The Funding Pipeline
The Commercialisation Pathway
Studies indicate the total cost of bringing a new therapeutic drug to market can reach up to $1.2 billion and requires numerous multi-million dollar rounds of financing. Developing and commercializing a biotechnology product, on average, takes 7 to 12 years. These tremendously long lead times require effective management of capital from the outset of basic research and discovery.
The majority of Canadian biotechs operate on a high burn-rate, generating revenue through licensing or collaboration agreements toward the end of their product development cycle. This graphic depicts the risk-reward relationship in the biopharma business model:
The majority of Canadian biotechs operate on a high burn-rate, generating revenue through licensing or collaboration agreements toward the end of their product development cycle. This graphic depicts the risk-reward relationship in the biopharma business model:
Typical Sources of Financing
The following chart is an overall snapshot of the most common sources of funding for Canada's emerging biotechnology companies at each stage of the commercialization pathway, from discovery to market entry and growth.
Financing Guide
BIOTECanada has complied a list of Federal and Provincial Government funding programs such as grants, loans, and contribution agreements, of which Canada's core biotech companies can apply for funding. To discover the funding options suited to your company needs, simply login to the Member's Area of our website.
