biopicker, Here's what the San DiegoUnion Tribune had to say about Biotechs in general
and SD Biotechs in particular:
Biotech industry seen on verge of major boom
Thomas Kupper
STAFF WRITER
08-Oct-1997 Wednesday
Good times are ahead for the U.S. biotech industry, according to a new
government report out yesterday.
The study from the Commerce Department, released in San Diego on the eve of
the annual CalBioSummit event, points to nearly 300 drugs in human trials
as evidence of the industry's growing strength.
"The outlook is very, very positive," Deputy Assistant Secretary of
Commerce Kelly H. Carnes said at a City Hall news conference. "We think the
industry is poised and ready to enter a rapid growth period."
Though in the past the biotech industry has been characterized by years of
expensive research with few marketable products to show for it, Carnes said
more companies are getting closer to government approvals.
In San Diego, where the cluster of biotech companies is the third-largest
in the country, Agouron Pharmaceuticals launched an AIDS drug this year and
Idec Pharmaceuticals is nearing approval for a lymphoma drug.
"The industry is moving toward commercialization of several leading
products," said Duane J. Roth, chairman of San Diego's Alliance
Pharmaceutical. "That's reflective of both the local industry and the
national industry."
The potential is huge, according to the report. More than 2,000 biotech
companies have been formed in the United States, and the market for their
products is expected to triple to $24 billion by 2006.
Of course, the overwhelming majority of biotechs both in San Diego and
elsewhere are not profitable, as they continue to pour money into research
and trials on new drugs.
To date, most of the major successes in the industry have happened at a
small group of elite companies such as Amgen and Genentech, neither of
which is in San Diego.
The diversity of the industry will be reflected at tomorrow's CalBioSummit,
an all-day event at the Convention Center which this year carries the theme
"Discovery, Development, Distribution and Delivery."
Robert S. Whitehead, president of San Diego-based Trega Biosciences, said
it's a theme that reflects the range of maturity among local biotechs, from
start-ups to the handful that have launched products.
The Commerce Department study, part of a series on American industries,
points to key questions for the industry including its ability to attract
continued financing and the regulatory climate.
Previous reports covered the steel, automotive and chemical industries.
Carnes said the report is designed to reflect the perspective of executives
in the industry to provide background for legislative debates over issues
that affect the industry.
The fiercest of those debates will likely continue to be over the
performance and role of the Food and Drug Administration, which reviews
applications for all new drugs.
The report found that the FDA is improving in terms of how fast it handles
such applications, though there is still widespread dissatisfaction among
biotech executives.
Yesterday, the House of Representatives approved an FDA reform bill that
makes it easier for doctors to get access to experimental drugs and sets up
a fast-track procedure for serious or life-threatening diseases.
Carnes said the biotech industry is also getting a more pleasant reception
in the financial community, in part because the industry is finding new
sources of financing.
Most notably, the proportion of research funded by partnerships or
collaborations with large pharmaceutical companies is growing quickly --
thus reducing the amount biotechs must seek in financial markets.
The report also found that this trend is increasing the amount of foreign
investment in American biotechs, because many of those large pharmaceutical
companies are European.
"Overall we don't see any problem with foreign investment," Carnes said.
"It's actually an indicia of how strong we are." |
