Table Of Content
As per Treasury Board's Policy on Evaluation (2009), all programs benefiting from any level of direct program spending must be evaluated every five years. One client went so far as to directly attribute the survival of the company to the services provided by NRC . Although the HHT Portfolio has only been in existence for a little over two years, the evaluation identified strong evidence of client impacts experienced as a result of their interactions with HHT . For most clients, HHT helped to advance and/or accelerate the development of their therapeutic candidates. Despite its success, there is still an opportunity and a capacity for HHT to further expand and strengthen its current client base and, as a result, increase its annual revenues.
Evaluation Design and Methodology
These other stakeholders included representatives from two industry associations, one academic, and a representative of the Public Health Agency of Canada. Interviewees were selected in consultation with Methodological and Subject-Matter Experts and portfolio management, as well as through a review of HHT 's client list. To encourage interviewee participation, the HHT General Manager sent a memo to potential interviewees informing them of the evaluation and advising that they may be contacted to participate. Although several expert reviewers noted that HHT has a unique service offering, particularly in the area of biologics, some identified Canadian not-for-profit organizations whose mandates may overlap slightly with that of NRC .
National Research Council Canada
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Two of the three expert reviewers for the TBBB Program stated that the Program has the potential to achieve strong impacts for the industry, but that its success will ultimately depend on program execution. The third expert reviewer felt that the Program would likely generate small to moderate impacts. In order to mitigate the risks involved, he stressed the importance of strengthening relationships with academic and other research organizations who are also working in this area. He also felt that the Program's focus on biologics is limiting, a sentiment that was also echoed by a second expert reviewer. Of those clients who reported that work with HHT has contributed to the advancement or acceleration of new therapeutics, some succeeded in reaching critical milestones in the drug development process. For example, five companies reported that HHT played a significant role in getting their products to the clinical trial phase, or progressing through the various phases of clinical trials.
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More importantly, HHT appears to be well positioned to continue to achieve impacts in the future. Portfolio management have adopted a culture of continuous improvement and are revisiting internal processes and approaches to ensure that HHT operations are both effective and efficient. In performing this comparison, the evaluation team worked closely with HHT and Finance Branch staff to ensure that the two time periods considered similar expenditure and revenue types and could therefore be reasonably compared.
This includes, for example, its work in developing the Research, Development and Innovation Vaccine Federal Action Plan, as well as collaborative research agreements with federal, academic and not-for-profit partners. With limited funding available, SME s can face challenges overcoming the industry's initial "valley of death". Footnote 19 As part of the evaluation, client interviewees were asked what needs their companies were looking to address through their interactions with HHT .
For one company, work with HHT led to the commercialization of an animal vaccine to prevent the incidence of rabies in wildlife. Projects conducted in collaboration with HHT have, in some cases, helped to make the clients' products more attractive to investors, thus translating into additional financing opportunities for the companies. In this regard, seven of the 22 HHT clients who were interviewed reported having been successful at securing a total of $81.8M in venture capital and other financing since their companies first began collaborating with NRC . It is worth noting that some clients were not able to provide a specific amount and were therefore not included in this calculation. This number should therefore be considered to be a conservative estimate of HHT 's impact in terms of increased access to investment capital.
In addition, revenues represented 33% of salary and operations and maintenance ( O&M ) in 2013‑14, as compared to 19% in 2011‑12. The HHT Portfolio aligns well with federal priorities and NRC strategic outcomes, given its focus on industry-relevant R&D and its intended contribution to healthcare. HHT activities and expected outcomes are consistent with federal roles and responsibilities. As part of the TBBB Program, HHT is currently working with a handful of MNE partners, coupling their CNS therapeutics with NRC carriers to reach proof of mechanism, thereby validating the effectiveness of the NRC carriers.
In other cases, product advancement occurred as a result of significant co-development between HHT and the client and/or through the licensing of NRC intellectual property or enabling technologies. The examples below present information drawn from some of the evaluation case studies and illustrate HHT 's Footnote 35 contributions in these areas. In this regard, many interviewees and experts observed that the best mechanism for showcasing HHT /client success stories is through NRC and third party press releases. While most internal interviewees agreed on the importance of press releases, many perceived the process of getting an official NRC press release approved as being extremely complex. They highlighted past difficulties in getting press releases issued even after significant time and effort had been expended. In response to this, NRC Communications Branch staff reported that although certain difficulties may have been experienced in past years, processes with respect to the issuance of NRC press releases have recently been improved.
1 Continued Need for Portfolio Capabilities
Whereas experts for the Biologics Program had a very positive view of that program's alignment with industry needs, the views of expert reviewers for the Vaccines Program were more mixed. Two of the three experts for Vaccines noted that the services and competencies available through the Program are meeting industry needs to a slight or moderate extent, while the third reported that the Program is addressing industry needs to a considerable extent. Issues of concern appeared to stem mostly from program execution, rather than program relevance. For instance, experts noted challenges engaging with industry and the perceived academic culture of NRC researchers.
In order to minimize the burden on clients, participants who were asked to contribute to a case study interview were not asked to be interviewed separately as key informants. For these clients, the questions in support of the case study development were supplemented by a few additional questions (primarily related to relevance). The responses were then analyzed along with the responses of the other client interviewees. Internal interviewees also noted that, in 2013, HHT made some strategic cuts to its workforce (21 positions were eliminated), as it opted not to pursue certain areas of research in order to be better aligned with approved programs.
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The need itself was raised by many of the expert reviewers, by a few current clients and by one prospective client, as well as by one of the three IRAP Industrial technology advisors ( ITA s) that were interviewed. These stakeholders noted that cGMP manufacturing services in Canada are limited and that, in many cases, companies have no choice but to procure these services from international service providers. Some stakeholders also added that addressing this need is important if NRC is to achieve the greatest possible impact.
The decision to evaluate HHT at this time is largely based on the maturity of its hosted programs. Relative to other NRC portfolios, HHT is more advanced in terms of program implementation, thus allowing for a better assessment of program outputs and early outcomes. In addition, prior to this evaluation, neither HHT nor its predecessor institutes had been the subject of an evaluation within the past ten years.
Other revenue includes Royalties and Licenses, Lease and Use of Property, and Sale of Goods and Information Products. Data on HHT impacts on Canadian companies are incorporated into promotional material. Press releases are delivered for all NRC - HHT collaborations with Canadian companies; success stories are showcased on the web.
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