The BioEconomy
By Dr J R Webster
Executive Director: AfricaBio
The BioEconomy
 Global biotechnology dynamics.

Status in Africa.

Where are we in South Africa?

Will we have a BioEconomy?
CURRENT TRENDS IN THE
BIOTECHNOLOGY INDUSTRY
the biotechnology
century
Current trends
In
2000,biotech companies raised US$37.2 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
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
Current Trends contd.


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622 public biotech companies generated $35 billion
Spent $16 billion in R&D
Employed 188,000 in 2001
72% of revenues generated by US companies
Biotechnology companies are
currently listed on the:

Neuer Market

EASDAQ

Swiss New Market

NASDAQ
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.
Measurements of Success
in Biotechnology
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Financial- What happened to the Nasdaq Biotech
Index
The Nasdaq represents the most actively traded
biotech stocks. The index is a capitalisation-weighted
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.
Biotech Product development
(drug development)

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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.
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
Advanced Genomics Will
Accelerate Discovery of Next
Generation Products
Genome Gene map Gene sequence
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Gene expression
Ag traits Pharma traits
Yield
Drought
Disease
Stress
Alzheimers
Breast Cancer
Arthritis
Stress
Stress
CV Disease
Oil quality
Aging
Disease
Yield
Obesity
Vision
Maturity
Herbicide
tolerance
Aging
Arthritis
Solving unmet needs in human health and
food production
How does policy affect
biotech business and
policy development?

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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.
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

New Advances
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
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
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
GLOBAL AREA OF GM CROPS
Global Arear of GM Crops, 1996 to 2001
60
50
50
39.9
44.2
2
40
4
20
10
3
27.8
30
1
11
5
1.7
6
0
1
2
3
4
5
6
YEARS
30 FOLD INCREASE SINCE 1996
Source: Clive James, ISAAA
Where are we with GM crops
world wide?

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GM crop planting globally increased by 11% in 2000
and >10% 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
Biotechnology R&D in sub
Saharan Africa
Status of R&D in sub-Saharan
Africa

Primarily second generation biotechnology e.g. plant tissue
culture (Ghana: cassava, yam, pineapple, cocoa,banana,etc;
Nigeria:cassava,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.
Field Trials in Africa-What’s
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.

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.
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Consumer awareness is critical.
*Taken from report for CSIR 1998 (Webster & Koch)
South Africa as a Case Study
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R&D 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
Changes in SA status

National Strategy
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Labeling Legislation
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Venture capital
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Bioincubator
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Consumer perceptions
Successful
Application of Biotech provides
positive perceptions
Change in Approach of EU
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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
Future prospects in EU


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New biotech strategy for EU is being developedAfricaBio 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
What lies ahead for biotech
companies?
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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
What is the Bio-Based
Economy?
Conventional
Nonrenewable
resources
Fossil C
energy
Process
Product
Waste
Landfill or
incinerate
Bio-Based
Renewable
energy
Renewable
bio-resource Bio-process
Bio-product
Byproduct
Recycle into
bio-resource
Dr. J.F.Jaworski
Role of Biotechnology in the Bio-Based
Economy
(OECD)
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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
Messages to business from OECD study on
the application of biotechnology to
industrial sustainability
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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 in–house biotech skill base
Companies – work with government and biotech
stakeholders
Dr. M. Griffiths
What should the
pharmaceutical industry do?


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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