The Cross-Border Biotech Blog

Biotechnology, Health and Business in Canada, the United States and Worldwide

Biotech Trends Update — IP Constituencies: Innovator-Generic Mixing Continues in Canada

As traditional pharma companies continue to diversify their revenue sources in the face of their pending patent cliffs, we have followed their entry into and expansion of their generics business lines. We have also noted activity in the reverse – generics companies developing novel products to build their margins and take advantage of their production capacity and expertise.

This week saw a Canadian example of the latter trend in Pharmascience’s purchase of Aegera for undisclosed terms. Pharmascience is a Montreal-based generics company and Aegera is a cancer-focused clinical stage company that has been backed by a raft of mostly Canadian venture capital outfits.

Canada’s domestic “generics” companies are now almost uniformly mixed generic / innovator businesses. Apotex carries out R&D through its ApoPharma subsidiary and has at least one novel product on the market. Valeant (nee Biovail) has a number of novel products in its pipeline as well. This should be particularly noteworthy in the innovation and economic development communities given recent decreases in Canadian R&D activity by global innovator pharma companies.

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