Sequence Bio enters into a Benefits and Royalty Agreement with the Government of Newfoundland & Labrador

April 29, 2025

Sequence Bio enters into a Benefits and Royalty Agreement with the Government of Newfoundland & Labrador

Together with the Government of Newfoundland & Labrador (Government), Sequence Bio is proud to enter into a Benefits and Royalty Agreement (the Agreement) that establishes a framework for sharing financial and other benefits resulting from Sequence Bio’s research and development (R&D) programs.

Initiated by Sequence Bio and developed in partnership with the Honourable Andrew Parsons, KC, Minister of Industry, Energy and Technology (IET), this landmark agreement in Canada reflects a shared commitment to sustainably develop the province’s Health and Life Sciences sector, the equitable distribution of benefits resulting from Sequence Bio’s R&D programs, and to the promotion of global standards for ethics, privacy, and security in genetic research.

Under this agreement, Sequence Bio will pay an annual royalty on revenues from its commercial R&D activities, a provision designed to contribute to Government and affiliate programs that benefit Newfoundlanders and Labradorians. Sequence Bio also reaffirms its commitment to maintain its headquarters and build capacity in Newfoundland and Labrador, continuing to create jobs for the local STEM workforce, partnering with local researchers and health professionals, and championing evidence-based DE&I improvements within and beyond the sector.

“At Sequence Bio, we firmly believe that those who contribute to genetic research should also benefit from its advances. By establishing a framework with Government for sharing benefits, our goal is to ensure that Newfoundlanders and Labradorians are partners in our discoveries and participate in the lasting, positive outcomes of our work,” said Lynn Healey, Chief Executive Officer of Sequence Bio.

The Agreement also establishes the formation of a Collaboration Committee (the Committee) through which Government will work with NL Health Services (NLHS) towards improving the timeliness and affordability of private and public sector access to aggregate, de-identified statistical health data from databases under the authority of NLHS. Through the Committee, Government will also work with Sequence Bio to foster the growth and development of the Health and Life Sciences sector in the province.

“Our government is committed to growing the Health and Life Sciences sector in our province. Collaboration with commercial health research businesses such as Sequence Bio can foster innovation and advance research in healthcare,” said the Honourable Andrew Parsons, KC, Minister of IET. “In addition to the potential for medical breakthroughs, we hope this partnership will act as a stimulus for further investment, Research and Development, and additional spinoffs to the province.”

About the Benefits and Royalty Agreement

• Sequence Bio has entered into a Benefits and Royalty Agreement with the Government of Newfoundland & Labrador.
  
  
• The 10-year Agreement reflects Sequence Bio’s foundational commitment to returning benefits to Newfoundlanders and Labradorians, and a shared commitment with Government to advance health and life sciences innovation and economic development in the province.
  
  
• The Agreement establishes formal processes for sharing financial and other benefits resulting from Sequence Bio's R&D programs. A Collaboration Committee with representation from Sequence Bio, Government, and NL Health Services will also work to foster growth of the province’s Health and Life Sciences sector.
  
  
• Through the Agreement, Sequence Bio will also pay annual royalties based on tiered gross revenue: 1% of the first $5 million, 1.5% of revenue between $5 million and $25 million, and 2.0% of revenue at or exceeding $25 million. Payment conditions outlined in the agreement include potential deferrals linked to defined profitability targets.
  
  
• Sequence Bio also reaffirms its commitment to maintain its headquarters and build capacity in Newfoundland and Labrador, continuing to create jobs for the local STEM workforce, partnering with local researchers and health professionals, and championing evidence-based DE&I improvements within and beyond the sector.

Click here to learn more about the Benefits & Royalty Agreement. 

About Sequence Bio

Sequence Bio is researching the genetic characteristics of the Newfoundland and Labrador founder population to identify and validate novel drug targets, helping to accelerate the discovery of new treatments for diseases with high unmet medical need. Sequence Bio is proudly based in St. John’s, Newfoundland and Labrador.

Media Contacts

Brodie Thomas
Industry, Energy and Technology
709-729-5248, 709-725-3759
brodiethomas@gov.nl.ca 

Chris McDonald
Sequence Bio
chris.mcdonald@sequencebio.com