Crisis means change. And this is linked to our ability to be innovative, which in itself firmly relies on research.

Requirements for sustainable development, climate change and the ageing population are what determine tomorrow’s challenges in developed countries.

Molecular biology, genetics, knowledge of cell mechanisms, the role of proteins, etc. will forever change our management of health, and research in these areas is quite vast and diversified. It is therefore necessary to support excellence in fundamental research while supporting translational research (from the lab to the patient’s bed).

Innovation is truly an asset in today’s crisis. At present, no company is in a position to control all the technological progress made in its particular field with its resources alone. And champions of innovation have well understood the advantages to be reaped from new information technologies in order to set up virtual knowledge networks. They have been resorting to ‘‘open innovation’’ by developing a large quantity of new ideas together with a host of external sources (universities, foundations, etc.).

In addition, research involves mechanisms of competition and collaboration, along the lines of European research programmes.

It appears to me that contributions in nanotechnology will be decisive in the future, thus explaining the growing interest in multidisciplinary research (nano, bio, IT).

Joint European directives are needed to strengthen the bond between companies and academic research centres. Europe’s weakness in transforming research into innovation stems mainly from the gap between academic research and industry.

To acquire knowledge of the bioindustrial sector, it is therefore necessary to support such initiatives.

It is important, however, to avoid any heavy bureaucracy in these systems. There is urgency in assessing the current process that appears to be lacking in flexibility and means.

Bioindustries must be managed particularly at the fiscal level and support investments, as their characteristics differ from those of other sectors (capital to be invested, the necessarily random nature of research, deadlines for putting products on the market, etc.).

Yes, with the new Obama administration, many changes are being made: reinforcing research efforts (supported by a list of 48 Nobel Prize winners and highly renowned researchers), greater freedom (stem cell research no longer a taboo) and taking major international stakes into account (climate change, energy, water). More emphasis on collaboration is needed to define common standards and speed up research and development (major diseases: tuberculosis, AIDS, etc.).

And industry in Asia must also be closely followed. Today, more than ever, a planetary vision is needed in terms of sustainable development and the fight against pandemics.

Philippe ARCHINARD
CEO of Transgène
President of Lyon Biopôle
Member of the EuroBiO 2009 Strategic Committee

In the Life Sciences sector, funding is more than fundamental. 2008 was a terrible year, with an almost total halt put to funding, and the perspectives for 2009 are, of course, not going to make a turn for the better. For most SMEs, it will be necessary to adopt measures in order to keep cash. Transgène is fortunate enough to be able to look ahead, and we are certainly no exception to the rule!

It is true that, for some sectors, ‘‘open innovation’’ may help them play the game well. Yet, in the Life Sciences, regulations are such that it is impossible to escape standardized stages that require investment. In France, I persist in saying that we are not in a bad position in terms of public funding. However, in the private sector, the situation is far more difficult.

There is a positive point to be stressed. The business model has been validated. Pharma companies are increasingly in need of products from SMEs and start-ups, and 2009 no doubt augurs future partnerships, certainly of an ever greater importance. The declarations made by the new head of Sanofi are moving in this direction. It is important to know that, in the US, about 50% of SME financing comes from partnerships. This share is less substantial in Europe. So, we may just have a bit of oxygen for a short while!

Indeed, the mix may change. The weight around the table is changing and there is sometimes no other alternative. And it is not always a negative thing!

Indeed, the mix may change. The weight around the table is changing and there is sometimes no other alternative. And it is not always a negative thing!

We could say that, since we have nothing to sell to the general public, we are not affected by the deep roots of the current crisis, but we are nevertheless to be considered as at-risk profiles. When recovery comes around, we will certainly not be the first one served!
However, professionals in this sector are not discouraged. On the contrary, they are well aware of the stakes involved and are setting up ad hoc solutions. Furthermore, companies with a profile for molecule development rather than services are accustomed to chronic deficit - their shareholders know this business model – so they are able to adapt quite easily to this environment. It is essential not to give in to a negative attitude.

Of course, any sense of gimmick must be omitted for such an event. Business conventions and events such as EuroBIO are necessary. We cannot progress without them. Of course, SMEs must be selective, and undoubtedly a few European leaders will stand out, which is not a bad thing. In conclusion, it is all the more necessary to take part in events like these in a difficult year such as this.