Taiwan's hopes for a biotech revolution
The president of the country's top research institute on growing the knowledge economy.
Chi-Huey Wong.Academia SinicaIn October 2006, Chi-Huey Wong took over the reins of the Academia Sinica, Taiwan's top research institute. Convinced that Taiwan's former reliance on contract manufacturing is a dead end, Wong has been working closely with key government officials since then to help the country speedily establish its biotechnology industry. His experience in California — as Professor of Chemistry at the Scripps Research Institute, La Jolla, and, more importantly, as co-founder of Optimer Pharmaceuticals, San Diego — will be valuable in taking Taiwan into a new business sector. Nature News asks Wong how Taiwan will succeed when so many other countries are playing the same game?
Your predecessor, [Nobel laureate chemist] Yuan Tseh Lee, also chose to push the biotechnology industry. How will you be able to improve on what he did?
We had a thorough review of the status of biotech development in Taiwan, and concluded that we needed to do two things. First, we helped Congress pass a new Biotechnology and New Pharmaceutical Development Act in July of 2007. Now companies can get a 35% tax exemption for investment in research and development into new drugs and high-end medical devices. Also, the act enables inventors from academic institutions to serve as founders, board members or scientific advisors, and take equity in start-up companies. It is similar to the Bayh-Dole Act established in 1980 in the United States.
“I predict Taiwan will have at least 5% of the world market within 10 years.”
Chi-Huey Wong
Academia Sinica
Second, this April, the government passed a biotech development action plan, which paved the way for a US$2-billion venture capital fund, a new Food and Drug Administration (FDA), a super-incubator to provide core facilities as well as professional services and consultations, and expansion of the existing Development Center for Biotechnology to focus on preclinical development. These will help capitalize on Taiwan's strength in early-stage discoveries from Academia Sinica and universities. Two new biotech parks are being developed to facilitate this process.
What impact has this biotechnology-friendly legislation had so far?
We have seen momentum building in the sector. For example, 16 new companies were established to develop new drugs in the past two years, and currently there are about 20 new drugs in clinical development. More medical device companies were also formed, tech transfer activities increased and stock-exchange volume grew.
Some investors are sceptical about the prospects of biotech in Taiwan because of the small domestic market. What do you say to that?
We need to compete for the world market, including China. Taiwan's strength and experience in information and computer technologies could help with the biotech development, especially in medical devices, remote care, biobanking [storage for biological materials and data], and new medicines for diseases and genotypes commonly found in the Chinese community. We expect new products from our leading research in HBV [Hepatitis B], liver cancer and lung cancer; drug side-effects related to Steven-Johnson syndrome; and new vaccines for breast cancer and influenza.
Taiwan's advantages are early-stage discoveries and experience in late-stage clinical trials, respect for intellectual property and a solid regulatory system (similar to the US FDA system). What we need to do is to strengthen our translational research, so the early-stage discoveries can be translated into commercial opportunity.
How will you measure the success of your biotech initiatives? Do you have a target in terms of the number of biotech companies to be formed or the number of patents filed, for example?
Considering the number of biotech patents issued by the United States [Patent and Trademark Office], Taiwan is now ranked number 13 in the world. One-third of the patents are from Academia Sinica. But the bottom line is to see the outcome in terms of [biotechnology] market share. I predict Taiwan will have at least 5% of the world market within 10 years.
Taiwan is already struggling to cultivate and recruit top scientists. With fewer young bioscientists in Taiwan, how do you expect to keep up with China and other pressure on the scientific labour market?
This is a major challenge for Taiwan. As we move into the knowledge-based economy, we also need to make sure that we have enough talent to support and stimulate its growth. We have state-of-the art facilities and stable funding, but we also need to be more open and more flexible to recruit internationally, and provide reasonable salaries in order to be competitive. We have seen an increase in the hiring of foreign faculty members and recruitment of foreign graduate students and post-doctoral fellows at Academia Sinica and universities. I am sure a good portion of this foreign human capital will be integrated into our society to sustain our future development and prosperity.
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