Life Science Report Austria 2011
Biotechnology Sector Survey 2011: Facts and Figures
LifeScience-Report_Vienna_2011.indb 1
15.06.2011 16:57:30 Uhr
LifeScience-Report_Vienna_2011.indb 2
15.06.2011 16:57:30 Uhr
life science report austria 2011
Preface
he recent success stories in Aus-
sciences through its funding programmes
made possible by outstanding researchers
thermore, the government raised the R&D
personal risk and by the targeted support
to 10% at the start of 2011. All these meas-
The Federal Ministry of Economy, Fam-
and exciting jobs while securing Austria‘s
T
tria’s life science industry have been
‘PreSeed LISA’ and ‘LISA Seedfinancing’. Fur-
who are willing to take a high amount of
cash tax-premium for companies from 8%
of our innovation-friendly government.
ures are now bearing fruit, creating new
ily and Youth in particular considers it an
future as a hot spot for innovation.
in research, development and innovation
With investments into R&D in 2011 at an
strengthen Austrian companies.
invest far more into R&D than the EU av-
2010 has proven to be another successful
search, development and innovation of the
December a Viennese biotech company
We want to make Austria an innovation
between large pharmaceutical companies
the share of investments into R&D to 3.76%
important policy to promote investment and to create appropriate conditions to
all time high of 2.79% of GDP, we already
erage. However the new strategy for re-
year for the Austrian biotech industry. In
Austrian Government aims even higher.
announced the biggest ever licensing deal
leader within the European Union and raise
and an Austrian biotech company – valued
of GDP by 2020.
large biotech license deal with an Austrian
Austria takes pride in a long tradition of
half years. This eye-catching deal is an im-
es, with such famous names as Max Perutz,
a key European biotech location over the
tria clearly still has a wealth of innovative
at a total of 1.26 billion euro. It was the fifth
innovative company in the last two and a
revolutionary discoveries in the life scienc-
portant indicator that Austria has become
Theodor Billroth or Karl Landsteiner. Aus-
last 10 years.
potential to offer. There is a bright future ahead for the Austrian biotech industry.
Against this background Austria has a wide array of national and regional funding
schemes for young high-tech companies
on offer. austria wirtschaftsservice, the
Dr. Reinhold Mitterlehner,
financial support for start-up ideas for life-
Family and Youth
Austrian national funding bank, provides
Federal Minister for Economy,
3
LifeScience-Report_Vienna_2011.indb 3
15.06.2011 16:57:31 Uhr
life science report austria 2011
Content The Austrian Biotechnology Sector 2011
.....................................
5
Structure of the Biotechnology Sector .................................................... 6 Employee Structure .............................................................................................. 7 Fields of Activity ..................................................................................................... 8 Clinical Pipeline ...................................................................................................... 10 Cooperations .......................................................................................................... 14 Development of Turnover and R&D Expenditure ........................... 15 Financing ................................................................................................................... 16 International Overview .................................................................................... 18 Prospects ................................................................................................................... 19 Public Funding for the Austrian Life Science Industry ................ 20 Life Science Austria – LISA ............................................................................. 20 Methodology .......................................................................................................... 21 OECD Definitions ................................................................................................ 22
4
LifeScience-Report_Vienna_2011.indb 4
15.06.2011 16:57:31 Uhr
life science report austria 2011
The Austrian Biotechnology Sector 2011
n Austria, the life sciences – includ-
euros, and employ 1,470 staff. Through sta-
ver. Investors certainly view biotechnology
being among the most important key
ogy in Austria is anticipated to grow further
Austrian biotechnology was at high levels
ing biotechnology – are viewed as
technologies for driving forward new developments, and for developing econo-
ble growth, the significance of biotechnolin the years to come.
mic potential. Over the last decades a live-
The subsections of ‘red’ biotechnology,
panies has put Austria on the European life
gredients, diagnostics, and new therapies,
ly scene of innovative biotechnology comscience map .
Austrian biotechnology is young – the average company is just seven years old. Yet the
industry has reached a critical mass within a very short period, and has grown into a
major economic factor. In 2010, Austrian companies, working either in part with bio-
technological methods or committed fully to methods of biotechnology, generated more than three billion euros in turnover. 2,865 million of this figure is attributable
to the 36 biotechnologically active firms,
with a focus on active pharmaceutical inand ‘white’ biotechnology, which is occupied with biotechnological processes for in-
dustry, generate the strongest turnover. 97 million euros of this alone, i.e. 60% of total turnover, is attributable to the health sector; turnover in industrial biotechnology in 2010
private investors, grants, loans, and other contributions. With 35 million euros, the majority came from private investors and
business angels; venture capital was the second largest source of financing for biotechnology companies, with a total contribution of 19 million euros.
half of the Austrian Federal Ministry of
clear focus in Vienna. 43 companies, or over half of the dedicated biotechnology companies, are based in the capital.
panies exceeded the sales figures. This is
companies oversee a turnover of 161 million
including funds from venture capitalists,
perspective biotechnology in Austria has a
These companies employ 5,810 people in
Together, the 77 dedicated biotechnology
lion euros flowed into the sector last year,
These are the key findings of the company
Whether red or white, from a geographical
In 2010, expenditure on research and devel-
their biotechnology-related arms.
in 2010. Funding totalling around 79 mil-
was around 17 million euros, a share of 10%.
including companies such as Baxter, Boehringer Ingelheim, Sandoz, and Sanochemia.
as a promising future field. Financing in
opment in dedicated biotechnology comfurther evidence of the strong focus on in-
survey carried out by BIOCOM AG on beEconomy, Family and Youth and Austria
Wirtschaftsservice GesmbH (aws). Data were collected from February to May 2011,
following the guidelines and definitions of the Organisation for Economic Cooperation and Development (OECD; for methodology see page 21).
novation within the industry. In total, the firms invested 173 million euros in future products, corresponding to 107% of turno-
Number of dedicated biotechnology companies
77
Number of other biotechnology-active companies (e. g. pharma, chemicals or seeds manufacturers)
36
Number of employees in dedicated biotechnology companies
1,470
Number of employees in the biotech-related areas of other biotechnologically active companies
5,810
Turnover of dedicated biotechnology companies Turnover of other biotechnologically active companies
EUR 161m EUR 2,865m
R&D expenditure of dedicated biotechnology companies
EUR 173m
Total financing of dedicated biotechnology companies
EUR 79m
© BIOCOM
I
Tab 1: Key figures of the biotech sector in Austria 5
LifeScience-Report_Vienna_2011.indb 5
15.06.2011 16:57:31 Uhr
life science report austria 2011
Structure of the Biotechnology Sector
in the field of medical or ‘red’ biotechnol-
egory. On the map of biotechnologically
number of predomantly growing companies.
course of the year.
dedicated, 6 biotechnologically active) and
or for the most part with methods of mod-
The biotech industry in Austria still is relative-
definition by the Organisation for Economic
nology company being just seven years old.
T
he biotechnology sector in Austria today, is made up of a remarkable
In 2010, 77 companies were occupied wholly ern biotechnology. Thus, according to the Cooperation and Development (OECD),
these are counted as ‘dedicated’ biotechnol-
ogy – were registered bankrupt over the
ly young, with an average Austrian biotech18 companies were founded before 2000.
active federal states are Lower Austria (13
Styria (10 dedicated, 5 biotechnologically active). Tyrol is home to six dedicated and
one biotechnologically active biotechnol-
ogy company. The federal states of Upper Austria (four dedicated, five biotechnologically active) and Salzburg (one dedicated) are further down the table.
ogy firms. Biotechnology is also becoming
The geographic distribution of biotechnolo-
exclusively active in the field. Companies ac-
sector in Austria. An important nucleus is the
Thematically, it is notable that the Vienna
Institute of Molecular Pathology (IMP) in the
available expertise and activity in the devel-
increasingly significant for companies not tive in biotechnology alongside other areas
of activity fall into the category of ‘other biotechnologically-active companies’. Included
here are, among others, pharma and chemicals companies, foodstuffs manufacturers,
or energy companies employing innovative
biotechnological techniques. Last year, a to-
gy companies also reflects the history of the basic biomedical research-oriented Research capital Vienna, which was founded in 1985
as a joint venture with US biotech company Genentech and German pharmaceutical company Boehringer Ingelheim.
tal of 36 companies in Austria were included
Overall, the statistics record 43 dedicated
cated, only dedicated biotechnology compa-
alone, meaning that more than half of
in this category. When not otherwise indinies will be considered in the following.
In 2010, three new companies emerged in Austria, two other companies – all of them
State
biotechnology firms in the Vienna area
companies are based in the Vienna district. The non-dedicated biotechnology firms are similarly distributed. In Vienna,
18 companies can be assigned to this cat-
Dedicated biotechnology companies
Employees of dedicated companies
area shows, among others, a high level of
opment of vaccines and immune therapies. The companies in Upper and Lower Austria
have an overall emphasis on systems biology, diagnostics, and regenerative medicine.
In Styria, work focuses above all on pharmaceutical procedures, -processes, and
-production technologies. The region is also home to Europe’s largest tissue biobank infrastructure. In addition, industrial biotechnology is more strongly represented in the
company profiles than in the other Austrian provinces (see ‘Fields of Activity’).
Other biotechnologically active companies
Biotech-employees of biotechnologically active companies
–
–
–
–
Carinthia
–
–
–
–
Lower Austria
13
142
6
95
Salzburg
1
4
–
–
Styria
10
240
5
300
Tyrol
6
86
1
566
Upper Austria
4
150
5
406
Vorarlberg
–
–
1
3
Vienna
43
848
18
4,400
Total
77
1,470
36
5,810 © BIOCOM
Burgenland
Tab. 2: Distribution of biotechnology companies and their employees by federal states (in absolute figures) 6
LifeScience-Report_Vienna_2011.indb 6
15.06.2011 16:57:31 Uhr
life science report austria 2011
Employee Structure
of employees working in dedicated bio-
The publicly-traded Intercell AG in Vienna
Salzburg (4).
nology companies, founded in 1997 as a
dedicated biotechnology companies had
Mirroring the industry as a whole, the
of Molecular Pathology (IMP), is now also
According to the survey, a total of 828 of
panies are of a small size. 76 of the 77 ded-
tech companies. 207 people work for Inter-
in the survey fall into the EU-defined cat-
which is specialised in the development of
prises (SMEs), i.e. with less than 250 em-
ploys 411 people.
A
glance at the employee figures for Austrian biotech companies shows
that small and medium sized companies
dominate the industry. In 2010, the 77 a total of 1,470 employees on their books.
these employees were female, a proportion of 56%.
The 36 companies in the pharmaceutical,
chemical and food industries, which in
this survey fall under the category of bio-
technology companies in Tyrol (86) and
is not only one of Austria‘s first biotechspin-off of the Vienna Research Institute
majority of Austrian biotechnology com-
the biggest employer among Austrian bio-
icated biotechnology companies counted
cell in Austria. Worldwide, the company,
egory of small and medium-sized enter-
vaccines against infectious diseases, em-
ployees.
Number two in the employee rankings
technologically active companies, amount
Indeed, most of these companies are very
is PAA Laboratories GmbH. The labora-
technology-oriented departments. Only
nology companies (46.8%) have fewer than
have a staff of exactly 100. The company
large percentage (44.2 %) employ between
media.
to a total of 5,810 employees in their biothe employees of dedicated biotechnology companies are considered in the following.
From a geographical perspective, the majority of dedicated biotech companies are
small. Almost half of all Austrian biotech-
tory suppliers in Pasching in Upper Austria
ten employees on their books. An equally
specialises in the production of cell culture
ten and fifty. Five companies employ a staff of 50 to 99.
based in Vienna. The capital employs the
Companies with more than one hundred
ees. Closely following are the provinces of
an biotechnology sector. To date, only two
highest number of staff with 848 employStyria (240), Upper Austria (150), and Lower
Austria (142). There is also a small number
1% 1%
employees are the exception in the Austribiotech companies belong to this exclusive club.
7% Number of employees > 249 100 – 249
44 %
50 – 99 10 – 49 < 10
© BIOCOM
47 %
Fig. 1: Size structure of dedicated biotechnology companies 7
LifeScience-Report_Vienna_2011.indb 7
15.06.2011 16:57:31 Uhr
life science report austria 2011
Fields of Activity
n contrast to many other sectors,
specialised in contract research and man-
range of application fields. The majority of
into this category. Pure contract manu-
I
biotechnology is used in a wide
biotechnological products, processes, and
services are aimed towards the health sector. The search for new therapies, vaccines,
or biomarkers, as well as the development of new diagnostic techniques, represents the most important area of application for biotechnology, and this is also true for
ufacturing of biopharmaceuticals, also fall
this, among others, is the Austrian food company Agrana.
facturers of biological molecules without
To date, only 2 companies in Austria can
included here. With 22 % this makes it the
biotechnology. These are Bioplant R&D
in-house development activities are also second most important industry segment.
However, the separation between these segments is fluent, and not irreversible.
be clearly placed in the category of plant
in Vienna and Bio-Ferm GmbH in Tulln.
Both are focused on the development of biotechnological procedures to improve
plant health in both ornamental and useful plants.
Austria.
Industrial or ‘white’ biotechnology is ex-
Thus, the majority of biotech companies
2010, six Austrian companies stated that
In the framework of this survey, no bio-
technical enzymes, new biomaterials, and
been assigned exclusively to the separately
in Austria is dedicated to the development of drugs or new methods of diagnosis. 52
companies (67.5 %) can be counted in the field of ‘red’ biotechnology.
With 17 companies, the second largest
category is ‘non-specific applications’. This also includes all companies providing services exclusively or mainly for other
biotechnology firms, or which are active
for these as suppliers. For example, the
cell culture media specialists PAA Laboratories GmbH, or Polymun Scientifc GmbH,
periencing a growth in significance. In
they were focused on the development of biotechnological production processes.
Nevertheless, the total figure occupied
technology companies in Austria have defined area of bioinformatics.
with industrial biotechnology – 7.8% – is relatively low. This figure does not re-
flect the true significance of the sector, however. Because white biotechnology
is relevant above all for industry, a large
number of activities do not take place in the dedicated biotechnology companies, but directly in biotechnologically active
large-scale enterprises. An example of
0% 22 % health/medicine agricultural biotechnology industrial biotechnology
8%
non-specific services
3%
bioinformatics
© BIOCOM
67 %
Fig. 2: Main areas of activity in dedicated biotechnology companies 8
LifeScience-Report_Vienna_2011.indb 8
15.06.2011 16:57:32 Uhr
life science report austria 2011
Linz St. Pölten
Vienna
Salzburg
Bregenz Innsbruck
Graz
© BIOCOM
Klagenfurt
Fig. 3: Geographical distribution of dedicated biotechnology companies with main activities in medicine (red)
Linz
Vienna St. Pölten
Salzburg
Bregenz Graz
Innsbruck
© BIOCOM
Klagenfurt
Fig. 4: The geographical distribution of dedicated biotechnology companies with main activities in industrial biotechnology (grey) and agrobiotechnology (green). 9
LifeScience-Report_Vienna_2011.indb 9
15.06.2011 16:57:42 Uhr
life science report austria 2011
Clinical Pipeline
efore investors decide whether to
and two chemical molecules are currently
mechanically ventilated ICU patients at 33
velopment.
rope and Latin America. Already in 2008,
in the more advanced stages of clinical de-
participate financially in drugs de-
velopers, they will always put the clinical pipeline under the microscope. The number and quality of drug candidates found here
A total of 15 active ingredients (13 biothera-
of the company. If the pipeline is good, the
being tested in clinical phase I trials; ten
will greatly determine the future success
peutic agents, two small molecules) are
prospects are likely to be brighter.
other active ingredients (only biotherapeutic candidates) have made it into phase II.
In 2010, the 77 dedicated biotechnology
companies in Austria had a total of 80 com-
In 2010, Vienna-based AFFiRiS AG had an
of the three phases of clinical development.
clinical phase II. Since spring 2010, the drug
pounds in preclinical development, or in one This took in 66 biopharmaceutical candidates and 14 small chemical molecules. These
In 2010, Intercell AG in Vienna had three
large part of development work is carried
(the active ingredient V710) was termi-
vaccine candidates in phase II, one of these
out in Austria were included.
nated in spring 2011. Positive results from a
phase II clinical trial were reported in 2010
for the vaccine candidate IC43, which is di-
The majority of development candidates
rected against hospital infections caused
are in the preclinical phase: A total of 43 bio-
by the bacterium Pseudomonas aerugi-
pharmaceutical candidates and twelve
nosa. This randomised, placebo-controlled
small chemical molecules are in this devel-
phase II clinical study included around 400
opment stage. 23 biotherapeutic agents
ner – Romark Laboratories L.C. – was found
in 2010. An extended phase II study combining the vaccine with Romark’s active ingredient nitazoxanide is planned for 2011.
which was in-licensed from Vienna-based
being carried out in a number of indications.
In addition, only those projects in which the
against hepatitis C. A development part-
has been undergoing a multicentre study
good performance.
in more than one market or if studies were
II study into the vaccine candidate IC41
The likewise Vienna-based Apeiron AG had
tries, and first results have demonstrated
gle time, even if approvals had been sought
Intercell also published results of a phase
Alzheimer‘s vaccine candidate AD02 in
in Austria and five other European coun-
product candidates were counted only a sin-
intensive stations in eight countries in Eu-
a candidate in phase II in 2010. APN 201,
biotechnology company Polymun Scientific GmbH at the end of 2010, uses the natural-
ly occurring enzyme superoxide dismutase. It is being initially developed for the treat-
ment of side effects caused by specific cancer therapies. In early 2011, Apeiron also
took over the rights for APN301 from the German pharmaceutical company Merck
KGaA for the treatment of neuroblastoma, melanoma, and other cancers. This active
ingredient – a recombinant protein that
combines the antibody hu14.18 with interleukin-2 – is also in phase II, although
was not included in the 2010 statistics as
Biopharmaceutical substances
preclinical
Small molecules 43
12
Phase I
13
2
Phase II
10
0 0 0
Phase III approved
0 0
2 10
20
30
40
50
© BIOCOM
B
Fig. 5: Drug candidates of dedicated biotechnology companies 10
LifeScience-Report_Vienna_2011.indb 10
15.06.2011 16:57:42 Uhr
life science report austria 2011
a result of the 2011 acquisition. The to date
step, muscle from the upper arm muscle
examination stages, and are commercially
enzyme biotherapeutic for the treatment
of a small tissue punch biopsy. In the sec-
granted approval for Ixiaro, a vaccine for
most advanced drug candidate APN01, an
of Acute Respiratory Distress Syndrome (ARDS), has been included in the statistics,
however. This was out-licensed to the British pharmaceutical company GlaxoSmithKline in the beginning of 2010, and is being prepared for phase II.
Also in phase II is a flu vaccine developed
(biceps) of the patient is removed by means
ond step, these cells are selectively propagated and injected as somatic cells in the
bladder or anal sphincter. Once there, they grow and strengthen the existing sphinc-
ter. Since the second quarter of 2010, the most advanced candidate ICES13 is being tested in phase II.
available. On 30 March 2009, the US FDA
Japanese encephalitis from Vienna’s Intercell. Approval is anticipated for Europe,
Canada, and Australia. The vaccine, manufactured in Intercell‘s production location in Scotland, contains a purified, inactivated
strain of the Japanese encephalitis virus, which is grown in the kidney cells of vervet
monkeys. Customers include the US military, among others.
by the Vienna-based company Avir Green
The Vienna-based biotechnology company
taFLU – administered as a nasal spray – is
ing an active ingredient for the treatment
The second biopharmaceutical drug on the
eases. Marinomed identified the candidate
GmbH. The 2006 spin-off from the Veteri-
Hills Biotechnology AG. The vaccine delcharacterised by the fact that the viral defence factor is removed from the cellular
immune response. This is intended to prevent the multiplication of the vaccine virus in the cell, but to nevertheless warn the
Marinomed Biotechnology GmbH is testof Type 1 allergies and autoimmune disMAM-06.301 through targeted screening for anti-allergic active ingredients.
body of an infection. The resulting relative-
Trimed Biotech GmbH in Vienna, the
against different variants of the influenza
Cancer Research, is developing a cellular
ly strong immune response is also directed virus, which is only limitedly possible with conventional vaccines.
In turn, Innovacell Biotechnology AG in
Innsbruck is specialised in cell therapies for
the treatment of incontinence. In the first
Company
daughter company of St. Anna Children‘s tumour vaccine based on dendritic cells. This candidate (Trivax) was put through a randomised phase II trial in 2010.
Two biopharmaceuticals developed in Austria have already passed through all clinical
Drug candidate
market from Austria is from Marinomed nary University of Vienna is specialised in
the development of remedies from marine natural substances. In 2008, the company‘s
nasal spray Coldamaris prophylactic, extracted from red algae, was put forward
for approval. The natural substance Carragelose casts a protective film over nasal
mucosa that have become dry and irritated during a cold or other illness. This is intended to boost natural defences against
viruses and bacteria using the body‘s own processes.
Indication
AFFiRiS AG
AD02
Alzheimer‘s disease
Apeiron AG
APN201 APN01
Inflammatory skin conditions Acute Respiratory Distress Syndrome (ARDS)
Avir Green Hills Biotechnologie AG
deltaFLU
Influenza
ICES13
Incontinence
IC43 IC41 V710 (terminated)
Pseudomonas aeruginosa infections Hepatitis C Nosocomial infections (Staphylococcus aureus)
MAM-06.301
Type 1 allergy and autoimmune diseases
Trivax
Renal cell carcinoma
Innovacell Biotechnologie AG Intercell AG Marinomed Biotechnologie GmbH
© BIOCOM
Trimed Biotech GmbH
Tab. 3: Drug candidates of dedicated biotechnology companies in clinical phase ii in 2010 11
LifeScience-Report_Vienna_2011.indb 11
15.06.2011 16:57:42 Uhr
life science report austria 2011
Number of companies
Dedicated companies
0–5
11–25
6–10
> 25
Other biotechnologically active companies Employees of dedicated companies Biotechnology employees of other biotechnologically active companies
Number of employees 0–99
200–399
100–199
400–599
> 600
Salzburg
Bregenz 1
6
1
1 Innsbruck
3
86
4
566
12
LifeScience-Report_Vienna_2011.indb 12
15.06.2011 16:57:42 Uhr
life science report austria 2011
Linz 4
13
6
142
95
5
43 18 848
St. PĂślten
Wien
4 440 150
406
Eisenstadt
burg 10
5
240
300
Graz
Š BIOCOM
Klagenfurt
Fig. 6: dedicated and biotechnologycally active companies and their employees, distributed according to federal states 13
LifeScience-Report_Vienna_2011.indb 13
15.06.2011 16:57:42 Uhr
life science report austria 2011
Cooperations C
ooperation across organisational
tions receive fresh ideas from the young
the field of biotechnology – in research and
financing further development. In return,
distribution. It is a part of scientific life for
needed capital to further develop their
boundaries has a long tradition in
firms by in-licensing specific projects and
development, the validation phases, or in
the biotechnology companies gain much-
companies to work closely together with
own projects.
This is true above all for the description of
Although medical biotechnology above
action, such as for the development of new
billion-dollar licensing agreements – Vien-
panies bring the further development of
maceutical corporation GlaxoSmithKline
own laboratories only when there is prom-
Boehringer Ingelheim on board – today,
academic research groups, among others.
corresponding information for this survey are pursuing 512 partner projects. Most of
these (185) relate to projects with research institutions, and deal with issues of basic
research. There are almost as many con-
basic molecular-biological mechanisms of
all attracted media attention in 2010 with
therapies or diagnostic procedures. Com-
na-based Apeiron gained the British phar-
the most promising candidates into their
as partner, and f-star brought German
ise of commercial application.
partnerships are also greatly significant in
The division of research and development
nology.
in the value chain is now standard practice.
The chemicals and food industries are
and not only in Austria, see themselves
nological innovations; many biotech com-
increasingly popular model of cooperation
further development of industry-oriented
pharmaceutical companies and innovative
a wide spectrum of partnerships under-
other areas, such as in industrial biotech-
activities among the different stakeholders
biotechnology companies that provided
nections with industry.
The encompassed biotechnology companies are conducting 105 partnerships between themselves; there are 32 ongoing
projects with public institutions. Biotechnology companies in Austria frequently find their partners in their home country;
78 cooperations with research institutes and 26 projects with other national industry partners point towards an active
Against this backdrop, many companies,
progressively more interested in biotech-
as providers of contract research. Another
panies offer technology platforms for the
is that which is conducted between large
biotechnological processes. There is thus
biotechnology companies. The corpora-
way in Austria. In total, the 39 dedicated
exchange between science and industry in Austria.
with public institutes
with biotech companies
with research institutes
with industrial partners
200
185
180
with other sectors
174
160 140 120
105
100
78
70
60 40 20 0
60
47 10
19
Research
1
4
14
23 26
Development
21 0
1
32 9
Validation
2
0 0 5 4 3 Sales
16 Total
24
13
26
National
0 © BIOCOM
80
Fig. 7: Cooperations of dedicated biotechnology companies along the value chain 14
LifeScience-Report_Vienna_2011.indb 14
15.06.2011 16:57:43 Uhr
life science report austria 2011
Development of Turnover and R&D Expenditure T
he turnover generated in Austria with
biotechnological
processes
and products is a key economic factor for
the country. In 2010, revenue in the sector
such as in the chemicals industry. Only a
small part of turnover in Austria is in agricultural biotechnology.
passed the three billion euro mark, with bi-
Aside from the three fields of medicine,
ing for 2,865 billion euros of this figure, and
range of companies offering unspecific
otechnologically active companies accountdedicated biotechnology companies contributing a total of 161 million euros.
Turnover in the 77 dedicated biotechnology firms in Austria can be clearly subdivided into four groups. Not unexpectedly, the most important is ‘red’ biotechnology.
industry, and agriculture, there is also a services that do not belong to any of these
fields. Around 46 million euros were gener-
ated in 2010 with these services, processes, and laboratory reagents. This represents
a 28% share of total turnover among the dedicated biotechnology companies.
The largest company in this area is PAA
sector. Some of the most famous Austrian
which is fourth place in ranking according
biotechnology companies such as Intercell, f-star or AFFiRiS, are active in this area.
Sales in ‘white’ or industrial biotechnology stood at around 17 million euros in 2010. Worth mentioning in this area are, among
others, the Vienna enzyme specialist Euco-
dis, manufacturer of modified proteins for
the optimisation of production processes,
2010 – originate from the capital.
Biotechnology is an exceptionally researchintensive industry. This is underlined by the
173 million euros – 107% of turnover – invested in research by dedicated companies in
2010. Given the high costs associated with the development of new drugs, the largest
share of this is in medical biotechnology. This sector alone counts for 161 million euros
of R&D spending. With just under nine million euros, the area of non-specific applica-
97 million euros – and with this 60% of
revenue – was generated in the health
earned in the sector – 97.5 million euros in
Laboratories GmbH. It is in Upper Austria, to revenue among the federal states. 13.5
million euros was generated by biotechnol-
ogy in and around Linz in 2010. At a similar order of magnitude is Lower Austria, with around 18 million euros. Doing even better
tions is somewhat further behind. Industrial biotechnology invested three million euros in R&D projects. Geographically, there is
again a focus on Vienna as regards R&D activities. 146 million euros was invested in the capital. R&D expenditure in Styria and Tyrol
was around ten million euros respectively, and around 5 million in Lower Austria.
is the location of Styria – 27.5 million euros
of revenue was generated in this state. Not
surprisingly, the largest biotech location in
Austria is Vienna. Three out of five euros
Turnover
R&D expenditure
Mio. Euro 200 175 150 125 100
161
173
75 50
0
2010
2010
© BIOCOM
25
Fig. 8: Turnover and R&D expenditure of dedicated biotechnology companies 15
LifeScience-Report_Vienna_2011.indb 15
15.06.2011 16:57:43 Uhr
life science report austria 2011
Financing
espite the global economic crisis, fi-
and state sides. This represented almost 15
remained at high levels in 2010. Funding
Loans are a further important financing
D
million euros of available funding in 2010.
nancing in Austrian biotechnology
option, especially for small and medium-
totalling around 79 million euros flowed
sized enterprises. This is demonstrated by
into the sector last year, including funds
the nine million euros loaned by the banks
from venture capitalists, private investors,
to mostly small firms. Other unspecified
grants, loans, and other contributions. In
forms of financing brought a further one
addition, some biotechnology companies
million euros for the biotech companies.
succeeded in closing impressive deals with
major corporations â&#x20AC;&#x201C; a further step to-
in 2010 the Vienna-based antibody devel-
wards securing their long-term business
oper f-star was very successful in attract-
development.
ing fresh capital. The company started
the year with an eight million euro first
The majority originated from private in-
round of financing. This took f-star to a
vestors and business angels. These were
total of 19 million euros in investment
responsible for 35 million euros of the total
and funding since its founding in 2006.
sum, thereby reinforcing their enormous
The company develops novel therapeutic
significance for the sector. Because there
antibodies and antibody fragments us-
were no capital increases in the stock mar-
ing its own Modular Antibody Technol-
ket in 2010, venture capital funds became
ogy. The company, which has more than
the second largest source of funding for
20 employees in locations in Vienna and
biotechnology companies with a total of 19
Cambridge, used the funding to advance
million euros.
its pipeline. f-star CEO Kevin FitzGerald
has enjoyed not only successful financing
The 77 dedicated biotechnology companies
in a difficult financial environment, but
could also attract funding from the federal
Mio. Euro
also the participation of new investors. Sector heavyweights MPH Healthcare
Venture Management and Merck Serono Ventures, launched in 2009 by the German pharmaceutical giant, have been
brought on board as strategic venture capital funds.
The second largest funding round was by Apeptico Forschung und Entwicklung
GmbH. The Vienna-based company succeeded in raising three million euros from
existing investors for the further development of its synthetic peptides against lung
damage. The company also received a research grant of 1.2 million euros from the
Austrian Research Promotion Agency (FFG) during this round of financing.
Likewise, Biocrates Life Sciences Ltd, which specialises in metabolic biomarkers, received a cash injection of 1.2 million euros.
The young company Themis Bioscience
GmbH saw also promising development in 2010. Founded in September 2009, the vac-
cine developers received the highest pos-
Venture Capital
Private Investment/Business Angels
Credits
Investment in Public Equity
Public Subsidies
Others
35 30 25 20
35
15
19
15
5 0
9
0 2010
1 Š BIOCOM
10
Fig. 9: Sources of financing for dedicated biotechnology companies 16
LifeScience-Report_Vienna_2011.indb 16
15.06.2011 16:57:43 Uhr
life science report austria 2011
sible seed financing of 1 million euros for
additional milestone payments and royal-
Austria Wirtschaftsservice Gesmbh.
million euros could be paid for each of the
commercialisation, the company will also
ties on potential product sales. Up to 180
take a share of the turnover.
seven development candidates.
Deals such as that for APN01 are often sig-
in 2010 also outside of the health sector.
The agreement between Marinomed Bio-
parties, but also for other corners of the
biotechnology company, raised 2 million
er Ingelheim could also be worth millions.
clinical phase II studies, greater quantities
ist wants to use the funds to expand its
an expansion of the commercialisation of
proteins are required. The Viennese sub-
enzyme families, and thereby move into in-
nasal spray against the common cold.
der in the spring of 2010. The company is
The British pharma giant GlaxoSmithKline
of biopharmaceuticals, and is certified for
ments and corresponding agreements
biotechnology landscape. After develop-
turing Practice (GMP). Polymun had already
creasingly important role for many bio-
and Intercell in 2009, in February 2010 GSK
ron’s APN01 phase I clinical study.
has been the subject of attention. The col-
project from Apeiron Biologics AG in Vien-
with the German pharmaceutical company
combinant human angiotensin-converting
could be worth up to 1.26 billion euros
active enzyme which has finished phase I
largest biotech deals ever concluded in
tory distress syndrome (ARDS). Under the
develop antibody-based drugs directed
of up to 236 million euros could be paid if
Boehringer Ingelheim. Alongside an imme-
tion areas. Apeiron has initially received
further company development from the
There were successful financing stories
nificant not only for the directly involved
Eucodis Bioscience GmbH, an industrial
technology GmbH in Vienna and Boehring-
industry. In order for APN01 to be tested in
euros from investors. The enzyme special-
The objective of this license agreement is
of consistently high quality therapeutic
existing product portfolio to include other
Marinomed‘s already approved antiviral
contractor Polymun secured this major or-
ternational markets.
specialised in the contract manufacturing
In addition to financing, license agree-
(GSK) is very important for the Austrian
production according to Good Manufac-
for milestone payments now play an in-
ment agreements with AFFiRiS AG in 2008
produced the APN01 batches used for Apei-
technology companies. Here again, f-star
acquired exclusive rights to the APN01
laboration and license agreement closed
na. The development candidate APN01 (re-
Boehringer Ingelheim in November 2010
enzyme 2, rhACE2) is a biotherapeutically
for the Vienna-based firm. This is the
studies for the treatment of acute respira-
Austria. The two companies will jointly
license agreement, milestone payments
against target structures selected by
APN01 is approved in a range of applica-
diate sum, the license agreement includes
around 12.5 million euros. In the case of
Company
Date
Sum in million euros
f-star
06.01.2010
8
APEPTICO Forschung und Entwicklung GmbH
05.08.2010
3
EUCODIS Bioscience GmbH
03.02.2010
2
BIOCRATES Life Sciences AG
23.03.2010
1.2
Themis Bioscience GmbH
24.02.2010
1 15.2 © BIOCOM
Total
Tab. 4: The highest funding of listed dedicated biotechnology companies in 2010 17
LifeScience-Report_Vienna_2011.indb 17
15.06.2011 16:57:43 Uhr
life science report austria 2011
International Overview
s an innovative cross-sectional tech-
2004 the Organisation for Economic Cooper-
great many fields of research and economic
a general definition, along which this survey
A X
ation and Development (OECD) introduced
nology, biotechnology touches on a
fornia, some 2,300 companies are based in
the US; many of these are of global signifi-
proceeds (see Methods). A comparison with
sectors. Naturally the companies active in
cance. Important biotech locations have
earlier surveys carried out in Austria on the
this area have a global presence, and serve
emerged also outside the US; Canada and
basis of alternative classifications is there-
the international market.
a number of countries in Asia play an in-
fore possible only to a limited extent.
For this reason, biotechnology is a field for
strategic development and investment for
The OECD creates international overview
tainly no exception. The Austrian Council
lar basis by member countries. The basis
creasingly important role today.
From an international perspective, Euro-
tables using data submitted on a regu-
most industrialised countries. Austria is cer-
pean biotechnology counts among the heavyweights. In addition to Great Britain,
for the diagram below is a corresponding
for Research and Technology Development
Germany, Switzerland, and France, Aus-
OECD publication from 2009, supplement-
(RFT), which has supported government ef-
tria is one of the stronger biotech nations,
ed by more recent data in as much as these
forts since 2000, has presented a national
maintaining an international position with
were available.
research strategy that defines biotechnol-
ogy as one of ten areas of research to enjoy
its numerous business start ups and suc-
special funding priority. Thousands of com-
However, such absolute data on the
of this political support, but also because of
not allow statements to be made on the
cessful business stories, such as Intercell, f-star and AFFiRiS, as well as renowned re-
number of biotechnology companies do
panies have emerged worldwide as a result
search facilities. This is demonstrated by, among other things, the strong presence in
significance of the industry in the respec-
the great commercial opportunities of the
Austria of globally operating pharmaceuti-
tive country. Other factors such as the size
many biotechnological discoveries made in
cal companies.
and maturity of individual companies must
recent decades.
also be considered.
Due to varying counting methods, however,
Against this backdrop, one thing is clear:
drawing comparisons between the individ-
The US remains by far the largest country
ual countries can be a difficult task. Thus, in
800
for biotech. From Massachusetts to Cali-
2,325 714
700 600
538
500
532 457
400
358
300
250
200
237 122
100
117
100
79
77
77
72
58
55
ay * De nm ar k Au st ria * Fi nl an N d et he rla nd s Sw ed en Po rt ug al
w
Š BIOCOM
N
or
Ita ly
e* it z er la nd * Be lg iu m
Fr an c
Sw
*
Ko re a
UK
ut h So
Ca na da
Ja pa n* Ge rm an y*
US A
0
Source: OECD Biotechnology Statistics 2009 | * updated from other sources
Fig. 10: Number of dedicated biotechnoloy companies within the OECD
18
LifeScience-Report_Vienna_2011.indb 18
15.06.2011 16:57:43 Uhr
life science report austria 2011
Prospects
B
iotechnology is now an indispensable driver of innovation for a range
of different industries. From medicine,
industry and food, to energy and agriculture – demand for bio-based innovations is growing, above all in the industrial nations of Europe.
New approaches that can offer solutions for increasing cost pressures in the health
system, and for the utilisation of renewable resources, are needed now more than
ever. Thus, the commercial viability of products, processes, and services deriving from biotechnology is growing steadily, and this is also reflected in the Austrian
biotechnology sector, as this survey demonstrates.
To date, the most visible benefits to society
of biotechnology can be seen in the health
sector. This is also true in Austria, where © Life Science Austria
most local biotechnology companies are
active in this field. More than 100 biotechnologically produced drugs are currently
on the worldwide market. However, confronted by expiring patents for their blockbuster drugs, many global pharmaceutical
orientation towards a bio-based economy,
of robust drug candidates. Increasingly,
level – for a review of the sustainability of
companies require urgent replenishment these originate from the laboratories of
biotechnology companies. Licensing agree-
the way is being paved – also on a political existing processes and procedures.
ments with pharmaceutical companies
Austria was and remains challenged to fo-
many companies, as demonstrated in 2010
cerns the advancement of knowledge and
thus represent important milestones for by the examples of Apeiron and f-star.
However, biotechnological methods are
used further afield than just medicine. Consumer goods manufacturers, foodstuffs manufacturers, chemical companies, and
energy companies are also increasingly reliant on environmentally friendly produc-
tion processes. Faced with the challenges posed by global climate change, these industries are being forced to reduce their
CO2 footprint. Moreover, with Europe’s re-
cus its activities – above all where it con-
technologies. In March 2011, the Federal Government adopted a national strategy
for research, technology, and innovation,
ment is thus committed to the sustained
investment of significant resources in research, technological development, and innovation. By 2020, it is planned to increase research spending up to 3.76% of GDP, with
an emphasis on ensuring efficient utilisation of this funding. The central objective is
to become one of the ‘innovation leaders’
in Europe, a country with performance indicators well above the European average.
“The Path to Innovation Leader”. Here, the life sciences, considered one of the most important key technologies for driving
forward new developments and enabling
further economic progress for Austrian society, is set to play a major role.
Independently of the financial and eco-
nomic crisis, the Austrian Federal Govern19
LifeScience-Report_Vienna_2011.indb 19
15.06.2011 16:57:46 Uhr
life science report austria 2011
Public Funding for the Austrian Life Science Industry
he most innovative ideas are of use
up. Costs related to the scientific imple-
bridged the gap from lab to market. Aus-
of a project can be funded. The maximum
regional funding schemes on offer. Focus-
support is € 200,000.
medical devices, austria wirtschaftservice
The setting-up of an innovative and in-
financial support with its promotional pro-
pany needs a lot of know-how, courage
ing”. The two programs aim at encouraging
aws supports the starting phase of young
into businesses and to raise the number of
lion, combined with tailored advice and
T
only, when they have successfully
mentation and the economic application
tria has a wide array of national as well as
amount of this non-refundable financial
ing on start-up ideas in biotechnology and
(aws), the Austrian funding bank, provides
ternationally competitive high-tech com-
grams „LISA PreSeed“ and “LISA Seedfinanc-
and capital. With “LISA Seedfinancing”
the implementation of scientific discoveries
high-tech companies with up to € 1 mil-
new business ventures in the life sciences.
support. Once the company is making
PreSeed LISA provides funding for the
refunded. Customary securities usually
phase before a life science company is set
profit or sold, financial support must be needed for bank loans are not necessary.
However, the company must be partly
and adequately funded through private capital. To overcome critical competence
gaps, aws supports young high-tech companies, which are already funded through
the Seed programme. With up to € 50,000 or a maximum of 50% of the costs, exter-
nal advice in the areas of finances, sales or technology can be funded.
aws financing is complemented by other
agencies. The Austrian Science Fund (FWF) is funding basic research, while the Austrian Research Promotion Agency (FFG) is in charge of applied research funding. Also a wide range of regional funding tools is on offer.
Life Science Austria – LISA Life Science Austria (LISA) promotes the life science sector in Austria on the international stage and is the first point of call for enquiries relating to it. Austrian life science is renowned for its sustainable growth, taking a lively, creative and highly innovative approach
rooted in world class engineering and science. Organised through the regional life science clusters, LISA represents companies in the
therapeutic, medical technology and diagnostic sectors as well as providers of enabling technologies and related service companies located in the following regions: Lower Austria (ecoplus)
Styria (Human Technology Styria) Tyrol (Life Sciences Cluster Tirol)
Upper Austria (Health Technology Cluster)
Vienna (LISA Vienna Region)
LISA is committed to the development, growth and prosperity of the Austrian life science industries as a leading component of the Austrian economy. On the international front, LISA also works towards Austria itself being a country known worldwide for the excellence of its life science sector. For more information please visit: www.lifescienceaustria.at
Life Science Austria is run by austria wirtschaftsservice (aws) on behalf of the Austrian Federal Ministry of Economy, Family and
Youth (BMWFJ). As a funding bank, austria wirtschaftsservice is fulfilling the task of supporting Austria’s economy by the funding of companies and know-how transfer. The state-owned bank is particularly funding small and medium sized companies through
guarantees, favourable credits, equity and other financial support. The aim of aws is to promote the founding of new companies, the growth of existing ones, regional development and the implementation of innovation and new technologies.
20
LifeScience-Report_Vienna_2011.indb 20
15.06.2011 16:57:46 Uhr
life science report vienna 2011
Methodology
n December 2004, the OECD stand-
activity. Companies are defined as biotech-
In accordance with the OECD guidelines,
definitions of the term biotechnology. Since
biotechnological procedures for recently
extreme care was taken to include all en-
I
ardised the huge range of existing
then, all OECD countries have been called
upon to carry out surveys on biotechnology, following the so-called Framework for Biotechnology Statistics (www.oecd.org). The
OECD recognises two different categories
of companies within the biotech industry:
dedicated biotechnology company and other biotechnologically active companies. The
first of these definitions, according to the OECD, applies to biotechnologically active
nologically active companies if they use developed or significantly improved prod-
ucts or production processes. The central company aims must not be solely in the
use of biotechnological procedures for the
production of products, the supply of services or in the execution of biotechnological research and development. Examples of
such companies are pharma firms, chemical companies or seed manufacturers.
enterprises, whose core company goals are
For the purposes of this survey, BIOCOM
dures in the manufacturing of products, the
based on the OECD definition as described
the application of biotechnological procesupply of services or in the execution of biotechnological research and development.
Unlike the dedicated biotech companies, the central aims of other biotechnological-
ly active companies do not exclusively lie in the application of biotechnological proce-
has compiled a questionnaire, which is above. Between February and May 2011, a
terprises which are resident in Austria and
which are active in biotechnology. Therefore, companies that are majority owned
from outside Austria but have a company
office with R&D activities in Austria were also considered. In surveying the employee
figures, number of companies and fields of
activity, the survey included only the Austri-
an locations of a company. If an enterprise
had more than one location in Austria, only cumulated figures and data for the company as a whole were considered. The reference date of the survey was 31.12.2010.
total of 214 companies were contacted and
requested to complete the survey. When
deciding on the company selection, the OECD definition was used alongside an
adjustment with the company database
at BIOCOM AG. 150 of the companies an-
dures. The OECD thereby also includes in
swered either by questionnaire or by tel-
ogy makes up only one part of the business
of 70%.
this category companies where biotechnol-
while selecting companies to participate,
ephone, corresponding to a response rate
Biotechnology â&#x20AC;Ś
â&#x20AC;Ś is defined as the application of science and technology to living organisms, as well as parts, products and models thereof, to alter living or non-living materials for the production of knowledge, goods and services. A dedicated biotechnology firm ...
... is defined as a biotechnology active firm whose predominant activity involves the application of biotechnology techniques
to produce goods or services and/or the performance of biotechnology R&D. An other biotechnologically active firm ...
... is defined as a biotechnologically active firm that applies biotechnology techniques for the purpose of implementing new or significantly improved products or processes (per the Oslo Manual (OECD, 1997) for the measurement of innovation). It
excludes end users which innovate simply by using biotechnology products as intermediate inputs (for instance, detergent
manufacturers which change their formulation to include enzymes produced by other firms via biotechnology techniques).
OECD Definitions 21
LifeScience-Report_Vienna_2011.indb 21
15.06.2011 16:57:46 Uhr
life science report austria 2011
OECD Definitions
Health/Medicin
Development of therapeutics and/or diagnostics for the field of human medicine, drug delivery, human tissue replacement Animal health
As above, for veterinary application Agrobiotechnology
Genetically modified plants, animals or microorganisms, as well as non-genetically modified plants grown using biotechnological procedures, for use in agriculture or forestry Industrial biotechnology
Biotechnological products and processes for the handling of waste or sewage, for chemical synthesis, for the extraction of raw materials and energy etc.
Non-specific application
Equipment or reagents based on biotechnological principles, for research or provision of services in this field (“ancillary industry”)
Definition areas of activity
Biotechnology product
… is defined as a good or service, the development of which requires the use of one or more biotechnology techniques based
on the list and single definitions above. It includes knowledge products (technical know-how) generated from biotechnology R&D.
Biotechnology process
… is definded as a production or other (e.g. environmental) process using one or more biotechnology techniques or products. Biotechnology research and experimental development (r&d)
… are defined as R&D into biotechnology techniques, biotechnology products or biotechnology processes, in accordance with both the biotechnology definitions presented above and the Frascati Manual for the Measurement of R&D (OECD, 2002). Biotechnology employment
… is defined as the employment involved in the generation of biotechnology products as defined above. For ease of collection,
it is suggested that employment be measured in terms of staff numbers rather than hours worked. However, where countries
prefer, they can collect this information in terms of full-time equivalents, consistent with an R&D survey approach (as outlined in the Frascati Manual).
Further relevant terms 22
LifeScience-Report_Vienna_2011.indb 22
15.06.2011 16:57:46 Uhr
LifeScience-Report_Vienna_2011.indb 23
15.06.2011 16:57:48 Uhr
Imprint Publisher: Austria Wirtschaftsservice Gesellschaft mbH Ungargasse 37 1030 Vienna, Austria Editor: BIOCOM AG Stralsunder Str. 58–59 13355 Berlin, Germany Simone Ding Dr. Boris Mannhardt Sandra Wirsching Christoph Mayerl Dr. Philipp Graf Florian Dahnke Tom Finnis Benjamin Röbig
© Austria Wirtschaftsservice Gesellschaft mbH (aws) The Free use of all contents is expressly permitted under the condition that aws is credited. A PDF edition and images from this brochure are available at
LifeScience-Report_Vienna_2011.indb 24
15.06.2011 16:57:50 Uhr