The Development Center for Biotechnology (DCB), a non-profit research organization, was set up by the government in 1984 to help Taiwan launch its biotech industry. However, critics say the organization has provided little benefit to the industry over the past decade.
According to figures supplied by the department of industrial technology (
Chang Tse-wen (
He also discovered a new anti-asthma and anti-allergy drug, which is currently being developed by his company, Tanox, and by Novartis and Genentech. The new drug is expected to be on the market by the end of this year.
Taipei Times staff reporter Sharon Chuang spoke with Chang about the DCB's future role in helping Taiwan's biotech industry and what changes he plans to make once taking the group's helm.
Taipei Times: The DCB has received a great deal of funding from the government during the past 13 years, but sales of products generating from DCB's research have been very small. What are the main reasons for this?
Chang: The organization does not have a concept of product commercialization and also lacks the ability to assess projects. They have chosen many unsuitable projects that then produce few tangible results.
Many of DCB's projects are not innovative. Many projects focus on developing technology for "me-too products" [products that are similar to the existing products on the market such as generic drugs]. The profit margins of me-too products are low; therefore, private companies are not interested in their technology.
In the future, the DCB will have to understand technology trends and work with academic organizations as well as the industry to set up high-value projects.
TT: What do you mean by "high value projects"?
Chang: We will develop proprietary technology that can be developed into commercial products. And the products have to meet the market's need.
TT: How about the management? Industry observers believe that one of the DCB's major problems is with its management. Do you agree?
Chang: There is something wrong with the DCB's management. So after I take the position, I will revise the organizational structure there.
I plan to introduce a new management team that will include five experts from the fields of business planning and development, technology development, intellectual property rights evaluation, medical applications and business administration.
TT: Is there going to be a great deal of restructuring within the DCB?
Chang: I will spend six months discovering the expertise of individual employees first. Then I will put them in the right positions, so they can fully develop their talent.
I will also send many of the employees to academic organizations like Academia Sinica (
They have been with the DCB too long and have lost touch with the latest technology and trends; biotechnology is a fast-moving industry as new technology is being developed very rapidly.
TT: Industry observers also criticize the fact that most employees at the DCB do not have industrial experience, so they are unable to develop technology that will result in commercial products. How are you going to deal with that problem?
Chang: I plan to hire more people with industrial experience.
TT: In the past, the DCB has only participated in product research and development, but not the initial stage of basic discovery and the last stage of product commercialization. Critics says these stages are closely related and they shouldn't be separated, as many problems occurring during product commercialization can be traced back to the product R&D stage. In light of this, is the DCB going to broaden its role?
Chang: In the future, DCB will work more closely with local companies.
We will have comprehensive planning for our projects. We will co-develop projects with local firms, let them join in the projects at the early stage and also help them to complete the com-mercialization of their products.
TT: As the major funding of the DCB is from the government, it will be difficult for you to make any big changes without the government support. Do you think you'll have it?
Chang: Before I agreed to take their offer, I drafted a letter to the board, addressing the terms of my acceptance of this position. And they agreed. The two terms are as follows:
1. The board will support the management team I introduce. The five executives may hire a certain number of employees working for them when necessary.
2. The board will let DCB develop technology by following international standards and communicate with the government with those standards.
If Taiwan is going to compete with international firms, then we have to do things by international standards.
For instance, if DCB wants to hire biotech experts, we may have to pay them the same salary foreign firms will pay them.
Another example is new drug development. Foreign pharmaceutical firms or research organizations keep their new drug development projects strictly confidential.
On the other hand, the DCB has to present projects to the MOEA one year in advance, so there is no confidentiality of the DCB's projects.
TT: What will be the role of DCB in the future?
Chang: The DCB will be like a dynamic reservoir of technology, experts and intellectual property rights.
The DCB's role will be as a partner with small biotech firms -- helping them to grow. I will encourage the DCB's employees to leave and set up their own companies or to work for biotech firms.
TT: Industry observers say that DCB's employees have a very good salary package. Given the good salary package DCB offers and Taiwan's underdeveloped biotech industry, what will motivate them to leave the DCB? Will they be able to find investors for their own companies or find employment with existing ones?
Chang: Salary should not be the reason that employees stay in DCB. The government is promoting biotech hard and pouring in a great deal of money.
So there will be many opportunities for those who want to set up biotech firms.
Currently, investors are not willing to invest in biotech companies because there are not many good projects. If there are good ones, I am sure investors will be willing to participate.
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