The State of Translational Research

report imageThe blog post title above is also the title of a report by Sigma-Aldrich (published with partners AAAS and Science). The report is based on 608 survey respondents, 45% of which were in the US; 23% of respondents were graduate students. It’s not so long, as reports go, and you might easily read it on the bus or while eating lunch. I’ll give you a few nuggets from the report here to whet your appetite.

When asked about their barriers to progressing their research, 62% of respondents named insufficient funding, with inappropriate duration of grants and insufficient scope of grants coming next, both with 18%. Twenty-two percent of responders said their funding for translational research decreased over the past 12 months (17% said it increased). Also, the majority of respondents (62%) said that collaboration with their business school would benefit their research groups, but only 13% are actually collaborating.

That last bit of information Pat Sullivan found shocking. He’s the former liaison for academic partnerships at Pfizer and now works for Sigma-Aldrich. He thinks there is an opportunity for pharma to help educate universities on how to best fill the voids in research left by pharma cutbacks.

I asked him for further thoughts on the report, and he supplied this:

Through aggressive downsizing, Pharma has reduced its capacity to identify new commercially viable therapeutic disease targets and new drug candidates. These reduced capabilities have driven Large Pharma to seek out new partnerships with academic researchers working in the translational research fields. However, in order to take full advantage of this new opportunity, academic researchers and institutions will need to conduct their research programs in a new way. In fact, they will have to model and conduct their translational research programs after the processes and workflows currently being used in Large Pharma. This will require the translational researcher to work on interdisciplinary scientific teams and with non-scientific departments like their Business and Law schools. Institutions that set up their programs to promote collaborations across departments will learn how to leverage their scientific discoveries into commercial opportunities. They will also learn how to choose external partners to help them to generate quality data and obtain key reagents needed to attract Pharma collaborations and funding. Institutions and Funding agencies will also have to support Principal Investigators seeking to work in the translational research field by recognizing contributions beyond just publishing.  

Eventually, institutions that conduct translational research will learn to focus their programs on the drug development process that will be the most efficient for them to execute and add the most value to Large Pharma. In most cases, they will focus their programs on the early drug development phases involving new disease target validation and lead chemistry discovery. If the translational research program focuses on an orphan disease, it will be required to work with several external partners to conduct preclinical and clinical activities and obtain manufacturing capabilities.  

Thoughts? You can access the report at the link below.

Enjoy your lunch,

Brady Huggett

 

Translational Research report

 

 

 

A true reflection of the human spirit

The author, at the Great Wall of China.

On the 8th of December 2011, I was invited to represent Kuwait at the Human Variome Project (HVP) meeting, being held for the first time in Beijing, China. The meeting was a result of many months of negotiation and the finalization of a historic partnership agreement between China and the Project.

HVP is an international consortium of researchers and clinicians, and later UNESCO representatives from more than 30 countries.  It formally inaugurated in 2006 in Melbourne, Australia, with the major goal of documenting (and placing in a database) all polymorphisms and mutations in human sequences, as well as associate these with human health and diseases. This ensures that global information on genetic variation is collected, curated, interpreted and shared freely and openly.

I want to stress the words “openly” and “freely,” because for a scientist this is the best way to share data. For an entrepreneur, though, this is a waste of effort, growth, and potential income, if not secured first by patenting.

Let me explain the problem. There is no doubt that the HVP will uncover thousands of DNA changes associated with disease predisposition and outcome, and they will be useful for disease diagnosis, prognosis and theranostics.  For example, yesterday I found a base substitution in the MLH1 gene of an Arab patient with hereditary non-polyposis colorectal cancer (HNPCC). The genetic change was non-synonymous (meaning it changed the amino acid composition of the MLH1 protein from proline to serine). The DNA change may have altered the protein function, predisposing the individual to cancer. However, one really cannot tell for sure because it can be a polymorphism found in the normal population.  One of the major aims of the HVP is to stratify these DNA changes into polymorphisms or disease causing mutations.

This is achieved for HNPCC by the Insight group, one of many databases curated for the HVP.  Now that federal appeals court ruled that genes (or more accurately, DNA sequences) can be patented, overturning a lower court decision by Judge Sweet, biotechnology companies are rushing to gain from genome wide association (GWAS) and linkage studies.

On the 18th of January 2012, we learned that Myriad Genetics has acquired exclusive license to intellectual property covering the analysis of the RAD51C gene for risk of hereditary breast and ovarian cancer. The six heterozygous mutations found in the RAD51C gene by a German group confer increased susceptibility to breast and ovarian cancers (for more info, click here).

My dilemma, and the reason behind my post, is to ask how will the patenting industry cope with thousands or more disease-associated DNA sequences coming out from the HVP? Moreover, after further validation, do I submit my unique sequence I found in the MLH1 gene to the Insight database, where it may help clinicians and patients, or do I patent it first?

By the way, I know that I and my colleagues in the Middle East and beyond have hundreds of these risk-associated sequences. We do want to do something with them that reflects the true human spirit!

Fahd Al-Mulla

Academic Serendipity to Clinical, Commercial Success

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I always say to my colleagues “Success has no formula, but failure does.” Often, biotech spin-offs yield more in experience than they do history. But I would like to share the story of a colleague of mine who went from a humble academic job in the microbiology department in a national university to a clinical success story. His lab in Tokyo is now providing cell-based immunotherapy via 6,000 transfusions a year, from all over Japan and from neighboring countries.

Hiroshi Terunuma started his career as a medical microbiologist in the Yamanashi University School of Medicine in the late ’90s, when he worked on HIV carriers in whom RNA transcriptome analysis was essential to understand the nature of the immune system. He had no other way to study the RNA transcriptome than to try a reproducible expansion of human immune cells, including T cells and NK cells, in the lab. He did years of basic work without even glimpsing the light at the end of the tunnel. But then he had a two-year tenure in Zambia for studying the immune systems of HIV patients, and even though he came back to Japan with additional expertise, still he and his colleagues had to burn the midnight oil to achieve a successful lab-expansion of the human immune cells. Finally, at the end of a decade of hard work, he got a breakthrough and patented it, though he found his invention was going to be more useful in treating cancer patients!

By then, the Lymphokine Activated Killer cells and Dentritic Cell based treatments had started as clinical applications in Japan, and his invention of being able to grow the Natural Killer Cells without feeder layers meant he had become an immunotherapist for cancer patients. Around this time, he was introduced to Tsutomu Kaneko, whose business expertise combined with the clinical and research expertise of Terunuma to produce a win-win for all involved. With this type of customized and autologous cell-based procedures being considered as clinical procedures as per the Japanese law, the two men produced the Autologous Immune Enhancement Therapy (AIET) for cancer using the patient’s own Natural Killer cells and with other immune cells such as T cells. Today, AIET has treated more than 10,000 patients and several Asian countries have started this treatment as part of the Terunuma team’s outreach via technology transfer. The patents are swelling; the company he started with Kaneko is debt free and earning a profit. Above all, though, the product is a worthy contribution to cancer patients.

I would summarize by saying the key elements for success were:

  • • The years of hard work in the bench to find the appropriate culture methodologies.
  • • Repositioning the invention to an application that was essential and in demand
  • • The availability of clinical data on autologous immune cell therapies for cancer
  • • A synergy-based partnership helped the scientists and clinicians contribute in areas alien to them.
  • • The “clinical procedure” recognition of the autologous immune cell treatment in Japan

 

Samuel JK Abraham

Non-dilutive financing to power your leverage startup – part 1

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In this post, we will discuss the use of non-dilutive financing to incubate early-stage technologies with commercial potential prior to company formation. This strategy is designed to advance technologies originating from, or based in, an academic environment. In a later post, we will explain how the non-dilutive financing strategy can evolve when the startup company is founded.

Non-dilutive finance and the Leverage Startup

Non-dilutive financing is a central tenet of the Leverage Startup Model. This model is a capital-efficient vehicle to advance research-intensive technology, through its earliest and riskiest stage, toward commercialization. The Leverage Startup is designed to leverage established resources available to the biotech community: non-dilutive financing, R&D facilities, technical expertise and commercialization resources, and could be used to advance technology in several distinct environments, from an idea incubating in an academic laboratory to an emerging technology in an established company.

Non-dilutive financing can create value prior to company incorporation

The savvy entrepreneur will consider a non-dilutive financing strategy as a vehicle to develop the technology prior to licensing intellectual property (IP) and creating a company. Innovation emerging from an academic institution can be significantly de-risked and/or expanded in scope using pre-company non-dilutive funding. Used strategically, these funds can positively impact the short- and long-term success of a future company, and are frequently necessary to advance a technology sufficiently to attract future investment. This category of non-dilutive financing can be sourced from research grants, translational grants and translational centres, which are discussed below. Before embarking on this strategy, the entrepreneur should ensure that the academic institution’s technology transfer office agrees in principal to license the technology to the proposed start-up company; otherwise, a third party may benefit from these pre-company dollars.

Non-dilutive financing is not necessarily “free”

Prior to engaging a non-dilutive financing strategy, it is essential to recognize that this money is not necessarily “free” and potential company founders should carefully assess the costs, and other pros and cons of each potential funding source. We will highlight the potential “cost” of research dollars using examples from North America, which reflect our experience as founders of a biotech start-up based in Vancouver, Canada. Please add any additional sources and insights from North America and other regions to the comments below.

Research grants

Basic research grants provide the greatest diversity of opportunities, and cumulatively the largest source of funds to support research in an academic laboratory. These grants range from small-scale seed grants for risky research (no preliminary data) to large-scale, multi-year grants to support multi-faceted programs (preliminary data required). These grants offer not only much needed dollars, but also an opportunity for the entrepreneur to build, and test drive the start-up team, prior to incorporation (we will discuss this further in a later post). The “cost” associated with academic grants is generally minimal. For example, the Canadian Institute for Health Research (CIHR) the primary government funder for the life sciences in Canada claims no rights to any IP generated, or to future revenues enabled, by the funded research. The National Institutes of Health (NIH) has a more stringent IP policy, which includes a formal grant of a limited use license to the subject invention to the United States government. There are additional stipulations for foreign grantees.

Translational grants

Translational grants are designed to accelerate academic research with commercial potential. Generally, the technology focus of the grant is the subject of a patent application (US Provisional, or PCT), or has significant basis for an application in the future. These grants are usually short-term (1 year duration) and are often submitted in conjunction with the academic institution’s technology transfer office. Applications are evaluated on the basis of both the technology development plan, and the business development plan (a good opportunity for the future “founding team” to have an independent critique of their preliminary business plan). An example available through the CIHR is the Proof-of-Principle: Phase 1 competition. The objective of this grant is to develop academic innovations toward commercialization. The “cost” associated with Proof-of-Principle: Phase 1 funding is as described above for CIHR research grants.

Translational centres

Translational centres are increasingly evident in the academic life sciences community. Their mission is to fully capitalize on the R&D emerging from (usually affiliated) large academic institutions/hubs. These centres come in many flavours from fully equipped and staffed organizations designed to mimic a biotech company (an example is the Centre for Drug Research and Development (CDRD), based in Vancouver, Canada, to virtual centres with experienced ex-industry staff (such as MaRS Innovation, Toronto, Canada). Common to all is a source of independent funds that can be used to de-risk technology. However, the origin (e.g. Big Pharma partner) and “cost” of these dollars varies and must be carefully considered. For example, in return for financial support, the translational centre (or its funding partner) may acquire certain IP rights, such as a first-right-of-refusal; alternatively, the centre may seek an equity stake in any resultant company, or rights to any future revenues generated by the supported technology.

Non-dilutive financing can be used to “test-drive” the technology, team and business plan

This post provides an overview of potential non-dilutive funding sources that can create value by de-risking technology, building a founding team, and incubating a business plan prior to company incorporation. This is a strategy that we have used successfully and we would love to hear of other examples of creating value before establishing a company. In a following post, we will discuss how these concepts can be extended once the resultant company has been formed and the technology licensed from the associated research institution.

James Taylor and Euan Ramsey

The Patent System in Brazil

During the ’60s, biology was not patentable. Genetic engineering started during the ’70s, but it was called recombinant DNA technology back then. Investments made in this area demanded a solution for intellectual property (IP) rights being applied to biology.

Though living organisms were not patentable before, genetic engineering and particularly applications in the pharmaceutical area gave rise to the Trade-Related Aspects of Intellectual Property Rights (TRIPS) Agreement, which allows patent protection to be accorded to inventions in the area of Pharmaceuticals. (The TRIPS Agreement is Annex 1C of the Marrakesh Agreement under the World Trade Organization, signed in Marrakesh, Morocco on 15 April 1994.)

Brazil signed the agreement, with 13 other WTO members. When Brazil signed TRIPS, it automatically had to reorganize its patent regulatory system. Brazil then approved a patent law in 1996 (Law 9279) and the next year approved a plant variety protection law (Law 9456). These adjustments came a few years after TRIPS, and the Brazilian patent law incorporated what was minimally required in the TRIPS Agreement.

Our patent law offered the possibility to patent (recombinant) microorganisms that satisfied what was required for granting patents — a not-obvious invention. But it also provided the option to adopt a sui generis system (the UPOV system) to avoid patenting genetically engineered plants and animals – both not required by TRIPS. Patent law and the plant variety protection are hardly compatible (See Castro L.A.B. Revista da ABPI , March/April 2011). Those who have genes and protect the gene technology by the Patent Law also want to have the ownership of whole genomes of plants. The negotiation with agribusiness has progressed, however, since in Brazil farmers can measure the benefits and thus pay for the technology fees, mostly charged by large corporations. This has made Brazil second in the world to the USA in biotech crops.

The big disagreement came in pharmaceuticals. The Brazilian law incorporated TRIPS-endorsed principles that were never accepted by the international pharmaceutical sector, particularly compulsory license. The Brazilian law allows for patented products to be manufactured in Brazil if it’s deemed that prices established by pharmaceutical companies (mostly multinationals) are abusive.

Next the Brazilian government, under the stimulus of the health public sector, modified the Patent Law and established with ANVISA (equivalent to FDA in the USA and to EMEA in Europe) that those willing to patent in pharmaceuticals, and having applied for this purpose at the National Institute of Intellectual Property, needed an agreement from ANVISA. This rule makes the Brazilian process longer than any other in the world, and it is under judicial dispute.

The Brazilian Patent Law is very restrictive, as we can see in the Article 18 of the Law, which deals with biology matters. The Law 9279 prevents patenting parts of organisms, be it microorganism, plant or animal. Cells are not patentable .Genes are not patentable, unless essential for a patented process.

Biopharmaceuticals are not patentable. Molecules derived from the huge Brazilian biodiversity are not considered inventions even if these molecules are isolated and their function demonstrated. As a result Brazil has not one molecule patented from our biodiversity. In addition the general patent performance of Brazil, as compared to Korea, for instance, is extremely weak. The almost nonexistent number of patents from Brazil deriving from our biodiversity has been previously discussed on this blog.

Patenting is an essential instrument for partnerships, which is an absolute requirement for the pharmaceutical industrial sector in Brazil, that is funded with national money, to partner with large corporations (which have been in Brazil for decades, some for a century) to ascend to the large international market. This strategy is the only one that will allow these “native” pharmaceutical companies to become relevant actors in the international scene. Fortunately, the private sector is aware of the importance of patents as an instrument for partnerships. Thus partnerships are occurring in Brazil, despite of our patenting restrictions in biology. As result the Brazilian pharmaceutical industry is growing and is responsible today for 40% of the market in Latin America. The demand for pharmaceuticals is growing at 10% per year. In fact Brazil is leading an emerging biotech boom in Latin America. But it could do a lot better if our regulatory patents system was reviewed.

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Patents granted by the USPTO for selected countries – " pedidos" = deposits ; " concessões " = granted.**

Luiz Antonio Barreto de Castro

Malaysian BIONEXUS incentives

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As we started our work in Japan in 2000 on nano-scaffolds for corneal limbal stem cells (jointly with a group of polymer scientists headed by Yuichi Mori), the very first strategic move was to start collaborating in India, for two reasons. One was we needed a solution for treatable corneal epithelial damage-related blindness, and the other was the availability of qualified and skilled corneal surgeons.

The next move was to have a technology transfer tie with Malaysia, simply because the local investors there were willing to invest their hard-earned money in a biotech venture focused on a personalized immune-cell-based cancer treatment protocol that has been a medical treatment procedure in Japan since the late ’90s.

I was wondering what makes these investors come forward to invest in such ventures, and a brief exploration lead me to the incentives the Malaysian Biotech Corporation uses to attract investors and technocrats from near and far.

Imagine a government body that offers:

• An exemption from tax on 100% statutory income for 10 years from the day your company starts earning statutory income.

• A concessionary tax rate of 20% for another five years.

• Exemption of import duty and sales tax on raw materials, machinery, equipment and their components.

• Double deduction on expenditure incurred for R&D and that for the promotion of exports.

• 100% ownership and freedom to bring in knowledge workers from overseas.

• Exemption of stamp duty and real property gain tax within a period of five years until 31 December 2011, when undertaking a merger or acquisition with a biotech company.

• Tax deduction equivalent to the total investment made in seed capital or early stage financing when a company or individual invests in your company.

• Industrial Building Allowance to be claimed over 10 years with effect from 2 September 2006, on buildings used solely for the purpose of biotech-qualifying activities

• Tax exemption on dividends distributed to your company.

All this is part of what is called “Bionexus” status, as described by the Malaysian Biotech Corp. What’s been the impact?

• As of 6th May 2011, 188 biotech companies have been awarded the Bionexus status.

• Total investment has been 1.96 Billion RM (about US$600 million).

• Among the 188, close to 50% companies have started making profits.

• Five companies are now listed on international and local stock exchanges with market capitalization totaling close to RM1 billion (US$300 million)

One of the major difficulties companies with bionexus status face is the initial seed money for start ups, which the government is trying to address by various means.

Those who have biotech products and services for the South and Southeast Asian market (for which Malaysia can be good hub) with a technical team ready to move to Malaysia in place, should consider applying for the “Bionexus” incentives.

(The author is one of the directors of VisionTec Sdn Bhd, Malaysia. References for this post can be found here and here.)

Samuel JK Abraham

Talent is Talent

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Even if the total numbers of attendees at BIO is down from its peak, it’s still an incredibly large gathering of diverse people across the biotech spectrum. The exhibit hall is a good reflection of that. I can remember when the hall was just a collection of simple individual company stands – a few employees in a booth, a poster hanging behind them.

But as the industry grew, the exhibitors changed; the first sign was a marked increase in law firms, because once it was clear how valuable IP is to biotech, biotech became valuable to lawyers. (That’s not cynicism – lawyers play an important part in biotechnology, as this article and this article illustrate.)

The second change was the amount of state and international exhibitors. The ‘booths’ of yesteryear are now huge country pavilions, like the massive structure built by China.

And why not? BIO is a perfect place for countries to trumpet their goals and successes, with high traffic in the exhibit hall and captive audiences in the panel sessions. I sat in on a series of presentations from South Korea yesterday, and the most interesting tidbit (for me) was its stance on biosimilars: it wants to own 22% of the global biosimilars market by 2020. That’s aggressive, but Choi Kyung-hwan, the minister of knowledge and economy in Korea, said that when Korea’s pharmaceutical generics division got up and running, it settled for the local market, and thus Korea feels it missed an opportunity. It does not plan on repeating that mistake with biosimilars, and plans to have the best biosimilar offerings across the board and go global.

So far that plan is working, if the Merck – Hanwha Chemical deal earlier this month is any indication. They signed to develop and commercialize a follow-on Enbrel (etanercept) after Merck searched for the best version around and settled on Hanwha. (Enbrel’s patent is set to expire fall 2012.)

That’s South Korea, though – a fairly established biotech player with a suggested 42 therapeutic biotech firms. On the other end of the spectrum is Mexico. In its session, there was less to discuss. One speaker basically outlined the market potential for pharmaceuticals in Mexico — $11.2 billion, which ranks them top 50 overall in the world and the largest in Latin America.

But paying customers is not a biotech base. Mexico does offer Instituto Bioclon, which is producing anti-venom ‘fabotherapics,’ and Silanes, which makes pharmaceutical diagnostics and diabetes drugs. And it has INMEGEN, the National Institute of Genomic Medicine in Mexico. But overall, biotech in Mexico is very young. In the Q&A part of the session, a representative from Concert Pharmaceuticals asked what I thought was a very interesting question: he pointed out that the massive layoffs in pharma and biotech have left a lot of qualified individuals out of work; has Mexico considered bringing some of them south of the border to help set up a nascent industry?

The panelists hemmed and hawed. A representative from the Federal Commission for Protection of Sanitary Risks (the FDA of Mexico) said, No, Mexico was looking to keep things local. That didn’t seem to sit well with the audience or the other two panel members, who in their responses were quick to suggest that talent is talent and Mexico is open to anything.

That ended the session, but I was a little confused by their answers, so I went to panel member Carmen Alvarez-Buylla (she works at INMEGEN), to get her to clarify Mexico’s stance. This seemed like a no-brainer to me, I said. If there are available, seasoned biotech vets who can help, execs who know VCs and who have built companies before, why not hire their services?

She agreed in theory that this could work, but said Mexico is “not there yet.” Yes, there is research happening; and yes, INMEGEN and others are collaborating with universities; and yes, Mexican researchers are actively looking to publish papers in major journals. But there is no universal tech transfer policy in place in Mexico, she said, and there are no rules for royalty sharing.

Without any of that, it’s simply too early to consider building anything.

Brady Huggett

Brazil’s laws

Biotechnology development in Brazil is moving, but slowly, due to the lack of (1) investments from the private sector and (2) a clear and consistent exercise of the Brazilian patent law (9279/96). In this commentary we will deal with the first issue and in the next with the patent context.

Science in Brazil has progressed considerably in the last couple of decades. Science output in Brazil was multiplied by five since 1980 and Brazil contributes close to 3% to the world scientific output.

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Figure 1 – Brazilian scientific output with respect to the world (indexed by Thomson/ISI), and to Latin America from 1981-2008. In green: Brazilian output with respect to the world. In blue: Brazilian output with respect to Latin America.

When we compare the public investment made in Brazil to the same public investments made by developed countries the numbers are similar. However private investments are far from what one can see in the same developed countries. For this reason, combined Brazil invests slightly above 1.0% of its GNP in science and technology.

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Figure 2 – Public and private investments in science and technology by country as % of the GDP. Public (yellow) Private (blue)

Brazil established recently two laws to stimulate private investments. The Innovation Law, December 2, 2004, and the Good Law, November 21, 2005. The last one was complemented by a Decree, on June 7, 2006, which in chapter III Articles 17 to 26 states that those entrepreneurs active in technological research and innovation can automatically deduct this investment from the income tax. In summary the government renounces to receive the tax as long as the money is invested in technological development and innovation. Both laws are recent and the results, although moving up, are still modest. In 2006 private companies invested 0.09% of the GNP.

In 2008 these investments climbed to 0.3 % of the GNP. The number of private companies in 2006 was 131 and the fiscal incentive US$1.4 billion. In 2009, 635 companies deducted from their fiscal taxes US$5 billion.

There are flaws: entrepreneurs complain that calculations are complicated (services are now available to help) and they fear that when they submit their deduction proposal the financial system will contest what they presented as technological development or innovation. Another flaw is that the laws do not benefit nascent and small companies – in other words, companies typical of the biotech sector. For this reason few biotech companies (particularly in the area of health) are benefited. Risk capital to move up small companies is still a problem in the biotech sector. Brazil has supported these small companies through another mechanism (I’ll discuss it later). The system helps these companies but they hardly are funded to scale up their business.

Luiz Antonio Barreto de Castro

Reverse brain drain and the Indian biotech “niche”

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For the past few years, we have received significantly more resumes from native Indian post-doctoral fellows from the US, searching for opportunities in India, which tickled me to explore the phenomenon of “reverse-brain-drain” in India and the biotech field. This phenomenon became popular after the dot-com bubble crisis, which forced many IT professionals from Silicon Valley to return to India.

In my opinion, China has gained a lot with the reverse brain drain phenomenon in biotech, as evident by the number of publications in high impact journals. The “knowledge-hub” creation-oriented governmental policies could be a major contributor.

However, the situation in India is not that encouraging. If India Inc. wants to be successful in achieving gains from a reverse brain drain in biotech, it should create an environment that is conducive for those talented individuals to come back, perform their best, contribute and remain.

Bringing back post-docs and putting them under the “old-time” systems with “red-tape” protocols will kill the spirits of those aspirants who want to do big things back home. I compare this to an in vitro cell culture system where we grow the cells taken from an in vivo environment. Though physiologically the environment or niche is different, we try our best to create the physiologically closest niche in vitro so that the cells will grow outside the body.

Similarly, rather than only bringing those post-docs (the cells) back, we should try to create systems (the niche) like those in developed nations. Some components of the niche could be:

  • Creating performance-based incentives and promotions
  • Maintaining confidentiality of proposals submitted through a single window to all funding agencies to prevent plagiarism
  • Allowing principal investigators to retain intellectual property rights
  • Being open to their entrepreneurship initiatives by establishing appropriate transparent systems
  • Allowing senior faculty from laboratories of accomplished nations to contribute to research projects in India.
  • The hope is that these elements would bring out the best from those talented individuals transplanted back home.

Samuel JK Abraham

No Genes, No Future

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The biotech industry relies strongly on genetic engineering, and on genes being characterized and properly expressed. This was clear to me more than three decades ago, after Herbert Boyer expressed in California the insulin gene in E. coli. I’m a member of the Brazilian Academy of Science, and since the ‘80s, I’ve stated that countries that do not identify genes will never build a competitive pharmaceutical industry, or agbusiness industry, or, more recently, biofuels industry.

Well, Brazil does not have its genes, as they say. And its pharmaceutical industry has accumulated a US$7 billion debt, when comparing sales to importing. The genes coding for the enzymes capable of converting cellulose to ethanol will come from large corporations, such as Novozymes, Amyris and Ceres – all of which are already working in Brazil, benefiting from its sugar cane industry. Monsanto acquired Alellyx and CanaVialis, both related to sugar cane.

Because it’s important for Brazil that the best technology reaches consumers, I do not criticize that. Good partners are of course welcome. The problem is that when we move to agriculture, Brazil does not have a clear strategy to identify and use the genes needed for the plants of the future. Nevertheless Brazil is second in genetically modified organisms (GMOs) cultivated, behind only the US. So what is the problem? The price we have to pay for the genes.

The RR gene from Monsanto, for making plants tolerant to glyphosate, last year cost Brazil US$200 million for our soybean farmers. That weakens Brazilian competitiveness. Other necessary plant genes are in the hands of the large corporations. We can imagine that Brazil won’t be able to compete with China in the cotton business unless Brazil does not need to pay for the genes to the Bt technology. China has its own Bt genes, after all.

Fortunately for Brazil, we have a unique Bt gene toxic to Boll weevil, coming from Embrapa, the Brazilian Agriculture Research Corporation. Boll weevil costs to the cotton farmer $150 per hectare. EMBRAPA has a rich Bt collection with 4,000 mutants, and other Bt genes may be there. But it begs the question: Why doesn’t Brazil have the genes to build the pharmaceutical industry?

Laws, in effect prevent scientists from finding these genes in our own biodiversity – a problem that has existed since 2000 and controlled by the Ministry of Environment. There is a council called CGEN, but it does not operate. It is so prohibitive, it prevents The Butanta Institute from working with its own snakes (which they have being doing for more than a century), unless authorized by this law. Institutes like Vital Brasil, in business for more than century, suffer from the same fate. More than a hundred cases are suing scientists and institutions for collecting plants without authorization from the Brazilian Institute for the Environment and Renewable Natural Resources (IBAMA) – the right arm for the law. Even though he was authorized, researcher Elibio Rech, from EMBRAPA, was fined 100,000 reais (US$45,000) because he developed a technology from a spider web coding gene. He’s allowed to do the science, but not develop a technology. Then what is Brazil’s famous biodiversity good for?

This never happened, of course, with the Canadian Air Force, which has used this spider gene for more than a decade. The law (called a provisional measure) has been a disaster for the Brazilian biotech industry. We tried to get a new law passed for the past 10 years, but never succeeded. Brazil cannot waste more time. Will we develop the Bt genes? Who knows. The matter should move from the hands of the Ministry of the Environment, to the hands of the Ministry of Science and Technology, which previously had control of such matters through the National Council of Research – all of which was before the Biodiversity Convention and before the passing of the provisional measure just mentioned.

What do I think should happen to the provisional measure? It should disappear, legally. It is judicially possible for this to happen.

Luiz Antonio Barreto de Castro