Beyond Borders: Global biotechnology report 2010

Brazil year in review
Fueling the future
Like many emerging economies, Brazil
is progressing from an imitator to an
innovator. Its fairly young biotechnology
industry is likewise evolving — and actively
so. However, the country will need to tackle
obstacles such as regulatory barriers and
limited access to capital from private equity.
A leader in agricultural biotech
According to a 2009 survey by the
International Service for the Acquisition of
Agri-biotech Applications (ISAAA), Brazil
has overtaken Argentina to become the
world’s second-largest user of genetically
modified (GM) crops. GM soy is Brazil’s
leading GM crop (71% of the crop’s planted
area), followed by GM corn (30%) and
GM cotton (16%). Recent approvals of
GM crop varieties include Monsanto’s GM
cotton, Bollgard II, which was approved for
commercial use in May 2009, as well as two
new Monsanto varieties of pest/herbicideresistant
GM corn, which were approved in
September. Switzerland-based Syngenta
received approval to cultivate two varieties
of its insect-resistant GM corn, while Bayer
received approval for two varieties of GM soy.
In addition, regulators cleared the
experimental planting of 15 new GM seed
varieties in 2009. Of these, 12 corn, cotton
and soy varieties are expected to be tested
by Monsanto, two corn varieties by Dow
AgroSciences and one sugarcane variety by
Brazil-based Alellyx Applied Genomics.
A biofuels pioneer
As home to one-third of the world’s
sugarcane plantations, Brazil has emerged
as a global frontrunner in the development
and adoption of biofuels as an alternate
source of energy. The country currently
produces around 25 billion liters (6.5 billion
gallons) of ethanol annually from sugarcane
and plans to increase production by as
much as 150% by 2017.
In June 2009, Brazilian mining giant
Vale announced plans to invest in
the construction of a biodiesel unit in
partnership with Biopalma da Amazônia
SA. Similarly, oil major Petroleo Brasileiro,
or Petrobras, unveiled a five-year plan to
invest US$3.3 billion and make strategic
acquisitions to enhance its capabilities in
this high-potential segment.
Brazil’s strong reputation in biofuels has
also led to partnerships with several key
industry players from outside the country,
including Israel-based Evogene, a leader
in plant biotechnology, and Novozymes, a
Denmark-based enzymes manufacturer.
US-based Amyris Biotechnologies is also
building a strong presence in Brazil’s
biofuels market. In December 2009, it
reported letter-of-intent agreements with
three Brazilian companies — Açúcar Guarani,
Bunge Limited and Cosan — to produce
ethanol and high-value chemicals; and in
April 2010, it announced a joint venture
with the São Martinho Group, one of the
largest sugar and ethanol producers
in Brazil.
Deals
To develop innovative capabilities and
tap high-potential international markets,
Brazilian biotech companies have entered
a number of collaborative agreements with
foreign life sciences players. Deals have
primarily been in the biofuels and human
health segments.
In December 2009, leading Brazilian
biopharmaceutical company EMS Sigma
Pharma announced plans to form a
Brazil-based joint venture with Cuban
pharmaceutical company Herber Biotec.
Under the terms of this agreement, Herber
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