Brazilian Biotech Map

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The Br-Biotec, with the support of APEX-Brazil and the collaboration of BIORIO and CEBRAP, performed a significant evaluation of the biotechnology enterprises in Brazil. Partly the idea was to focus on identifying companies in Brazil that have biotech as their main activity or are developing major biotech projects.

We tried to answer questions such as: How many biotech companies exist in Brazil? Where are they? In what field are they working? What are their revenues and how many employees do they have? Regarding their businesses: Do they export, import, have patents, and/or collaborate with research institutions?

We included in the study biotechs as defined by the OECD and Nature Biotechnology. (For Nature Biotech’s feature on public biotechs, go here.) Based on the applied methodology, we estimated 237 biotechs in Brazil.

The results show that the private sector is mainly concentrated (about (95%) in the six states in Brazil: São Paulo (40,5%), Minas Gerais (26,5%), Rio de Janeiro (13,1%), Rio Grande do Sul (8,0%), Paraná (4,6%) and Pernambuco (4,2%).

Human Health stands for 40% of companies; animal health, 15%; reagents, 14%; agriculture, 10%; environment, 10% and bioenergy at 8%.

The majority of Brazil’s biotechs are less than 5 years old. And 85% are micro or small-sized, earning less than 2,4 M reais per year (around US$1.5M dollars). 65% have less then 20 employees.

Biotech have highly educated professionals: for companies with 1 to 10 employees, 40% are PhDs and around 20% are MScs.

25% of Brazil’s biotechs export. But also, 86% import, especially reagents and equipment.

Half of the biotechs in the country still benefit from incubators and technology parks. And of great importance are universities and research centers, since 95% of companies have a relationship with these institutions, and most of them established formal partnerships to co-develop products or processes, to use infrastructure, to hire services or to train personnel.

Public funding is also important to the development of the private sector: 78% of companies received public funds (FINEP, CNPq, BNDES and States Foundations), showing how important the policies concerning science, technology and innovation are in Brazil. On the other hand, venture capital investments are still a great opportunity, as only 14% of companies have venture capital investors.

40% of companies have patents deposited or issued, with most of them in the patent office in Brazil, and a smaller number in offices abroad.

The country also has a significant presence in academia. Some examples are agronomy (around 8,000 researchers, considering both faculties and graduate students), veterinary medicine (3,300), and biochemistry, pharmaceutical sciences and pharmacology (5,100).

Despite the agglomeration in some cities, other specialized areas are also very important: genetics (2,000), infectious diseases (1,600) and immunology and microbiology (1,500).

The Brazilian system of graduate studies is well structured, but is highly concentrated in some regions. There is a need to develop better interaction between the science and the private sector in order to increase the number of companies in some regions of the country.

(For more on the methodology, and for the report itself, go here.)

With all the incentives from the Brazilian government, a growing economy and good science we strongly believe that biotech will became an important economic sector for the Brazilian economy. We hope that a better understanding of Brazilian biotech helps investments and development of the private sector, policy formulation and new research on biotech in Brazil. Additional information about the recently created Brazilian Biotech Association can be obtained by going here.

Fernando Kreutz

Can Brazil become a biotech superpower?

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As a scientist, professor and entrepreneur, I’ve been following and participating in the Brazilian biotech history for the last 12 years. Like many researchers in Brazil, I studied abroad – supported by the Brazilian Research Council – and understood earlier than some the difficulties in returning to Brazil. So I continued to perform as a researcher. But we do return!

My path, initially more naïve than realistic, was to create one of the first biotech companies in Brazil (1999). In the past 12 years, I’ve observed the fantastic number of Ph.Ds graduating every year in Brazil. The amount of research funds available multiplied several times. In 2010, more than 7.5 billion reais (US$4.7 billion) were invested in research just at the federal level. It’s also important to note that even during economic difficulties (2008-2009), there was a steady funding because of Fundos Setoriais, a special system created in 1999 that guarantees investments independent of the government’s annual budget.

So Brazil has prospered significantly in terms of number of Ph.Ds, publications and funding. But the big step, unique to biotechnology, is the link between science and entrepreneurship. The gap between industry and academic science is huge. To be able to transform science into innovation (which is just a cool way of saying transform science in wealth) requires new types of investment – not only economic but also philosophic. The Brazilian biotech industry is absorbing some of this knowledge, but it must also change philosophically. Until recently, it was absurd to think a company could be located at a university campus, and even now some people still think that entrepreneurs are there just to suck all the “wealth” that the university produces.

The problem is that if researchers only exercise their vanity by publishing in high-impact journals and do not transfer discoveries to industry, we as society will not benefit from the money invested into the researcher. (Of course we need to preserve academic research, which is fundamental for the applied science.)

But the winds are changing! Over the past 5 years, there was a fantastic change and stimulus to improve entrepreneurship among Brazilian scientists, mainly by creating programs that support new companies (Programa PRIME), venture investments (Program a Inovar e Criatec) and also by supporting companies to perform R&D and innovation (Subvenção Econômica).

Nevertheless, the established Brazilian industry is facing global competition and the need to innovate is urgent. Several traditional businessmen believe that in other to increase the technology of their companies, they only need to buy a new machine! The added value of technology is tremendous, but in the 21st century economy, technology and know how are key players on the value-added chain of manufacture.

This blog will be an excellent opportunity to present and discuss several points, not only affecting Brazil but also the global scenario.

  • Can the Sea Turtle China phenomena also occur in Brazil?
  • Can we create innovation with the current Brazilian R&D model?
  • Can Brazil overcome the regulatory pathway in other to become an international player?
  • Can we aggregate value with intellectual property produced in Brazil?
  • Can we link academic research to entrepreneurship?
  • Can biotech became a significant contributor to the Brazilian economy?
  • Can the recently created Brazilian Biotech Association (BR-Biotec) become a strong voice for Brazil’s path to biotech development?
The views and opinions expressed here are entirely those of Fernando Kreutz and may not represent those of his firms and associations.

Fernando Kreutz