector, we’ve seen just mushroom,” Ontario Premier Doug Ford said at a news conference.
Foreign drug giants’ spending on R&D in Canada has been plummeting since 1998, according to a 2023 report by the Patented Medicine Prices Review Board.
The companies’ spending on R&D reached a peak in 1995 when it clocked in at 11.7 per cent of sales, thanks to a policy implemented by Prime Minister Brian Mulroney’s Progressive Conservative government that mandated manufacturers of brand-name drugs boost their investment into R&D.
Since then, the number has steadily dropped. In 2023, spending on R&D in Canada by major manufacturers was a mere 3.7 per cent of sales.
AstraZeneca’s total investments into Canada since 2023 now add up to more than $1.3-billion, creating a total of 1,200 jobs. The company made headlines in March when it acquired Hamilton-based precision cancer drug developer Fusion Pharmaceuticals Inc. for $3-billion. Industry players said the deal was a step toward growing Hamilton into a globally recognized radiopharmaceutical centre.
Brian Bloom, CEO of Toronto life sciences underwriter Bloom Burton & Co., said he applauds AstraZeneca’s decision to continue to invest into Canada, with its “deep and oftentimes untapped scientific talent.”
He added that “clearly, AstraZeneca is investing and growing its footprint here for reasons related to both talent and innovation.”
The jobs announced Thursday will be concentrated in the GTA, where the company says its growing R&D hub is focused on clinical studies in areas such as breast, lung and prostate cancer; chronic obstructive pulmonary disease; severe asthma; and rare disease. Currently, its Mississauga facility is leading more than 210 clinical studies.
AstraZeneca employs more than 2,100 people in Canada, and its drugs are sold in more than 125 countries.