Overview of
Canada's Medical Device Industry
The medical device industry
consists of firms that produce a wide range of products used for diagnosis and
treatment of ailments, and which include the following: medical, surgical and
dental equipment (including electro medical equipment and related software),
furniture, supplies and consumables, orthopaedic appliances, prosthetics and
diagnostic kits, reagents, and equipment. The medical device industry in Canada
is $6 billion of which $2 billion value is from exports. Canadian medical device
manufacturing and development industry consists of 1000 of which 90% have
Canadian ownership. A majority of these companies are SMEs with less than 50
employees. The industry is distributed across Canada, although major
concentration is in Ontario and Quebec where 42% and 32% firms are located
respectively. 22% of facilities are located in the West and 4% in the Atlantic
Region.
The Canadian medical device industry benefits from linkages to associated
Canadian industries including biotechnology, advanced materials,
microelectronics, telecommunications, software and informatics. It is also well
positioned to leverage world class innovative research being conducted in
foreign universities, research institutes and hospitals. In addition, the
industry is able to draw on world-class innovative research being conducted in
Canadian universities, research institutes and hospitals. Nearly 10 percent of
Canadian medical device firms are spin-offs of universities, other firms or
labs.
Key Capabilities & Players
The Canadian Medical device industry has strengths in a range of specialities
including cardiovascular devices, medical imaging, in-vitro diagnostics, dental
implants and materials and assistive devices. Canada is home to highly
innovative cardiovascular device firms including Vancouver’s Neovasc, Greater
Toronto’s Novadaq Technologies and Montreal based Cryocath Technologies
(acquired by Medtronic in 2008) which develops more than 500 centres around the
world. Calgary’s Imaging Dynamics is a global leader in digital radiography with
its imaging system being used in nearly 40 countries worldwide. Advanced
Research Technologies’ cancer diagnostic tool and Clemex Technologies’ world
renowned image analysis tools contribute to Canada’s position as a leading
player in medical imaging. Canada also leads in in-vitro diagnostics with
MedMira Labs. Vancouver’s Biomedical Corp. has formed strategic alliances with
3M and Roche Diagnostics to commercialise its diagnostic tests globally. Some of
the other leading Canadian companies are ART advanced Research technologies,
Angiotech, Axela, Baylis Medical, BioMedica Diagnostics Inc, DNA Genotek, Epocal,
MDS Nordion, MIV Therapeutics, Pyng Medical, Resonant Medical, Spectral
Diagnostic, Urodynamix technologies and others.
Growing Trade with India
There is growing interest in India by Canadian Medical Device companies. They
are either looking for MUL (Manufacture Under License), Joint Venture partners
or for business alliance for marketing their products in India. There are
enquiries from Canadian companies soliciting distributorship for their products
exported from Canada. Some Canadian medical device companies are already doing
business in India.
Advantages of investing in Canada’s Medical Device Industry
Canada offers global medical device manufacturers tremendous opportunities in
rapidly expanding domestic and international markets. With a combination of
attractive cost competitiveness, a strong labour force, access to North American
market and a high quality of life, Canadian locations present some of the
strongest investment propositions among advanced economies.
Medical Device Manufacturing Costs Lowest in G7
Total annual costs to establish and operate a medical device manufacturing
facility in Canada are the lowest in the G7. Canada holds a 0.3 percent cost
advantage over the United States in medical device manufacturing.
Low R&D Costs
The Canadian Scientific Research and Experimental Development (SR&ED) Tax
Incentive Program, administered by the Canada Revenue Agency, encourages
Canadian businesses of all sizes, and in all sectors to conduct R&D in Canada.
It is the largest single source of federal government support for industrial
R&D. It provides claimants cash refunds and/or tax credits for their
expenditures on eligible R&D work done in Canada.
When combined with the provincial R&D tax support, the Canadian tax treatment of
R&D is the second most favourable among the G7 Nations.
Regulatory Process emphasizes Harmonization
Canada’s regulatory process for medical devices increasingly emphasizes
harmonization and reciprocity. Canada has a risk-based system of regulation in
keeping with international trends.
All medical devices in Canada are subject to the Food and Drugs Act and its
regulations. The Act permits Canadian manufacturers to export product in
accordance with the receiving country’s laws, irrespective of domestic approval
status. This export provision has prompted some foreign-owned companies to
establish export manufacturing from a Canadian base.
Federally Funded Research Support Programs
Several federally-funded research programs and councils support health-related
research in Canada: the Canadian Institutes for Health Research (CIHR); Networks
of Centres of Excellence; National Research Council (NRC); and the Natural
Sciences and Engineering Research Council (NSERC).
Presence of Major Global Investors
Some of the major global investors in Canada are Abott, Baxter, GE Healthcare,
Johnson & Johnson, Philips Medical Systems, Siemens Medical Solutions, Smith &
Nephew, Sorin Group and others.
For further information and interest in trade/ investment in Canada’s medical
device industry contact:
Ruchi Agarwal
Trade Commissioner,
Canadian Trade Office, Ahmedabad
Email: ruchi.agarwal@international.gc.ca
Web: www.india.gc.ca
Tel: 00 91 79 2550 0351/ 2550 5053, Fax: 00 91 79 25502433 |
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