The Metro Montréal Life Sciences ClusterPresentation by:

Michel Leblanc, Vice-President, Life Sciences, Montréal International and

Louise Proulx, Vice-Principal (Research), McGill University

At the International Conference on Technology Clusters

November 7- 8, 2003

Greater Montréal

Pop : 3.5 million, 47 % of Québec and 11% of Canada GNP : more than $120 Billion, 50 % of Québec and

10% of Canada; a very diversified economy 63 cities, total area over 3 800 KM2

Some numbers about the Cluster• Life Sciences includes Pharmaceuticals, Biotechnologies, Medical

devices, Bio-computing, Bio-genomics, Agri-Food …

• 274 companies and 125 research organizations

• 29 515 direct jobs, compared to 27 370 at the beginning of 2002

– A net increase of 2 145 new jobs, or 8 %

– 21 315 in the private sector and 8 200 in research organizations

• Presence of a solid core of large pharmaceutical multinationals

• Full continuum along the chain of value creation• Fundamental research• Development and clinical trials• Production and commercialization

The Montréal Life Sciences Cluster

The Importance of Foreign Investments• 50 % of the private sector jobs

• Nine of the ten largest employers

– Merck Frosst Canada, 1 400 employees

– Services pharma MDS, 1 200 employees

– Clin Trials BioRecherche, 1 200 employees

– Wyeth Canada, 1 200 employees

– Laboratoires Abbott, 750 employees

– Aventis Pharma, 750 employees

– Pfizer, 650 employees

– Bristol-Myers Squibb, 530 employees

– Schering, 400 employees

– Novartis Pharma, 350 employees

Our Approach • Porter’s studies on innovative regions and the relevance of the concept of

clusters for large metro areas

• We adopted a participative approach Coordinated by a private not-for-profit economic development agency, Montréal

International, With the participation of the private sector, research centres, universities and

training colleges, and governments

• Quick response Mobilization : Sept 2001 - April 2002 Approval of a vision and an action plan : April 2002 Implementation : Summer 2002

A common vision, ambitious... yet realistic

« To Position Greater Montréal as a Dynamic World Leader in the Life Sciences »

Creating at least 16 000 new direct jobs by the year 2010

(Which implies doubling the observed natural job growth rate of the Cluster)

The Action Plan

• Includes « across the board » initiatives

– Coordination and mobilization structure

– Actions to improve and expand training capabilities

– Measures to reinforce business creation and development

– Initiative to create a powerful distinct image and launch an international marketing strategy

• ... And specific initiatives to reinforce local centres of excellence

– Strengthening the development of five existing centres and an emerging one

– Integration of university hospitals within the core of the Cluster development

Coordination and Mobilization through the Montréal Metro Life Sciences Committee

• Meets 4 times a year

• Includes

– Majority from the private sector : 5 CEOs (or equivalent) of large pharmas; 7 CEOs of Biotech and medical devices; 2 directors of business associations

– Government : 2 deputy ministers, Canada and Québec

– Institutions : 4 provosts (or equivalent), from each of the universities of the area; 1 Director of a training college representing all colleges in the area; 2 Directors of public research institutes

– Other partners : 2 managers of venture cap. ; 2 directors of centres of excellence; the CEO and the V-P Life Sciences of Montréal International

• Tradition of academic excellence and a history of research and

innovation, which draw and help retain world class researchers

• Opportunities for the commercialization of innovative academic

research

• Favourable business and investment climate

Metro Montréal’s Life Sciences Cluster: Recipe for Success

Metro Montréal: Intellectual Capital of North America …• Of the 30 largest cities in North America, Metro Montréal has the highest

number of university students per capita

• A metropolis with world-class universities and excellent colleges: four

Montréal universities offer specialized life sciences programs

… And A Dynamic Environment for Training High Calibre Personnel

• A total of more than 6,700 students are presently enrolled in university-

level life sciences programs in Metro Montréal

• More than 1,150 university health sciences degrees are awarded each

year in Metro Montréal

Metro Montréal: A Research-intensive Metropolis

• Thousands of researchers conducting fundamental research in life

sciences at:

– More than 125 university centres, affiliated hospital research institutes or

labs in Metro Montréal

• Combined sponsored research income for Metro Montréal

universities 1st place in Canada and ahead of Toronto area

universities

– $776M (McGill, UdeM, UQAM, Concordia) vs. $507M (Ryerson; UofT; York)

• National and international interuniversity research networks based

here

Commercialization of Research

• Each university has an industry-university liaison office, providing

services to protect intellectual property and to commercialize

research results

• Innovative research translates into innovative products, services

and novel therapies through licenses and the creation of spin-offs

Monitoring our progress• Job creation above and beyond the target of 2 000 per year

• Investment decisions in excess of $415 million in 2003

– DSM Biologics, expansion, $160 M

– Ratiopharm, expansion, $80 M

– Tyco Medical, expansion, $28 M

– Aventis Pharma, expansion, $20 M

– Draxis Pharma, expansion, $20 M

– …• Strategic decisions for the Cluster

– Pfizer chooses to maintain its headquarters in Montréal after the integration of Pharmacia

– Construction of Novartis’s new headquarters

Key challenges for 2003-2004 (1)

1. To stimulate an environment conducive to the creation of

private venture funds and the attraction of foreign venture

capital

2. To preserve a favourable business climate for innovation in the

pharmaceutical sector

3. To preserve our competitive advantage in human resources – Improve the training of specialized managers

– Increase the appeal of scientific careers

– Train more technicians

Key challenges for 2003-2004 (2)

4. Adopt a marketing strategy for the Cluster itself (“branding”)

5. Reinforce research infrastructure and equipment

– Consolidate the National Biotechnology Research Institute

– Stimulate more synergy between businesses and our three University Hospitals

– Encourage all possible synergy between public research and private partners