Investment Reports Interview with Wendy Zatylny on Canada’s life sciences sector

Why does biotechnology deserve a larger place in Canada’s economic conversation alongside sectors like energy, advanced manufacturing, and AI?

This is an extraordinary moment for the sector. The jump in our understanding of the human genome and the emergence of AI have led to science and therapies that are changing how serious diseases are treated including  cancer, diabetes, and many neuromuscular diseases.

Canada has a long history of being at the forefront of medical innovation. Insulin is a point of pride, but there was also whooping cough research and the Toronto method for the polio vaccine. Today we’re leading in radiopharmaceuticals, genomics, cell and gene therapy, regenerative medicine, and AI-driven drug discovery. Biotechnology is the natural outcome of capitalizing on that innovation pipeline, from the lab bench through startups and scale-ups to anchor companies.  Biotechnology is both an economic driver and a contributor to better health outcomes.

Canada has produced world-class science and medical breakthroughs, yet relatively few globally scaled biotech champions. What has historically held the sector back?

“Canada has the science and companies, but the next stage requires stronger capital pathways and more competitive routes to market.”

On the investment side, there are significant gaps along the development continuum, often called the “valley of death.” Companies need funding to develop regulatory packages, conduct clinical trials, and advance their products. There are two particularly challenging gaps: one for early-stage companies and another for mid-sized companies looking to take the next major step. The federal government’s $150 million BDC Life Sciences Venture Fund for early-stage companies is encouraging, but support is still needed at the mid-stage level. The result is a patchwork system that makes it difficult for companies to keep progressing. Many CEOs spend a tremendous amount of time raising capital rather than building their businesses.

The second challenge is regulatory that includes approval processes, health technology assessments, and pricing models. Many therapies coming to market are disruptive medicines and do not fit neatly into existing assessment frameworks. Combined with Canada’s relatively small population, these hurdles can discourage commercialization here.

Where do you think policy reforms could make the biggest difference over the next five years?

Both the federal and provincial governments are increasingly engaged on these issues. There is a stronger recognition of the barriers to companies growing and scaling in Canada, and the policy environment is adjusting to solve that. The Scientific Research and Experimental Development (SR&ED) tax incentive program has seen important improvements, and recent federal measures on investment, domestic capacity, and innovation are encouraging signs that the sector is being taken seriously as an economic priority. At the same time, there is more work to do, particularly in addressing funding gaps for mid-sized companies looking to scale, and creating policy tools, such as a patent box, that help companies grow and stay in Canada. We are seeing a greater urgency across government, and the opportunity now is to build on that momentum in a way that delivers lasting competitiveness. 

BIOTECanada represents everyone from startups and investors to global pharmaceutical companies. How do you build alignment across such a diverse ecosystem?

We talk about the ecosystem because every segment has a role to play, from early-stage companies and clinical trial organizations to venture capitalists, biomanufacturers and large pharmaceutical companies.

When the conversation focuses on the health of the ecosystem, it becomes easier to identify what each group contributes and what challenges need to be addressed. That approach has helped create a cohesive vision of what we’re trying to achieve. Our focus remains on the overall health of the ecosystem.

Biotechnology is becoming increasingly global, with countries competing for investment, talent, partnerships and manufacturing capacity. What are BIOTECanada’s priorities as you look ahead to the next year?

One major priority is international engagement. We work to connect Canadian companies with investors, partners, and market opportunities abroad while also attracting investment and partnerships into Canada.

We’ve been involved in discussions with countries including Mexico, Korea, France, and Lithuania. We helped host a large Mexican trade delegation and signed memorandums of understanding with two Mexican pharmaceutical industry associations to explore future cooperation. Biotechnology requires partnerships. Domestically, we remain focused on investment and regulatory modernization, including clinical trials, intellectual property, pricing frameworks, and market access.

What do you see as Canada’s most distinctive competitive advantages today?

Canada has an exceptionally strong foundation: a strong research and scientific base, meaningful collaborations between universities and industry, and a network of accelerators and incubators that help bridge the gap between research and commercialization.  Canada has major research hubs across the country, along with regional strengths in clinical trials, biomanufacturing, and commercialization. That breadth is one of Canada’s real advantages, giving the country a more complete and collaborative life sciences ecosystem.

There is confidence in Canada’s standards and growing opportunities for cooperation with other regulatory bodies. The federal government is investing through programs such as the BDC Life Sciences Venture Fund, the Venture Capital Catalyst Initiative (VCCI) life sciences stream, while Canada’s Defence Industrial Strategy reflects growing recognition of the sector’s strategic importance. Biotechnology products are highly mobile. Whether it’s intellectual property, data, medicines, or treatments, they are far easier and cheaper to move than traditional resource products. That agility gives Canada’s knowledge-based sectors an additional competitive edge.

Your career has taken you through communications, broadcasting, marine transportation and now biotechnology. What was it about this sector that convinced you it was where you wanted to spend the next chapter of your career?

The consistent theme throughout my career has been working in highly regulated industries. It’s energizing to feel you have your finger on the pulse of economic growth and can contribute to something larger than yourself.

There is a tremendous entrepreneurial spirit in this sector. Many of our members build companies, achieve an exit, and immediately reinvest and start again. The Bellini family is a great example; they built BELLUS Health, saw it acquired by GSK, and then reinvested back into the sector. That combination of improving lives and fostering entrepreneurship is incredibly exciting.