The federal government is investing $127 million in two major life-sciences development projects in Vancouver to boost medical research, biomanufacturing capacity and job creation.

Industry Minister Mélanie Joly announced Monday that Prime Minister Mark Carney’s government will deploy combined Strategic Response Fund (SRF) contributions to support projects led by Aspect Biosystems and Providence Health Care (PHC).

Ottawa is contributing $79 million to Aspect, a Vancouver-based biotechnology firm developing bioprinted tissue therapeutics, while the B.C. government is providing an additional $23.8 million to support the company’s expansion.

“Canada’s life-sciences sector is entering a new era of momentum and possibility,” said Joly. “Aspect Biosystems and Providence Health Care are turning bold ideas into breakthrough health solutions. By investing strategically, we’re accelerating that growth, helping innovators scale up, commercialize their discoveries and manufacture cutting-edge technologies right here at home.

The federal government is also investing $48 million in PHC’s future Clinical Support and Research Centre (CSRC), which will be connected by a skybridge to PHC’s new St. Paul’s Hospital now under construction on the Jim Pattison Medical Campin the False Creek Flats area just off Chinatown. The new hospital will replace the existing St. Paul’s Hospital in downtown Vancouver.

Aspect is advancing a new category of regenerative medicine aimed at restoring biological functions and delivering functional cures for serious metabolic and endocrine diseases, including diabetes. The company is undertaking a $280-million project to expand its clinical-development and biomanufacturing capabilities, enhance its AI-powered platform and accelerate commercialization.

“This investment from the Government of Canada is a powerful vote of confidence and adds to the significant momentum at Aspect as we advance our bioengineered cellular medicines toward patient impact,” said Tamer Mohamed, CEO of Aspect. “We have built a truly world-class team with deep cell-therapy development expertise and recently entered a new phase of our partnership with Novo Nordisk to develop curative medicines for diabetes, integrating key stem cell and hypoimmune cell-engineering technologies under Aspect’s leadership.

“With this investment and the deepening of our partnership with the Government of Canada, we are taking a major step toward building a generational company anchored in Canada and delivering life-changing therapies to patients around the world.”

The initiative is expected to maintain 117 jobs and create 283 new positions, for a total of 400 jobs, along with 268 student co-op placements in the Vancouver region, said the federal government. The project also builds on Aspect’s partnership with Novo Nordisk, integrating cell-therapy capabilities into its therapeutic platform.

PHC’s investment will support the development of an innovation hub within the CSRC. The hub will include data platforms and services, a clinical-trials unit, a simulation centre, wet labs and an innovation centre, and is designed to accelerate research and partnerships while advancing data-driven, AI-enabled health care innovation.

“The Government of Canada’s investment in B.C.’s life-sciences sector, including in Providence Health Care, is visionary and timely, further boosting our collective ability to find life-improving health care solutions for Canadians and people around the world,” said Fiona Dalton, president and CEO of PHC.

The CSRC will also serve as an incubator for small and medium-sized companies and a collaborative space for partner organizations, life-sciences firms and government, strengthening Canada’s ability to respond to future health emergencies.

PHC expects the hub to maintain 6,662 jobs and create 768 new full-time positions, for a total workforce of 7,430, as well as 597 student co-op placements, in the Vancouver area.

The federal government said the investments aim to strengthen Canada’s domestic capacity to develop and manufacture innovative health solutions, support economic growth and enhance resilience in the life-sciences sector.

PHC is a non-profit company that owns a healthcare network, comprising 18 facilities including St. Paul’s Hospital, as part of its broader healthcare-campus development in Vancouver.

Pictured: Future New St. Paul’s Hospital and Clinical Support and Research Centre in Vancouver

Rendering: Providence Health Care