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Two analysts and top management from sixteen sector firms examine the canadian biotechnology sector in this special 69-page Canadian Biotechnology issue from The Wall Street Transcript, available at (212/952-7433) or http://www.twst.com/info/info544.htm

TWST: To begin, what differentiates Canadian biotech from its North American counterpart?

Mr. Camiré: I think nothing really differentiates the two countries’ biotech efforts. I think we’re very close. First of all, the group of scientists who compose many biotech companies is very international in both Canada and the US, and, to that extent, there’s very close proximity. Then in terms of exchange of information, we tend to attend the same scientific conferences and our universities seem to have the same course profiles. Therefore, I don’t see very much difference between the countries. I think the only thing that’s different in terms of biotech companies would be the availability of funds for the different companies. I think there’s a larger available pool in the United States than there is for Canadian companies.

TWST: A major issue affecting American biotech companies has been the FDA’s slow approval process. Does that also have an impact in Canada? What’s the regulatory process in Canada?

Mr. Camiré: The regulatory process in Canada is much longer, actually, and it has deteriorated over the past few years. Whereas in the US it takes between 14 and 16 months, in Canada, I think you can add another year. I think that creates a problem for Canadian companies, getting products approved in Canada. And because the healthcare game, or arena, is really international and the marketplace in Canada usually is less than 2% of world drug sales, very few people really worry about how long it’s going to take in Canada — unfortunately, I think. When we look at what biotech is trying to accomplish, bringing product to market, I think they’re really more focused on bringing the drug to the US first, which generally brings all the credibility to follow in other countries. So unfortunately, the Canadian government is often mimicking clinical proofs and clinical data from the US. That’s probably why they take slightly longer than the US government does.

TWST: How, then, are you approaching the group today?

Mr. Camiré: How am I approaching the group in determining what companies I like to follow? It’s a good question. I usually look at a number of criteria — management; the sector the company is in; the competitive landscape and the competitive advantage of that sector — and I try to pick the companies that I feel will stand out over time. I’ll give you an example. There’s a company called ProMetic Life Sciences (TSE:PLI.TO), which just signed an agreement with the American Red Cross for developing technologies to filter the blood supply and its by-products. Basically, there’s a fear out there that the prions related to mad cow disease may be getting into the blood supply over time. It is not correct, but there’s a fear, and we need to get prepared and develop technologies, so we look at that. And with what we’ve seen after the September 11 events, the talk about viruses and bacteria being disseminated, I’m trying to put that 1 + 1 together, asking, what are the companies that may prevail in developing technologies to basically insure that we have a safer and cleaner world out there. That’s how I came up with ProMetic Life Sciences. They have a very interesting technology, and they have signed with 30 big pharmas and specialty pharmas in the world. And the last agreement with the American Red Cross — which is, in my opinion, a world leader in the blood industry — increases the credibility of the company. So if you’ve got good management, good technology and a good sector, you potentially could have a very good company.

This special issue includes:

1) Canadian Biotechnology Stocks - In an in-depth (3,300 words) Analyst Interview, Claude Camiré, Analyst with Dundee Securities, examines the outlook for the sector and shares specific stock recommendations.

2) Canadian Biotechnology Stocks - In an in-depth (4,100 words) Analyst Interview, Brian Bapty, Analyst part of the healthcare team at Raymond James Ltd. at Raymond James Ltd., examines the outlook for the sector and shares specific stock recommendations.

3) CEO interviews (average 2,500 words). Top management of sixteen sector firms examine the outlook for their firm and the sector.