Taiwan Government's Biotech Moves Seen Bearing Fruit

According to local studies, government moves in recent years to boost Taiwan's biotechnology sector have led to a significant increase in sector revenue. With revenue of US$950mn reported for 2003, officials now expect the industry's overall value to reach US$1.9bn by 2010.

However, this successful track record in recent years belies a number of challenges to Taiwan's biotech industry. Above all, the competitive threat from Singapore, already effectively the region's healthcare hub, will remain strong in the coming years. The Singaporean government is currently carrying out a major strategic plan for the sector, dominated by the manufacturing and R&D operations of the major drug multinationals, and the country is notably ahead of Taiwan in terms of patent law.

Nevertheless, Taiwan's government stresses that local firms invested some TWD 10.5bn (US$307.02mn) on new biotech and pharmaceutical operations in the first seven months of 2004, more than double the entire amount invested between 1998 and 2002. Officials also continue to highlight the country's position as a stepping-stone to mainland China, with modern applications for traditional Chinese medicines also representing a new potential avenue for R&D in the country.

Further, Taiwan has moved to improve regulation of the sector, which in terms of the domestic industry is dominated by producers of generics and basic medicines. In September 2004, the Pharmaceutical Affairs Law was amended to allow foreign companies a five-year period for the protection of trial data and studies on new drugs, as well as three-year protection for less novel products.