By: Sergio Dompé

Several potential new products have entered Italy’s red biotech pipeline in the past few years. What are the most promising sectors for next year?

Italy’s biotech sector is growing fast with 133 products currently being developed in our country – 67 in clinical and 66 in the pre-clinical phase. Amongst them there are 50 antineoplastics and immunomodulators, 13 central nervous system compounds, 9 compounds for blood or hematopoietic disorders and 9 cardiovascular disease products. This upward trend is expected to continue in the coming years, partly due to the development of small biotech companies, many of which are ready to enter the stock market.

Is technology transfer from the country’s public research labs finally starting to work?

Resources for research are never sufficient, especially in Italy, where our general level of funding is still low. The right thing to do would be to support R&D by implementing Programme Agreements and crucial general measures to consolidate and strenghten tax credits for Resea& Development spending. This form of tax relief will promote increasingly strong collaborations between private companies and public centers of excellence. Substantial lowering of the Ires and the initial Irap tax rates would be an initial boost for companies providing a strong signal for the enterprise sector. Companies may also be favoured by incentives for Research financed by bank funds, from which they can receive a contribution of up to 20% of the resources they spend on basic research. These meaningful steps are marking a crucial attitude change towards a tighter network between companies, the public and the non-profit sectors.

In the past few months drug prices have been under intense negotiations. What are Italy’s industrial investment perspectives for pharmaceutical research in the near future? Is it still convenient for multinational enterprises to invest in Italy?

Over the past few years, major corporations have invested in Italy because our country has the skills and the potential to be among the main international competitors. Italy has a solid industrial platform in the pharmaceutical sector, holding the 3rd place in Europe and the 5th in the world for the number of employees.

In 2007 pharmaceutical R&D investment in Italy totalled € 1,170 million, continuing its steady growth. Red Biotech, which is growing, is comprised of 162 companies with 13,000 workers - 4,516 of whom (33,7%) are employed in the R&D sector, and investment in research is up to 28,5% of total revenues. In the past two years the biotech environment has become more favourable, partly due to the support of research by Public Institutions.

A specific Fund for the promotion of R&D in biotechnology has been set and Programme agreements have provided over € 100 million for the promotion of investment in production, research and development, stimulating the activity and interests of companies, which presented investment plans for € 1,8 billion. On top of this, 20% of the additional resources set aside by the National Health System for pharmaceutical spending will be dedicated to innovative medicines. In addition, the 7th EU Framework Programme will enforce several measures supporting transnational research, development and validation of new therapies. Health and prevention promotion methods are also supported by the programme, along with the creation of sustainable and efficient health care systems. The Industry 2015 project, supported by the Economic Development Ministry, creates new measures for competitiveness in various fields, including that of life technologies.

Italy’s pharmaceutical sector appears to be very lively. What are the perspectives for companies operating in the country?

New perspectives are opening-up for Italy, which has proven itself able to join the international research network. Several major international enterprises have chosen Italy as a basis for research: GSK has been in our country for 75 years with its more than 700 researchers. In the past months it inaugurated the first vaccine production line – resulting from a € 20 million investment - in its San Polo di Torrile plant, near Parma. Merck Sharp & Dohme is currently developing some of the most promising drugs for the treatment of HIV in its research site in Pomezia. Genzyme works on rare diseases in Emilia Romagna. Novartis chose Siena for its world vaccine research center. Sanofi-Aventis has the highest number of plants. Schering-Plough operates in the Science Park Raf in Lombardy. Wyeth employees almost 1,000 staff in Catania. In addition, Italy is home to a number of small and medium companies, many of which were able to reach the front page of prestigious international science reviews shortly after they started off as start-ups. They attracted investments in Italy and signed collaboration agreements with major corporations: Gentium is the only Italian firm to be listed in the NASDAQ while others such as MolMed and Philogen are quoted in Milan. NicOx is quoted in Paris and BioXell in Zurich. Many more were able to sign agreements with major groups, such as Bristol and Genentech, which are currently in a partnership with Nerviano Medical Sciences. More over in 2007 Italian companies have continued to grow in foreign markets: Rottapharm bought German medical giant Madaus Pharma, while Recordati took over the rare diseases leader group Orphan Europe and Zambon the fine chemicals division of PPG.