In Canada, the Program for Scientific Research and Experimental Development (SR&ED) covers a wide range of industries, including the pharmaceutical industry. Pharmaceutical businesses may be eligible for SR&ED tax credits if they engage in qualified research and development activities. Here are some SR&ED project examples that can be pertinent to the pharmaceutical sector:
Biotechnology Research: Investigating and developing biotechnological methods or products for use in medicine is known as biotechnology research.
Formulation: To improve therapeutic effectiveness and patient compliance, novel drug formulations or drug delivery technologies are being developed.
Preclinical and Clinical Studies: Evaluating the safety and effectiveness of pharmaceutical products through preclinical and clinical trials.
Drug Discovery and Development: Researching to discover and develop new pharmaceutical drugs or biologics.
Pharmacology: Research into how medications affect living things and how they are absorbed, distributed, metabolized, and eliminated.
Medical Device Development: Developing medical tools or apparatus related to drugs or medical procedures.
To evaluate your specific situation and determine whether your pharmaceutical activities are eligible for SR&ED tax credits, as with any tax-related topic, it’s imperative to speak with skilled tax consultants.