Canada: a report by Ernst & Young, "Beyond Borders: the Canadian Biotechnology Report 2002", discusses the potential problems for a large biotech industry primarily comprised of small companies. (Region Watch).

Canada: A report by Ernst & Young, "Beyond Borders: The Canadian Biotechnology Report 2002", discusses the potential problems for a large biotech industry primarily comprised of small companies. Out of the 400 biotech companies in Canada, 75% are small companies with less than 50 employees. These smaller companies tend to spend more on R&D than they receive in revenues, making them high-risk investments. The report predicts that investors will instead direct their money toward larger companies with a multitude of product lines. The report also states that most of these companies have been experiencing growing losses. In 2001 the net loss for public biotech companies in Canada rose 17% to $784 million. In addition, the report forecasts major consolidations, takeovers and collapses among these companies unless they increase their size and sales.

Source: Toronto Star