Swiss Biotech Report 2006

any entrepreneur looking to build a successful biotechbusiness!How does Speedel respond to the consolidationprocess taking place in the European biotechindustry?Alice Huxley: Industry consolidation is a naturalprocess of evolution: It can be the result of two weakcompanies joining forces to hopefully benefit fromshared resources, it can occur when a small youngcompany becomes so successful that it attracts theattention of a larger established firm with deeperpockets, it may reflect the fashion of that year for aparticular technology or disease expertise that becomesthe “must-have item” irrespective of cost.Speedel’s current strategy is to remain independentand to become profitable, using our core strengthsof focused innovation and smart drug developmentfor treating cardiovascular and metabolic diseases.However, we recognise that Speedel is not immuneto the forces of consolidation – and we are readyto respond either offensively or defensively as appropriate.The biotech sector is highly dynamic. Flexibility andinnovation are among the major factors in stayingcompetitive. How does Speedel guard against takingit easy?Alice Huxley: We live daily by our motto: “at the heartof value creation”. Whatever we do, it has to be judgedagainst that benchmark of creating value for patients,partners and investors. Our entrepreneurial culture ischaracterised by being resultdriven, ethical, peopleoriented, focused and trustworthy. Speedel’s futuresuccess will depend on our ability to maintain thesequalities even as the organisation grows in scale andcomplexity.URS TUOR,CEOGLYCOVAXYN“The investment horizon ofinvestors has been drasticallyshortened, and having productcandidates in phase II has almostbecome a precondition forventure capital investments.”The company was incorporated in November 2004as a spin-off of the ETH Zurich. Today the biotechnologycompany operates in its own facilities nearZurich. GlycoVaxyn is dedicated to the developmentof novel biotechnological methods for the productionof glycoconjugates in bacterial cells. It offers asolution for producing therapeutic glycoproteinsfaster and at lower cost.How do you, as the CEO of a young start-up company,evaluate Switzerland as a biotech businesslocation?Urs Tuor: Very positively as regards the low-cost accessto infrastructure and accessible networks withexperts from the biotechnology field.Numerous other biotech start-ups are open to exchanginginformation and sharing their experiences.Although there are sufficient venture capital investorsand financial resources for follow-up and expansionfinancing, institutional and public funding for earlyphasetechnology development is only available on alimited basis. Business angels who could fill this need09are still too rare due to the lack of expertise andcapital.What are the crucial factors that allow a youngcompany to raise capital or enter into partnershipswith large companies?Urs Tuor: The investment horizon of investors hasbeen drastically shortened, and having product candidatesin phase II has almost become a preconditionfor venture capital investments. Venture capital investorshave pulled out of the seed and early-stagefield almost completely. Reliable proof-of-conceptdata are critical for survival in order to obtain start-upfinancing or to enter into R&D collaborations withlarger industrial partners. In addition, the compositionof the management team is always a decisive criterion,which means that young companies will probablyhave deficits in one of these areas, which they willhave to cope with.Flexibility and innovation are among the most importantfactors that allow a company to remaincompetitive. How do you prevent your companyfrom getting sluggish?Urs Tuor: As a very young and still small start-up, wedo not have this problem, at least not yet. Discussionswith industry representatives are for us the bestway to develop ideas for new applications and projectsand if possible to implement them ourselves orwithin the framework of cooperative arrangements.@For further information please visitwww.serono.comwww.speedel.chwww.glycovaxyn.ch