Fernando Quezada Commercial biotechnology in is Executive Director of the Biotechnology Center of Excellence Corporation, a Latin America: Current Massachusetts-based organisation advising international public and private opportunities and challenges sector agencies in biotechnology development Fernando Quezada Date received: 11th October 2005 programmes. He served on the Presidential Commission for Biotechnology Development for the Republic of Chile and as Abstract Consultant to the UN The unparalleled growth of commercial biotechnology in the USA and Europe during the past Economic Commission for two decades has also been marked by its steady development in Latin America. Brazil, Cuba, Latin America and the Argentina, Chile, Mexico and others have made significant strides in building their research and Caribbean. production capacity in modern biotechnology. As these countries have pioneered new biotechnology applications in agriculture, mining, biofuels, human and animal healthcare a number have also launched national biotechnology plans with long-term investment commitments. Newly formed biotechnology trade associations in the region are expanding their membership and rapidly gaining international visibility. Along with the growth of commercial biotechnology in Latin America comes the need to address a series of issues associated with public perception, regulatory framework and intellectual property protection, financing mechanisms, workforce development and more. Government agencies and related public institutions are challenged to adjust their policies and operations to address these Keywords: Latin America, biotechnology, Mexico, Chile, changing needs. The private sector and the international community at large will continue to Brazil, pharmaceuticals, play critical roles in the region through knowledge networks, technology exchanges and joint economic development business investments. A GROWING REGIONAL population of more than 500 million PRESENCE people, there has also been an upward A 2005 report by shift in the age profile and all the age- PricewaterhouseCoopers1 on related health issues this implies. Clinical pharmaceutical potential in Latin America trials in the region have shown a tenfold states that the region ‘is becoming much expansion in recent years. more appealing as a place in which to US biotechnology firms now recognise conduct development and production.’ the huge market potential and ‘business- Factors that contribute to this perception friendly’ outlook in Latin America. include recent healthcare reforms and Genzyme Corporation’s Senior Director major development plans, backed by of Marketing for Latin America, Carolina substantial public and private sector Vallucci, is active in several countries in investment.2,3 Additionally, there is a the region. According to Ms Vallucci: visible increase in economic and political stability and long-term investments in Latin America presents an excellent qualified human resources. potential market for biotechnology As of 2004, the combined GDP of products. This is an area that is just Fernando Quezada Biotechnology Center of Excellence Latin America and the Caribbean stood at starting to develop in the various Corporation, US$1.9 trillion (Table 1).4 Although the countries and the respective 371 Moody Street, data are compiled from only 19 of Latin governments appear to be very Suite 109, Waltham, MA 02453, USA America’s 33 countries, it illustrates the interested in supporting its growth and dynamic nature of the region’s economic expansion. In the area of health, the Tel: +1 (781) 894 7457 Fax: +1 (781) 894 7459 picture. Together with a significant authorities have demonstrated much E-mail: [email protected] increase in the size of Latin America’s openness in understanding what 192 & PALGRAVE MACMILLAN LTD 1478-565X/06 $30.00 JOURNAL OF COMMERCIAL BIOTECHNOLOGY. VOL 12. NO 3. 192–199. APRIL 2006 Commercial biotechnology in Latin America Table 1: Economies of Latin American and related activities also operate in the Caribbean countries region.9 Economy Population SELECTED NATIONAL (US$bn) (million) INITIATIVES Mexico 676.5 106.2 A review of national initiatives in selected Brazil 599.8 179.1 Latin American countries illustrates how Argentina 151.9 37.9 Venezuela 107.5 26.2 the diverse approaches to biotechnology Colombia 95.2 45.3 development has created working Chile 93.7 16.0 coalitions of public, private and academic Peru 67.9 27.5 Ecuador 29.9 13.4 sectors appropriate to each country’s Guatemala 26.1 12.7 situation. The following sections offer Dom. Rep. 19.4 8.8 Costa Rica 18.5 4.2 brief profiles of Chile, Brazil and Mexico El Salvador 15.8 6.7 as examples of countries with significant Panama 13.8 3.2 forward movement in commercial Uruguay 12.0 3.4 Bolivia 9.4 8.8 biotechnology. Honduras 7.4 7.0 Paraguay 7.0 6.0 Chile Nicaragua 4.4 5.6 Haiti 3.6 8.1 The former president of Chile, Ricardo Total 1,959.8* 526.1* Lagos, pledged that, by the year 2010, that country’s government planned to Notes: Real GDP in current prices in US$. achieve a level of R&D investment of 1.5 *Excludes Cuba. Sources: IMF,5 Population Reference Bureau,6 Latin per cent of its gross domestic product Business Chronicle7 (GDP).10 Now standing at 0.7 per cent of GDP (up from 0.56 in 2000), this continued increase in support for research biotechnology can offer. In several of innovation in Chile symbolises the Chile plans to achieve a the Latin American countries, country’s commitment to building the level of R&D investment Genzyme is working jointly with the of 1.5 per cent of its infrastructure conditions needed for GDP governments to develop legislation boosting technology commercialisation. which will allow the citizens to have The government is also creating financial access to biotechnology-based incentives for increasing private sector therapies for genetic diseases for which investment in R&D along with a no alternative exists.8 continuing effort to strengthen universities and international linkages.11,12 A country-by-country study carried Specific to the biotechnology area, out during the past few years on 14 Latin Chile has designed several competitive American nations shows that there are research programmes, one of which over 430 biotechnology firms in the involves consortia centred on major region. Currently Argentina, Brazil, export sectors of agriculture, aquaculture, Chile, Colombia, Cuba and Mexico are mining, forestry and others (Figures 1 and the Latin American countries most active 2).13 Chile’s national strategy for in commercial biotechnology. In order of biotechnology development was launched importance, the most frequent areas of in 2003 with the objective of increasing application are agriculture, followed by the country’s competitive standing in the human and animal healthcare, food above-mentioned areas. This national processing, environmental applications biotechnology strategy responds in part to and industrial biotechnology. In the case the needs of its existing biotechnology of Mexico, nearly one-third of the community and provides ways to address approximately 90 biotechnology firms in the opportunities and challenges emerging the country focus on agriculture. Large on the global front. The more than 30 international firms with biotechnology- private biotechnology firms in Chile & PALGRAVE MACMILLAN LTD 1478-565X/06 $30.00 JOURNAL OF COMMERCIAL BIOTECHNOLOGY. VOL 12. NO 3. 192–199. APRIL 2006 1 9 3 Quezada An example of a private biotechnology Main Sectors Addressed by Chilean Biotechnology company in Chile is BIOSONDA. Industrial Biotechnology Agriculture and livestock Founded in 1992 by a group of Chilean 22% 42% scientists, this company carries out research, production and commercialisation of selected Forestry biotechnology products. It provides 6% special services in the areas of protein 8% chemistry, immunology and molecular Fishing Industry 22% Human Health and Nutrition biology and has capabilities in the production of polyclonal and monoclonal antibodies. BIOSONDA is headquartered Figure 1: Main sectors addressed by Chilean biotechnology in Santiago and works in close association Source: Alvarez13 with Chilean Universities, research institutes and other biotechnology companies. Aquiculture Health 15% 11% Livestock Brazil 12% With over 75 active biotechnology companies, Brazil’s leadership in Agriculture Mining 24% 4% biotechnology is widely recognised 14 Environmental Forestry Industrial (Tables 2 and 3). The country initiated 7% 13% 14% its national biotechnology programme in 1981, enabling long-term investments in building its human resource base and Figure 2: Main research areas in biotechnology technological platform. The state of Source: Alvarez13 Minas Gerais, with its capital city Belo Horizonte, is one of the most important biotechnology centres in Latin America. Since its earliest involvement, the country should benefit from these efforts and serve Brazil’s leadership in has made deliberate efforts to integrate to contribute to the overall technology biotechnology is widely institutions and budgets relating to innovation in the country. recognised biotechnology applications in agriculture, The four specific objectives outlined in energy and health. In 1997, a Chile’s national biotechnology strategy combination of federal and state funding are entrepreneurial development, training enabled the development of a virtual of human resources in science and genome institute made up of 30 technology, modernisation of the laboratories. This institute (named