Sales of AbCellera’s COVID-19 medicines brought in nearly US$1-billion in royalty revenue, which is now being reinvested to build Canadian biomanufacturing capabilities and develop new medicines.DARRYL DYCK/The Canadian Press
Carl Hansen is chief executive of AbCellera.
Peter Zandstra is director of the School of Biomedical Engineering at the University of British Columbia.
Canada’s ability to defend against pandemics, protect armed forces, neutralize bioweapons and safeguard the health of citizens is directly tied to a robust domestic biotech industry.
AbCellera ABCL-Q, a research organization led by one of the authors, contributed to the global pandemic response by discovering two of the world’s first antibody treatments for COVID-19. These medicines were used to treat more than two million high-risk patients and save tens of thousands of lives. The technology that led to the discoveries were developed under contract with the U.S. Department of Defense as part of a decade-long effort in biosecurity.
Sales of AbCellera’s COVID-19 medicines brought in nearly US$1-billion in royalty revenue. Alongside support from the B.C. government and the federal government’s Strategic Innovation Fund, this revenue is now being reinvested to build Canadian biomanufacturing capabilities and develop new medicines for cancer, women’s health and autoimmunity.
The investments will build technologies and capacities that drive growth and make Canada more prepared for future emergencies.
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So, when Prime Minister Mark Carney talks about upping Canada’s spending on defence, he should consider directing a portion of that funding to biotech. Investments in biotech are an integral part of defence spending that can both deliver on Canada’s NATO commitments and drive economic growth.
Canada has pledged to meet its NATO defense spending commitment of 2 per cent GDP within a year - representing an increase of $13-billion in annual spending, and to reach 5 per cent defence spending by 2035, representing a total annual spending of over $100-billion.
The first priority will be rebuilding our armed forces, but a portion of defence spending should be used to position Canada as not just a resource superpower, but also a leader in technology and innovation.
This transformation is crucial as U.S. protectionism threatens Canada’s traditional industries. Of the 50 largest American publicly traded companies, 22 operate in high-tech sectors and boast a combined value of over $35-trillion. The Canadian top-50 list includes just two, Shopify and Constellation Software, with a combined value of about $370-billion - barely 1 per cent of the U.S. figure.
Technology is the primary engine for growth in the modern world, and Canada’s lack of high-tech innovation companies is the root of our much-discussed productivity gap. Addressing this issue should be a top priority in defending Canada’s economy and quality of life.
For this reason, Canada’s recent renewed commitment to defence spending should be used to drive industrial policy that prioritizes industries with dual benefit to defence and to high-value commercial applications. Of these, biotech is unmatched in its potential to protect citizens, drive economic growth and deliver lasting positive impacts for both Canada and the world.
The “dual benefit” description is obvious for biotech. Antibody platform technologies that protect soldiers from infection can equally be used to treat cancer and protect populations from pandemics. Development of new non-addictive pain treatments for veterans could be used to treat our loved ones and fight dependence on opioids.
The same neurotech that monitors fatigue in a soldier can be adapted for early detection of dementia. Portable diagnostic systems, first developed for battlefield triage, now bring life-saving tests to rural communities far from hospitals. Biotech, at its core, is “health defence.”
History shows that strategic government investment and procurement is the most effective way to build high-technology industries of national importance.
The U.S. Defense Advanced Research Projects Agency, or DARPA, is a prime example. The agency, which seeded and supported foundational GPS and internet technology, also has biotechnology as a core priority. Its biodefense programs are behind breakthrough biotechnologies such as mRNA vaccines, brain-computer interfaces, biometric sensors and rapid antibody development for pandemic response.
This shows that smart investments in cutting-edge technology can catalyze innovative ecosystems (such as Silicon Valley) and drive growth for decades.
Canada’s allies are making biosecurity a priority, with NATO holding its first biodefense conference later this fall. Countries such as China, the U.S. and Britain recognize biotech as a new frontier with immense challenges to overcome and economic opportunities to be seized. It is a race that will be run by both companies and countries.
Industrial policy should not be about catching up; it must be forward-looking, with ambition to lead and win in global markets.
There is no reason Canada should not aspire to be a global leader in biotechnology. We have an exceptionally intelligent and well-educated population with a storied legacy of breakthroughs in biology and medicine.
From Till and McCulloch’s discovery of stem cells to Banting and Best’s insulin, Canadian science and innovation has been a gift to the world. This history gives every reason for national pride, but it is time for our next step: To not only discover but also develop, manufacture and export medicines and medical technologies derived from exceptional Canadian genius.
Canada is at a historic high-water mark for biotech. We have the foundation to scale a thriving biotechnology sector that would elevate Canada’s stature amongst nations, reinforce our value as an ally and demonstrate leadership in innovation on the world stage.
What’s needed now is vision backed by bold action. Canada should establish a national Health Defense program dedicated to funding transformative biotech and medical tech that aligns with national priorities in defense and economic growth.
It should use procurement and research contracts to address the biggest threats to both national security and public health. It should set policy to ensure that Canadian technology is developed domestically, and to support our companies so they can scale and win in global markets.
Will we act now to secure our place as a leader in biotech, or let yet another great opportunity slip through our fingers? Genius is wasted if not coupled to courage.