The nation’s biotech industry has had a strong performance over the past few years, with turnover for the sector hitting NT$191.2 billion (US$6.34 billion) last year — double the figure for 2000 — a report released by the Council for Economic Planning and Development said yesterday.
The council, which drafts proposals for national economic development and coordinates and evaluates their implementation, said the number of listed and over-the-counter biotech companies had increased ninefold since 2000.
The industry includes biotech companies, pharmaceutical firms and suppliers of other medical supplies and equipment, the report said, adding that annual growth for the sector averaged 11 percent between 2000 and last year.
In 2006, providers of medical supplies and equipment outperformed drug makers in terms of business volume.
Taiwanese companies selling electronic thermometers, digital blood pressure meters, electric wheelchairs and respiratory therapy equipment accounted for more than 30 percent of the global market for those products, the report said.
The rosy business outlook has led to investment in the industry increasing 123 percent over the last seven years, the report said. The spending amounted to NT$12.1 billion in 2000, topped NT$20 billion in 2001 and hit NT$27 billion last year.
The government has said it prioritizes the industry’s growth and last July the Biotech and Pharmaceutical Industry Development Statute (生技新藥產業發展條例) was promulgated.
The statute provides tax breaks and other incentives for companies in the industry that spend on research and development, personnel training and transfer of know-how. The incentives, effective until the end of 2021, will make the biotech and pharmaceutical industry the sole beneficiary of tax breaks once the Statute for Upgrading Industries (促進產業升級條例) expires at the end of next year.
Employees in biotech companies who receive stock options also do not have to pay income tax on the shares under last year’s statute. In addition, government researchers can work as consultants at the companies and transfer their know-how to them.
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