Biotechnology in
Taiwan
2
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
3
Definition
Biotechnology
Firms using genetic and cellular techniques
Biomedicine: diagnostic/therapeutic
Industry
-
developed definitions & data
4
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
5
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
6
Products of Biotechnology
7
Types of Industries
Pharmaceuticals
Very large, global firms
Top ten average $15
billion sales
Assets are products,
distribution,
manufacturing expertise
Very Profitable
Biotechnology
Small, mostly single
establishment firms
•
Top ten average $700
million sales
Principal assets are
people, research and
future potential
Lose Money
8
Experiences from USA
Biotechnology Industry
Biotech tends to cluster
Leaders have an edge
Entrepreneurship & venture capital are key
Outlook for biotech
-
led economic
development
9
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
10
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
11
Keys for New Biotech
Research base is necessary
but not
sufficient
Commercialization Assets
Entrepreneurial researchers
Industry
-
relevant talent
•
Technical
•
Managerial
Venture capital
--
surprisingly localized
12
Competitiveness of
Asia
-
Pacific Biotech
Infrastructure Dev
’
t
Regulatory &
Cultural Env
’
t
Gov
’
t
Policy
Human
Resource Dev
’
t
Finance &
Resource
Mobilization
Overall
Ranking
Physical
Infrastructure
Scientific
Infrastructure
Regulatory &
Cultural Env
’
t
Gov
’
t
Policy
Human
Resource Dev
’
t
Public
Funding
Private
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
[
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)]
13
Overview of Asia
-
Pacific
Biotech Ventures
Asia Pacific Country/
Economy
Estimated
Number of
BioVentures
BioVentures
per million
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
Hong Kong
50
7.0
Singapore
30
6.9
Source:
BioEnterprise
Asia, original
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!
14
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
15
Evaluation of Asia Pacific
Biotech Development
Environment
Heavy regional
investment in the life
sciences
Growing scientific base
Expanding portfolio of
intellectual property
Hurdles/Challenges
Limited translation of
academic research and
technology development into
commercial application
Lack of strategic and business
management expertise in life
sciences
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 compa
nie
s.
We have only just begun!
Biotech in Taiwan
17
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
18
Current Situation in
Taiwan’s Biotech
(Aug. 1997 ~ June 2002)
19
Industry Structure of
Taiwan’s Biotech
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
Unit: NTD Million
Industry output is about NTD 15 billion
→
industry output will be NTD 80 billion
in 1997
in 2005
Other (14%)
pharmaceuticals (24%)
food industry (25%)
other (25%)
Food industry (51%)
specialty (11%)
pharmaceuticals/specialty (50%)
20
Biotech Services Industry
in Taiwan
Segments
Services
Companies
Laboratory Instruments
and Supplies
Biochemical Instruments, bioteactors, computer
software, Labwares, lab. reagents
Becton Dickinson, Agilent, E
-
Hong Instruments
(益弘)
, San Kwang
Instruments
(三光)
, China Chromatography
(中國層析)
, Varian
、
Perkin Elmer
、
Beckman
Analytical
Physicochemistry test, toxicology test
NAmSA
Bioremediation, environmental chemistry analysis
Cenpro Technology
(中環科技)
, SGS Taiwan
(台灣檢驗科技)
,Shou
Jaan
(碩展科技)
, GeneAsia
(亞太生技)
Contract Research and
Production
Contract research, manufacturing of
biopharmaceuticals, industry enzymes or specialty
chemicals
Grand Biotechnologies
(新高)
, Taiwan Genome
(台灣基因)
, Vigene
Diagnostics
(微基因)
, Covance, Quintiles
Platform
Technology
Combinatorial chemistry, drug delivery system and
bioinformatics
Advanced Gene Tech
(先進基因)
, GeneAsia, United Biomedical
DNA sequencing
Mission Biotech
(明欣)
, Violet BioScience
(紫外光)
Peptide or DNA synthesizing
DNAFax
Inc
.
(
湃瑪仕
)
New Drug Development
Pre
-
clinical or clinical trials
Panlabs
(泛球)
, Statplus
(晉加)
, Gene Labs
(健亞)
, GeneAsia,
Covance, Quintile
BA/BE
Mithra
(明生)
, Protech Lab. Co.
(佳生)
Others
Intellectual property right and legal service
Lee and Li
(理律)
, Top Team International
(冠群)
, Deep & Far
(道法)
Venture Capitals
China Development Industrial Bank
(中華開發)
, Fidelity, Hotung
(和
通)
, BioAsia
(生亞)
, MDS Capital
Consulting and regulatory affairs
Source
:
DCB,
ITIS
21
Biotech Parks in Taiwan
22
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
23
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
24
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
25
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
26
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
27
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
28
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
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