(Taiwan) APEC biotechnology representatives meet to discuss development strategy, policy :: BiotechEast - Taiwan and China biotechnology, medical devices, pharmaceuticals, ^¤å½s×, ^¤å×§ï ::

(By David Silver, BiotechEast)

19 July, 2005
At the annual meeting of Asia Pacific Economic Cooperation (APEC) biotechnology representatives, held today in Taipei, delegates representing the organization's member economies talked about the industry's development in terms of government policy and strategy.

Dr. Morakot Tanticharoen from Thailand's National Science and Technology Development Agency, speaking at the 2005 APEC Biotechnology Conference, in Taipei's Grand Hyatt Hotel, on Tuesday, 19 July, 2005.

The 2005 APEC Biotechnology Conference is a one-day event held annually in Taipei, part of a week of life-science focused events that will include BioBusiness Asia 2005 (20-21 July), and the Bio Taiwan 2005 exhibition (22-25 July).

Over the years invited speakers at the event have included representatives from a wide selection of the 18 economies that make up APEC. This year overseas speakers include representatives from Australia, Thailand, Hong Kong, New Zealand, Korea and the US.

Introducing Australia's policies and progress in the life sciences arena in the morning session was Dr. Mikael Hirsch, Biotechnology Coordinator for Australia's Commonwealth Scientific and Industrial Research Organization (CSIRO), the country's largest research institute.

CSIRO already have well-established ties with its counterpart in Taiwan, the Industrial Technology Research Institute (ITRI), with Hirsch announcing CSIRO's cooperation with ITRI's Biomedical Engineering Center (BMEC) for the joint development of biomaterials for wound care, at the Taiwan Pavilion at BIO 2005 in Philadelphia in June of this year.

Next up was Thailand's Dr. Morakot Tanticharoen, director of the country's National Center for Genetic Engineering and Biotechnology. Morakot spoke of government development focus areas, with national goals including the establishment of Thailand as the 'Kitchen of the World,' and the utilization of biotechnology for environmental conservation, energy production and economic self-sufficiency. Focusing on Thailand's biotechnology development policy's effects on the country's shrimp growing industry, the largest in the world after China, Morakot demonstrated how the clustering nature of related R&D, production and processing industries had led to a more efficient and scientific approach within the industry.

Thailand also boasts generous incentives for biotech start-ups.

"There is a 200 percent tax exemption for investment in R&D; invest one dollar, get two back," explained Morakot.

This program is available to overseas as well as local companies, said Morakot.

"We have a company from Belgium working in shrimp biotechnology, Shishido in bio-cosmetics, and GSK for drug development," she said.

Speaking next was Taiwan's representative, Dr. Hardy Chan, co-founder and executive vice president and CSO at ScinoPharm Taiwan, Ltd., one of Asia's leading API manufacturers.

Chan mentioned firstly that although not a Taiwanese native (he was born in Hong Kong), he was able to talk about Taiwan's achievements in biotech and its regional advantages in the sector because his company ScinoPharm chose Taiwan as its operational base, and has since been a direct recipient of the many incentives the government is offering to help kick-start the industry on the island.

"I've also been privileged to serve on many committees of governmental and non-governmental agencies that have been a major part of Taiwan's economic miracle. A lot of the industrial techniques in many industries, such as in the textiles, electronics, and food processing industries, have been developed by these agencies. For example, the instant noodle industry in Taiwan got started through the efforts of the Food industry Research and Development Institute," he said.

Chan explained that the attention of these agencies in developing knowledge and infrastructure is essential for the growth of an industry such as biotechnology.

"From back in 1982 when the government first started to look at biotechnology seriously, the island has been working hard to develop the 'critical mass' required. Government investment has been steadily growing, with investment in biotech now accounting for 30 percent of the national R&D budget," said Chan.

This investment is being channeled into various agencies, such as the Council of Agriculture, the National Science Council, the Genome Project, and Academia Sinica. Part of this support goes into a range of incentives, assisting both large and small companies.

"At ScinoPharm we have people whose job it is just to keep track of the incentives on offer from the government. We don't want to miss out on any," joked Chan.

Perhaps preparing the audience for the lunch to follow, Chan said that the incentives on offer for tenants of the island's science parks, such as ScinoPharm (located at the Southern Taiwan Science Part in Tainan Country) would make the APEC delegates salivate.

"All machines and industrial equipment for a start-up factory can be imported duty free. Companies enjoy a five year tax holiday, starting from the day they are profitable. And land is available for lease at very low rates, much cheaper than if purchased yourself," he said.

Setting up in Taiwan for these very reasons, the FDA-approved factory was built an astonishing 14 months, at a quarter of what it would have cost in the US or Europe, or even Singapore, he said. And the company is doing nicely, according to Chan.

"Last week we landed a US$4 million contract with one of the world's largest pharmaceutical companies," he said, although confidentiality agreements prevented him from being more specific. "We've been doubling our sales every year, and will have US$30-40 million in sales this year alone," stated Chan.

"ScinoPharm is also a supplier to all the world's major generic drug manufacturers," he said. Noting the even though India and China both had large and growing API industries, many of the generic manufacturers of India, some of the world's biggest, are currently purchasing APIs from ScinoPharm.

Summing up, Chan noted that Taiwan's people had an infectious enthusiasm and unparalleled work ethic, as well as talent to match.

"Taiwan can compete head on in research with anyone in the world," he claimed.

As for the direction Taiwan was taking in the development of its life sciences industries, Chan suggested that the hybrid mix of manufacturing, devices, and drug discovery and development was probably the right way to go, particularly for an investment community that has in the past enjoyed a quick return on its investment.

"Just drug discovery and development takes so long, and investors get impatient. Then again, perhaps the one thing Taiwan needs is to learn to be more patient," he said.

Speaking at the conference in the afternoon session are Paul Tam, Pro-Vice Chancellor at the University of Hong Kong; Dr. George Slim, director of biotechnology policy at the Ministry of Research, Science and Technology, New Zealand; Jin-Hee Park, Deputy Director, Fundamental Technology Development Division, Ministry of Science and Technology, South Korea; and Manoj Kenkare, Vice President, Healthcare Research, Asia Pacific, Frost & Sullivan.

Along with conference sponsors the Asia Pacific Economic Cooperation, the conference was organized by the Department of Industrial Technology, MOEA, along with the ITRI, and the Taiwan Bio Industry Organization.

The meeting is an officially sanctioned APEC event, and as a member of APEC as an 'economy' not a country, Taiwan was referred to as 'Chinese Taipei' during the course of the day's proceedings.

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