OTTAWA, Ontario--(BUSINESS WIRE)-- BIOTECanada welcomes measures in Budget 2026 that can help strengthen Canada’s life sciences sector, including expanded support for research and development, new investment incentives and additional funding for strategic sectors, including biomanufacturing.
“Expanding SR&ED eligibility to include certain regulatory approval and intellectual property costs is an important step for biotechnology companies,” said Wendy Zatylny, President and CEO of BIOTECanada. “These are significant costs companies face as they move toward commercialization, and recognizing them can help advance new treatments for patients while supporting the growth of Canadian companies.”
The budget proposes expanded SR&ED tax support, expected to provide $930 million over five years, to cover certain regulatory and intellectual property costs. It also introduces the proposed Canada Growth Incentive to encourage investment in Canadian companies along with an additional $1 billion over six years for the existing Strategic Response Fund, which identifies biomanufacturing as an area that will receive support. Alongside initial intellectual property and commercialization reforms, these measures align with several priorities BIOTECanada outlined in its 2026 Federal Budget Submission.
The budget also acknowledges the 39 recommendations of the Pharmaceutical and Life Sciences Sector Task Force, of which BIOTECanada was a participant. With the government continuing to assess these recommendations, BIOTECanada is encouraging a clear and expedited path forward for implementation, including a coordinated Life Sciences Industrial Strategy.
“Budget 2026 represents important progress, but there is much more work to do,” added Zatylny. “The Budget recognizes the importance of timely access to critical vaccines and life-saving medicines for Canadian patients. Now we need to build on that recognition with concrete action on the recommendations of the task force, including investment and regulatory modernization, so more patients can benefit from new treatments and more Canadian companies can grow and compete here at home. Many other economies around the world are actively supporting their life sciences sectors. With each passing day, Canada risks falling further behind and losing out on important opportunities for investment and growth.”
BIOTECanada looks forward to continuing its work with the federal government as these measures move forward.
BIOTECanada is the national industry association voice. With over 200 member companies, the Association’s membership is representative of the broader Canadian biotech ecosystem which is national in scope and comprised of pre-commercial biotech companies, global pharma and biotech companies, investors, incubator and accelerator organizations, and academia. In the context of global population growth and corresponding climate change, food sustainability, and human health needs, the biotechnology industry plays a vital role in developing solutions to help address the resulting human health and environmental challenges. Visit: biotech.ca
