FOR IMMEDIATE RELEASE. TAIPEI, TAIWAN. November 8, 2007 – Taiwan’s biotech sector has been generating a lot of buzz as waves of recent government support have poised the NTD 179.1 billion industry for a big boom.
Taiwan’s biotechnology industry, covering pharmaceuticals, medical devices, and newemerging biotechnologies, has experienced double digit growth since 2000, andonce again rose nearly 12 percent in 2006.
Now,a series of government measures and investments could unlock added synergies within the industry, driving forward growth to break through the NTD 1 trillion production value mark.
These government support mechanisms have also drawn in private investment, including an unprecedented donation of NTD 10 billion from Hon Hai chairman Terry Gou for cancer research and a research project between US-based Genentech and Taiwan firm TaiMed Biologics to develop a new AIDS drug within the next three years.
Gov’t support
According to Chi-Huey Wong, president of Taiwan’s Academia Sinica, a key to the recent investment is the recently passed Biotech and New Pharmaceutical Development Act. The Act, developed by Dr. Wong, received across-the-board support from government and industry players, leading to its quick passage in the Legislative Yuan.
Dr.Wong points out the new Act helps rectify some issues that were holding back the development of Taiwan’s biotech industry.
“Two factors were holding back industry investment and development. Inventors and researchers were having a hard time profiting from their work, and investment in the industry via ‘funders’ shares,’ which have no inherent value, were still being taxed, stemming new startups from both academia and private investment,” said Wong.
The new Act addresses both of these problems by allowing academia to receive compensation from their technology and work at the new start-up. In addition, the law effectively gives a 5 to 7-year grace period on these “funders’ shares.”
Additional support comes from direct government investment, including NTD 12.1 billion budget from the National Science Council for a Nangang Biotech Park, which will be ready in 2012; an investment of NTD 15 billion from the Academia Sinica in the park for research on genetics, translational medicine and new drugs; and the establishment of a USD 1 billion biotech joint venture with foreign investors, with Taiwan owning a 40 percent stake.
Biotech growth
Taiwan’s biotech industry has seen increases across all three sectors in recent years, withan increasing importance being placed on biotech products for exports.
The pharma sector has seen the largest growth since 2004, rising 38.3 percent to value of NTD 66.0 billion in 2006. This expansion has mirrored a shift in pharma to higher exports, as exports of pharmaceutical products have grown bynearly 200 percent over the period.
The medical devices sector remains a standout for its high ratio of exports todomestic sales, and as it accounts for nearly 38.9 percent of total biotechoutput at NTD 69.7 billion in 2006. Innovative devices, including portablediagnostic equipment and motorized vehicles, drive medical exports.
TaiMedstarts success story
TaiMed Biologics is a preview of the success that can be reaped through the new biotech initiatives. The company, which was founded by the world-renowned AIDS researcher David Ho and which will be chaired by former vice premier Tsai Ying-wen, plans to continue Genentech’s initial research and development on the HIV antibody TNX-355, and hopes to bring the drug to market in three years.
The Taiwan government has already invested more than NTD 40 million in the company, accountingfor nearly 40 percent of the company’s shares, to help the startup hit theground running.
After launching the TNX-355 drug, the company will then invest in new, high-end research projects, including possibly targeting flu and bird flu vaccines.
With increased support and investment from both the public and private sector, Taiwan’s biotechnology industry is poised for explosive growth. With a history of double digit expansion, the sector remains a sure bet for success.
Taiwan’s biotech sector at a glance
Year | Industry production | Total companies | Total employees | Export value | Import value | Domestic sales vs Export sales | Domestic market need | |
New biotechnologies | 2004 | $34.3 | 240 | 7,650 | $13.7 | $15.0 | 60:40 | $35.6 |
2005 | $38.6 | 253 | 8,090 | $15.3 | $16.1 | 60:40 | $39.4 | |
2006 | $43.4 | 268 | 8,570 | $17.6 | $18.7 | 60:40 | $44.5 | |
Pharmaceuticals | 2004 | $60.2 | 414 | 12,931 | $4.6 | $43.5 | 92:08 | $99.1 |
2005 | $62.4 | 419 | 14,995 | $11.5 | $57.7 | 82:18 | $108.6 | |
2006 | $66.0 | 368 | 12,224 | $13.7 | $69.8 | 79:21 | $122.1 | |
Medical devices | 2004 | $50.4 | 480 | 14,895 | $24.4 | $37.4 | 52:48 | $63.4 |
2005 | $59.0 | 484 | 15,000 | $27.0 | $39.5 | 54:46 | $71.5 | |
2006 | $69.7 | 500 | 16,350 | $29.3 | $44.7 | 58:42 | $85.7 | |
Total | 2004 | $144.9 | 1,134 | 35,476 | $42.7 | $95.9 | 71:29 | $198.1 |
2005 | $160.0 | 1,156 | 38,085 | $53.8 | $113.3 | 66:34 | $219.5 | |
2006 | $179.1 | 1,136 | 37,144 | $60.6 | $133.2 | 66:34 | $252.3 |
Unit: NTD billion
Source: Biotechnology and Pharmaceutical IndustriesProgram Office, Ministry of Economic Affairs
Please visit
http://www.taiwantrade.com.tw/
for more information.Academia Sinica
+886 2 2782 2120
Biotechnology and Pharmaceutical Industries Program Office
+886 2 2655 8133
Taiwan External TradeDevelopment Council (TAITRA)
TheTaiwan External Trade Development Council (TAITRA) was founded in 1970 topromote Taiwan’s foreign trade and competitiveness in world markets. Over thepast 37 years, TAITRA has played a key role in the development of the Taiwan economy. TAITRA is jointly sponsored by the government and commercial associationsand is viewed by all as the business gateway to Taiwan for the internationalbusiness community.
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