Biomed Propulsion Program
QC, Canada
Supports life sciences companies for commercialization and job creation
grant_single|update March 16, 2025
grant_single_labels|summary
grant_single|eligibleFinancing
- grant_single|fromMinToMax
- grant_single|projectCostPercent
grant_single|deadlines
- grant_single|grantStatusClosed
grant_single|financingType
Loans and Capital investments
grant_single|eligibleIndustries
- Health care and social assistance
grant_single|grantors
- Investissement Québec (IQ)
grant_single|status
grant_card_status|closed
grant_single_labels|preview
The Biomed Propulsion Program aims to financially support high-growth potential life sciences companies in Quebec to commercialize research outputs with a focus on attracting private investors, offering maximum funding of up to $10 million. Eligible activities include the development, manufacture, and commercialization of biotechnology and medical technology products, with specific conditions applied.
grant_single_labels|terms_and_conditions
- Financial aid is provided in the form of a participatory loan.
- For biotechnology companies, the loan amount ranges between $2.5 million and $10 million.
- For medical technology companies, the loan amount ranges between $500,000 and $10 million.
- The maximum duration for the financing is ten years.
- A repayment grace period for the principal may be available.
- Loans are not disbursed quicker than the private investors' contributions.
- Annual capital repayment is required, with a minimum of 25% of funds generated from commercial activities, or through fixed or variable payments if no commercial activity funds are generated.
- The interest rate on the loan is linked to the project's risk assessment.
- An option to purchase shares or equity, calculated at a minimum of 15% of the loan amount, may be required to compensate for risk.
- An additional performance premium ranging between 3% and 6% might be required if the potential exercise amount of share options is below the preferred threshold of $1 million.
- Security on the company's assets is mandatory.
- Management fees will be charged to companies receiving funding.
- Non-combinability with other programs by the Ministry of the Economy, Innovation and Energy.
grant_single_labels|projects
- Enhancement of access to funding for life sciences companies.
- Support for the maintenance and development of high-growth potential companies.
- Encouragement of product development in life sciences.
- Contribution to the maintenance and creation of sustainable, quality jobs.
- Promotion of research and development investments for biotechnology companies and medical technology companies.
- Encouragement of commercialization investments for medical technology companies.
grant_single|admissibleProjectsExample
$ 3,000,000
Developing a new gene therapy for rare diseases
grant_single_labels|admissibility
- The applicant must be a for-profit company in the life sciences sector with its headquarters and the majority of its jobs located in Quebec.
- Eligible companies include those in human or animal health biotechnology with a majority of activities and expenses dedicated to R&D, and for human health, a product financed at the in vivo preclinical stage.
- Medical technology companies primarily engaged in the design, development, manufacturing, and commercialization of medical equipment or software as medical instruments are eligible, provided they have at least regulatory approval or a product in clinical trials for approval.
- Excluded entities include those offering local market products or substitutable specialized products, distribution companies, companies solely engaged in marketing medical equipment, information and communication technology companies targeting consumers, and cannabis-related businesses not focused on pharmaceutical-grade products approved by Health Canada.
grant_eligibility_criteria|who_can_apply
- For-profit companies in the life sciences sector with a headquarters in Quebec and the majority of their employees located there.
- Companies in human or animal health biotechnology with significant R&D activities and expenditures, focusing on intellectual property related to health products, platforms, or processes.
- Medical technology companies primarily involved in designing, developing, manufacturing, and commercializing medical devices or software defined as medical instruments, serving purposes such as diagnosis, treatment, prevention, or health function restoration.
grant_eligibility_criteria|who_cannot_apply
- Companies offering products intended for local markets or specialized but substitutable products such as medical and dental laboratories, optical lens laboratories, orthotics or prosthetics laboratories, and clinical laboratories.
- Distribution companies or those solely engaged in the commercialization of medical equipment.
- Information and communication technology companies in health addressing exclusively consumers.
- Companies with cannabis-related activities targeting markets other than pharmaceutical-grade products approved by Health Canada or their ingredients.
grant_eligibility_criteria|zone
- Companies with decision-making headquarters and the majority of their workforce based in Quebec.
grant_single_labels|register
- Step 1: Review Eligibility RequirementsEnsure your company is within the eligible sectors: human or animal health biotechnology, or medical technology.
- Confirm your company is located in Quebec and meets the specific operational criteria.
- Step 2: Prepare Financing RoundSecure the necessary private investment to meet the program’s financing conditions.
- Prepare a shareholder agreement or subscription agreement for the round of investments.
- Step 3: Complete Application DocumentsGather all required documentation, including detailed project proposals, financial statements, and investment agreements.
- Ensure the application does not include financing from other MEIE programs.
- Step 4: Submit Application to Investissement QuébecAwait further instructions from Investissement Québec, as new applications are currently suspended.
- Monitor communications from Investissement Québec for updates on the application process.
grant_single_labels|otherInfo
- The Ministry of Economy, Innovation and Energy, and Investissement Québec can suspend the submission and analysis of applications without prior notice to ensure the availability of funds within the budget envelope.
- The program will be interrupted as of November 12, 2024, and no new applications will be accepted until further notice.
- Financial assistance is provided in the form of a participatory loan, with a duration not exceeding ten years.
- There is a requirement for investors' disbursement to precede any loan disbursement.
- Companies may be required to pay a management fee for the financed project.
- A risk-related interest rate on the loan is expected, along with the possibility of a premium in the form of stock options to offset risks.
- An additional risk-related performance premium may be levied if the exercise value of stock options is under a preferential threshold of $1 million, with a percentage between 3% and 6% added during liquidity events.
- The financing must include no other source from other programs of the Ministry of Economy, Innovation and Energy (MEIE).
- Collateral security over the company's assets may be required for the loan.
