Biotech investment in Taiwan hits high in 2010: Ernst & Young

2011/08/06 Taipei, Aug. 6 (CNA) Investment in Taiwan's biotech sector hit a record high in 2010, reflecting a booming market, Ernst & Young said in a report on global biotech development released Saturday. In the report, the multinational accounting firm said investment in Taiwan's biotech sector in 2010 rose 14.6 percent from a year earlier to NT$30.1 billion (US$1.04 billion) and further growth in the sector could be expected. Kim Chang, chief operating officer of the assurance division and head of the life sciences division at Ernst & Young Taiwan, said the local sector, backed by a government campaign to promote biotechnology development, is making significant progress. Chang cited an action plan initiated by the Cabinet in 2009 as being particularly helpful in building an environment for the local biotech sector to grow through a sizable infusion of venture capital. According to a document released by the Cabinet, NT$10 billion in venture capital is expected to be invested in the biotechnology sector and should generate NT$1 trillion in output value over five years. Chang said that along with the venture capital, the action plan's incubation center is expected to help integrate government and academic resources devoted to the field. According to the report, Taiwan has gained the upper hand in biotechnology development because of its long-term commercial ties with the United States and Japan, which have advanced biotechnology know-how. In addition, Taiwan has close business ties with China, paving the path for the island to enter the huge mainland market, the report said. In China's growing biotechnology sector, a total of 33 companies launched initial public offerings to raise US$5.9 billion (NT$171 billion) last year, up more than 47 percent from a year earlier, the report said.