Canada's biotech industry starts 2010 on upbeat note as survey reveals improved cash situation for companies

Canada's biotechnology industry is back in gear doing deals at BioPartnering North America and a recent survey finds renewed optimism amongst industry chief executives. The economic situation in 2009 created a new-found flexibility in the sector, as firms restructured and pursued innovative deals and partnering options to survive. Today, companies are in a better situation financially than in December of 2008, and are starting the year on a relatively upbeat note.

'As a CEO actively in the market, I am seeing renewed optimism, and a lot of energy and excitement among investors about the Canadian sector,' said Gordon McCauley, president and CEO of Allon Therapeutics, a Vancouver-based biotechnology company developing treatments for major neurodegenerative conditions.

The bi-annual survey released by the trade group BIOTECanada examines the financing runways of Canada's emerging biotechnology firms (those without currently commercialized product). At year end, over 70 % of companies reported close to a year or more of cash on hand, up from 30 % in July 2009. Companies reportedly adapted their operations and sought new sources of funding abroad.