The Saskatchewan government will provide funding for Ag-West Bio Inc., of Saskatoon for the next two years.
The province announced March 1 that its renewal of the $900,000 annual operating funding would be enhanced with an additional $700,000 to create a specific commercialization fund.
Ag-West provides support for fledgling biotech companies. The commercialization fund will allow direct investment in emerging biotech enterprises.
For many of these companies, research and investment takes several years before they have a product to sell.
Because of that lag and the perceived and real risks in investment in the sector, Ag West’s investment in them may be their first outside money.
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The investments, which range from $50,000 to $300,000, allow companies to develop products or technologies that, once created, will attract more investment or aid in market development.
Saskatchewan minister of agriculture Mark Wartman said the government’s support for Ag-West Bio, created two years ago with the merger of Ag-West Biotech, Bio-Products Inc. and Saskatchewan Nutraceutical Network, is helping to build a “bio-cluster” in that city.
“We’re building on the high quality resources we already have in Saskatchewan, the University of Saskatchewan and the innovation park we already have and the agricultural industry. It’s an investment with big returns for our economy,” he said.
Saskatchewan is already home to one third of Canada’s agricultural biotechnology business activity, said Ashley O’Sullivan, president of Ag-West.
His organization is credited with allowing biotech companies in Saskatchewan to leverage $52.5 million from outside investors and is responsible for the creation of an estimated 800 jobs in the province.
