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The BioEconomyThe BioEconomy
By Dr J R WebsterBy Dr J R Webster
Executive Director: Executive Director: AfricaBioAfricaBio
The BioEconomyThe BioEconomy
Global biotechnology dynamics.
Status in Africa.
Where are we in South Africa?
Will we have a BioEconomy?
CURRENT TRENDS IN THE BIOTECHNOLOGY INDUSTRY
the biotechnology
century Current trends
In 2000,biotech companies raised US$37.2 billion through public and private financing, US $10 billion in 2001
The completion of the “rough” draft of the sequence of the human genome signals a new era in the biotech industry.
This means that the biotech industry has its best years ahead of it.
4,254 biotech companies globally in 25 nations
CONTINUATION OF CURRENT TRENDS IN THE BIOTECHNOLOGY
INDUSTRY
Biotech companies develop more than half of the approved medicines in the US
Biotech companies fall into one of two categories:
Product development e.g. Genetech, MedImmune,
Qiagen
Service Companies e.g. Celera,Incyte,Evotec
Current Trends contdCurrent Trends contd..
622 public biotech companies generated $35 billion
Spent $16 billion in R&D Employed 188,000 in 2001 72% of revenues generated by US companies
Biotechnology companies are currently listed on the:
Neuer Market
EASDAQ
Swiss New Market
NASDAQ
Alliances
Pharmaceutical industry has recognised the value delivered by biotechnology to the drug development process.
Biotech-pharma alliances for drug discovery have been increasing steadily from 101 alliances between 1988 to1993 to 145 alliances in 1997 and 1998 alone. More than 480 pharm – biotech collaborations and 550 biotech – biotech partnerships globally in 2001.
Alliances in other areas – drug delivery, vaccines etc have been increasing at a similar rate.
Measurements of Measurements of Success in Success in
BiotechnologyBiotechnology Financial- What happened to the Nasdaq
Biotech Index The Nasdaq represents the most actively
traded biotech stocks. The index is a capitalisation-weighted index.
The Nasdaq Biotech index(NBI) has increased 437% since its inception on Nov. 1 1993.
In 2000, The NBI increased 23% out-performing all other Nasdaq indices.
Biotech Product developmentBiotech Product development(drug development)(drug development)
Matured since 1982 when r-insulin was developed.
Now over 120 approved biotech drugs available. Now over 300 in last phase of clinical
development in the USA alone. Biotech products now account for half of all
newly approved medicines in the USA- this will increase.
Companies not using biotech will pay double the costs to produce a new medicine.
What will increase What will increase biotech product biotech product development?development?
Genomics
Currently 500 disease targets are used to develop new medicines.
In 5-10 years genomics will deliver 5,000-10,000 disease targets
Advanced Genomics Will Advanced Genomics Will Accelerate Discovery of Accelerate Discovery of
Next Generation ProductsNext Generation Products
Genome Gene map Gene sequence Gene expression Ag traits
YieldDrought
Disease
Stress
Oil quality
Maturity
Stress
DiseaseYield
Herbicidetolerance
t
a
g
c
t
a
g
c g c
t
c
g
c
t
g t
c
g t
g
g
t
ct
g
a
t
g
a
t
g
t
t
g
t
g
t
a
a
a
a
c
g
g
c AlzheimersBreast Cancer
Arthritis
Stress
Aging
Aging
CV Disease
ObesityVision
Arthritis
Pharma traits
t
Solving unmet needs in human health and food production
g
How does policy affect How does policy affect biotech business and biotech business and policy development?policy development?
Key growth factor in USA pharmaceutical industry has been the Orphan Drug Act 1983.
To overcome lack of investment into drugs to treat small numbers of patients- US granted 7yr exclusivity and other incentives to companies for orphan drugs.
Now 900 orphan drugs developed with 200 approved.
Biotech companies file 85% of applications for new orphan drugs.
This approach has now been adopted in the EU.
Predictions
2010: Predictions tests for 25 genetic conditions will be possible along with interventions to reduce risk of their onset
2020: Designer drugs for diabetes, hypertension, cancer and other major illnesses will be developed and prescribed for patients based on genetic profile, making medicines more effective
2030: Genes involved in ageing will be fully characterised and clinical trials of drugs to extend normal human life will be underway
2040: Comprehensive genomics-based health care will be the norm
New AdvancesNew Advances
NOVEL APPLICATIONS OF BIOTECH
Spider silk-harvested from protein in goats milk (bullet proof vest, medical applications)
Plants as factories for pharmaceuticals and industrial products, (biopolymers, new oils or fibres) as biosensors, salt tolerant crops (grow in sea water) virtual plants
Flowers with different patterns, miniturized and longer shelf life
WHAT ABOUT DEVELOPING COUNTRIES?
Technology divide will continue unless governments invest (see World Bank-Health Genomics Divide report)
New African Initiative could be extended to genomics
Cuba has 400 biotech patents (exporting biotech vaccines)
Brazil has rapidly developing genomics and biotech industry
India increasing investment in genomics and biotech ($85 million on genomics in next 5 years)
Nigeria and South Africa investing
GM Crops World-wideGM Crops World-wide Over 30 GM Crops.
Including the following: maize, wheat, soya beans, papaya, raspberries, tomatoes, canola, potatoes, peppers, cabbage, cucumber, squash, cotton, grapes, carrots and chicory.
Trees, turf, flowers
GLOBAL AREA OF GM CROPS
30 FOLD INCREASE SINCE 1996
Global Arear of GM Crops, 1996 to 2001
1.7
11
27.8
39.944.2
50
0
10
20
30
40
50
60
1 2 3 4 5 6
YEARS
1
2
3
4
5
6
Source: Clive James, ISAAA
Where are we with GM crops Where are we with GM crops world wide?world wide?
GM crop planting globally increased by 11% in 2000 and >10% in 2001. It has slowed down due to slow development of new markets and lack of products with consumer benefit
More developing countries are commericalising and investing in crop biotech
China wants to be the Asian centre of excellence
Between 1997 and 1999 China approved 26 applications for commercialisation of GMOs, 59 for environmental releases and 73 for field trials
Biotechnology R&D in sub Biotechnology R&D in sub Saharan AfricaSaharan Africa
Status of R&D in sub-Status of R&D in sub-Saharan AfricaSaharan Africa
Primarily second generation biotechnology e.g. plant tissue culture (Ghana: cassava, yam, pineapple, cocoa,banana,etc; Nigeria:cassava,yam,banana,cowpea etc).
Genetic engineering projects aimed at pest and disease resistant crops.
Crops include: sweet potato, banana, sugar cane, cassava, sorghum and maize.
Other projects include development of molecular markers and probes.
Virus resistant sweet potato in Kenya, expect insect resistant maize soon and possibly fungal resistant banana.
Being or to be tested in Egypt is GM squash, melon, cantalope, tomato, potato, sugarcane, maize, cucumber and wheat.
Insect resistant cotton in Zimbabwe. Few GM crop field trials in Africa and South
Africa is the only country with commercial GM crop but GM commodities are ready for export to Africa.
Field Trials in Africa-Field Trials in Africa-What’s the Reality?What’s the Reality?
Status of Biotechnology in Status of Biotechnology in South Africa*South Africa*
Over 500 biotechnology projects spread over seven sectors.
Medical and pharmaceutical sector attracts the most funding; plant sector second largest.
Few local products are developed, imported technology is driving commercialisation &
industrial growth.
Half biotechnology funding is spent on genetic modification projects.
Consumer awareness is critical.
*Taken from report for CSIR 1998 (Webster & Koch)
South Africa as a Case South Africa as a Case StudyStudy
R&D for 20 years Plant trials for 10 years (using existing policy) New GMO policy implemented in *1999 Only 4 commercial approvals by end 2001 About 110 plant biotech groups (academic and
research) Over 160 plant biotech projects About 45 companies using biotechnology in food,
feed and fibre Public not informed; Anti-activists making an
impact
Changes in SA statusChanges in SA status
National Strategy
Labeling Legislation
Venture capital
Bioincubator
Consumer perceptions
Successful Successful Application of Biotech provides Application of Biotech provides
positive perceptionspositive perceptions
Change in Approach of EUChange in Approach of EU Purvis report has a lot of support Want to be the knowledge based center of excellence
and highlighted biotechnology Purvis report opposes that medical biotech provides
opportunity and agbiotech provides risks Regrets moratorium for GM which was not based on
scientific evidence EU has not licensed new GM crops since Oct. 1998 New regulations mean lifting of moratorium,GM crops
will be planted in spring 2002 in Europe
Future prospects in EUFuture prospects in EU
New biotech strategy for EU is being developed- AfricaBio had input into this in Sept 2001
Commercialization of GM crops will proceed but will be slow
Different approach to public awareness-statements by EU e.g 15yrs of GM safety research has been carried out with 81 projects and 400 teams from different disciplines-GM crops just as safe as conventional foods
What lies ahead for biotech What lies ahead for biotech companies?companies?
Biotech business still at the beginning of the growth phase
Biotech is still seen as high risk Estimate that success rate for biotech business
is 13% Biotech companies founded in the next 5 yrs
have a chance to do as well or better than their predecessors
Biotech acquisitions will continue Partnering was Pharm/Biotech will be more
Biotech/Biotech
What is the Bio-Based What is the Bio-Based Economy?Economy?
Non-renewable resources
Process
Product
Waste
Renewable bio-resource Bio-process
Bio-product
Byproduct
Conventional
Bio-Based
Fossil C energy
Renewable energy
Recycle into bio-resource
Landfill or incinerate
Dr. J.F.Jaworski
Role of Biotechnology in the Bio-Role of Biotechnology in the Bio-Based EconomyBased Economy
(OECD)(OECD)
One of several key enabling technologies Biotechnology is converging with info-technology,
chemistry, physics, materials and nano-technology Bioprocesses: biotech can increase eco-efficiency Bio-resources: biotech can increase productivity &
sustainability of supply GMOs: essential to maximize efficiency & productivity
to achieve sustainability; BUT this has to be proven
Dr. J.F.Jaworski
MessagesMessages to business from OECD to business from OECD study on the application of study on the application of biotechnology to industrial biotechnology to industrial
sustainabilitysustainability
Why adopt biotechnology? To improve costs and be environmentally friendly
Be aware of change, find yourself an R & D partner
Have a champion, assemble arguments to convince doubters
Build your own in–house biotech skill base Companies – work with government and
biotech stakeholders
Dr. M. Griffiths
What should the What should the pharmaceutical industry do?pharmaceutical industry do?
Develop a clear understanding of the role of biotech in medical & pharmaceutical sectors.
Develop clear messages/statements about modern biotechnology
Inform your clients and stakeholders on biotechnology
Work with AfricaBio