"Biotechnology in Taiwan"
Biotechnology in Taiwan Trends for Economic Development The Next Silicon Valley Battle for the Dot.Coms Biotech: NBT (The Next Big Thing) 83% of local development agencies place bio among their top two priorities 41 countries have biotech development programs as strategic priority 2 Definition Biotechnology Firms using genetic and cellular techniques Biomedicine: diagnostic/therapeutic Industry-developed definitions & data 3 Applications Agriculture Plant breeding to improve resistance to pests, diseases, drought and salt conditions Mass propagation of plant clones Bioinsecticide development modification of plants to improve nutritional and processing characteristics Medicine Development of novel therapeutic molecules for medical treatments Diagnostics Drug delivery systems Tissue engineering of replacement organs Gene therapy Chemical Industry Production of bulk chemicals and solvents such as ethanol, citric acid, acetone and butanol Synthesis of fine specialty chemicals such as enzymes, amino acids, alkaloids and antibiotics 4 Applications Food Industry Production of bakers' yeast, cheese, yogurt and fermented foods such as vinegar and soy sauce Brewing and wine making Production of flavors and coloring agents Veterinary Practice Vaccine production Fertility control Livestock breeding Environment Biological recovery of heavy metals from mine tailings and other industrial sources Bioremediation of soil and water polluted with toxic chemicals Sewage and other organic waste treatment 5 Products of Biotechnology 6 Types of Industries Pharmaceuticals Biotechnology Very large, global firms Small, mostly single Top ten average $15 establishment firms billion sales • Top ten average $700 million sales Principal assets are Assets are products, people, research and distribution, future potential manufacturing expertise Very Profitable Lose Money 7 Experiences from USA Biotechnology Industry Biotech tends to cluster Leaders have an edge Entrepreneurship & venture capital are key Outlook for biotech-led economic development 8 Biotech tends to cluster Talent is drawn to where firms are; firms form where talent is Powerful business advantages from agglomerations Lock-in to particular arrangements 9 Leaders have an Edge Falling (further) behind the Leaders Biotech is concentrated and growing more so Leaders are: 5 to 10x bigger than followers in research and 30 to 100x bigger than followers in commercialization 10 Keys for New Biotech Research base is necessary but not sufficient Commercialization Assets Entrepreneurial researchers Industry-relevant talent • Technical • Managerial Venture capital--surprisingly localized 11 Competitiveness of Asia-Pacific Biotech Infrastructure Dev’t Regulatory & Gov’t Human Finance & Overall Cultural Env’t Policy Resource Dev’t Resource Ranking Mobilization Physical Scientific Regulatory & Gov’t Human Public Private Infrastructure Infrastructure Cultural Env’t Policy Resource Dev’t Funding Funding Japan 1 1 1 1 1 1 1 1 Australia 2 2 2 2 3 3 2 2 Israel 4 3 3 3 2 5 3 3 Singapore 3 7 4 4 4 2 4 4 Korea 5 5 6 5 5 6 6 5 Taiwan 6 6 5 6 5 4 5 6 New Zealand 6 4 5 7 6 8 8 7 Hong Kong 8 8 8 8 8 7 7 8 China 9 9 9 11 9 9 11 9 India 11 10 11 10 10 11 9 10 Malaysia 10 11 9 9 11 10 9 11 Thailand 12 12 12 12 12 12 12 12 Indonesia 13 14 13 13 13 13 13 13 Philippines 14 13 14 14 14 14 14 14 12 [Note: Survey was conducted by Asia-Pacific IMBN Secretariat from August-December 1999. 20 leading experts from around the region were invited to share their perception of scientific development in the region. The results are based on inputs from 12 of these experts. Australia (3), Chinese Taipei (1), Japan (3), Korea (1), Phlippines (3), Singapore (1)] Overview of Asia-Pacific Biotech Ventures Asia Pacific Country/ Estimated BioVentures Economy Number of per million BioVentures population Korea 300 6.4 Israel 200 33.3 Australia 150 7.8 Japan 130 1.1 China 100 0.1 Taiwan 100 4.3 Source: Hong Kong 50 7.0 BioEnterprise Asia, original Singapore 30 6.9 research, 2001/2 Total Market Cap for about 1000 Asia-Pacific Biotech Companies estimated to be about 3-5% of Top 25 US Biotech Companies! 13 Singapore $700 million in investment funds Establish genome research center by recruiting top-rank scientists Taiwan $570 million in investment funds Japan 1,000 bioventure companies by 2010 14 Evaluation of Asia Pacific Biotech Development Hurdles/Challenges Limited translation of Environment academic research and Heavy regional technology development into investment in the life commercial application sciences Lack of strategic and business Growing scientific base management expertise in life Expanding portfolio of sciences intellectual property Lack of “smart money” funding for concept development, technology validation and business case validation Opportunities and Needs Identifying and nurturing development of high potential know-how and technologies Providing commercial acumen and marketplace orientation Critical business and entrepreneurship development support Dedicated seed financial support for promising enterprises Establishing sustainable life science start-up companies Market capitalization of all biotech companies in Asia today is estimated to be about 3% of capitalization of top 25 US companies. We have only just begun! 15 Biotech in Taiwan Development of Biotech in Taiwan The history of biotechnology in Taiwan went back to 1982. One of eight targeted technological development areas “planning mode” in Japan Focus on traditional fermentation technology, enzymes, and anti-biotic products 17 Current Situation in Taiwan’s Biotech (Aug. 1997 ~ June 2002) 18 Industry Structure of Taiwan’s Biotech Unit: NTD Million Fields 1997 1998 1999 Medical biotechnology: human vaccines, bulk pharmaceuticals and diagnostic kits 6,500 6,600 7,100 Agricultural biotechnology: ornamental plants, animal vaccines and bio-pesticides 982 1,000 2,070 Food biotechnology: fermentation amino acids 5,200 5,600 5,780 Industrial biotechnology: Specialty enzymes, biopolymers 380 370 370 Environment biotechnology: specialty microorganisms 40 44 100 Services and supplies: BA/BE, laboratory supplies/services, strain improvement, etc. 1,500 1,650 1, 940 Other (14%) pharmaceuticals (24%) other (25%) food industry (25%) Food industry (51%) specialty (11%) pharmaceuticals/specialty (50%) Industry output is about NTD 15 billion → industry output will be NTD 80 billion in 1997 in 2005 19 Biotech Services Industry in Taiwan Segments Services Companies Biochemical Instruments, bioteactors, computer Becton Dickinson, Agilent, E-Hong Instruments（益弘）, San Kwang Laboratory Instruments software, Labwares, lab. reagents Instruments（三光）, China Chromatography（中國層析）, Varian、 and Supplies Perkin Elmer、Beckman Physicochemistry test, toxicology test NAmSA Analytical Cenpro Technology（中環科技）, SGS Taiwan（台灣檢驗科技）,Shou Bioremediation, environmental chemistry analysis Jaan（碩展科技）, GeneAsia（亞太生技） Contract research, manufacturing of Grand Biotechnologies（新高）, Taiwan Genome（台灣基因）, Vigene Contract Research and biopharmaceuticals, industry enzymes or specialty Diagnostics（微基因）, Covance, Quintiles Production chemicals Combinatorial chemistry, drug delivery system and Advanced Gene Tech（先進基因）, GeneAsia, United Biomedical bioinformatics Platform Technology DNA sequencing Mission Biotech（明欣）, Violet BioScience（紫外光） Peptide or DNA synthesizing DNAFax Inc.（湃瑪仕） Panlabs（泛球）, Statplus（晉加）, Gene Labs（健亞）, GeneAsia, Pre-clinical or clinical trials New Drug Development Covance, Quintile BA/BE Mithra（明生）, Protech Lab. Co.（佳生） Intellectual property right and legal service Lee and Li（理律）, Top Team International（冠群）, Deep & Far（道法） China Development Industrial Bank（中華開發）, Fidelity, Hotung（和 Venture Capitals Others 通）, BioAsia（生亞）, MDS Capital Consulting and regulatory affairs 20 Biotech Parks in Taiwan 21 Challenges Production Domestic pharmaceutical companies producing traditional vaccines have difficulties transforming to biotech-based due to shortage of capital, equipment and technology The animal biotech are too little to reach profitable scale The verification of products is unsure and not internationally recognized Biotech products cannot be produced without the license of chemical factory The skill of basic technicians should be upgraded 22 Challenges Marketing The domestic market is too small and international market is conditionally opened as WTO prevails The GMO issue has not been recognized internationally The verification, label and education are not sufficient The crisis of agri-products after Taiwan becomes a WTO member Insufficient information of global market 23 Challenges Operations Lack of ability to research and develop new drugs and vaccines (?) High cost in R&D lowers interests of the potential investors Lack of ability to evaluate new technology and market (?) Lack of managers and CEOs with both scientific knowledge and managerial experience Lack of Chief Operating Officers 24 Challenges Environment Lack of public facilities Building coverage ratio bans to build the warm room at the farm land in the Urban Planning Zone Rising cost of land, manpower and living expense The government policy to assist and protect traditional farming industry interferes the market 25 Challenges Regulations and Laws Regulations and laws are not updated Intellectual property is not fully protected GMP verification is not standardized Ban to recruit professional biotech talents from mainland China 26 National Science and Technology Program for Agri. Biotechnology 1998-2001, 2002-2004 Market potential Sustainable development of the agri. Biotech industry in Taiwan Taiwan as the R&D hub in the Asia-Paci fic region 27 Seven Important Areas Flowers and ornamental plants Bioprotectants for plant protection Aquaculture Livestock/Animal Vaccines Post-harvest technology/utilization Environmental biotechnology Development and utilization of medical and health plant 28