Canada Bioinformatics Market Analysis

Canada Bioinformatics Market Executive Summary

The Canada Bioinformatics market is projected to grow from $1.23 Bn in 2022 to $4.11 Bn by 2030, registering a CAGR of 16.30% during the forecast period of 2022 - 2030. In 2019, Canada's national healthcare expenditure was seen to rise high up to 10.84% of its Gross Domestic Product (GDP) from 10.81% in 2018. Seniors incur the highest healthcare costs. Population ageing is a moderate driver of rising healthcare expenditures, contributing only about 1% year, despite the fact that per-person spending rose significantly with age, from $6,656 for those aged 65 to 69 to $20,793 for those aged 80 and older. The overall trend for health spending as a percentage of Canada's GDP is upward.

The bioinformatics market is a rapidly growing industry. In applications like next-generation sequencing, genomic and proteomic structure and modeling, and three-dimensional drug designing, bioinformatics software and tools are employed as integrated solutions that provide algorithms and statistical approaches for data analysis. The market for bioinformatics in Canada is thought to be robust and expanding.

Market Dynamics

Market Growth Drivers

The Canada bioinformatics market is expected to be driven by the nation's robust infrastructure for research and development and its big pool of competent scientists and engineers. The Canadian government has also made investments in the bioinformatics industry, sponsoring programs like the Canadian Bioinformatics Support Program and Canadian Bioinformatics Workshops. This has promoted innovation in the sector and supported the growth of Canada's bioinformatics capabilities. Further, Canada's bioinformatics market is extremely collaborative, with numerous businesses, academic institutions, and research organizations collaborating to create new tools and software. It is anticipated that partnerships and collaborations between businesses, academia, and the government would continue to spur innovation in the sector.

Market Restraints

The Canada bioinformatics market is currently relatively small, and there aren't many businesses offering bioinformatics services. The cost of bioinformatics solutions can be considerable, which may prevent certain businesses, particularly Small and Medium-sized Enterprise (SMEs) in Canada, from adopting them. Moreover, despite government financing and support, some SMEs in Canada may have restricted access to finance, making it challenging for them to create and market novel bioinformatics technology.

Competitive Landscape

Key Players

• DNAstack (CAN)
• Bioinformatics Solutions Inc (CAN)
• ThermoFisher Scientific
• Agilent Technologies
• Celera Corporation

Notable Recent Deals

August 2021: Agilent and Partek signed a contract to provide a whole end-to-end, reliable, customized, and adaptable analysis process to satisfy the needs of their customers. Through this partnership, Agilent's RNA-Seq procedure has been incorporated into Partek Flow. The agreement also enables Agilent to resell Partek Flow software via the Alissa Portal as a one-stop shop.

December 2020: A national consortium led by DNAstack secures $5.1 Mn to expand the development of a software platform for health and genomics data and the use of COVID-19. The goal of the $5.1 Mn COVID Cloud project, which is co-funded by Canada's Digital Technology Supercluster, is to strengthen Canada's capacity to utilize the nation's rapidly expanding genomes and biomedical data resources to advance precision health.

Healthcare Policies and Regulatory Landscape

The Canadian government, through various organizations including Health Canada and the Canadian Institutes of Health Research(CIHR), controls the majority of the healthcare regulations and rules that apply to the Canadian bioinformatics industry. These organizations are in charge of governing the creation, acceptance, and application of bioinformatics technology in healthcare.

Health Canada is in charge of approving medical devices, including those that use bioinformatics. The organization also controls how bioinformatics, including pharmacogenomics and personalized medicine, is used in medication development. On the other hand, the CIHR serves as Canada's primary funding source for medical research. Through a number of programs and projects, such as the Strategic Training Program in Bioinformatics and Computational Biology, it funds bioinformatics research.

The regulatory environment for the Canadian bioinformatics business is also shaped by industry associations like the Biotechnology Innovation Organization (BIO) which collaborates with government organizations to advance legislation that will foster the sector's expansion.

Reimbursement Scenario

Canada's healthcare system is publicly funded, and the provinces and territories are in charge of providing coverage for medical services and supplies. The cost of bioinformatics services and products that are deemed medically necessary are often covered by the provinces and territories' various reimbursement procedures. For instance, Pharmacogenomic testing, for instance, may not be reimbursed by the public healthcare system in some provinces but may be in others.

Moreover, based on whether a bioinformatics product is categorized as a pharmaceutical or a medical device, various provinces have varied payment regulations.  Pharmaceuticals are jointly regulated by the Patented Medicine Prices Review Board (PMPRB) and Health Canada while medical devices are regulated by Health Canada.

In some cases, private health insurance plans also cover the costs of bioinformatics services and products that are not covered by the public healthcare plan.