Life Science Biotechnology In Taiwan

1
Life Science (Biotechnology) In Taiwan
September 2003
2
Introduction

• Biotechnology in Taiwan is a Government Driven
  Industry Encourage international partnership in
  technology transfer and commercialization.
• SG Crown Securities Taiwan ranked the 1st for
  developing biotechnology industry among Asian
  countries, with a score of 138, followed by
  Singapore, 127 1

3
Current Status of Biotech Industry in Taiwan
(2002)
Unit US million (US NT 134.5)
Source Biotechnology Pharmaceutical Industries
Program Office, 2003
4
Biotechnology Pharmaceutical Industry Status
in Taiwan
Distribution of Companies
Resource ITIS, 19972002
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BPIPO

• Biotechnology Pharmaceutical Industries
• Program Office BPIPO
• Task
• To assist both domestic and foreign companies
  to seek business opportunity, strategic
  partnership and to promote international
  cooperation and make Taiwan a vital link for the
  RD and commercialization of the global
  biotechnology industry

6
RD Organization for Biotech and Pharmaceutical
Industries
Non-profit RD Organizations
National Health Research Institute
Industrial Technology Research Institute
Development Center for Biotechnology
Pharmaceutical Industry Technology
and Development Center
Food Industry Research and Development Institute
Animal Technology Institute Taiwan

• Gene
• re-engineering
• pharmaceuticals
• Tests on
• animals
• Biotechnology
• safety tests
• Structural
• engineering

• Bacterial
• collection,
• examination,
• and
• preservation
• for the
• improvement
• of food
• technology

• Public health
• New drug
• discovery
• Clinical trial

• Chemical
• production
• processes
• Bio-informatics
• Biotechnology
• and
• pharmaceutical
• bulk materials

• Biotechnology
• and
• pharmaceutical
• production
• processes
• Pre-clinical
• trial

• Pharmaceutical
• dosage forms
• Pre-clinical for
• Chinese herbal
• medicine
• Production
• processes for
• Chinese herbal
• medicine

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Development Center for Biotechnology (DCB)

• DCB
• A non-profit government supported RD
  organization.
• BioFronts
• Pre-screen information on potential partner for
  cooperation for its participating companies.

8
BioMedical Engineering Center, ITRI

• Role
• As a high tech contract services company to
  nurture and accelerate entrepreneurial technology
  and create new spin offs.
• Research Themes -
• biometirials, biochips, medical devices,
  pharmaceutical engineering, bionformatics.

9
Government Investment Incentive Program in Taiwan

• Tax Benefits
• Government Investment Participation
• Research and Development Grants1
• Capital Resources
• Preferential Policies

10
Investment in Biotechnology Pharmaceutical
Industries in Taiwan
15.14 Jan-Aug 2002
Investment
Unit NTD billion
Year
Source Sep., 2002, BPIPO (USD NTD 1 35)
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Biotechnology ClustersIndustrial Parks for
Biotechnology Industry
NANKANG BIOPARK
WUKU INDUSTRIAL PARK
HSINCHUSCIENCE-BASED INDUSTRIAL PARK
LITSE INDUSTRIAL PARK
CHANGHUA COASTAL INDUSTRIAL PARK
HO-PING INDUSTRIAL PARK
YUNLIN TECHNOLOGY INDUSTRIAL PARK
TOULIU EXTENDED INDUTRIAL PARK
TAINAN SCIENCE-BASED INDUSTRIAL PARK
TAINAN TECHNOLOGY INDUSTRIAL PARK
Source IDB, MOEA
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SWOT of Taiwans Biotechnology Industry

• Strengths
• 1. Abundant Capitals
• 2. Government resolved to fully promote
  biotech industry in Taiwan (incentives, a
  sound environment )
• 3.Numerous domestic and overseas Chinese
  scientists
• 4.Biotech industry is active in Taiwan

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SWOT of Taiwans Biotechnology Industry

• Weaknesses
• 1.The lack of international marketing ability
  and the limit of domestic market
• 2.The weakness in innovation and the
• disconnection between RD and industries
• 3.The execution of intellectual property and the
  related regulation has not reach to the
  international standard

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SWOT of Taiwans Biotechnology Industry
Opportunities 1.International market pays much
attention to collaborate with Taiwan 2.The
familiarity with Mainland Chinas market and life
styles 3.A solid potential in the global
market 4.Biotech industry is one of the ten star
industries to develop in Taiwan 5.Opportunities
after entering WTO (a liberalized market )
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SWOT of Taiwans Biotechnology Industry

• Threats
• 1. Investors are lacking of long term turning and
  patience
• 2.The competition with development countries due
  to the high production costs

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Development Strategy Focus

• RD Focus on Illness that frequently occurred
  among Asians (liver, cervical, nasopharyngeal
  cancers)
• Technologies that relate to opto-electronic and
  micro-electronics engineering
• Special Plant and Animals
• Chinese Herbal Medicine
• Pharmaceutical Precision-Production

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Biochips Focus on regional contagious and
inherited diseases

• 10 companies involved in RD, and 3 has
  commercialized products
• Test chip for contagious diseases
• Gene description and food test chip
• New drug development

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Chinese/ Herbal Medicine

• 195 Companies
• Production value over NT4 billion.
• Can be marketed as FOOD, DIETARY SUPPLEMENT, OTC
  and prescription.
•  

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Trade Opportunities

• Drop of import duties after WTO represents trade
  opportunities in medical equipment,
  biopharmaceutical products, herbal medicine,
  bio-food (functional/health food,food supplement,
  amino acid) special chemistry.1
• Tariff 02 for medical devices
• 0 6 for pharmaceuticals
• Tariff will be down to 0 by the end of 2004.

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Investment Models
Sino-Canada Biotechnology Development
Fund Cooperation between Executive Yuan
Development Fund MDS Capital
(Canada)1 Co-development Conduct
basic/time-consuming research in Canada, and
manufacture commercialized products in Taiwan to
market in Asia and North America2
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Potential Areas

• Biopharmaceutical
• Medical Instrument and Devices

• Functional Food
• Diagnostics
• Herbal Medicine

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Conclusions

• International collaboration is essential for the
  success of this industry in the area of RD,
  production, marketing and investment.
• Taiwan is a strategic location and partner for
  the development of biotechnology and
  pharmaceutical industries for Asia and Great
  China Market.

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Events/Shows

• BioBusiness Asia 2003
• September 30 October 1
• www.BioBusiness-Asia.com
• Mediphar 2003
• November 7 10
• www.TaipeiTradeShows.com.tw/Mediphar