Swiss Biotech Report 2006

More documents

Recommendations

Info

26SWISS BIOTECH INDUSTRY...INDUSTRY INSIGHT The Swiss biotech industry isone of the strongest in the world. More new companieswere established in 2005 than in the previousyear, and increasing professionalisation has madethe industry a serious success factor for the Swisseconomy.Jürg Zürcher and Markus BlaserCompared with other countries in Europe where thebiotechnology sector has reported largely stagnantor declining numbers, the Swiss biotech industrycontinued to move forward in 2005. A slight increaseof new established companies (12 compared to 10 in2004 and 11 in 2003) faces two bankruptcies and fourmergers in 2005. This was in contrast to 2004, whenthe consolidation wave resulted in the demise of 10companies.Numerous signs indicate that the climate for biotechfirms in Switzerland is getting better all the time.Thanks to the attractive conditions offered by organizationsin various cantons promoting their area as abusiness location and to the tireless efforts of theSwiss Biotech Association (SBA), the biotechnologyscene is also expanding on the local level. For manyyears it was concentrated in three regions – Basel,Zurich and the Arc Lémanique (Lake Geneva area) –but now there are a number of local initiatives designedto create biotech hubs outside these major urbanareas. Examples are Ticino (Bio Polo) and Valais(Swiss Biotech Center).INCREASINGLY PROFESSIONALENVIRONMENTWith more than 14’400 jobs and sales of about CHF 6billion, the Swiss biotech industry is no longer anexotic by-product of the Swiss economy but a sectorthat has to be taken seriously. One result is that bothinvestors and company founders are becoming moreand more professional. Both groups approach the establishmentof a new company in a more structuredfashion than it was the case several years ago. Companiesare no longer founded as a hopeful experiment.Ideas are thoroughly analysed and strategiesare planned professionally from the very beginning.On the other hand, investors’ risk tolerance also remainedrather low in 2005. While it is relatively easyfor large or established companies to find new sourcesof financial support, it is still difficult for small startupsto raise risk capital. Nonetheless, several smallgrowth firms such as Lausanne-based biopharmaceuticalcompany Apoxis succeeded in obtaining asignificant amount of venture capital in 2005.Five years ago, most Swiss biotech companies followeda classical IPO strategy like many of their Europeanpeers, but this focus has changed somewhatin the interim and strategies are becoming more individual.In addition to Arpida and Speedel, two companiesthat went public this past year, activity on themergers and acquisitions front has gained momentum.The vaccine manufacturer Berna Biotech merged withthe Dutch company Crucell, and Prionics, a Zurichbasedcompany, has acquired the diagnostics productline of Pfizer’s Animal Health business and atthe same time has spun off a subsidiary called Neurotune.In addition, the successful sale of the Zurich start-upGlycart to Roche (a sevenfold payback for investorsafter four years) showed industry and investmentspecialists that a trade sale can also offer advantagesand that companies do not necessarily need to gopublic.Flexibility is in great demand, and not just at thesmaller companies. The large exchange-listed biotechand life science companies have realised that nostrategy can be chiselled in stone. Adjustments arerequired on a continuous basis. Reports of a sale ofthe family-owned company Serono persist, and thenegative test results for Actelion’s potential blockbusterdrug Tracleer have had an adverse effect onthe company’s share price. The investment communityis waiting with great interest for further news aboutthese companies.BIOTECH CAPACITIESARE BEING EXPANDEDThe discovery of the biotech firms by the large Swisspharmaceutical and chemical companies has breathednew life into the industry. In recent months these corporationshave invested millions of francs in biotechcapacities in this country. Both Roche and Novartismaintain significant biotech research and productionfacilities in Switzerland and the chemical group Lonzaplans to expand its biotech production operation inValais on a massive scale. Syngenta, an agrochemicalgroup, is also focusing its strategy more and more onbiotech trends.The big life science companies are using relativelyeasy methods like acquisitions, alliances and licensingagreements to ensure that they will have an inno-
...ON THE MOVE IN 200527vative pipeline over the long term. But the small companiesare also profiting from these networking arrangements.It gives them access to global marketsand additional research expertise.The result of the national referendum at the end ofNovember 2005 showed that the Swiss populationhas strong reservations about the build-up of greenbiotechnology (agricultural sector), whereas red(human and animal health) and white (industry)biotechnology enjoy wide acceptance.Thanks to attractive tax models, well-educated people,prestigious basic research and a legal environmentthat tends to be more favourable than in othercountries, Switzerland continues to be an attractivelocation for international biotech companies. This isalso shown by the fact that several foreign biotechand chemical companies such as Biogen Idec orAmgen have moved their international sales headquartersto Switzerland.Another proposition for Switzerland as a research locationand also for the entire biotechnology sector isthe outstanding cross-linkage between industry, onthe one hand, and universities and research institutions,on the other. Initiatives like the CompetenceCenter for Systems Biology at the Swiss Federal Instituteof Technology (ETH) in Zurich, which is alsosupported by the Universities of Zurich and Basel,represent a milestone in the development of Europeanbasic research. The combination of internationallyrecognised expertise in the areas of engineeringand science (ETH Zurich) with research centres forbiology, medicine and nanotechnology (University ofBasel) and the life sciences (University of Zurich) createsthe foundation for an integrated approach tosystems biology and is also extremely attractive topharmaceutical giants like Novartis and Roche. SwissBiotechnet is another example of a successful networkingproject (see article on pages 14–15).ERNST & YOUNG ......is a leading audit and advisory services firmand provider of risk management, tax and legaladvisory services, transaction support andaccounting services. The Swiss Ernst &Youngis a member of the global network and employsaround 1’700 people.Jürg Zürcher (left) is Industry Leader for HealthSciences at Ernst & Young Switzerland. He is a SwissCertified Accountant and partner of the firm.Markus Blaser is a Swiss Certified Accountantspecialising in biotech companies and a seniormanager at Ernst &Young Switzerland.@For further information please visitwww.ey.com/ch
Page 2 and 3: 02 WHY SWITZERLAND?USEFUL ADDRESSES
Page 4 and 5: 04BIOTECH COUNTRYSWITZERLANDBIO VAL
Page 6 and 7: 06 A PRIME BUSINESS LOCATION... >>
Page 8 and 9: 08 INDUSTRY STATEMENTSERNESTOBERTAR
Page 10 and 11: 10WHAT KEEPS SWISS... >>THE INNOVAT
Page 12 and 13: 12AN EXPONENTIAL INCREASE IN STRENG
Page 14 and 15: 14 ... AND CONCENTRATING ... >>•
Page 16 and 17: 16 PARTIAL REVISION OF SWISS PATENT
Page 18 and 19: 18BIOTECH PROJECTS ATTRACT... >>SEC
Page 20 and 21: 20LICENSED FOR SUCCESSHELSINN This
Page 22 and 23: 22... ONE BIOTECH CLUSTER“WHITE B
Page 24 and 25: 24>>biotech IPO continue to be rela
Page 28 and 29: 28COMPETITION FOR ANTIBODIESMOLECUL
Page 30 and 31: 30PROGRAMMED DEATH FOR TUMOUR CELLS
Page 32 and 33: 32APPENDIX: FACTS AND FIGURESSwitze
Page 34 and 35: 34INDUSTRY SEGMENTATION OF THE138 B
Page 36: IMPRESSUMSteering Committee:Jürg Z

Swiss Biotech Report 2006

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?