North York pharmaceutical company gets FedDev boost
North York pharmaceutical company Dalton Pharma Services is expanding its operations with help from Ottawa.
The contract manufacturing and drug development research company is receiving more than $2 million from the Federal Economic Development Agency for Southern Ontario (FedDev Ontario). The company itself is putting in an additional $6.3 million to increase its manufacturing capacity.
The company anticipates this will add an extra 21 full-time skilled positions during the expansion project, plus another 13 workers once the project is completed in a few years. The company currently employs approximately 70 people.
“FedDev has provided an important contribution to our growth at just the right time for us to benefit,” said company president Peter Pekos, at a media event announcing the funding Friday, Jan. 16.
The company provides such services as research, product development and manufacturing of low-volume pharmaceutical products. Pekos said 60 per cent of the company’s business comes from outside the country.
Dalton Pharma Services competes against offshore companies that have lower costs, Pekos said, but stays competitive by providing premium manufacturing and superior service, and benefits from the region’s economic and innovative environment.
“Dalton also benefits by being embedded in a highly innovative cluster that exists in Southern Ontario. Seven of Ontario’s leading universities, and I would even say globally leading universities, are within a three-hour drive, on a good day,” Pekos said.
York Centre MP Mark Adler said he’s pleased the government has chosen a York Centre company with a strong track record to help it become more competitive in the pharmaceutical industry.
“Our government believes that support like this can help Southern Ontario maintain and get a competitive edge that it needs to compete in today’s very competitive, global economy,” Adler said.
FedDev Ontario Minister Gary Goodyear said the Toronto region is filled with advanced manufacturing and hard-working innovators.
“Canada has emerged from the economic recession with one of the best job-creation records in the entire G7. We are recognized around the world. In fact, we are the envy of the world, in respect to our economic growth,” Goodyear said.
“Right now, Canada has probably the most fertile landscape for business growth and success and job creation, some of the lowest taxes we’ve seen since the 1950s and it is companies like this one that are taking advantage of those opportunities.”
Goodyear said helping companies grow and increase their productivity are keys to the government’s goals of keeping the manufacturing sector vibrant and to put Ontario back on the map as a world leader in advanced manufacturing.
Since 2009, FedDev Ontario has invested $1.2 billion in businesses, leveraging another $1.5 billion in investment from the private sector, Adler said.
He said manufacturing employs nearly 1.7 million Canadians and the government is focused on supporting the manufacturing sector.
“We are the envy of the world; however, there are people still who are looking for work. We will not rest until every person who needs a job in this country has one,” Adler said.
