Biotechnology and environment

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Biotechnology and environment

• Danica Ramljak, D.V.M., Ph.D.
• Medora Global Consultants, LLC, U.S.A.
• Medora d.o.o., Zagreb

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Definition of biotechnology

• "The application of Science Technology to
  living organisms as well as parts, products and
  models thereof, to alter living or non-living
  materials for the production of knowledge, goods
  and services"

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Types of biotechnologies

• Red biotech (RB) speeding up the drug discovery
  processes, leading to new advanced innovative
  therapies, e.g. tailor-made drugs and
  cell-mediated organ transplantations or new
  tissues.
• White biotech (WB) allowing for new production
  processes will reduce our resource consumption.
  It will enable us to reconcile our high standard
  of living with environmental concerns.
  Bio-plastics and biofuels creating energy from
  biomass are just two examples of the enormous
  potential this area provides.
• Green biotech (GB) aiming to make plants
  resistant to heat, salt, and parasites.

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Biotechnology in the U.S. (34 billion industry)
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RB Industry Structure

• In 1982 the U.S. FDA approved the first biotech
  drug
• More than 100 commercial drugs developed
• Close to 2500 biotech companies
• 1996 and 1997 10 of pharma products attributed
  to biotech
• 1998 25 of pharma launches
• IT industry important

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RB Industry Structure (cont)

• Presently more than 1,200 biotech-based drugs are
  in clinical trials
• Institute for Biotechnology Information 30 of
  the companies are publicly traded, 54 percent
  are privately owned, and 16 are
  divisions/subsidiaries/ joint ventures
• Employment between 150,000-200,000
• More than 1/3 employ fewer than 50 people

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Markets for biotech products

• Since 1980 biotech sector has been marked by
  periodic boom in stock market (great promise but
  it requires enormous risk-taking)
• Global revenue from 22.7 billion in 2000 to
  44.3 billion in 2004
• More than 30 billion invested in RD
• The strongest growth sector in the
  pharma-ceutical market (expected 10 increase
  over next 5-10 years)

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Markets for biotech products (cont)

• Market for medical products from 7.6 billion in
  1996 to 34 billion in 2006 (global drug market
  500-600 billion)
• Market for agriculture biotech products expected
  to increase from 295 million in 1996 to 1.74
  billion by 2006
• Biotech is 8 of total drug market, but 27 of
  new medicines are biotech developed

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Markets for biotech products (cont)

• Medical market focus of majority
• 29 therapeutics
• 17 diagnostics (expected to grow on an average
  annual rate of 9 from 1.8 billion in 1996 to
  approx. 4 billion in 2006
• 60 of products in clinical trials are from
  biotech

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Markets for biotech products (cont)

• Non-medical markets agriculture and industry
  (specialized software, biotech materials,
  packages, and equipment used in drug production)

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Industrial (WB) biotechnology

• Use of biotechnology in industrial processes
• (production of biochemicals, biomaterials and
  biofuels from renewable resources)
• WB is based on fermentation technology and
  biocatalyis
• Yeast, fungi, bacteria or cell lines are
  cultivated in closed bioreactors to produce a
  variety of goods
• Biotechnology offers enormous opportunities for
  economy, environment and society

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Benefits of Industrial (WB) biotechnology

• Production of 10-20 of all chemicals sold by
  2010
• The greatest impact will be on fine chemical
  segment (60 of products will use biotech by
  2010)
• Impact on economy (cost reduction, value added
  process, new products, etc)

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WB AND ENVIRONMENT

• WB has potential to reduce environmental impact
  air and water, pollution could be reduced, energy
  lowered, fewer raw materials needed and waste can
  be bio-degradable
• WB Green house emission will be considerable
  reduced by 2010

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Biotechnology and environment

• Abs, enzymes, microbes and some algae are used as
  environmental monitoring and clean up devices
• Paints and cements (bacteria to prevent
  corrosion)
• Waste water treatment and biodegradation
• Improve recycling of different materials usage of
  enzymes)
• Production of environmentally friendly pesticides

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Biotechnology and environment

• Biotech replaces certain chemical processes and
  makes them ecologically friendly and sustainable
• Biotech produces more complex molecules in
  comparison to chemical synthesis
• Several synthesis steps vs chemical synthesis
• Biotech process can be safer and more energy
  efficient. Waste is biomass and can be composted.
• Usage of microorganisms or cell lines exclusively
  from the lowest possible risk group
• Appropriate biosafety standards

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IN SUMMARY

• BIOTECH IS A KEY GROWTH TECHNOLOGY
• APPLIES TO ALL INDUSTRIAL COUNTRIES
• BIOTECH HAS MORE POSITIVE OUTLOOK THAN PHARMA
• RB AND WB HAVE A POSTIVE OUTLOOK ON ENVIRONMENT
• CONTROVERSY ON GB

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The Eurobioclusters
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EU and Biotechnology

• Biotech is one of top 3 priorities
• FP7 (Research Framework Programme) 658 million
  Euro
• Money Division
• An opportunity for Croatia!

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Impact on economic system

• Knowledge-based industry knowledge is global
• High value adding industry
• Skilled workforce
• Scientists
• Business professionals
• Technicians
• Post-docs
• IT
• All related professions

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Economic impact of biopharmacreation of jobs
and wealth
Biopharmaceutical Industry Contributions to State
and U.S. Economics, October 2004 The Milken
Institute
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Industrial sectors dependent on biotechnology

• Sector

Biotechnology impact to future development
PHARMACEUTICS CHEMICALS AGRICULTURE ENVIRONMENTAL
PROTECTION ENERGY FOOD IND. EQUIPMENT
VERY STRONG STRONG STRONG STRONG STRONG MODERATE
/ STRONG MODERATE
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Croatia and biotechnology

• WB yeast, beers, yogurt, cheese, vinegar,
  ethanol.
• RB Pliva, Immunology Institute, Genera
• International conference Biotechnology and
  Environment in Zagreb, 2001

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BUSINESS MODEL FOR VARADIN PARK

• Focus of the park is industry of life sciences
• 1) INCUBATOR
• 2) BUSINESS-ORIENTED PLATFORM

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ABOUT VP how will it look?
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ABOUT VP importance

• Focal Point for Croatia and the Varadin region
• Attract domestic and foreign investments (park
  occupants)
• Benchmark example for other parts of Croatia
• International recognition centre of excellence
• Stimulate development of biotechnology-related
  studies
• Stimulate return of Croatian scientists around
  the world
• Integrate into the EU Biotechnology efforts

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Aggressive competition in the neighborhood

• Hungary
• Italy
• Switzerland
• Austria
• Slovenia
• Other SE European countries

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BIOTECH IN CROATIA
BIOTECH
ECONOMY
JOBS
ENVIRONMENT