When you think of Canada, the first thought that crosses your mind is probably not biotech. But Canada’s capital province, Ontario, is working hard to become a world-leading bioscience industry center.
One way Ontario is doing this is by becoming the home for up-and-coming biotech companies like Toronto-based Synaptive Medical, which has attracted both international capital and international attention.
Last year, U.S. private equity firm General Atlantic invested an undisclosed amount as part of a $37 million round of funding. Eighteen other unnamed investors also participated in the round.
“Synaptive marks the first investment by General Atlantic in the medical device sector, which speaks volumes to the attractive market opportunity we see in the healthcare technology industry,” said General Atlantic Managing Director Alex Crisses, who joined Synaptive’s board of directors as an observer.
Synaptive is best known for its BrightMatter suite of products, which provides advanced visual and information tools that allow for 3D visualization of the brain for neurosurgical purposes. BrightMatter has won approval for use in Canada, the U.S., Australia, and Europe, so the company is poised for massive growth.
That makes it a company with potential to become what the Ontario Bioscience Innovation Organization (OBIO) refers to as an “anchor company.” In a recent report, the OBIO noted that one key to making Ontario a magnet is to feature an “anchor company” that attracts talent and capital, and spins off other companies.
“Over the past decade, Ontario has emerged as a player in the global health science and technology market by building a strong foundation of health science research and entrepreneurship, but despite our impressive success…Ontario continues to struggle to anchor and grow these companies into global players,” said OBIO CEO Gail Garland in the report.
Will Synaptive become that anchor company? Only time will tell. In the meantime, OBIO recommends a three-tiered approach for further developing Ontario’s biotech sector:
Innovation pull: The province needs to stimulate innovation growth by enabling global investors to accelerate the commercialization of novel intellectual property from Ontario’s research institutions. OBIO’s report recommends using a set of best practices and standardized guidelines for commercialization based on how venture capital and enterprises approach investments in the health sciences.
Adoption: In order to encourage adoption of new technology, OBIO argues that the Ontario health system—government, hospitals, and healthcare providers—need procurement processes and a cultural shift that values the adoption of innovative technologies. This is already being done to some extent through Ontario’s Health Technologies Fund, but OBIO is also calling for certain hospitals to be designated as “early adopter/innovation hospitals” to accelerate adoption of new technology.
Capital: Canadian companies need to attract investors to the region from global partners who recognize the province’s strong health sciences economy. OBIO suggests doing this through business development grants that assist companies to attend international conferences and engage international markets.
“As part of an Ontario-based medical device and technology company scaling in global markets, OBIO’s report outlines issues and recommendations critical to the future success of our economy,” said Synaptive CFO Peter Dans in a press release. “Implementing these ideas will create a bright future for Ontario and the companies working to scale health technologies here.”
“Ontario recognizes the life sciences as a priority and is committed to supporting innovation and the sector’s competitiveness,” added Reza Moridi, Minister of Research, Innovation, and Science, noting that he welcomed the guidance provided in OBIO’s report.