IMC welcomes Budget 2026 as a positive signal for Canada’s innovative pharmaceutical industry

Ottawa, November 5, 2026-Innovative Medicines Canada (IMC) welcomes the federal government's recognition of the pharmaceutical and life sciences sector in Budget 2026, including its acknowledgement that Canadians depend on timely access to critical vaccines and life-saving medicines, its support for health research, and its commitment to modernize Scientific Research and Experimental Development (SR&ED) tax credits.

"Budget 2026 sends a positive signal about the importance of the innovative pharmaceutical industry and its contributions to Canadians and the economy," said Dr. Bettina Hamelin, President & CEO of IMC. "We welcome the federal government's assessment of the Pharmaceutical and Life Sciences Sector Task Force recommendations and its commitment to announce further details in the coming months."

The task force brought together industry and government to identify solutions to longstanding challenges affecting Canadians' access to innovative medicines. As the federal government considers the task force's 39 recommendations, IMC and its members look forward to continued collaboration to improve access to innovative treatments and strengthen Canada's life sciences sector.

"Budget 2026 highlights Canada's productivity gap compared to peer jurisdictions, which is an important step," added Hamelin. "The opportunity now is to connect this to pharmaceutical innovation, one of the biggest levers Canada has to close that gap. Evidence shows innovative medicines make our population healthier, our workforce more productive, and our healthcare system more resilient."

IMC and its members remain committed to partnering with government to build a sustainable healthcare system that delivers for all Canadians.

Quick Facts

• A 2025 study by Dr. Frank Lichtenberg at Columbia University shows that investments in innovative medicines reduced hospital stays by 55 per cent in 2022 alone, saving close to $80 billion in hospital costs. This far exceeds total public spending on medicines.
• The Canadian Institute for Health Information (CIHI) estimates that about 1.2 million emergency department visits in 2023-24 could have been avoided through timely diagnosis, appropriate treatment, and access to effective therapies.
• Examining population-level impact, the C.D. Howe Institute found that COVID-19 vaccination in Canada was associated with approximately 45 per cent fewer deaths, 37 per cent fewer hospitalizations, and 21 per cent fewer cases between January 2021 and May 2022.