Life Sciences Outlook 2026

As part of a deeply interconnected global sector, the life sciences industry in Canada is undergoing significant change alongside broad macroeconomic and geopolitical shifts.

The Bennett Jones Life Sciences team looks at the top issues and developments affecting the industry in 2026: 

• Life sciences companies may soon enjoy efficiencies as Canada fast-tracks regulatory modernization. Health Canada is advancing a suite of initiatives aimed at a more efficient, globally harmonized regime. If implemented, these combined changes will serve to benefit industry participants across verticals, with less regulatory burden, faster approval timelines and cost savings.
• Following a record-setting 2025, the first few months of 2026 are seeing a surge in life sciences dealmaking. Industry leaders gathered at the 2026 Bloom Burton & Co Healthcare Investor Conference in April to discuss these trends, and what to look forward to in the second half of the year.
• Significant trade-related developments will impact the life sciences industry in 2026 and beyond. US Section 232 tariffs and the ongoing CUSMA review are reshaping supply chains, pricing and market access. These global shifts are also driving changes in approach to Canada's investment, national security and export-control in the sector.
• For multijurisdictional product liability class actions, defendants may expect a higher bar for courts to stay parallel proceedings. A recent ruling demonstrates a substance-over-form interpretation of national coordination in Canadian class actions, holding that overlapping proceedings are not inherently abusive and need not be stayed in all cases where a parallel class action has been certified.
• Determining liability in joint patent infringement disputes remains muddy, but product development itself does not impose infringement risk. For innovators with development partners outside Canada, there is limited case law addressing the risk of joint patent infringement in Canada. However, recent Canadian decisions suggest that the wording of collaboration agreements may be relevant to assessing the risk of patent infringement by parties operating outside Canada's borders.
• Canada has modernized its transfer pricing regime, with significant implications for life sciences multinationals. The new rules will shape how the CRA scrutinizes cross border intra group transactions and may increase the likelihood of audits and tax disputes for companies operating across jurisdictions.

Bennett Jones' Life Sciences Industry Group

Bennett Jones supports life sciences companies through the sector’s complexity with clear, strategic legal guidance that mitigates risk and drives growth. Our multidisciplinary team integrates M&A and capital markets, IP and IP litigation, product regulation and liability, class action litigation, international arbitration, commercial transactions, international trade and competition expertise to help clients innovate, scale and compete with confidence.