Biotech sector growth continues

This article was written by Annie Huang and published by the Taiwan Journal on March 2, 2007. It reports that in recent years, the biotechnology sector in Taiwan has developed a stable market with annual revenues growing by double-digit percentages. In order to further boost the market value and businesses in this sector, the government plans to adopt various strategies. These include encouraging foreign pharmaceutical companies to set up in Taiwan and relaxing related laws and review procedures.

According to this article, developments in the domestic biotechnology sector so far have mainly focused on three main areas -- medical devices, pharmaceuticals, and innovative technologies applicable to agriculture, energy and environment. Government statistics show that in 2005, annual sales of the whole biotechnology sector were US$4.92 billion, with a year-on-year growth of 10.42 percent. Specifically, 39 percent of these revenues came from pharmaceutical companies, 36.87 percent from medical device manufacturers, and 24.12 percent from the innovative technologies.

Also in 2005, sales from medical devices posted almost 20-percent annual growth. Aided by Taiwan's advanced electronics and information technologies, medical products (such as electronic thermometers, digital blood pressure monitors, and electronic scooters for elderly or disabled people) shared over 30 percent of global markets.

Various companies in Taiwan are now eyeing the sector's potential. For example, health foods and beauty products are being developed, while ethanol is used as an alternative energy source. Other new products include soybean germ pills and facial masks made of biological fibers.

Indeed, the biotechnology sector's revenues are still growing. Sales for 2006 were estimated at more than US$5.4 billion, which would represent year-on-year growth of 11 percent. The government now plans to upgrade Taiwan's biotechnology by attracting investment from overseas pharmaceutical companies. Not only can these overseas companies help upgrade the technologies of domestic companies, but they also contribute to the promotion of overseas sales of drugs through export collaborations. Mos significantly, overseas companies can help local manufacturers of medical devices develop advanced products on the basis of Taiwan's advantages in the electronics and chemical sectors.

According to this article, the government plans to relax the rules for rental incentives and to streamline current procedures for reviewing new drugs and raw material exports. In the future, applications for raw material exports will be reviewed as quickly as within 15 minutes