Torys on defence: the role of life sciences in Canada’s defence capabilities

Last month, Canada released its first Defence Industrial Strategy (the Strategy), which outlines Canada’s commitment to develop a strong defence industrial base and boost economic growth. These efforts may also include increased biodefence and medical preparedness, which could present opportunities for the life sciences sector in Canada, given the focus on domestic capabilities and need for mitigation of potential public health emergencies.

Mobilizing Canada’s medical countermeasures

As noted in prior bulletins, Pillar IV of the Strategy focuses on “Securing Supply Chains for Key Inputs and Goods” through the strengthening of domestic production and stockpiling of resources. There is specific emphasis on medical countermeasures, referencing that Canada’s “allies have explicitly linked biodefence and medical countermeasure readiness to their economic and national security, developing new strategies and mechanisms to advance this work”. Medical countermeasures refer to a variety of regulated products that can be used to protect the public during a large-scale emergency, such as the emergence of a new disease or an attack involving chemical, biological, or nuclear weapons. This may include vaccines, therapeutic drugs and biologics, diagnostic testing devices, personal and/or industrial protective gear, and other medical devices. Medical countermeasures are critical to minimize and mitigate harm during a public health emergency.

Building on COVID-19’s regulatory pathways

During and in the aftermath of the COVID-19 pandemic, Canada developed several new regulatory pathways as mechanisms to expedite medical product approvals, which may provide the government with options to deploy medical countermeasures to address public health risks. Early in the pandemic, Health Canada issued various interim orders to allow for the importation and sale of drug and medical devices that had not otherwise been approved through traditional regulatory submission processes, allowing for reliance on foreign regulatory approvals and/or exempting certain requirements for product licensing. Many of these interim rules have since been formally enshrined in regulations under the Food and Drugs Act and have been expanded beyond COVID-19. Per the Food and Drug Regulations, Health Canada maintains and updates a List of Conditions that Threaten Public Health and will use a modified approval pathway for public health emergency drugs that can treat the condition(s) on the list. Similarly, the Medical Devices Regulations have created a List of Medical Devices for an Urgent Public Health Need, which permits Health Canada to authorize the marketing of such devices in an expedited manner. These regulatory tools are reactionary, intended to be used when there is a medical condition presenting a significant risk to public health in Canada and immediate action is required to address that risk.

The Strategy’s role in strengthening Canada’s health regulatory regime

The Strategy posits that Canada will be proactive in planning for health crises before they occur. The government aims to ensure that medical products are already available in Canada, so that they can be deployed quickly in an emergency situation. Other recent changes to the Food and Drug Regulations permit all public health emergency drugs to be pre-positioned in Canada, meaning that they can be imported into Canadian storage facilities before receiving market authorization. The Strategy builds upon this foundation, referring to the existing Health Emergency Readiness Canada (HERC), a special operating agency within Innovation, Science, and Economic Development Canada (ISED), and a new Life Science Fund “to collaborate with international partners and support the development and production of medical countermeasures”. HERC oversees the Biomanufacturing and Life Sciences Strategy, which aims to develop a strong, competitive domestic life sciences sector with cutting-edge biomanufacturing capabilities, specifically focusing on the ability to prepare and respond to future health priorities and emergencies. Given this focus, it is expected that there will be opportunities for manufacturers to enter into research collaborations and commercial/supply agreements related to medical countermeasures funded through federal programs.

Closely tied to domestic capabilities, Pillar III of the Strategy involves “Investing Purposefully to Strengthen an Innovative Canadian Defence Sector”, with the promise that the Federal government will “support R&D, protect intellectual property, nurture small and mid-sized firms, invest in skills and training, and promote exports to create a defence sector that is agile and globally competitive”. The need to foster the development of intellectual property (IP) and retention of rights for Canada is referenced in multiple places within the Strategy. For example, the Strategy commits to formal partnerships with Canadian industry that will “secure domestic ownership and control over critical intellectual property (IP) and capacities”. The Strategy recognizes the immense talent and valuable research currently being undertaken at Canadian institutions that is already supported by research grants from organizations, including the Natural Sciences and Engineering Research Council and Canadian Institutes of Health Research, and also references the 2025 Budget commitment of $1.6 billion in new funding for research. This appreciation of the need to advance and support innovation in Canada suggests that there will be opportunities for funding, particularly in areas where Canada lags in domestic production and where commitments to invest and manufacture in Canada can be made.

Next steps

In the coming months, we anticipate that the Government of Canada will release further guidance and follow-up measures. The Torys Defence team will continue its coverage of Canada’s defence outlook, releasing additional analysis detailing the Strategy’s impact across multiple sectors.