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Tag Archives: Teralys Capital

Québec’s $122 million New Biopharmaceutical Strategy Includes $30 million for Genomics, May Include SR&ED Tax Credit Financing

mdeieThe Province of Québec rolled out a new “biopharmaceutical strategy” Thursday that they say aims to provide “development support for biotech and biopharmaceutical firms.”

The Roll-Out:

The announcement was beautifully coordinated with the relevant constituencies, as illustrated by the near-immediate chorus of support:

The Big News:

BIOQuébec can’t help bragging a little that “the Minister has retained some of the recommendations made by BIOQuébec.” The pride is justified, though.  Biotech advocates have been asking — since before the last federal budget — for a way to monetize the refundable tax credits they’ve been banking.  As part of the new strategy, BIOQuébec says the government will allow

“biotechnology companies within the human health industry [to] benefit from a short term support measure thanks to the quarterly financing of their tax credits.”

Interestingly, BIOQuébec appears to have some information about that initiative that is missing from the government publications (nope, not even in the French version), which only say it aims to “implement new methods of funding R&D tax credits adapted to the specific needs of health-related biotechnology firms.”

Money Talks:

On the financial front, the initiative also highlights a 10-year tax holiday (sparse on details, but expect it to look a lot like the OTEC in Ontario) and Teralys Capital.

Finally, the strategy notes “three specialized start-up funds aimed at the technology sectors” with $41 million each that will be supported by “private-sector partners.”  Is the Pfizer-FRSQ Innovation Fund one of these?  Wednesday, that fund announced grants totalling $2.3 million for genomics studies of inflammatory bowel disease and metastatic colorectal cancer.

My Bottom Line:

This looks like a broad set of initiatives that aims to improve everything from student recruitment through R&D and commercialization to purchasing and reimbursement decisions.  I particularly can’t wait to see what the SR&ED monetization program looks like.  Hopefully we’ll learn in time to work with other governments *cough*Ontario*cough* as they start 2010 budget processes.

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New Data Shows 70% of Canada’s Biotech Companies Have Under 12 Months’ Cash. BIOTECanada’s New Ask: Government Loans.

Canadian moneyA Canwest story today highlights new BIOTECanada data showing 70% of survey respondents have under 1 year of cash, up from 50% in January.  FierceBiotech picked it up as well, guaranteeing a full dose of international attention.  

Even though the remaining 30% of respondents likely include some with big recent successes — Bioniche, Allostera and Zymeworks — and some with creative approaches — ConjuChem, Neuromed, etc. — the top-line number is grim indeed.  Plus, as Kasia Majewski points out:

“Most firms have found away to extend their cash, but they’ve done that by massive layoffs, by shutting done operations to the bare bones. So essentially the lights are on but there’s one guy home.”

Given that there has been no systemic cash infusion, it’s not surprising that the number of firms in trouble has gone up since January. 

On the other hand:

There is a bolus of fund-of-funds and direct capital waiting to be deployed, including:

Plus, Lumira Capital’s Q2 newsletter (pdf) points to the new BDC money, Alberta Investment Management Corp’s PE plans and the new Alberta Enterprise Corporation as potential additional sources of funding in the medium term.

BIOTECanada bottom line:

In the winter, the organization was focused on tax initiatives.  Yesterday, though, the focus was entirely on

“negotiations with Industry Canada to obtain a loan program for Canada’s biotech sector that can hold the industry over until capital markets rebound. … [Specifically,] government loans to be repaid after a two- year period at six per cent interest.”

Maybe it’s the new money looming on the horizon, or the seeming lack of traction for the tax policy asks, but the focus has definitely shifted.

My bottom line:

Even the new loan program advocated by BIOTECanada will not help if the other government funding doesn’t make it to biotech companies and VCs. We’ve been keeping an OVCF scoreboard that still shows a goose-egg for biotech investments.  It may be early days for these new capital sources, but the hour is late for Canadian biotech companies.

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$700 Million Close Opens the Doors at Teralys Capital

Teralys Capital, the fund-of-funds announced in Quebec’s budget in March, actually closed on its $700 million today and “is now ready to move ahead with its mandate to finance private venture capital funds that invest in technology companies in the life sciences, information technology and clean technology sectors.”  (I guess the extra $125 million they were planning to raise from the private sector went to Excel’s new fund instead!)

I’m still not sure Teralys has a website, and today’s press release ends with “For further information: The telephone number provided below is for the exclusive use of journalists and other media representatives: Josée Lagacé, (514) 850-4835.”  But not if you’re a journalist running a VC fund.  Or a VC.  In other words, don’t call them, they’ll call you.

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What You Missed While You Were at BioFinance

A lot to catch up on over the last few days…

And last but not least:

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