What could turn the Toronto region into a global life sciences leader

Canada has long played a quiet but meaningful role in global life sciences discoveries. Our researchers have pushed the boundaries of science, but too often major wins have happened elsewhere. For decades, we’ve contributed from the margins while other countries build success stories around us.

It’s unfortunate because we have all the right ingredients to be among the global life sciences stars—brilliant researchers, a pool of homegrown startups, and a public healthcare system that should offer an enormous home-field advantage. 

Despite our many advantages, Canada’s life sciences sector hasn’t shone as bright as it should, and it took a global pandemic to expose the cost of our modest approach. So where do we go from here?

If Canada is to secure its health and economic future, it must capitalize on its world-class research assets, but most importantly, develop, manufacture, and bring to market life sciences breakthroughs—here, at home.

To do so, we need to understand why we are falling behind and what we need to do to turn things around. 

First, our challenge. 

The life sciences sector needs an environment that enables companies to secure capital throughout their growth journey, find space to grow, and reach patients faster.

The sad reality is, many Ontario life science startups struggle to find sustained funding in a risk-averse environment, while investors argue that the barrier lies less in the availability of capital than with the state of readiness of companies for investment.

A lack of available space to grow is another major barrier. Biotech and pharmaceutical startups find themselves in a crowded real estate market, with little supply of the specialized facilities they need for clinical testing and product development. Given the high costs and complexity behind the construction of these specialized facilities, developers typically seek pre-leasing commitments that most companies simply can’t meet. 

The result of these challenges is many companies look outside of the Toronto region, taking with them more than just a business plan—they take jobs, intellectual property, and the possibility of finally growing a homegrown anchor company. As companies leave, the knock-on effect is a lack of opportunities for local talent to grow in their careers, further depleting our pool of graduates from top universities. In their absence, we face an uphill battle to retain those with an entrepreneurial mindset, research translational skills, and production know-how to scale companies in the region.  

Compounding these challenges, even when domestic life sciences firms develop cutting-edge technologies, they face a fragmented and complex path to the Canadian market. As with many industries, the regulatory process for bringing products to patients is multi-tiered, often inefficient, and burdened by overlapping reviews. Conversely, Canada’s publicly funded healthcare system understandably tends to favour short-term cost savings in procurement for hospitals and medical facilities, rather than prioritizing long-term value through innovation. For medical device companies, this means fewer viable pathways to bring their technologies to market.

So, how can we turn it around? Toronto Region Board of Trade’s new report, The Winning Formula, offers an action plan that calls for ecosystem players and policymakers to take decisive steps to mobilize capital, accelerate infrastructure projects, strengthen talent pipelines and streamline access to the Canadian healthcare system. 

This series puts forward four in-depth playbooks to address the sector’s challenges while also offering a clear, evidence-based collection of recommendations all critical players can adopt to ensure we grow, retain, and attract the next generation of life sciences companies in Ontario.  

Success will only come if federal and provincial governments, municipalities, and ecosystem partners, commit to action. Toronto has a book of “what could have been” stories and only some with the promise of becoming something extraordinary. The Winning Formula identifies the role each partner must play if we’re going to change the narrative.

As Canada redefines its place in a shifting global economy, the life sciences sector stands out as a competitive advantage. The foundation is in place and opportunity is in front of us. What comes next will depend on our willingness to think boldly and make an unwavering commitment to change the course of this sector.