The Biotechnology Industry The Biotechnology Industry in Taiwanin Taiwan

Taiwan Institute of Economic Research

Dr. Julie C. L. SUN

Development of Taiwan Biotech IndustryDevelopment of Taiwan Biotech Industry1982

Eight Key Technologies

. . . .

Biotechnology

Hepatitis prevention

1995

Action Plan for Biotechnology Industry Development

Advisory Committee for Promoting Biotechnology Industry, Executive Yuan

1996BiotechnologyAndPharmaceuticalIndustriesProgram Office(BPIPO), MOEA

2003Action Plan for

BiotechnologyIndustryDevelopment (amended)

2005Bio Taiwan

Commisson(BTC)

BioMedicalIsland Plan

1984

Development Center for Biotechnology

(DCB)

1993

Pharmaceutical

Industry Technology

And Development

Center (PITDC)

1996National HealthResearchInstitutes(NHRI)

1998

Center for

Drug

Evaluation

(CDE)

1999BiomedicalEngineeringResearchCenter,IndustrialTechnologyResearchInstitute(ITRI)

2003GenomicsResearchCenter,AcademiaSinica (GRCAS)

1993

Food Industry Research and

Development Institute (FIRDI),

Bio-resources Collection and

Research Center

Government Measures

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Current Status of TaiwanCurrent Status of Taiwan’’s Biotech s Biotech Related Industries (2005Related Industries (2005ff ))

Industry sectorNew

BiotechnologyPharmaceuticals

MedicalDevices

Total

Revenue 1,212 1,940 1,850 5,002No. of Companies 253 419 480 1,152

Workforce(persons)

8,090 14,995 15,000 38,085

Export Value 488 348 839 1,675Import Value 501 1,791 1,073 3,365

Domestic Sales vs. Export

60:40 87:13 55:45 67:33

Domestic Market 1,225 3,383 2,084 6,692

Source: rearranged by BPIPO,2006

(Unit: million US$)

1USD:1NTD=1:32.167

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362

168

356

632 600 626

732787

0

100

200

300

400

500

600

700

800

Investment Amount(Unit: million US$)

1998 1999 2000 2001 2002 2003 2004 2005 year

Investments in Taiwan Biotech IndustryInvestments in Taiwan Biotech Industry

Source: Biotechnology & Pharmaceutical Industries Program Office, MOEA

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Bio Clusters in TaiwanBio Clusters in Taiwan

Nangang Software Park Biotech Plaza

Yilan Marine

Biotechnology Park

Changhua National

Flower Park

Taitung Deep Ocean Water

Technology Park

Ping Tong Agricultural

Biotechnology ParkKaohsiung Biotech Park

Tainan Science-Based

Industrial Park

Taiwan Orchid

Biotech Park

Medicinal Herb

Biotech Park

Taichung Science-Based

Industrial Park

Hsinchu Science-Based

Industrial Park

Hsinchu Biomedical

Science Park

Source: IDB, MOEA

CompletedIn construction

PlannedBeing assessed

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TaiwanTaiwan’’s Life Science Researchs Life Science Research

＞150 Universities

35,000 graduates/year (~7,000 graduates/ year in life sciences)

17 Large Medical Centers

7 Certified Clinical Trial Hospitals

More then 20 Research Institutes：

－ITRI, NHRI, DCB,

Academia Sinica, FIRDI,

PITDC, CDE, etc.

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Highly Educated and Innovative WorkforceHighly Educated and Innovative Workforce

Life Science talents supply B.S. M.S. Ph.D. Total

2005f 4,258 2,382 237260284

6,8772006f 4,684 2,620 7,5642007f 5,105 2,855 8,244

Life Science graduates

Source: 2004 Development Center for Biotechnology ITIS Project

109 domestic life science-related departments in 2005(of which 57 were graduate institutes).

18th on the number of major scientific theses and dissertations presented (2003)

－12,392 (Total)

－5,110 (Biotech)

4th in patents issued in US(2004)

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Investment Incentives 1Investment Incentives 1

(1) Tax BenefitsTax deduction up to 30% of the R&D and HRD expenses

Tax deduction of 5%-7% for the investments in automation, pollution control, energy-saving, etc.

(2) R&D Grants Programs：Grants for Development of Innovative Products

Grants for Industrial Technology Development Program

Grants for Conventional Industry Technology Development

Grants for Small Business Innovation Research (SBIR)

Grants for Industrial Technology Innovation Centers

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Investment Incentives 2Investment Incentives 2(3) Joint Investment from the Government

FundThe Executive Yuan’s Development Fund can join investments in biotech companies and venture capitals.

(4) Low Interest LoanLoan for promoting industrial research and development

Loan for medium-long term investment (Council For Economic Planning and Development)

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Investment Incentives 3(5) Industrial Park Rent Discount Program “00-

66-88”Zero rent for the first two years;

40% discount for the 3rd and the 4th years;

20% discount for the 5th and the 6th year.

The rent paid may be used to offset the purchase price

(6) Listing / OTC TradingTechnological enterprises that have successfully developed marketable products / technologies

27 biotechnology companies are currently listed or OTC traded

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Why Taiwan?

Superior geographic gateway to the Asia-Pacific region

Ideal springboard into mainland China markets

Well-integrated industrial clusters

Abundant high-quality human resources

Excellent R&D and commercialization capabilities

High quality medical centers for clinical trials

Strong government support

Biotechnology Industry Study Centre,Biotechnology Industry Study Centre,Taiwan Institute of Economic ResearchTaiwan Institute of Economic Research

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National Science And Technology Program National Science And Technology Program For Agricultural BiotechnologyFor Agricultural Biotechnology (NSTAB)(NSTAB)

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Genomics /proteomics

Gene/Trait identification

Trait optimization

Field trial Advanced development

Growing/ProcessingTarget

materialModel system

Modi-breed(Mkt)

CommercializationIndustrial products

Medical products

Agricultural products

Modified breed development Application in different industries

EST analysis

cDNAanalysis

Genome sequence analysis

Genetic marker

Expression analysis

Phenotype screening

Gene taggingPromoter

Vector system

Transformation tech

Crossing tech

Asexual reproduction

tech

Sexual reproduction

tech

Safety evaluation

Environment evaluation

Microarray

ELISA

Lab-on-a-chip

Instruments Reagents Software

Product

Information

Tool

Nucleic acid amplification

Material Library

Mutagenic manipulation

The The DevelopmentDevelopment Framework for Framework for Modified BreedModified Breed

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Genomics /Proteomics/Metabolomics

Target Identification

Bio-activity ValidationSafety & Efficacy / RegulationComponentRaw

material

Marketing

SourcesFinding & Research

Clinical Trial / Regulation

Pharmaceutical Marketing

Product Type &

Manufacture

Computer Simulation

Bio Chip Data Bank

Biological Kits

Data AnalysisAnalysis Instrument

Tools

Culture and Incubation

In vitro platform

In Vivo/ Animal Platform

Productivity Expand Products

Information

Screening

Source Identification

Sources Purification

In Vivo/Human Platform

Safety Evaluation

ExtractionFormulationCompaction

The Development Framework for Functional FoodThe Development Framework for Functional Food

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Product

Tools

Information

Microbe bank Nucleic acid amplification, detection

Instruments Reagents Software In vivo platform

Western blot analysis ELISA Cell sorting systems

Immunogendevelopment

Laboratorytrial

Field trial /Regulation

MarketingAntigenidentification

Formulation /Scale-up

Koch’s ostulates

Computer simulation

Genomic analysis

Proteomic analysis

Safety validation

Protectivity validation

Immunogenicity analysis

Expression analysis Stability validation

Attenuation

Delivery systems

Adjuvants

Recombinant DNA

Therapeutic antibody

Inactivation

FermentationPeptide synthesis

The Development Framework for VaccineThe Development Framework for Vaccine

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All in all, a bright future All in all, a bright future for cooperation between for cooperation between

US and Taiwan!US and Taiwan!

Thank you for your attention!Thank you for your attention!

Taiwan Institute of Economic ResearchBiotechnology Industry Study CentreTEL: +886-2-2586-5000FAX: +886-2-2597-9641http://www.tier.org.tw/