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Pharma Companies Received $85M in Subsidies from Federal Research Agency in First Year of Pandemic


At the beginning of the COVID-19 pandemic, pharmaceutical companies received over $85 million in subsidies from the National Research Council Canada (NRC), as indicated by government records.

The government’s official response to an Inquiry of Ministry tabled by NDP MP Peter Julian included the figures.

“With regard to federal investments to private sector pharmaceutical companies, how much federal funding has been provided?” Mr. Julian asked in the inquiry document tabled in the House of Commons on Feb. 6, and first obtained by Blacklock’s Reporter.

The NRC responded on April 8, stating that it provided $85,836,489 to pharmaceutical companies through its Industrial Research Assistance Program (IRAP) in the 2020-2021 fiscal year to support pandemic-related needs. The NRC is Canada’s largest federal research and development organization responsible for funding science and technology research.

Moreover, the NRC allocated $4.9 million in “collaborating” funds via the Department of National Defence through its Innovation for Defence Excellence and Security program in 2020. This funding supported projects such as a diagnostic test for the SARS-CoV-2 virus and kits for measuring SARS-CoV-2 antibodies.

Defence Research and Development Canada also supported a project for developing an antiviral drug to enhance medical preparedness against viral threats, resulting in funding for Oncovir Canada Inc.

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In 2020, various government departments also provided funding to pharmaceutical companies, including $1.5 billion by the Department of Industry, $13.5 million by Prairies Economic Development Canada, $12.5 million by Canada Economic Development for Québec Regions, $3.9 million by the Atlantic Canada Opportunities Agency, $3.5 million by Pacific Economic Development Canada, and $750,000 by the Department of Agriculture.

In a 2023 NRC audit, employees expressed that their mental health suffered due to the increased workload in processing payments for the IRAP funding. A report titled “Evaluation Of The Innovation Assistance Program” mentioned, “Employees’ mental health, well-being, and work-life balances were challenged.”

At the start of COVID-19, the council provided wage subsidies to small and medium-sized Canadian businesses involved in research and development through an emergency wage subsidy program separate from other plans.

A total of 2,230 companies received subsidies through this program, leading auditors to note complaints of overtime due to the numerous authorized cheques. The report highlighted the challenges faced by staff in managing the complexities of stacking government funding, which created an unprecedented volume of work affecting their balance and well-being.



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