DRESDEN, Germany, November 8 /PRNewswire/ -- At the BIO-Europe 2005 conference in Dresden, a team of senior officials from the biotechnology industry discussed how to “Build a Flourishing Biotech Sector”.
The panel included:
- Moderator: Morrie Ruffin, Executive Vice President BIO, Capital Formation Section & Business Development
- Jim Mullen, Chairman and CEO of Biogen Idec and Chairman of BIO
- Jim Greenwood, President of the Biotechnology Industry Organization (BIO)
- Dr Peter Heinrich, CEO MediGene, President of European Biopharmaceutical Enterprises (EBE) and President BIO Deutschland
- Simon Best, Chairman of Ardana Bioscience and Chairman Elect of the BioIndustry Association (BIA)
Prof. Georg Milbradt, Minister-President of the Free State of Saxony, following his speech at the conference opening plenary, put out a statement to the press, a summary of which follows. The full statement can be found at www.biosaxony.com.
According to Prof. Milbradt’s statement, “Saxony can now proudly call itself a flourishing and dynamic biotechnology cluster. The biotechnology offensive launched by the State Government in the year 2000 has proved its worth, and we are now reaping the rewards. We have many examples of how Saxony has become home to some of the most prestigious research groups in the world, how local biotech companies are gaining a foot-hold in international markets, and pharmaceutical production plants are firmly established within the state.”
The state government appropriated over EUR200 million for the biotechnology offensive in 2000 for a five year period. This in return attracted over EUR400 million in additional investments and grants. The Minister-President announced that the state government plans to continue supporting growth in this sector - a technology funding programme alone will dedicate over EUR170 million in the next two years to support industrial research and development, and biotechnology will occupy a significant part of this budget. “The recently introduced growth funds allow us to offer yet another instrument to finance corporate expansion in Saxony. All in all, we can safely say that Saxony is an international, high technology hub to be reckoned with,” stated Prof. Milbradt.
Jim Mullen introduced his company, Biogen Idec. The Biogen component was one of the first established biotech companies and came out of Geneva, Switzerland. He then posed his own question, “It is now 25 years since the birth of the biotech industry. All countries had an equal start, so why is the US so much more advanced?”
He then went on to give three reasons for the US’ strengths. Firstly, the US has a positive R&D environment, with excellent science, and well-trained researchers. Secondly, the US National Institutes for Health (NIH) have a remit to invest large sums in research, out of which IP is easily commercialised. Finally, access to capital; according to Jim, “it would take me a week of travelling in Europe to raise venture capital which could be matched in one afternoon in Boston (Massachusetts)”.
Jim Greenwood commended the Free State of Saxony on its efforts in promoting biotechnology, with the State being the only German region demonstrating continuous growth in the sector since 2000. Jim went on to discuss BIO’s role in building a flourishing biotech sector and emphasised the global nature of the industry. Jim stated BIO’s position as a world-class advocate for the biotech industry.
He perceives pricing and reimbursement to be the greatest challenge to the industry. “Currently in the US pharmaceuticals pricing is set at market value, rather than set by government as happens in Europe,” according to Jim. He added, “Drug prices should reflect innovation costs involved in the development. As a result of government pricing outside the US, our consumers pay significantly higher amounts, therefore covering a disproportionately high proportion globally of development costs.”
Additionally, according to Jim, price controls represent a significant challenge to the industry in the future. This can already be seen in the City of Washington, DC, which recently started to impose price controls, a move which BIO is seeking to block.
Dr Peter Heinrich discussed possible ways for German biotech companies to succeed. According to Dr Heinrich, German entrepreneurs must change their methods in order to make themselves more attractive to investors. One key area to do this is through mergers and acquisitions, currently considered as a failure in Germany, according to Dr Heinrich. “M&A should be seen as a success, not a failure. Investors should be encouraging M&A, because it is essential to build companies with critical mass,” said Dr Heinrich.
Simon Best started with the fact that the UK has the most mature and vibrant biotech industry outside the US. However, the UK has yet to have enough big success stories, like Biogen Idec, to encourage investors to put significant funds into the UK sector. Another challenge for the UK is the low uptake of new products, even if developed in the UK. “This is nothing to do with costs, but more to do with doctors not adopting innovative products. There seems to be less drive to adopt the latest products, when compared with other European countries such as Germany.”
Simon also noted the increasing dialogue between the UK biotech industry and global regulatory bodies, including the US Food and Drug Administration (FDA), the European Medicines Evaluation Agency (EMEA), and the UK’s National Institute for Clinical Excellence (NICE). The aim of these discussions is to speed up drug development times.
Notes to Editors:
The 11th BIO-Europe conference will be held on 7-9 November in Dresden, Germany, and is widely anticipated to attract record numbers of top-level pharma and biotech executives, plus key financial players. The conference will provide a platform for deal-makers and investors, and will give journalists access to delegates from hundreds of companies throughout the world. The conference’s press office will again be active in disseminating news, stories, and conference themes directly to journalists as they break and evolve. Entry to BIO-Europe 2005 is, as always, free to the media, giving full access to all sessions, press conferences, workshops, and pre-arranged partnering meetings. Attending journalists will also receive a complimentary delegate pack, including the complete conference handbook.
Please visit the BIO-Europe 2005 conference website at www.ebdgroup.com/bioeurope for detailed information on this year’s conference and online registration.
International media enquiries Adam RH Michael Northbank Communications Ltd Tel: +44(0)20-7886-8150 mobile: +44-777-588-1813 email: a.michael@northbankcommunications.com German language media enquiries Dr Marc Egelhofer Northbank Communications Ltd Mobile: +49-178-872-6392 m.egelhofer@northbankcommunications.com
BIO-Europe 2005
CONTACT: International media enquiries, Adam RH Michael, NorthbankCommunications Ltd, Tel: +44(0)20-7886-8150, mobile: +44-777-588-1813email: a.michael@northbankcommunications.com; German language mediaenquiries, Dr Marc Egelhofer, Northbank Communications Ltd, Mobile:+49-178-872-6392, m.egelhofer@northbankcommunications.com
