BIOTECHNOLOGY INDUSTRY CONTINUES TO LOSE MONEY

The biotechnology industry continues to face losses and is not expected to make a profit until the year 2009, according to a recently published Ernst and Young report.

The biotechnology industry lost a combined $6.4 billion last year, bringing the industry's total accrued loss since its birth in Silicon Valley in the mid-1970s to more than $45 billion. The report is, however, optimistic that biotechnology will become profitable by 2009, pointing to some 365 drugs in the final stages of development compared with 290 in 2003.

The industry’s continuing losses should be sobering news for the many countries which are embarking on or plan to launch their biotechnology industries. An economist likens the industry to a gambling den where the odds of losing are high.

``It's essentially like a casino,'' said Joseph Cortright, an American economist. ``There are lots of bets you can lay down, and the potential can be very valuable, but for the most part, the odds that any one will pan out are extremely long.''
 

With best wishes,

Chee Yoke Heong
Third World Network
121-S Jalan Utama
10450 Penang
Malaysia
Email: [e-mail]
Website: www.twnside.org.sg