Catalyzing Ontario’s bioeconomy through academic research and innovation

Ontario is Canada’s epicentre of life sciences innovation and growth. It continues to emerge as a global leader, home to more than 1,900 companies that contribute over $65.2 billion annually to the province's economy, according to the Ontario Chamber of Commerce (OCC). The provincial government recently announced phase two of the Life Sciences Strategy and is investing $146 million to build on this momentum and further cultivate the conditions for domestic and international companies to grow and thrive in Ontario.

But maintaining this momentum—and unlocking Ontario’s full potential—also requires bold investment in academic health sciences, entrepreneurship, and early-stage start-up companies, according to an expert panel that spoke at the 2024 Ontario Economic Summit Future-Proofing Ontario: Building an Inclusive, Sustainable Economy, hosted by the OCC.

“Academic research is the foundation of any healthy innovation system,” said panelist Christine Allen, professor at the Leslie Dan Faculty of Pharmacy, University of Toronto and a world leader in developing self-driving labs for drug formulation. “The depth and breadth of excellence coming out of universities and colleges in Ontario is phenomenal. Global pharmaceutical companies are tapping into our talent, but in the entrepreneurial space, we still struggle to support innovation at the level seen in other countries like the U.S.”

The University of Toronto significantly contributes to Ontario’s strengths in life sciences with 580 venture capital investments in life sciences companies arising from U of T and partner hospitals. Startups linked to U of T accounted for over one-third of all venture capital investments in the Greater Toronto Area’s life sciences sector, demonstrating the vital connection between research and commercialization. This statement is supported by an evaluation of the life sciences ecosystem in the GTA conducted in 2023, commissioned by U of T’s Government Relations Office.

One such venture is Intrepid Labs, co-founded by Allen and Alán Aspuru-Guzik, professor in the Departments of Chemistry and Computer Science and director of U of T’s Acceleration Consortium. Their groundbreaking work integrates robotics, machine learning, and advanced computing into drug formulation processes, shortening the time required for new medicines to be safely developed and delivered to patients. It is the first start-up company to be spun out of the Acceleration Consortium. “Intrepid’s pre-seed round of financing was led by Radical Ventures, a Toronto-based venture capital firm; however, many early-stage Canadian companies often have difficulty accessing Canadian capital.”

There is also a significant and growing risk of foreign investment capitalizing on local innovation ideas before Ontarians more broadly experience benefits. “Foreign investment is selling our innovation before we create value in the company,” said panelist Peter van der Velden, managing general partner at Lumira Ventures, who argued that access to capital was the weakest link in Ontario’s innovation ecosystem and a threat to future growth and success. “But we can decide that value capture matters.”
 

Panel details

Catalyzing the Bio-Economy – Seizing Ontario’s Life Sciences Advantage

Speakers:

• Dr. Christine Allen, Professor and Entrepreneur, University of Toronto
• Alex Wellstead, Director, Public Affairs and Government Relations, Novartis
• Peter van der Velden, Managing General Partner, Lumira Ventures

Moderator:

• Avis Favaro, Senior Advisor, Santis Health