Pharmaceutical biotechnology in Poland: industry expected to boom in 2011

Today the market for biotechnology which can be used in pharmaceuticals and medicine (“red biotechnology”) is growing at a moderate pace in Poland. Indeed, in 2008 the sales of industry players even declined, as Bioton, the largest Polish biotech firm, performed poorly. Biotechnological firms are working hard on new products, the sales of which will have a substantial impact on the rate of growth of the industry over the next two years.

No significant development in biotechnology before 2011
In the last two years the Polish pharmaceutical biotechnology industry in Poland has seen a significant reduction in the annual rate of sales growth, according to the latest PMR Publications report “Biotechnological innovations in the pharmaceutical industry in Poland”. According to PMR Publications estimates, in 2008 the industry’s revenues suffered as a result of a deterioration in the performance of Bioton, the largest Polish biotech company. It was estimated that, in 2008, biotech companies in the Polish pharmaceutical industry achieved combined sales worth PLN 607m (€173m), around 2% less than the 2007 figure. Nevertheless, in future years, despite the uncongenial economic situation, the market will grow at several percent per year, and in 2011 sales should improve by almost 30% year on year. This will be a consequence of the development of innovative projects which are, today, at the inception or start-up stage and are not yet yielding a return.

EU funds growth of energy industry
As elsewhere in the world, access to high risk financing is crucial to the development of innovative technologies. The availability of EU funds in Poland has made it possible to support the development of investment firms interested in putting money into biotechnology industry ventures which carry some risk. The Innovative Economy Operational Programme is the most important of the accessible EU funds. In addition, as a result of the appropriate use of EU funds, it is, today, easier for companies active in Poland to fund investment in research into and the implementation of innovative technologies. In our opinion, despite the lamentable global economic situation, in the short term Poland has a chance to develop a real biotechnological industry.
According to the Ministry of Economic Affairs, between 2007 and 2013 companies and scientific institutions in the medical, pharmaceutical and biotechnological industries will, with the help of EU funds, implement projects worth around PLN 662m, or approximately €150m, in all (The Innovative Economy Operational Programme), of which PLN 120m (approximately €27m) will be allocated to projects associated with the medical equipment and technologies market and with dietary supplements . Meanwhile, the bulk of the remaining EU funds will be directly or indirectly associated with red biotechnology in Poland. This figure is not final, as many tenders have not yet been completed. In addition, more competitions are to be announced.

Increasing number of innovative projects
Although official statistics do not show an increase in the number of biotechnological companies in Poland, this has, in fact, grown in recent years. For example, in 2007 two biotechnological companies, Mabion and Selvita, were established, and one in 2008 – Celther.
The fact that Polish life sciences are just beginning to develop intensively is best illustrated by the number of new innovative ventures, particularly those in the biotechnology industry linked with the pharmaceutical industry. Significant innovative projects include those carried out by companies such as:
• Celther (stem cell therapy)
• Celon Pharma (siRNA-based therapy)
• Mabion (modified monoclonal antibody therapy)
• Euroimplant (tissue engineering and regenerative medicine)
• Biocontract (innovative vaccines for skin and kidney cancer).
With regard to the abovementioned fields, which are the focus of today’s efforts on the part of Polish firms, these will, in the future, undoubtedly provide a competitive edge for the Polish red biotechnology industry.

This press release is based on information contained in the latest PMR report entitled “Biotechnological innovations in the pharmaceutical industry in Poland 2009. Development forecasts for biotechnology sector for 2009-2011”.

For more information on the report please contact:
Marketing Department:
tel. /48/ 12 618 90 00
e-mail: marketing@pmrcorporate.com

About PMR

PMR Publications (www.pmrpublications.com) is a division of PMR, a company providing market information, advice and services to international businesses interested in Central and Eastern European countries and other emerging markets. PMR key areas of operation include market research (through PMR Research), consultancy (through PMR Consulting) and business publications (through PMR Publications). With over 13 years of experience, highly skilled international staff and coverage of over 20 countries, PMR is one of the largest companies of its type in the region.

PMR
ul. Supniewskiego 9, 31-527 Krakow, Poland
tel. /48/ 12 618 90 00, fax /48/ 12 618 90 08
www.pmrcorporate.com

This release was published on openPR.