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I call this meeting to order.
Welcome to meeting number 10 of the Standing Committee on Science and Research. Pursuant to the House motion of June 18, the committee is meeting to study antimicrobial resistance.
I would like to make a few comments for the benefit of the witnesses and the members.
Please wait until I recognize you by name before speaking. For those participating by video conference, click on the microphone icon to activate your mic, and please mute yourself when you are not speaking.
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As a reminder, all comments should be addressed through the chair.
I would like to welcome our three witnesses for the first panel and thank them for appearing before the committee today.
Joining us by video conference, we have Dr. Louis-Patrick Haraoui, associate professor at the faculty of medicine and health sciences at the Université de Sherbrooke; Dr. Gerry Wright, professor at the Michael G. DeGroote Institute for Infectious Disease Research at McMaster University; and Professor Kevin Outterson, the founding executive director of CARB-X.
Welcome to all of the witnesses. You will each have five minutes for your opening remarks, and then we will go to our rounds of questioning.
We will begin with Dr. Haraoui. Please, go ahead.
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Good afternoon, Madam Chair and members. I'm very grateful for the invitation to speak to the House of Commons Standing Committee on Science and Research about Standing Order 108(3)(i).
Drawing on my own research, I would like to share what I hope to be useful elements contributing to the answer to one of the four questions listed in this standing order: What is driving an increase in antimicrobial resistance, or AMR?
To do so, I would like to focus on armed conflicts. Since 2017, together with Canadian and international collaborators, I have been leading research on the interplay between AMR and armed conflicts. In 2018, I organized a symposium on this topic in Geneva, Switzerland, where the keynote address was delivered by Dr. Tedros, who was then and is now Director-General of the World Health Organization.
The momentum generated by these early efforts was unfortunately interrupted by the COVID-19 pandemic, yet the problem has not only persisted; it has worsened. The number of active armed conflicts is now at its highest level since the Second World War, with a marked concentration in low- and middle-income countries, where the global AMR burden is already greatest.
Armed conflicts were among the first settings in which AMR was recognized as a novel phenomenon in the 1940s. Although research has since largely shifted toward peacetime and civilian contexts, resistant pathogens continue to emerge and spread rapidly in war zones. This trend has intensified as warfare increasingly unfolds in densely populated urban areas and targets civilian populations, including vulnerable groups such as children.
Military operations in Iraq and Afghanistan earlier in the century—the latter involving Canadian personnel—brought renewed attention to this issue after severe antibiotic-resistant infections were observed among wounded soldiers. The medical evacuation of American troops to hospitals in Germany and the United States subsequently facilitated the spread of AMR to civilian health care systems. The war in Ukraine has further underscored this threat, as refugee-hosting countries have reported outbreaks of drug-resistant bacteria.
With accelerating urbanization, cities have increasingly become the primary theatre of war. This shift has transformed not only the conduct of warfare, but also its environmental and public health consequences. Urban combat often devastates housing and critical infrastructure—as has been evident in Gaza over the past two years—releasing heavy metals, asbestos, petrochemicals and other toxic substances into water and soil, and exposing bacteria in these ecosystems to these toxins. Like all living organisms, bacteria are affected by such toxins and must evolve adaptive mechanisms to survive. These same mechanisms drive the emergence, persistence and spread of AMR bacteria.
Contrary to prevailing views that treat AMR in armed conflicts as a marginal topic, I contend that these environments merit close scrutiny as powerful drivers of AMR and as unique sites for studying its dynamics. Just as the Arctic stands at the front line of climate change, so too do armed conflicts represent hotspots where biological, environmental, social and infrastructural disruptions converge to accelerate AMR.
The mistake would be to assume that rising resistance in war zones remains confined to them. Emerging infections and pandemics remind us time and again that microbes respect no borders. As we enter an era of growing geopolitical tension marked by the highest number of active conflicts since World War II and rising global military expenditures, it is imperative to address the intertwined crises of AMR and armed conflicts.
Canada has a strong record of leadership in tackling global health challenges such as AMR. It is time for the Canadian government to renew that leadership by championing international efforts to make the intersection of AMR and armed conflicts a global health and security priority.
I thank you for providing me with the time to contribute to the work of this committee.
I welcome questions or comments you may have.
[Translation]
Thank you.
:
Good afternoon, Madam Chair and honourable members. I'm quite grateful for the opportunity to speak to you as a Canadian academic working on the causes of and solutions to antibiotic resistance.
I'm a professor of biochemistry and biomedical sciences at McMaster University, where I have led a research team on AMR and antibiotic discovery since 1993. I founded the Michael G. DeGroote Institute for Infectious Disease Research and the David Braley Centre for Antibiotic Discovery. I have advised industry, government and not-for-profits on antibiotic innovation for 25 years. I also founded a spin-out company based on assets discovered in my lab, to further develop new products.
The committee's attention to AMR is both timely and essential. I was a member of the Council of Canadian Academies expert panel that produced the 2019 report “When Antibiotics Fail”. We found that AMR cost Canada $1.4 billion in direct health care expenses and caused 5,400 deaths in 2018 alone. AMR poses an existential threat to Canadian health and prosperity.
My role as an academic researcher is to uncover the molecular basis of AMR, discover potential solutions and train the next generation of scientists. For over 32 years, I've trained more than 100 master's and Ph.D. students, post-doctoral fellows and technical staff, yet very few remain in Canada or continue to work in AMR research. Why is this? The reasons are structural. Canada currently has limited biotech and pharmaceutical R and D capacity, especially in antibiotic discovery. Rather, graduates are drawn abroad to vibrant biotech sectors in Boston and California and Europe.
In universities, building and sustaining an internationally competitive AMR lab in Canada is very difficult. Academic scientists work like small businesses. We have to recruit talent. We have to generate product, which in our case is high-impact, internationally competitive research, and we have to fund it. We do this through securing grants. In Canada this is primarily through the CIHR.
It's instructive to understand how these grants are given out. These are reviewed by volunteers in panels organized by scientific discipline. At the CIHR, however, there is no AMR panel. Instead, AMR projects are lumped in with projects in bacterial physiology, fungal biology and parasites. Contrast this with areas like cancer and cardiovascular disease. Even behavioural scientists enjoy multiple specialized panels. This structure disincentivizes young investigators from pursuing AMR work. Despite the global urgency, Canada risks losing academic capacity in this field.
What happens if you discover something exciting in a lab that might turn out to be a new medicine? Well, there we're very challenged as well. Decades of experience have shown that the biotech sector emerges from discoveries made in academic labs, yet Canada lacks early-stage funding mechanisms to bridge the gap between discovery and application. You'll hear about programs like CARB-X, which help internationally, but their domestic opportunities are scarce. Advancing discoveries sufficiently to be attractive to agencies such as CARB-X requires different resources.
A proven model that's worth emulating, I think, is the U.S. small business innovation research program, the SBIR. This provides competitive, non-dilutive grants to support start-ups commercializing academic discoveries. A Canadian SBIR-style program would foster biotech entrepreneurship, create jobs and accelerate AMR innovation. As an illustration, my lab recently discovered a new antibiotic, which we published in the journal Nature last spring, that targets several pathogens on Health Canada's priority list. We want to develop it in Canada, but without early-stage push funding and downstream pull market incentives, these assets risk moving abroad, along with their economic benefits.
In closing, I want to urge the committee to act on two priorities. I would ask you to support an increase in overall CIHR funding and create a dedicated AMR research stream to strengthen Canada's scientific foundation in this area. Second, I believe we need to establish a Canadian SBIR-like equivalent to ensure translation of discoveries from academia to industry and to ensure that Canadians benefit from homegrown innovation. I think Canada could lead in the global response to AMR and protect both our public health and our economy.
Thank you very much for this opportunity.
:
Good afternoon, Madam Chair and honourable members of the standing committee.
My name's Kevin Outterson. I'm the Austin B. Fletcher professor of law at Boston University and the founding executive director of CARB-X, which is the world's largest non-profit partnership supporting the development of treatments, vaccines and diagnostics to combat AMR. CARB-X is proud of the fact that Canada has supported CARB-X since 2023.
I'm going to focus my remarks today on point four—Canada's role in financing innovation, a complementary mix of push and pull incentives to support new antibiotics—but I have to say that the first two witnesses were excellent, and I support what they said as well.
For more than a decade, reports from around the world, including the review on AMR from the United Kingdom, official communiqués of the G7 and the G20, and, most recently, reports from Global AMR R&D Hub—of which Canada is a board member—have all emphasized the importance of combining both push and pull incentives to accelerate innovation and fix that broken market for antibiotics.
In most therapeutic areas, like cancer or something, the best new drugs are rapidly and widely used by doctors and patients. That leads to robust sales, because people want to use the new, innovative drug, but for antibiotics, we take a very different approach. We keep the best new drugs on the shelf for the first five to 10 years, so resistance is delayed. We prioritize preserving their precious power through stewardship. Now, this is excellent for public health, and it's the right thing to do, but it drives the companies behind these drugs into bankruptcy if we pay them based on only the volumes used, especially in those early years.
I served as a member of a different Council of Canadian Academies expert panel, with the “Overcoming Resistance” report issued two years ago. It built on the prior CCA report, including the one that Dr. Wright was on, and the pan-Canadian action plan. The consensus from that report is that without new incentives, the antibiotic innovation pipeline remains perilously thin, and Canadians will lack access to new antibiotics...worse than any other G7 country. It also concluded that both push and pull incentives were needed to restore health to this pipeline and to protect the foundations of modern medicine from assault from these bacterial infections.
Push and pull incentives effectively address different parts of the same problem. Push incentives, like what Dr. Wright was just calling for, SBIRs in Canada, reduce the cost and risk of developing new antibiotics. CARB-X is an example; SBIRs or basic research funding are other examples. Pull incentives, on the other hand, reward successful development—something that makes it to approval—but ensure that the companies can sustain production and support stewardship once the antibiotic reaches the market. The United Kingdom today has the best working example of a pull incentive. Both of these are essential. They work together.
Canada has already begun to act on this challenge on many levels, including through the Public Health Agency of Canada's—PHAC's—investment in CARB-X over the past two years. CARB-X is supported by six G7 governments, including Canada, and three charities. Our important role has been recognized by the G7, G20 and UN General Assembly. Twenty-two of our supported products, so far, have entered human clinical trials, which is a remarkable success at this stage.
We hope that our important partnership with the Canadian government continues—it's been represented by PHAC in the past but, now, also by the newly established Health Emergency Readiness Canada, HERC—and that it will continue at a level commensurate with other G7 governments. This would be approximately $6 million Canadian per year from Canada. The U.S. government contributes about $55 million Canadian per year, Germany $15 million and Italy about $12 million.
Push incentives lower the cost of R and D, but we also need the pull. They replace revenues lost, because we're careful with these antibiotics in the early years, but they need to reflect the broader social value of these antibiotics. They're necessary to keep these late-stage investors—as we'll hear from Dr. Skinner in the next panel—coming into the market.
Earlier this year, with colleagues, I published a paper in one of the Lancet journals, talking about the fair share gap in antimicrobial innovation. It calls for each member of the G7 to pay their fair share of the innovation costs without free-riding. Currently, only two countries across the EU and G7 have achieved fair share: the United Kingdom and Italy. Canada, I'm afraid to say, came in last place, because the two drugs evaluated are not available here in Canada yet. The paper calls for Canada to contribute its fair share, which I calculated, in that paper, to be approximately $13 million U.S. in revenue per new drug, per year, in Canada, out of the global total of $363 million U.S.
If we do this and continue the efforts of both push and pull, I'm confident that Canada can help to address its part in solving this global problem.
Thank you.
:
Thank you, Madam Chair.
I'd like to thank the witnesses for being with us this afternoon.
There were very interesting comments from our witnesses today. It's interesting to get their comments on how we can better incentivize the work that needs to be done, particularly here in Canada.
Dr. Wright, as an alum from McMaster, I welcome and thank you for everything you're doing, including the work at the Global Nexus School for Pandemic Prevention and Response.
Recently, we heard from a couple of witnesses who spoke about the concern from the Health Canada special access programs in terms of the development of the antimicrobial therapies. They mentioned that only three out of 18 new antibiotics launched worldwide are available here in Canada, and the notion of what that impact is. On Monday, we had a Dr. Hamelin come forward. She said that Canada is last in the G7 in providing access to medicines. She indicated that that's for all medicines, and I think that touches on some of the comments you made with regard to push and pull.
You mentioned, Dr. Wright, the notion of funding for the research side. You indicated the work that you—among many—have done and the $1.4 billion that this is costing our provincial health care systems, yet we're spending only $1.25 billion at the Canadian Institutes of Health Research right now, prior to a budget in a couple of weeks. We've heard indications from the government that they've talked to their agencies and departments and are asking them to find savings of 15% over the next three years, so precious dollars could be limited in that capacity.
It's quite concerning to consider that they're estimating a budget deficit of about $68 billion to service our debt, when we're spending only $52 billion on health care. In fact—I repeated this earlier—what's more shocking is that the Province of Ontario spends—for the province—$80 billion, while we're spending only $52 billion for an entire country.
I'd like to ask a question with regard to how we go about furthering those push incentives and opening up the availability through the Canadian Institutes of Health Research to ensure that more research dollars flow to the AMR side, as opposed to other initiatives, because you're saying that under peer review it seems to be that the larger issues of concern, such as cancer, get more of the funding than, say, an AMR study would.
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That vaccine is currently in stage two clinical trials. It's still a going concern. We're very excited about those opportunities, not just for COVID but also for the delivery of many other vaccines for respiratory infections going forward. That intellectual property and that strategy are still here with us at McMaster. We're excited about it.
With respect to some of the other challenges in making drugs, the short answer is that drug discovery is very hard and can fall apart in many ways. In discoveries that we've made, getting them down towards additional development is where you start to realize unexpected toxicological issues. This is why drug discovery is so expensive. It takes a lot of money, and it's not terribly exciting discovery science that students want to do. It's very careful analysis going forward, and that's one of the challenges that we have here.
In our case, a lot of that was funded by the NIH in the United States, not CIHR. For the current drug candidate that we're trying to move forward, we're looking mostly to Europe to get funding for that, but we're also being supported by the NIH right now.
CIHR funded the initial discovery, but once that discovery has been funded, there's really no mechanism in Canada to move these things forward so that we become attractive to, say, Dr. Outterson's CARB-X.
:
Thank you for that, and thank you for highlighting this concentration of antibiotic research that's at McMaster, which I think is unique in the country.
To be perfectly honest, the way that happened was through the benefit of philanthropy. We, at McMaster, have benefited from families and individuals who have given to this area, understanding that it was underfunded, understanding that there was a research gap, and understanding that the talent and the solutions were actually here to be exploited. That has been game-changing for us.
The other part of this story that I think is worth putting on the table is the absolutely transformative effect that a Canadian program called the Canada Foundation for Innovation, the CFI, has had. The CFI is how we bring research infrastructure into our labs, into universities across Canada. We have benefited tremendously from that. My colleagues around the world are in envy of the CFI. I think it's important to recognize that we really want to maintain that, because it's been game-changing for us to be globally competitive in this field.
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This is not a problem that any one country, even wealthy G7 countries, can address on their own. It requires international work, because none of us is capable of doing it by ourselves.
If we're going to do a pull incentive, it makes no sense for the United Kingdom to do it by themselves, even though they've done an excellent job. It won't have impact unless the rest of Europe, the rest of the G7 and, eventually, the U.S. join.
If I could mention international co-operation with Dr. Wright, I've been to McMaster several times. I've been their guest for a day in which there was a lecture series. I know the world-class scientists they have there. Their sources of funding, in addition to Canada, are the U.S. NIH and European sources. I hope Dr. Wright's new molecule from Nature applies to CARB-X in the near future.
These things, in order to work.... He's identified this lack of an SBIR in Canada. Most U.S. applicants and many European applicants have received a couple of hundred thousand dollars after they've spun out in order to get their data lined up for an application to something like us. We're a charity. We don't take equity, but we require certain amounts of data. It's hard to do that without this extra translational device called an SBIR in the United States. It goes by different names—
:
Thank you for the question.
You're correct in saying there could be a connection between population movements and the spread of resistant bacteria. When discussing this subject, we want to avoid stigmatizing populations or minimizing complications associated with population movements. These are often vulnerable populations with good reasons for coming here.
That said, there are already protocols in place, certainly in Quebec, and across Canada. For example, when people are hospitalized, a sample is taken to see if they carry resistant bacteria in order to reduce the spread.
Above all, my comments were intended to counterbalance those expressed by Professor Wright, for example, whom I salute. He's an eminent researcher, and we greatly appreciate his contributions.
The development of antibiotics seeks to address a problem. What I was also trying to express in my comments is that prevention is possible. The best way to prevent the increase in antibiotic resistance is to first recognize the factors that contribute to it and, second, to intervene.
For example, a few years ago, I took part in a project funded by the Grand Challenges Canada organization. We implemented a telemicrobiology program to support labs in northern Syria, in armed conflict zones. That allowed individuals who received virtual training to detect resistant bacteria and subsequently treat people.
The problem in all these conflict zones and regions where people earn low and precarious incomes is that diagnostic capabilities are extremely limited. We want, then, to increase surveillance among populations most affected by conflicts, such as those living in conflict zones, and among populations that wind up in other countries due to immigration and seeking asylum.
Professor Wright, you mentioned there was a gap, particularly at the Canadian Institutes of Health Research, because these institutes haven't established a committee for antimicrobial resistance research.
I'd like you to enlighten me about that inconsistency.
Today, the , who is responsible for the three granting agencies, announced funding. According to her, “[t]hrough this support, Canadian researchers continue to lead globally in groundbreaking innovations to maintain competitiveness in a rapidly evolving research landscape.”
You're telling me that there's a shortfall, while the minister says we're global leaders. You also talked about a brain drain.
What's the reality on the ground? The government seems to be saying the complete opposite.
:
Thank you, Madam Chair.
Thank you to all the panellists and all the witnesses who spared the time and came to this important testimony.
I would start with you, Dr. Wright. You stated in your testimony that AMR is the next existential threat to Canada and to the world.
We have seen mismanagement during COVID and in other times, when the money was spent on things that were not necessarily helping out Canadians in the way they should have helped.
Do you think Health Canada is doing enough to get medication approved for AMR and for antimicrobial-resistant drugs? Also, how fast is it? Is it fast enough, or are there delays?
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I think the evidence speaks for itself. Of the 15 new antibiotic entities that have been brought to market over the last 10 years, we have access to only three. That's not a great ratio.
There are a number of reasons for that. For one of them, I think we have to remember that Canada is a very small market for these drug companies. The barriers to entry for bringing an antibiotic that has received approval by the FDA, say, or the EMA, for example, into Health Canada involve some bureaucracy. That bureaucracy, I think, has to be measured against the potential market size in Canada and the distribution across this great, vast country. That is part of the issue that's being faced.
Of course, what we want to do is ensure that all the barriers to getting these medicines to Canadians are reasonably removed, so that we're not artificially stacking the cards against ourselves.
:
Thank you so much, Madam Chair.
Again, thank you to all of the witnesses.
You're not quite done, Dr. Wright, because my first question is for you.
We've heard a lot about your requests and some of your strong feelings related to funding, but I'd like to go back a little more to the process of approval. Your institute is developing new products. We have heard, during the course of this study, some criticisms of the length of time that Health Canada takes—Canada's Drug Agency as well—in terms of approval of new medications in general. Given your experience, could you give us any recommendations as to how, perhaps, the process might be sped up?
:
I apologize: I missed that it was directed to me.
For the Canadian pull incentive, you're probably talking about two or three drugs at a time, given that it's likely to not be needed after five years. That's a guarantee of $13 million U.S. Really, on average, only about half of that would be spent per year.
CARB-X has asked Canada for something in the range of $6 million Canadian per year. That would cover our pull incentive as we provide charitable, non-dilutive help to companies worldwide, taking them from the hit-to-lead stage to the end of the first-in-human stage.
On the proposal from Dr. Wright, there are two of them that I can think of.
One is to create a specific committee within CIHR, which funds AMR, and increasing that. The second was his request for something like an SBIR. Really, that's less than $1 million or $2 million per year, because these awards are typically $200,000 to $300,000 U.S. There aren't that many companies that actually would use them.
Together, that's a pretty comprehensive program. It would guarantee Canadian research continuing, going forward, and make sure that these new drugs are actually and practically available in Canada without financial barriers to patients.
:
Thank you, Madam Chair.
Thank you to all of the members of the committee, including the witnesses, for coming here on a busy Wednesday night.
Recently, the Parliamentary Budget Officer's report concluded that the government's projected borrowing requirements will begin to exceed the maximum amount in 2026-27 as the debt crosses the $2-trillion mark. The PBO bluntly told Canadians, “The government will need to make choices to either [raise] revenues or cut spending in order to [stop] this unsustainable path that we're on.” Already the Liberals are spending more on interest payments for their debt than they are on health care.
AMR is a health care issue. Cutting health costs will cause concerns about the spread of AMR, especially in neighbourhood health centres and also possibly in hospitals.
My question is for Mr. Wright.
You mentioned in your briefing that Canada does not have AMR labs or research. You said, “There is no AMR panel.” It's bundled in with fungal and pesticide research. You mentioned that Canada risks losing academic talent in research on AMR, and that Canada lacks early-stage research. Can you please expand on that?
Let me just qualify that by saying that we have some outstanding AMR researchers across the country. There are a lot at McMaster, but you're going to hear from some from McGill in the second panel. There is an excellent group or cadre of individuals who are working in this area.
Our reality is that we are challenged to keep new, young investigators here who are going to find the solutions of the future. This how science works: It's the young people who drive it, and we need to keep that talent here. What I'm suggesting is that, for not a lot of money, you could maintain the excellence we have and expand on it. Then, in particular, I'm extremely committed to ensuring that discoveries get translated into solutions for Canadians. Translation is a huge gap that's missing here in Canada, and it's something that I think could benefit not just AMR but also all other fields of biotechnology.
:
I call the meeting to order.
I would like to make a few comments for the benefit of the new witnesses for the second panel.
Welcome to all the witnesses for this panel. Thanks a lot for appearing before the committee.
Please wait until I recognize you by name before speaking. For those participating by video conference, click on the microphone icon to activate your mic, and please mute yourself when you are not speaking.
For those on Zoom, at the bottom of your screen you can select the appropriate channel for interpretation: floor, English or French. For those in the room, you can use the earpiece and select the desired channel.
I remind you that all comments should be addressed through the chair.
For this panel, we are joined by Dr. Henry Skinner, chief executive officer of AMR Action Fund GP. We are also joined by the Deans Council for Agriculture, Food and Veterinary Medicine, represented by Dr. Joseph Rubin, professor, department of veterinary microbiology, Western College of Veterinary Medicine, University of Saskatchewan, and Dr. Maud de Lagarde, assistant professor, faculty of veterinary medicine, Université de Montreal. Our fourth witness for this panel is Dr. Dao Nguyen, founder and director of the McGill AMR Centre.
All of our witnesses are appearing by video conference.
Welcome to all of the witnesses. Thanks a lot for coming and appearing before the committee. All of you will have five minutes for your opening remarks, and then we will go into rounds of questioning.
We will begin with Dr. Skinner.
Please go ahead. You have five minutes for your opening remarks.
Thank you.
I want to thank the Standing Committee on Science and Research for inviting me to testify today. My name is Henry Skinner. I'm a microbiologist, a life science investor and the CEO of the AMR Action Fund.
The AMR Action Fund is the world's largest venture capital fund solely dedicated to late-stage antimicrobial research and development. It was created in 2020 through a collaboration between the pharmaceutical industry and philanthropic organizations like the Wellcome Trust, which recognized that AMR is a fast-moving threat that imperils the health of everyone and could cost the global economy trillions of dollars.
My fund is trying to mitigate this threat and protect patients by investing in small and mid-sized companies that are developing urgently needed therapeutics for the most dangerous drug-resistant bacteria and fungi, which the WHO and the CDC call “priority pathogens”.
I have been investing in biotechnology companies for 25 years, and the decline in investment and innovation in the field of antibiotics is alarming. Like most venture capital funds, we are structured to exist for approximately 10 years, which we hope is enough time for policy-makers around the world to enact appropriately sized incentives and to correct the market values that make discovering and developing new antimicrobial treatments nearly impossible, as highlighted by the Council of Canadian Academies report of September 2023.
We focus our investments on biotechnology companies that are conducting clinical trials in humans to test for safety and efficacy, which is the stage of drug development where the costs are highest and where the need for external funding is most acute. While the fund has approximately $1 billion U.S. under management, a single clinical trial can cost several hundred million dollars, so we must be extremely selective with our investments. Our goal is to bring two to four novel antimicrobials to market by 2030. So far, we've made 12 investments and have obtained one antibiotic approval. To date, however, we've not invested in any Canadian companies, and that's not a reflection of Canadian innovation. In fact, there are some promising R and D programs across the country, especially in the earlier stages, with labs leveraging machine learning and AI to aid antibiotic discovery efforts.
However, all antimicrobial developers, whether they're based in Edmonton, Boston or Lyon, are up against extraordinary market challenges that make it exceedingly difficult to attract investors. In all other therapeutic areas, the market rewards innovation through sales volume, which means delivering cholesterol pills, cancer medicines or obesity shots to every patient who could benefit. Due to the way bacteria and fungi evolve, though, clinicians are instructed to use new antimicrobials only when absolutely necessary in order to preserve the drug's effectiveness, and they hope that resistance takes longer to build. This is necessary for public health, but it makes it exceedingly difficult for investors and companies to justify spending money on antibiotic research and development. Antibiotics are not blockbusters. Sales of the top 10 antibacterial products don't even add up to $1 billion. In comparison, a single cancer drug can generate more than $20 billion in sales in a single year.
Antibiotic research and development is incompatible with the fiduciary responsibilities of private investors, who need to generate returns. Each year, venture funds invest tens of billions of dollars into biotech companies, but less than 0.1% of that money is invested in companies developing antibiotics. This represents the classic tragedy of the commons, which only government policy, including Canada's, can address. At the same time, it will make their biotechnology sectors more attractive to private investors. Policies known as pull incentives can change how antibiotics are valued and reimbursed, and they can reward companies that take the risk and are successful in developing new, urgently needed antibiotics for patients in need.
Pull incentives have been successfully piloted in England over the last several years for two novel antibiotics, and a permanent program will now cover more antibiotics and expand across the United Kingdom. As Italy finished its G7 presidency last year, the Italian Senate authorized the use of up to 100 million euros for higher reimbursement of innovative antibiotics. To date, eight medicines are included in that program.
However, a pull incentive in the United Kingdom or Italy alone is not sufficient to attract investment in antibiotic drug developers. The programs in the U.K. and Italy must be joined by other G7 markets like the U.S., Japan and Canada, as well as the entire European Union. Only then will pull incentives reach the size necessary to assure investors and drug developers that antibiotics are a financially viable field of medicine.
As you know, in the Government of Canada's 2023 budget, Canada committed to develop a pilot program to secure access to new antimicrobials for the people of Canada. It is important that the Government of Canada move this forward and make a financial commitment that truly rewards innovation. By valuing these new projects appropriately, the program would encounter greater participation in the pilot and lay the groundwork for a sustainable national program. Canada has a moral responsibility to contribute its fair share as a G7 member and high-income country. I feel the same about Japan’s inadequate pilot program.
I believe the design of the pilot should address barriers at the hospital level to providing access to new and newer antimicrobials. Taking pressure off the hospital budget, coupled with the appropriate stewardship protocols, would ensure that the program would succeed in getting the right drug for the right patient at the right time.
Effective antibiotics are essential to a functional and efficient health care system in each province and territory. When used appropriately, they enable and reduce the cost of providing high-quality health care.
Thank you very much for inviting me to testify. I look forward to answering your questions.
:
Good afternoon, Madam Chair.
I'd like to thank the committee for the opportunity to testify and share my perspective. My name is Joe Rubin. I'm a veterinarian and microbiologist and a professor in the Department of Veterinary Microbiology at the University of Saskatchewan. I've been working on antimicrobial resistance, primarily in companion animals and food products, for nearly 20 years. My current roles are as an educator of veterinary students in the areas of bacteriology and infectious diseases and as a researcher, where I study the problem of AMR from a number of perspectives.
There are three areas I would like to highlight today where I can see a need for additional support: first, research into evidence-based antimicrobial stewardship for companion animals; second, support for global collaborations to tackle resistance in low- and middle-income countries; and third, support to harmonize diagnostic testing in veterinary labs, with the goal of improving both passive surveillance and antimicrobial stewardship.
With respect to the first topic, the committee has heard testimony about the importance of stewardship to improve how and when antimicrobials are used, so that we can preserve their efficacy. Antimicrobial stewardship necessarily looks different in each context where it's applied. What might work in a large human hospital may or may not be appropriate in the diverse environments or for the patient populations that veterinarians care for. An individually owned dog is quite different from a dairy cow, a barnful of broiler chickens or a hive of bees. The stewardship approach to each of those situations is necessarily different. In veterinary medicine, more data is needed to support stewardship in companion animal practice.
The goal of stewardship is to change prescriber behaviours. This is quite a difficult thing to do. For companion animal practitioners, we've largely relied on passive antimicrobial stewardship, which essentially consists of providing knowledge and information through continuing education conferences and workshops. In the context of human infectious diseases, we know that more active approaches have a bigger impact on prescriber behaviours. Furthermore, there are areas in which we lack data to inform how antimicrobial use can be optimized. For instance, reducing the duration of therapy can greatly impact the amount of antimicrobial that an individual animal is treated with. At a population level, this can multiply to make a big difference.
With respect to the second topic, the committee has heard that AMR does not respect borders and that the threat of resistance is global. Through international travel and trade, resistant bacteria and resistance genes can be easily transported intercontinentally. It's therefore in our best interest to assist low- and middle-income countries to build regulatory, diagnostic and stewardship capacity in the veterinary and human health sectors. Meeting the threat of resistance where it's most rapidly emerging will not only protect Canadians but also reduce the burden of resistance on vulnerable individuals, such as small-scale sustenance farmers, who may be disproportionately impacted.
Finally, in Canada there are improvements that should be made in veterinary diagnostic microbiology. While our domestic diagnostic labs are doing a good job in providing services to veterinarians, changes could be made that would have both surveillance and stewardship benefits. First, national harmonization of the antimicrobial susceptibility test methods used will ensure that all the data these labs generate as part of their routine work can be directly compared across the country, facilitating passive resistance surveillance. Second, developing a harmonized strategy for how lab results are reported would advance stewardship goals. For instance, including relevant data from current treatment guidelines, such as the veterinary Firstline application that was mentioned previously, along with lab reports that go to prescribers would provide additional context to help veterinarians optimize their therapy.
In conclusion, as other witnesses have testified, antimicrobial stewardship is essential in our fight against AMR. In companion animals, more resources, including grants, are needed to support the development of effective strategies to help veterinarians optimize their use of antimicrobials and ensure that current best practices are implemented. Second, we must take a global perspective and work with our colleagues internationally to combat the emergence of resistance in low- and middle-income countries. Finally, I suggest providing support to develop harmonized susceptibility testing and reporting protocols amongst Canada's veterinary diagnostic labs.
Thank you very much for this opportunity.
:
Good evening, Madam Chair and members of the science and research committee. I would like to thank you for the opportunity to testify to you today.
My name is Dao Nguyen. I speak to you as a physician working at McGill University's teaching hospital as a professor of medicine and microbiology, as a researcher who studies difficult-to-treat bacterial infections and, last, as the founding director of the McGill AMR Centre and a new AMR Quebec network, where I lead the efforts to structure and mobilize a diverse ecosystem of over 150 academic researchers at McGill University and across Quebec with government, public and private partners across the human, animal and environmental health sectors.
First, I would like to paint a brief picture of what AMR looks like through the lens of a physician. I would like you to imagine that a loved one is diagnosed with cancer, which is curable but requires chemotherapy. During chemotherapy, which significantly weakens one's immune system, you develop a fever, a typical sign of infection. For this, you are immediately prescribed antibiotics, for which I might do a test to figure out what kind of infection you have. If the infection is caused by bacteria not resistant to the antibiotic prescribed, it will likely work. This will take a few days of antibiotics, and no one will think twice about it.
However, if you have an infection caused by a drug-resistant bacteria, particularly one resistant to carbapenems, a powerful type of antibiotic that is considered a last resort, then the initial antibiotics will not work. With the current diagnostic tests at hand, it may take three to five days to get an answer, if at all, about what microbes caused the infection and whether the microbes are drug-resistant. During this time, the infection can overwhelm the body, with the risk of dying increasing to upwards of 50% with treatments that are more toxic and complicated, if available at all.
The scenario could happen to any patient who has surgery, gets a pacemaker, develops pneumonia or suffers a wound. All of these important medical interventions carry a risk of infections and complications, and they could be jeopardized if prevention or treatment of infections were no longer effective. At best, this means an average of a one-week-longer hospital stay for each case of infection, and at worst, this means risky and unsuccessful procedures or treatments or deaths for countless conditions, from hip replacements to cancer. The rates of these carbapenem-resistant bacteria—that is, a resistance to a last-resort antibiotic—have already reached 70% to 80% in certain regions of the world today, as we speak. In Canada, the rates are much lower, but the trends are alarming, with rates having gone up as much as tenfold in the last 15 years, so the AMR crisis is knocking at our door, and we're not equipped for this.
To respond to this, we are in dire need of innovative solutions. We need new treatments to deal with the drug-resistant bacteria; we need diagnostic tests that are much faster and more accessible to know when we are dealing with drug-resistant infections and what antibiotics to use, and we need surveillance systems that are more comprehensive and timely. To get there, research and innovation done in a collaborative manner are essential to the solutions to addressing the AMR crisis. This is recognized by the pan-Canadian action plan, numerous national action plans globally, and reports, including from the WHO.
Where do research and innovation largely come from? Academia: With our community of researchers and teachers, we are a major asset and an important part of the solution.
First, academic research is a critical source of innovation. For example, McGill ranks first in North America as the university that has launched the greatest number of research-based start-up companies. In 2023 alone, there were 28 companies, most of them in the life sciences and medical technologies sector. This speaks to the potential for AMR, but the research and development ecosystem in Canada to nurture early discoveries is largely lacking, as you have already heard from Professor Wright earlier this afternoon. Beyond Canada, we know that academic inventions and founders are responsible for more than a quarter of all medicines approved in the last 20 years, with trends going upward in the last 10 years. For certain medical conditions, this represents over 80% of treatment.
Second, as a researcher myself, who interacts with and mobilizes hundreds of my colleagues around AMR, I can say that academic research in Canada has notable strengths and existing initiatives upon which we need to build. For example, in Quebec, Mila, a world-class AI institute founded by Professor Yoshua Bengio, whom many of you may know as the grandfather of deep learning in AI, has an incubator that has launched over 50 start-up companies and projects that bring AI tools to antibiotic discovery.
Last, academic communities are important conduits to mobilize and structure the AMR ecosystem. Our experience with the AMR Quebec network is a good start and an example.
What do we need now? We need to build and support an AMR ecosystem that integrates academic research and innovation with government and public stakeholders, industry and end-users.
To get this, we need strong leadership and persons and entities dedicated to AMR with a specific mandate to mobilize political will and resources and to coordinate activities across sectors and jurisdictions.
We need somebody who can be heard by both decision-makers nationwide and professionals; we need a government structure to organize this AMR ecosystem, and we need resources commensurate to the problem of AMR—
:
Thank you, Madam Chair.
Before I go to my questioning, I just want to place the following motion on notice. It deals with artificial intelligence and goes to the government's announcement from September, when it launched the AI strategy task force. There are the consultations that are taking place this month, and then the task force is supposed to be sharing some of those bold ideas they have gathered in November.
I want to table this notice of motion:
That, pursuant to Standing Order 108(3), the Standing Committee on Science and Research undertake a study of no fewer than four meetings on the federal government’s approach to artificial intelligence, considering the committee’s mandate to study matters related to science and research, which includes AI technology, and that the committee invite:
(i) the Minister of Artificial Intelligence and Digital Innovation to appear for one meeting for no less than two hours,
(ii) federal officials from Innovation, Science and Economic Development Canada, and
(iii) a range of AI industry representatives and experts; and
that the committee report its findings and recommendations to the House.
Madam Chair, we have sent that notice of motion to the clerk, and that will be shared with all the colleagues.
Thank you for that. With that, I will begin my line of questioning.
I'll start with Dr. Skinner.
Thank you for your comments, which were quite illuminating in a sense. I've seen some of your comments and you talked about AMR now killing nearly 1.3 million people a year. We've had other panellists appear, talking about the cost to the provincial health care systems at about $1.4 billion a year. We've heard from other panellists again, witnesses, talking about the difficulties here to get therapies to market. In regard to the Health Canada special access programs, in terms of antimicrobial therapies, it was mentioned that only three out of 18 new antibiotics launched worldwide are available here in Canada.
I want to get to some of what your comments were. I feel that right near the end of your comments you were running out of time. You were talking about the 2023 pilot program and moving this forward, and the notion everyone's been talking about today—about the push and pull incentives—and you talked about real incentives and barriers at the hospital level. I just wonder if you could expand on that, please.
I think our work is supporting biotechnology companies that are bringing these important medicines to patients, or trying to. A number of them have gone bankrupt. They have raised hundreds of millions of dollars, approaching $1 billion, and brought the drug through successful clinical trials into approval, only to go bankrupt because they couldn't afford to keep the lights on after the drug was approved. That's how difficult this market is. That's how challenging it is.
We're not even talking about what it costs to then expand into other jurisdictions. To get approval in the U.S., maybe a first step to then getting approval in Canada and to getting approval in other jurisdictions, is absolutely necessary to bring it to patients where the need is, yet the companies don't have the resources to do that.
This has become so challenging that other investors simply refuse to consider investing in this field any more. We've heard that large pharmaceutical companies have left the field, and that has created a whole series of challenges in supporting innovation here.
All those things conspire to keep these needed drugs out of the innovation pipeline and unavailable to patients around the world. If we don't create these pull incentives so there's a market to keep the drugs available once they've been approved, there simply won't be any more coming.
Dr. Nguyen, you spoke right at the end of your remarks about creating the AMR ecosystem that's required. I think it was during our first meeting.... Our briefing notes that the analysts prepared talked about 14 departments, agencies and programs working on the whole AMR side. From a bureaucratic standpoint, 14 departments, agencies and programs all having a voice and trying to provide input as part of that ecosystem.... How do we address that?
I don't know if you had an opportunity to hear some of Dr. Wright's testimony earlier, but I found it quite enlightening with regard to his two asks to government: developing a way to keep our talent in Canada, and having a translation of the discovery that's done here into downstream implementation.
Can you follow up and expand on your comments on this notion of creating this ecosystem?
:
You've pointed to the ecosystem as being incredibly complex, not only in terms of the department and agencies but also in terms of the jurisdiction. Above and beyond that, the consensus that has come through our work with stakeholders is that one of the key things that are lacking is strong leadership, leadership that transcends agencies and transcends sectors to try to coordinate and see the big picture.
An example that has come to the audience is Dame Sally Davies—you know, somebody who has the ability to wield political power and has the resources and who also can make the sectors—human health, animal health and veterinarian—speak to each other.
From there on, governance for the different needs will have specificities. In terms of the research and innovation ecosystem, I would argue that that's a challenge of integrating the academic research, the industry and then, perhaps, government-supported research.
The leadership and governance are something that we need to think about broadly in terms of a path forward.
:
When bacteria are tested for antibiotic resistance, it's essential that this testing is done in a highly standardized way. In veterinary medicine, there are quite a number of organisms for which we don't have internationally agreed-upon testing guidelines. This has left diagnostic labs in many cases to work around these gaps, which has led to some fragmented approaches across the country in terms of how some bacteria are tested and characterized.
I think that, working together, we could come up with some more harmonized approaches for how this might be done, whether it's in terms of interpreting the test results or actually conducting the tests themselves.
Animals are infected with many bacteria that aren't widely encountered in human medicine as well, so these are bacteria that are under-researched. There is less information known about them, so we lack some of those standardized methods.
With respect to surveillance, having standardized methods allows us to directly compare what's done in my lab with what's done in a lab on the other side of the country. We know that both researchers or both diagnosticians would get the same result if working with the same organism when using standardized conditions. It really facilitates the use of routinely generated diagnostic data, which is paid for by someone else. It's paid for by the end-user, the client who has requested those tests or the veterinarian who has requested those tests. It gives us a window into what's going on from a resistance perspective without having to put in as many financial resources as are required for active surveillance.
:
In my opinion, Canada should think much more broadly about the future. To maintain health and national security, both in terms of population and economic health, it's absolutely essential to respond to the AMR crisis.
In the past, we've seen that Canada is capable of investing. For example, around 2004, when HIV and AIDS first appeared, Canada established a Canadian strategy promoting annual investments of $80 million in the fight against HIV. Today, it still invests $43 million per year to combat HIV and hepatitis C.
Canada is therefore capable of investing. If it's also capable of seeing AMR as something that must be addressed to ensure its present and future security, as well as the health of its population and national security, I believe that political will could set in motion the changes that will make a difference.
Your comments could give rise to a new slogan during the next election campaign: Where there's a will, there's a way.
You recommend that the scientific ecosystem be better funded and given greater consideration. I mentioned the fact that, for 20 years, research and development in Canada has been chronically underfunded compared to other G7 countries and other countries in the Organization for Economic Co-operation and Development, or OECD.
What role could universities play in combatting antimicrobial resistance, without necessarily having the means to do so?
Why do you think their contribution is essential to the implementation of a national strategy?
:
I think that's a question that really demands data, and, to your point, with data from 2018, it is very difficult to understand what that means today, seven years later.
I can tell you that around the rest of the world, based on reports that are recently out, including one from the WHO this month, AMR has become significantly worse over the past seven years. We know that, during COVID, AMR got worse in the United States. It's hard to believe that it didn't get worse every place else.
It is a growing problem. A genie out of the bottle is very difficult to get control of, even with all the tools we have. We need to dedicate more work to that holistically, in everything from infection prevention to proper diagnostics, antibiotic stewardship and delivering the right antibiotic to the patient at the right time.
:
I think the short answer is yes, and I think that is true for the U.S. as well.
Innovation has been moving to other jurisdictions, where it exists at all. China is becoming ever more active in research and development in antimicrobials as well as the manufacture of drugs. That is the challenge we see with some frequency in shortages around the world for antibiotics, due to a number of factors. It could be a storm that damages a factory in the U.S., Europe or Canada, and that may be one of two factories that produce this drug for the world. If we damage one, the supply chain is fractured, and it can take months or years to rebuild that.
We've seen that with shortages, and I think we see that with branded pharmaceuticals as well, particularly in the anti-infective space.
:
Thank you, Madam Chair, and thank you to the witnesses for being here.
Let me start with Dr. Nguyen.
You struck me with what you said. This is for all of you, but I would like to lead off with you, Dr. Nguyen, in terms of the solutions that we need to be thinking about and the way in which we need to be thinking about this problem.
If there are concrete, specific things you think we should be doing differently or that Canada should be doing, what would those be? Maybe you could give us your top one or two, so we can take those back.
:
Thank you, Madam Chair.
My question is for Dr. de Lagarde.
I know that you study antimicrobial-resistant E. coli in animals. I was just wondering if you could speak to the interface with the environment, environmental reservoirs and waste water.
Our colleague mentioned climate change and changing environments and how those might have an impact. Do we need to do more research in that regard?
I point that out because I realize that we're these nice, warm, nutrient-rich bodies, and typically these organisms have not liked our Canadian environment. How does that interface with international travel in other environments as well?
With that, I want to thank the witnesses for appearing before the committee today. If there is anything you want to bring to the committee's attention, you can always send it to us in writing. We always incorporate that, and it will be distributed to the members.
Thank you once again to the witnesses. If you want to leave, you can leave. I have to make some announcements for the members for the upcoming meetings. I will take two minutes.
Our next meetings will be on Monday, October 27, and then on Wednesday, October 29. We will commence and continue our study on how best to promote and grow private sector investment in research and development in Canada.
I want to thank all those members who have submitted their partial list of witnesses. I want to remind members that the committee adopted a motion to receive the full list of the witnesses by tomorrow, that is, Thursday, October 23.
I want to let everyone know that we are in touch with the chief science adviser to schedule her, but currently she is out of the country. She is in Paris, and then she is going to Japan. We are in communication and are trying to schedule it for as early as possible. I will update you once I have some more news.
The last thing I wanted to bring to everyone's attention is that the documents received by the committee for the criteria study have been sent to the translation bureau. A very early assessment estimates that it could take them no less than six months. They will come back to the clerk with a more precise time frame as soon as they can.
Those are the updates I wanted to bring to your attention.
Is it the will of the committee to adjourn the meeting?
Some hon. members: Agreed.
The Chair: Okay. The meeting is adjourned.