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

A National Research Council (NRC) building in Ottawa is seen in a file photo. Matthew Little/The Epoch Times

Pharmaceutical companies were given over $85 million in subsidies from the National Research Council Canada (NRC) at the beginning of the COVID-19 pandemic, according to government records.

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

“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, saying that it provided $85,836,489 to pharmaceutical companies through its Industrial Research Assistance Program (IRAP) in the 2020-2021 fiscal year, which aimed to support “near-to-market solutions that met a pandemic-related need.” The NRC is Canada’s largest federal research and development organization and is responsible for funding science and technology research.

Additionally, NRC gave $4.9 million in “collaborating” funds paid through the Department of National Defence through its Innovation for Defence Excellence and Security program in 2020. The program provided funding for two projects: a “rapid point-of-care diagnostic test for the SARS-CoV-2 virus” being created by Custom Biologics, and kits that could measure all three classes of SARS-CoV-2 antibodies developed by Diagnostics Biochem.

Defence Research and Development Canada also identified a third project developing an antiviral drug to “strengthen medical preparedness against viral threats,” which resulted in funding for Oncovir Canada Inc.

Various additional departments provided funding to pharmaceutical companies in 2020, 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 said their mental health was negatively impacted by the increased workload involved in processing payments for the IRAP funding. “Employees’ mental health, well-being and work-life balances were challenged,” said a report “Evaluation Of The Innovation Assistance Program.”

At the onset of COVID-19, the council gave wage subsidies to innovative small and medium-sized Canadian businesses involved in research and development; an “an emergency wage subsidy program for innovative Canadian businesses” separate from other wage subsidy plans.

A total of 2,230 companies received subsidies through the program. Auditors said so many cheques were authorized that staff complained of overtime.

“Unexpected work was created by the need to manage complexities of stacking government funding,” the report said. “Delivery of the program did generate an unprecedented volume of work that challenged staff work-life balance and well-being, particularly in the absence of additional surge capacity.”