Brazilian Government Outlines Stem-Cell R&D Spending

Health ministry officials in Brazil have pledged to increase local funding for R&D projects based on stem-cell technologies, in the wake of last month's approval of the so-called Bio Security Law. The measure effectively created a legal framework for biotech research in the country, allowing potential investors greater freedom to conduct preclinical and clinical trials.

The government claims that it will now contribute some BRL8mn (US$3.12mn) to stem-cell R&D in 2005, divided between 32 projects. However, the amount of finance involved will clearly be tiny compared with that spent annually by large private concerns on biotech development in other countries. Indeed, the local research industry recently lamented the fact that fewer than 1,000 of Brazil's roughly 11,000 research staff are employed by private companies.

Brazil is eager to encourage biotech development in the country, although it appears unlikely to match the development capability of other low-cost locations such as India. Furthermore, in view of lax data exclusivity enforcement, many of the major multinationals present in Brazil have opted to focus on the fast-growing generics sector rather than entering into the R&D partnerships with local universities which are so coveted by the authorities.