No other sector relies on research and development for future success as much as the life sciences and pharmaceutical industry. Getting R&D effectiveness right is vital for Canadian players both large and small. During the era of blockbuster drug development (1985 - 2000), the global industry's market value grew 85-fold; today, the sector is investing twice as much into research and development as it did a decade ago but producing only two-fifths as many new medicines. This is not a sustainable business model.
The issue of Canada's R&D strategy featured prominently in the recent PwC industry survey Canadian Life Sciences Industry Forecast 2007. Of those Canadian companies surveyed, only 6.5% said that they may relocate their R&D operations outside of Canada. When asked what steps government could take to improve Canada's sector to compete globally, 67.4% said "create more favourable tax incentives."
Many of the challenges facing Canadian pharmaceutical and life science companies concern improving research and development effectiveness. It's not just about getting more bang for those R&D bucks. It also means having a dedicated financial and operational strategy that enhances the discovery of new blockbuster drugs as the patents on older ones expire and move into the generic sphere.
"Create more favourable tax incentives"
PwC has dedicated Canadian and global life sciences professionals ready to help you increase your R&D effectiveness at every stage of your strategy. Our global team offers its Integrated Operations and Business Planning Services for Research & Development (R&D). Closer to home, PwC Canada's tax practice can help you get the most out of available tax incentives. This includes identifying R&D activities that qualify for tax credits and maximizing recoverable GST and other sales taxes. We also have extensive performance improvement and human resource management solutions that can help enhance your R&D's long-term effectiveness.
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