Patentees research and development expenditure in Canada.

PURPOSE

Many industries are affected by the stale global economy recently. However, the innovative pharmaceutical and biotechnology industry seems to be relentlessly producing a wealth of newer therapeutic products to meet the increasing demand of the aging population. These companies" abilities to produce safer and more effective products are the results of research and development (R&D) spending. Clearly, by investigating R&D expenditures of patentees, one can paint a better picture of the condition in this sector of the Canadian economy.

METHODS

To track patentees R&D expenditures, the Patented Medicine Prices Review Board (PMPRB) annual reports have become the primary sources of data. Furthermore, the financial market and the Therapeutic Directorate Annual Drug Submission Performance Report have also been used to address some of the patterns that are seen in PMPRB data.

RESULTS

Most of the data suggest excellent growth in the innovative pharmaceutical and biotechnology sector in Canada. Despite this growth, it still lags behind the demand of newer therapeutic products. Nevertheless, the industry can weather a volatile economy well.

CONCLUSIONS

Patentees R&D expenditure is a good indicator of the health in the industry. It provides a perspective not only within Canada itself, but also globally.