(Taiwan) US-based MediVas chooses Taiwan for new 'super generics' manufacturing facility :: BiotechEast - Taiwan and China biotechnology, medical devices, pharmaceuticals, ^¤å½s×, ^¤å×§ï ::

(BiotechEast staff)

21 September, 2007
In an announcement significant to Taiwan's efforts in building its standing as a regional biotechnology hub, San Deigo-based pharmaceutical company MediVas LLC said yesterday it had chosen Taiwan ahead of Korea, Singapore and China as its future manufacturing site for a new generation of generic pharmaceuticals embedded with the company's proprietary drug delivery technology.

Celebrating the MediVas announcement in Taipei on September 20, 2007, are (from left) Dr. Wu Min-shuh, chairman of Taiwan's Development Center for Biotechnology; Kenneth Carpenter, CEO of MediVas LLC; and Huang Hui-hui, president of the newly-formed MediVas Asia.

MediVas develops drug delivery technology that pharmaceutical companies employ in their drugs to better reach their biological targets. New drug delivery technologies such as those to by employed by MediVas in this project will allow for new dosage forms and delivery methods for the newer class of drugs, biopharmaceuticals, considered traditionally difficult to 'deliver' because of their large molecular size, or because of their destruction by stomach acids if taken orally. Such medicines, such as insulin, are conventionally delivered by injection.

"We are a privately-held, low-profile company, but we work with all big-name Big Pharma. It's just that you don't see 'Delivered by MediVas' on their drug packaging," explained company CEO, Kenneth Carpenter.

Carpenter explained his company's business model and reasons for choosing Taiwan to put it in place.

"We intend to incorporate existing generic drugs with our new delivery technology, re-patent them, and find distribution partners worldwide for the resultant products," he said.

Calling these new products 'Super Generics' Carpenter explained that they will bring new life into existing generics by offering more efficient and more convenient delivery forms.

According to company literature, by modifying the delivery mechanism the drug in question would obtain one of three distinct advantages: increasing the duration of action of the drug; elimination of an undesirable side effect of the drug; and changing the route of administration—for example, from injection to oral.

As for why Taiwan won out over its neighbors in attracting the interests of MediVas, his answer must have warmed the hearts of government representatives present.

"Taiwan has the most dynamic economy that we looked at, and seemed most similar to the US. Also, IP (intellectual property) protection was very strong, and that's important for the business we're in. But most importantly, nowhere did I see the kind of commitment from the government to support the industry as I saw in Taiwan," he said.

Just what kind of support the government is giving to this case will remain unclear, because, as Carpenter explained, as a private company they did not have to disclose the terms or financial details of the agreement.

Clear however are the benefits the deal will bring to Taiwan.

"It's all about jobs. All the Super Generics we produce for markets worldwide will be made in Taiwan. We expect this project to eventually provide tens of thousands of jobs locally," Carpenter said.

While the deal says a lot about the environment for new biotechnology ventures in Taiwan, it does highlight problems with the island's existing pharmaceutical industry, numbering around 300 most small manufacturers of generic drugs. Too small to produce at volumes and efficiencies to match India or China, their future and the future of the island's generic drug manufacturing industry as a whole seems uncertain. Confirming this, Carpenter explained that while the process of incorporating the company's delivery technology into generic drug's active pharmaceutical ingredient (API) will be carried out at its Taiwan plant, the API itself will be sourced from the cheapest supplier, most likely India or China.

He also explained that the company had considered working with existing manufacturing companies, but will set up their own plant instead.

"They were too slow to make decisions, so we decided to set it all up ourselves," he explained.

Indeed, the question of what role Taiwan should play in the global life sciences process chain is still undecided. What is clear is that it won't be in 'conventional' pharmaceutical manufacturing.

"The most difficult problem Taiwan is facing is its eroding competitiveness in the industry," said Dr. Apo Huang, responsible for international promotion and marketing at the Development Center for Biotechnology (DCB), a government-funded industry promotion body, service provider and research institute. "It seems that Taiwan is now off the radar. Everyone is talking about India and China," he said.

Huang said that although drug discovery and development remains the focus of many companies in Taiwan, the development of platform technologies or partnership with companies that are in this field such as MediVas, Taiwan can have an equally significant impact on the industry.

The Taiwan-based operations will be called MediVas Asia, and in a break from convention its general manager will not come from a medical or pharma background, but a legal one; Huang Hui-hui, previously a lawyer from a large legal firm out of Taichung.

"Our business is all about IP. That's why it's good idea to let a lawyer run things," said Carpenter, adding that he would also be in Taiwan two weeks a month.

Setting up the manufacturing operation and training the initial batch of staff will take up the first half of 2008, with the factory first rolling out research-grade polymers and recombinant proteins. In 2009 once GMP status is obtained the factory will start producing its first clinical-grade products, by which time at least 300 local people will be employed, according to Carpenter.

Indicative of the significance of yesterday's event, a large number of government and industry leaders were on hand to witness the announcement and share in the celebration, including Dr. Wu Min-shuh, the chairman of the DCB, and Dr. Lin Ferng-ching, Minister of State.

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