Biotechnology to Switzerland

(Last updated: 19 Jul 2007)

Trends and opportunities

The market

A snapshot of the Swiss biotechnology industry:

• Switzerland is a key player in the European biotechnology scene, because of it’s pharmaceutical and food companies.
• Like Australia, Europe’s biotechnology industry is dominated by small-medium enterprises (SMEs)
• There are around 110 biotechnology companies
• 5600 people employed – third in Europe (behind UK and Germany)
• Approximately $2354 million industry turnover – second in Europe (to UK)

As venture capital groups have raised increasing amounts of capital, the flow of private equity commitments made to European biotechnology firms has also swelled. European investors remain optimistic about the fundamentals and longer-term prospects of the industry. Experts believe the European market for biotechnology products will quadruple within 10 years.

Opportunities

Because of the size and scope of the European biotechnology industry, there are many opportunities in different sectors. Some key opportunities include human health, environmental remediation and agricultural biotechnology.

The European biotechnology industry offers Australian companies opportunities for forming alliances and export markets because:

• The European biotechnology market offers a critical mass and well established international networks
• The European market is less competitive than the USA
• The market is open for international collaborations and offers easy access to its biotechnology industry through government supported biotechnology clusters
• Access to funding from public as well as private funds

Australia has a strong international reputation for its quality of science and as a source of intellectual capital. Many European pharmas look favourably on Australia for contract R&D because of the quality of research and the lower cost base.

Tariffs, regulations and customs

All European Union (EU) countries are covered by a harmonised trade system. Common Customs Tariff (CCT) is applicable to goods from non-EU countries, including Australia. Goods travelling between EU member states are free of customs duty.

Value Added Tax is payable at varying levels in each member state.

Import licenses may be required and you may need an export certificate from Australia.

Certain products will need to comply with pan-European legislation for medical devices, medicines, foods and ingredients. There are also local variations in legislation, packaging and labelling that need careful consideration before shipping samples or final products.

Industry standards

Biotechnology cuts across many legislative areas, and there is no single pan-European law covering the sector. Laws and voluntary standards vary from country to country and you should seek advice from Austrade or your local partner.

Marketing your products and services

Market entry

The main methods of market entry for biotechnology companies include:

• Supplying a European company with products or raw materials
  
  

  The traditional market entry strategy, and a good option to consider for companies with products that can be easily combined by European end-users. Pharmaceutical companies are likely to be a major end-user. You can develop relationships with these companies via:
  

• licensing
• sales
• contracting
• R&D services
  
  
• Collaboration with European company/institution
  
  

  Working with European biotechnology/pharma companies and research institutions, often in the development phase. These relationships can take the form of:

• technology transfers
• in-licensing and out-licensing
• co-development (platform development through to product pipeline)
• co-marketing
  
  
• Investment into Europe
  
  

  In order to gain access to ventrue capital funding or research collaborations it may be necessary to invest in Europe. This could take the form of setting up a branch of your company overseas, or acquiring a suitable European company.
  
  

• Running clinical trials in Europe
  
  

  It can be advantageous to run clinical trials in Europe, rather than in the USA or Australia. Some of the benefits are:

  • The Mutual Recognition Procedure means that trials conducted in one European Union (EU) country are approved in the other EU member states.
  • In many European countries trials are cheaper to run than in the USA.
  • Working with European scientists on a trial builds your credibility.
  • As the trial process can be quicker in Europe, you can start generating revenue faster.
  • Media coverage is easier to generate if you are in the market.
  • A collaboration partner can help the approvals process with the European authorities.

The European Agency for the Evaluation of Medicinal Products can provide more information on clinical trials in Europe.

Because of the need to protect intellectual capital, there is little e-commerce activity in the biotechnology sector. However, there are some networking and partner search sites, such as:

• East of England Biotechnology Network (ERBI)
• London Biotechnology Network
• Zurich Mednet

Links and industry contacts

Biotechnology–related resources

East of England Biotechnology Network (ERBI) - www.erbi.co.uk
European Federation of Biotechnology - www.efbweb.org
London Biotechnology Network - www.londonbiotechnology.co.uk
Zurich Mednet - www.zurichmednet.org

Government, business and trade resources for Switzerland

The European Agency for the evaluation of Medicinal Products - www.emea.eu.int