BIO on the road

As promised here is the post on globalization, one of the three major trends driving the biotechnology industry to reinvent itself, according to Ernst and Young 2008 biotechnology report. Pharma and biotech companies are taking advantage of the ‘flattenning world,’ as described by Colin Powel in his keynote speech, and jumping into the globalization trend in the hopes of finding new opportunities for cutting costs and for increasing profits by selling to underserved markets.

In order to cut costs but not production, many Western biotechnology and pharma companies are laying off domestic workers, but also hiring new workers in emerging markets due to their willingness to work for significantly lower salaries without compromising education and/or productivity levels. The convention’s panel on the EO 2008 global biotechnology report highlights this hiring practice as a temporary solution for cost cutting and for the need to expand globally, predicting that the workers from current emerging markets will eventually raise their salaries as competition for their work increases.

From the perspective of the current emerging markets, the new hiring trend is also only a temporary fix for their desire and need to grow internationally. As new markets continue to emerge competition within the emerging markets will increase. The West will have an ever-growing pool of highly trained employees willing to work for potentially even lower salaries, making a relationship based solely on this factor somewhat unsustainable. In an effort to forge more sustainable relationships, emerging markets are moving beyond offering ‘cheaper labor’ and large bodies of “clinically naïve patient populations” to “acquiring assets from, or allying with, western companies.” Ultimately, this will then challenge and increase competition for western markets. It is worth noting that being tempted by ‘clinically naïve patient populations,’ may not be the most ethical of temptations, particularly since one of the big challenges in pharmaceutical R&D is obtaining a quality informed consent. Balancing the need and desire for innovation and for respecting individuals and communities is a continuous challenge. Even NASA struggles with finding the balance between its drive for scientific advancement and its responsibilities to its employees and communities.

A more sustainable and obvious approach regarding globalization for the biotechnology industry, involves western markets seeing emerging markets not solely as opportunities for ‘cheaper labor’ but as emerging consumer-bases, according to the report. Since these emerging consumer bases cannot yet afford to pay western prices for products, the report suggests that western companies “work collaboratively with innovative companies in emerging markets to develop products designed specifically for local conditions.”

As you can see the convention was filled with information and inspiration for professionals from all niches within the biotechnology field, from the scientists to the executive and the salesmen to a bioethicist. It was wonderful to see Vertex Pharmaceuticals taking the lead in creating awareness of the ethical challenges facing the biotech industry and courageously attempting to meet those challenges, by sponsoring the convention’s bioethics track! Thank you to Navigant Consulting, CRT-Tanaka and Nicole Ruediger at BIO for making my participation possible. The experience was fantastic and I am already looking forward to next year’s convention!

It has been a busy week, and I’m betting most of you are very tired. Partnering, talks, and an exhibit hall that has a lot to offer. How should you spend your last day? After spending 3 days pounding the “exhibit floor” pavement (carpet), I have some suggestions for you.

• Visit the various pavilions in the exhibit hall, representing different regions of the world and the biotech companies that do business there. Each has its own flavor, and each region is obviously anxious to show you why you should do business there. With the price of travel these days, you could even consider it to be a mini-vacation. My favorite pavilions? Holland, for its inviting display, Kansas, Oklahoma, and Wisconsin, for their midwestern hospitality, and South Africa, representing biotech that will make a difference in the issues that plague the continent. California, my home state, also has an impressive display of companies and institutions from our growing biotech hubs.
• Visit the Emerging Technologies area, located in the southernmost (H) region of the exhibit hall. Of course, it is always interesting to hear about new technologies, and to hear about it from the entrepreneurs who will represent the next wave in biotech.
• Visit the BIO Patient and Health Advocacy Display, which is in the Ground Level Lobby, section F. Learn more about the efforts of these advocates in making a difference in getting funding and cures for a wide variety of diseases. It is always worthwhile talk directly to the patients and advocates for diseases which we are working towards curing, as they have important perspectives.
• For fun, visit the Lab Support Virtual Roller Coaster Ride at Booth 4316.
• Don’t forget to get your green Crocs at RNL Bio, Booth 1015 (if they have any left!). I am not responsible for any fashion faux pas that result.

The 2008 BIO International Convention is in full swing.  We’re having fun, learning a lot — and thinking about ways to move the industry forward in 2008/2009. If you weren’t able to come and join us this year BiopharmInternational.com has done a fantastic series of podcasts covering manufacturing strategies, outsourcing, vaccines, industry trends, and emerging technologies. And while we’re sorry you’re not with us this year.  We hope you’ll join us next year in Atlanta.  There are some here in San Diego that already have Georgia on their minds.

Today, at the BIO International Convention The report, Genetically Engineered Animals and Public Health – Compelling Benefits for Health Care, Nutrition, the Environment and Animal Welfare, was released.  The report discusses how GE animals enhance human health, food production, environmental protection, animal health and as well as providing cutting-edge industrial applications. The report was authored by Scott Gottlieb, MD, of the American Enterprise Institute, and Matthew B. Wheeler, PhD, of the Institute for Genomic Biology, University of Illinois at Urbana-Champaign.  Dr. Gottlieb and Dr. Wheeler are experts in the field of genetic engineering of animals. 

To learn more about genetically engineered animals tune into BIOtech Now to listen to BIO’s own Dr. Barbara Glenn.

The BIO International Convention will travel back East to Atlanta, Ga. in 2009.  With the nation’s seventh-largest biotech cluster, Georgia is home to a number of life-science companies and research universities, as well as the Center for Disease Control and Prevention and the Carter Center for Global Health Initiatives.  The state of Georgia is also home to 270 pharmaceutical, biotech, medical device, diagnostic, ag-biotech and biofuels companies. 

We are excited to announce that we have launched our spiffy new BIO 2008 convention newsroom. Using a “social media” approach, we combined newsfeeds from our “BIO on the Road” blog, as well as convention press releases, a convention blogroll, and links to all of our community outlets:

• BIO2008 Twitter group
• BIO 2008 Facebook Group
• BIO Convention LinkedIn Network
• The BIO Channel on YouTube
• BIO Photo Albums on Flickr
• myBIO

Be sure to get connected and join these communities, and check out our newsroom today!