Grant Program: Southern Ontario Development Agency (SODA)

Project Summary: National Centre for Medical Devices Development

The National Centre for Medical Devices Development (NCMDD) will be a world-class commercialization centre for market-driven research and commercial development in the field of convergent medical devices and technologies. Working in partnership with large multi-nationals (MNE) and small and medium size (SME) firms, NCMDD will provide the expertise, equipment, facilities, and financial solutions to help translate novel technologies into new innovative products and bring them to a global market.

To be located in a 120,000 sq. ft. building in Markham ON, the NCMDD will harness the convergence of research strengths in various disciplines to design innovative medical devices and contribute to an emerging interdisciplinary paradigm for medical technologies focussed on diagnosis, prevention and wellness. In this paradigm, medical devices will assume a new and increased significance. This advancement in technology has also shifted the balance of investment return from pharmaceuticals to medical devices. Typically, they will be micro-sized, implantable devices that incorporate research and engineering from areas such as IT, advanced materials, computer science, vision science, imaging and human immunology. They will provide for early intervention, less invasive practices and increased efficiency of treatments; hence, they have the potential for early diagnosis, effective monitoring and more productive, independent living.

The NCMDD is an already incorporated not-for-profit consortium of over 30 companies and industry associations. The Board of Directors includes senior executives from IBM, sanofi pasteur, Johnson + Johnson, IBM Canada, York University, the Town of Markham, and the Presidents of two of Canada’s leading health technology SME associations --- HTX and MEDEC. The NCMDD will work to:

§ leverage the infrastructure and global connections of MNEs such as IBM Canada and sanofi pasteur and help them to retain and increase their R&D capacity in Canada

§ facilitate access for companies, especially medical device SMEs, to industry specific training, expertise, investment and infrastructure

§ involve community hospitals in collaborative product development, clinical trials and improving market capture

§ bring together industry 4^th pillar organizations, e.g., Trillium Medical Technology Association (TMTA), the Innovation Synergy Centre in Markham (ISCM) and regional innovation networks with technology transfer expertise and the financial resources of their partners to implement commercialization projects.

As a one-stop hub, the NCMDD will bring together both private and public sector researchers, clinicians and entrepreneurs to share ideas and technologies, collaborate in projects and assemble new products and services that will enlarge Canada’s competitiveness in lucrative global medical device markets. The unique, flexible design of the Centre will include the following features.

§ The Centre will cohere around a research and commercialization facility, staffed by industry and university scientists, engineers, technicians and other specialists

§ Private sector members of the Consortium, will secure space for long-term presence in the building, York University will locate science labs, industry liaison and tech transfer offices in the new facility and other universities will also have a presence providing a unique opportunity in Canada for university-industry collaboration.

§ SMEs will hotel in the Centre while they access Centre resources and collaborate in projects aimed at giving them an edge on the development of new products and solutions.

§ The advanced training activities of the Consortium will be pooled in the building to support advances in innovative professional development for clinicians, doctors, business personnel, researchers and teachers; and learning opportunities for graduate students and youth – a first for Canada.

§ The facility, flexibly designed and fitted out, will provide for convergence of R&D. Expert labs in areas such as advanced materials, IT, and applied/translational immunology will be linked to specialized clean rooms and prototyping facilities for design, testing and fabrication – a unique combination driven by the needs of Canadian industry.

§ Stakeholders will have access to space and specialized equipment for fabrication and prototyping not available anywhere else in Canada.

§ The building will provide for the administration of clinical trials, networking of researchers and entrepreneurs and community outreach.

The location in the Town of Markham is strategic; it is in the midst of Canada’s largest corridor/cluster of medical technologies companies. The 120,000 sq ft building will provide an environment for co-creation of products and services - an important asset for the emerging industry cluster.

Access to NCMDD facilities and opportunities to work with resident experts and MNE personnel to build and test new products will give small and medium size companies a significant competitive edge in global markets. The innovative commercialization fuelled by research and tailored to grow SMEs into globally competitive MNEs suits the profile of the region and will create the conditions to spawn the next “Boston Scientific”.

Cost:

Total $108.0 million

$75.0 million capital for building and equipment

$33.0 million operating funds for 5 years

Source of funds

$25.0 million Town of Markham/York University/Consortium

$41.5 million Government of Canada

$41.5 million Province of Ontario

Budget:

This project has not been built into the Town’s operating or capital budgets.

The Town of Markham Council has indicated its readiness to participate in financing its share of the cost (up to $25.0 million) upon receipt of funding approvals from senior level governments.

Benefits:

In a study conducted for the NCMDD by the Schulich School of Business, the establishment of the NCMDD will generate a total annual direct and indirect economic impact of $20.2 million and 787 annual additional jobs, of which 70% will be high quality R+D jobs. The Schulich study estimates that the NCMDD will accelerate the growth rate of the medical devices industry above historic rates to provide an increased economic impact of at minimum $300 million annually in Canada. Consequently, the Canadian government’s support for the proposed Centre will be a tremendous investment for the people and economy of Canada.

Generally, NCMDD will contribute to improved health care and a globally competitive economy in Canada. More specifically, NCMDD will lead to:

§ growth and increased viability of Canada’s companies in the medical device sector, and consequent increased capture of domestic and foreign markets;

§ an environment that encourages multinational companies to stay in, and come to, Canada to undertake their global mandates in medical device development;

§ convergence of science and technology in IT and the life sciences leading to more globally competitive products and services from Canadian companies;

§ increased community hospital involvement with relevant research institutions for product development and clinical trials;

§ increased science awareness and engagement of K-12 students and their teachers;

§ a greater return on investment for publicly-supported R&D; and

§ the development of highly qualified personnel – Canada’s next generation of health care scientists, academic clinicians and professionals.