The BioEconomy

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The BioEconomy By Dr J R Webster Executive
Director AfricaBio
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The BioEconomy

• Global biotechnology dynamics.
• Status in Africa.
• Where are we in South Africa?
• Will we have a BioEconomy?

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CURRENT TRENDS IN THE BIOTECHNOLOGY INDUSTRY
the biotechnology century
Current trends

• In 2000,biotech companies raised US37.2 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

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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
  

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Current Trends contd.

• 622 public biotech companies generated 35
  billion
• Spent 16 billion in RD
• Employed 188,000 in 2001
• 72 of revenues generated by US companies

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Biotechnology companies are currently listed on
the

• Neuer Market
• EASDAQ
• Swiss New Market
• NASDAQ

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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.

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Measurements of Success in Biotechnology

• Financial- What happened to the Nasdaq Biotech
  Index
• The Nasdaq represents the most actively traded
  biotech stocks. The index is a capitalisation-weig
  hted 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.

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Biotech Product 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.

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What will increase biotech product 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

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Advanced Genomics Will Accelerate Discovery of
Next Generation Products
Genome
Gene map
Gene sequence
Gene expression
Ag traits
Pharma traits
Yield
c
t
Alzheimers
Drought
Breast Cancer
a
t
t
Disease
Arthritis
Stress
t
t
t
Stress
a
t
a
t
Stress
CV Disease
a
a
t
Oil quality
Aging
a
a
t
t
t
Disease
Obesity
Yield
Vision
Maturity
Aging
a
t
t
Arthritis
Herbicide tolerance

• Solving unmet needs in human health and food
  production

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How does policy affect biotech business and
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.

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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

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New Advances
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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

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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

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GM 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

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GLOBAL AREA OF GM CROPS

• 30 FOLD INCREASE SINCE 1996

Source Clive James, ISAAA
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Where are we with GM crops world wide?

• GM crop planting globally increased by 11 in
  2000 and gt10 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

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Biotechnology RD in sub Saharan Africa
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Status of RD in sub-Saharan Africa

• Primarily second generation biotechnology e.g.
  plant tissue culture (Ghana cassava, yam,
  pineapple, cocoa,banana,etc
  Nigeriacassava,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.

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Field Trials in Africa-Whats the Reality?

• 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.

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Status of Biotechnology in 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)
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South Africa as a Case Study

• RD 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

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Changes in SA status

• National Strategy
• Labeling Legislation
• Venture capital
• Bioincubator
• Consumer perceptions

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Successful Application of Biotech provides
positive perceptions
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Change 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

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Future 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

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What lies ahead for biotech 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

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What is the Bio-Based Economy?
Product
Fossil C energy
Non-renewable resources
Process
Conventional
Waste
Landfill or incinerate
Renewable energy
Bio-product
Renewable bio-resource
Bio-process
Bio-Based
Byproduct
Recycle into bio-resource
Dr. J.F.Jaworski
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Role of Biotechnology in the Bio-Based
Economy(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
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Messages to business from OECD study on the
application of biotechnology to industrial
sustainability

• 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 inhouse biotech skill base
• Companies work with government and biotech
  stakeholders

Dr. M. Griffiths
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What should the 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