BioNet shifts strategy to new multipurpose vaccines

 Published: 18/04/2012 at 02:18 AM  Like other companies in Ayutthaya province, BioNet-Asia Co, a biotech company focusing on the development, manufacturing and supply of vaccines, was heavily hit by the floods in October last year.    After the floods, BioNet trashed its supplies and started over with an aim to fast-track several vaccines in an efficient way.  As a result of the devastation, the company had to destroy the first batch of whooping-cough vaccine produced at its pilot plant situated in the Hi-Tech Industrial Estate.  BioNet-Asia has invested more than 500 million baht in collaboration with Mahidol University on the whooping-cough project since 2006.  "We had to renovate everything because vaccine production requires clean tools," said managing director Vitoon Vonghangool.  "Then our shareholders agreed to continue fighting. Instead of renovating the place to produce one product, we are looking to construct a new plant for multipurpose vaccines."  Pham Hong Thai, managing director of BioNet-Asia in charge of operations, said the development of vaccines usually takes 10 years from research to marketing.  "We want to fast-track development and technology transfer to shorten development to five years. This way, there is no need for R&D; however, it is not easy to find someone with the appropriate technology willing to sell their licences," he said.  The company will start construction on the new plant by the end of this year and complete the facility within two years.  Technology transfers, mainly from European countries, have enabled BioNet-Asia to accelerate its production plans for vaccines against diphtheria, tetanus, hepatitis B, pertussis and Haemophilus influenza type B (Hib). BioNet developed the Hib vaccine with a company in South Africa.  "Currently, we are looking at how to combine four or five vaccines in an efficient way and to increase production yields," said Wassana Wijagkanalan, BioNet's scientific affairs assistant manager.  Mr Vitoon said domestic demand for these vaccines for children was around 3-4 million doses per year, with each child requiring around four or five doses.  "If successful, we will be the first company in Southeast Asia to manufacture six upstream vaccines at the same time. The vaccines should be commercially available in the next five years if there are no floods," said Mr Vitoon.  BioNet is collaborating with Chiang Mai and Mahidol Universities in the development of a dengue vaccine.  "Other companies have been investing in dengue vaccines for 20 years, but still there is no product. It's high-risk, but we believe there is a strong demand for this vaccine as the disease affects all tropical areas and is transmitted by mosquitoes. If results are fine, the vaccine will be launched within eight years," said Dr Hong Thai.  Over the next 10 years, the company will need 3 billion baht for vaccine development, technology transfer and the construction of its new upstream production plant.  The company is aiming to at least double revenue from the current US$50 million to $100-200 million over the next 10 years, with future revenue split evenly between exports and domestic sales.  Production capacity is targeted at 50-100 million doses per year.  The company currently generates 90% of its revenue from importing products for export to Asean, India, China, Mexico and the Middle East.  The global pharmaceutical market is estimated at around $20 billion, with vaccines 10% of the total.  Dr Hong Thai said although there are some incentives available for the pharmaceutical biotechnology companies in Thailand, the support is much less than what's provided by countries such as Singapore, which has a 10-year strategic plan to attract the sector with tax incentives.  "The sector is not fully booming and doesn't attract foreign investors. The Board of Investment doesn't understand the fundamentals of R&D in pharmaceutical medicine. We would like to see more government support for the sector both in terms of finance and the recruitment of personnel with experience," he said.