Federal Budget 2025: A Lever for Pharmaceutical Resilience, Productivity, and Canadian Innovation

Pharmascience welcomes the measures announced in the 2025 Federal Budget, which reflect a clear commitment from the Government of Canada to industrial resilience, increased productivity, and innovation. We commend Minister François-Philippe Champagne and his team for this strategic vision, which places life sciences at the core of Canada’s economic development.

As a leading manufacturer of high-quality generic medicines and a committed player in the pharmaceutical sector, we are encouraged by several key announcements:

A “Buy Canadian” Policy to Strengthen Industrial Autonomy

The introduction of a policy prioritizing Canadian-made products in public procurement is a major step forward. It also marks significant progress toward enhanced pharmaceutical sovereignty. Recognizing medicines as national security assets would reinforce this intent and empower provinces to follow suit.

Protecting the health of Canadians, strengthening our healthcare autonomy, and expanding domestic pharmaceutical production by encouraging local procurement are essential to Canada’s homeland defense, especially in times of global tension and crisis.

Strengthened Support for Research and Industrial Investment

Changes to the Scientific Research and Experimental Development (SR&ED) program—including raising the eligible expenditure ceiling to $6 millions and reinstating capital expenditure eligibility—alongside new incentives such as the productivity super-deduction, reduced effective marginal tax rates, and accelerated capital cost allowance, are powerful levers. These measures will help companies like Pharmascience modernize facilities, drive innovation, and support skilled employment across the country.

Modernizing the Intellectual Property Framework

We applaud the government’s efforts to enhance transparency and legal certainty in the intellectual property system. Proposed measures such as support for IP-backed financing and curbing abusive practices are promising for innovative companies. We will closely monitor their implementation to ensure they effectively support the competitiveness of Canadian manufacturers.

Strategic Investments in Dual-Use Technologies

The allocation of $656.9 million over five years to support the commercialization of dual-use technologies, including life sciences, opens exciting opportunities. Pharmascience is ready to explore partnerships and projects in biodefense, strategic manufacturing, and medical technologies, with a focus on national resilience and public health.

Our Recommendations for Effective Implementation

Safeguarding Health Canada’s Evaluation Capacity

With a proposed 15% reduction in spending across federal departments, including Health Canada, we urge the government to ensure these efficiency measures do not compromise the agency’s ability to evaluate medicines—a cornerstone of public health and therapeutic innovation.

Promoting Agile and Equitable Regulation

We welcome the government’s regulatory modernization initiatives. However, it is essential that these reforms are designed to support domestic manufacturers and reinforce pharmaceutical sovereignty. The ambition to “become our best customer” should be reflected in government programs that reward companies investing and producing in Canada.

Our Commitment

At Pharmascience, we firmly believe the pharmaceutical industry must play a central role in Canada’s national security and economic prosperity. We are ready to collaborate with government authorities to accelerate access to medicines, strengthen the resilience of our healthcare system, and make life sciences a driver of sustainable innovation and growth.