Put your pedal to the metal: BIO chief

It's time for biobusiness to accelerate without looking back, the chair of the US Biotechnology Industry Organisation (BIO), David Robinson, told the AusBiotech conference in Melbourne this week.

Robinson, the Australian-educated CEO of US biotech Ligand Pharmaceuticals, told Australian Biotechnology News that Australia was already well-positioned in the global industry and was clearly poised to become a global player.

He said a strong local market would accelerate the growth of companies dramatically, and provide revenue for continued R&D, but added that creative partnering was critical if companies were to go global.

"One small company - and our industry is made up of 4000 small companies - can make a difference to millions," Robinson said.

In the case of Ligand, which markets five FDA-approved drugs, Robinson said that the company was now turning to the Asia-Pacific region. He said Ligand preferred to partner with local companies to gain the necessary local experience in getting a product to market, and Australia could be a good platform for entering the Asia-Pacific market.

Ligand has already performed clinical trials in Australia, but Robinson said that while the company had clinical contacts here, it lacked the regulatory interface required for successful registration of the products.

He said Ligand would also look for potential partners that had commercial capabilities that would allow products to flow smoothly through.

"It doesn't have to be large, it just has to be a capability. We understand that you can start small and be effective, so we don't look for big infrastructures. We prefer the small company universe," Robinson said.

"Australia has got a great start. I'd say first and foremost to keep working with the government and political leaders to evolve policies to make the Australian market a very important future source of revenues for companies by ensuring rapid access to patients, fair reimbursement of pricing for the fruits of biotechnology, particularly of the indigenous companies. It is very difficult to remain a research only based industry."

The Medical Technology Stock Letter has named Ligand as a potential 'Wall Street darling'. But Robinson said he was cautious about such statements.

Ligand, he said, pursued a business strategy rather than a stock market strategy. "We go after multiple products, get them on the market and produce revenue, and then build them out."

During the AusBiotech Millis Oration, Robinson warned conference delegates that there was no guarantee of success for any biotech.

"The pace of innovation in our industry has truly been breathtaking and it is a cause to celebrate what has been accomplished already," he said.

"On the other hand, there is much left to be done. We must adopt a sober and I believe realistic view that that the future success of our industry is absolutely not guaranteed. In our scientific research, in our policy debate and in our business transactions there are issues and challenges that can delay and even derail our future plans and dreams," he said.

Robinson said that global drivers of the industry were its entrepreneurial culture, government sponsorship of basic research, intellectual property protection and academic support for technology transfer.

He also strongly advocated access to a competitive free market for healthcare products to drive the industry.

Robinson said that it was necessary to better manage the innovative drug development process and refocus on improving patient outcomes, predicting the demise, or devolution, of the mega pharmaceutical company, saying that it would ultimately benefit biotech companies.

He also suggested that biotech companies look for more creative partnerships, both with pharmacy companies and larger more successful biotech companies, to share risks and profits.

"While the road may be long, and it certainly is difficult, it is also one of great rewards working in our industry that one can have, as improving the health and well-being of people is a noble calling that we can all be proud of."