11 July 2008

Development of biotechnology: Lithuanian scenario

Vladimir Skripov, "Expert North-West" No. 4-2008

Helping the strongestThe Lithuanian government, having chosen the development of high-tech technologies as a priority, relies on biotechnology.

The Lithuanian scenario of transition to a market economy in the 1990s is fashionable to call liberal shock therapy. At the same time, in industry, the agricultural sector, and even more so in science, there were enterprises that were able to survive independently in the conditions of "natural selection". They demonstrate extraordinary resilience and the ability to fight for existence.

Biotechnology is one of the few areas of Lithuanian science that has managed not only to preserve, but also to multiply the potential created in Soviet times. Two main factors contributed to this – Lithuanian scientists have been involved in international labor cooperation for a long time (back in Soviet times), and enterprise managers made competent decisions on the organization of science as a business.

Today, the Lithuanian State, in accordance with the Lisbon Declaration, includes the development of science and new technologies among its priority goals. And it turns out to be faced with the problem of choosing which direction to bet on. The "inventory" of the achievements of recent years proves that there are significant theoretical developments in the biotechnology sector, and Lithuanian products are present on the vast world market. By all indications, the scales are tipped in favor of this sector.

Lithuanian TricolorBack in the Soviet period, a scientific reserve began to be created in Lithuania, which allowed Lithuanian scientists to become real players in the global biotechnology market.

According to the European classification, there are four groups of biotechnologies – "white" (industrial), "red" (pharmaceutical), "green" (plant cloning) and "blue" (marine). Only one "green" direction is poorly represented in Lithuania, and "white" is considered the most advanced. Fermentas company is engaged in this direction, which, as it is easy to guess, produces enzymes – proteins that act as catalysts, with the help of which almost all cellular reactions take place. Enzymes as a product are used by biochemical laboratories, where research is carried out and new substances are produced, as well as to support various production processes.

Currently, more than 2 thousand enzymes have been discovered in the world, and about 700, that is, over 30%, are produced in Lithuania. The first enzyme was discovered here in 1978. It is not surprising that the Lithuanian School of Enzymology (enzyme science) back in Soviet times, it was known far beyond the borders of the country. Already in the 1980s, the Lithuanian Institute of Enzymology (later renamed the Institute of Biotechnology) had a unique, the world's largest collection of enzymes.

Another Lithuanian company, Biocentras, is working in the "blue" direction. His hobby is developments in the field of purification of reservoirs and soils contaminated with oil, petroleum products, fats. Purification is carried out by preparations created on the basis of microorganisms. One of the most famous know-how of the center is the Degragoilas drug, patented in Lithuania and the USA, designed to eliminate spilled oil. It was used in accidents in the Baltic Sea at the Butinga terminal. Another well–known product of this company is the Grazinas preparation for cleaning water and soil from oils. Scientists working at Biocentras have accumulated over 300 cultures of microorganisms intended for the decomposition of pollutants.

The "red" direction of Lithuanian biotechnologies is represented by genetic engineering. Back in 1975, interferon was created in Lithuania – a protein produced in the human body by leukocytes and possessing antiviral and immunomodulatory properties. Now it is produced under the name Realdiron at the Sicor Biotech enterprise. The Biosoma product (human growth hormone based on somatropin) and the new Grosava drug (a genetically engineered filgrastim protein that stimulates the activity of granulated cell colonies and is recommended for the treatment of various diseases) have been produced here since 1994. The products of Lithuanian biotechnologies have no analogues in Eastern and Central Europe, which provides them with an extensive market.

In different waysThe presence of real know-how is only the first argument in favor of the viability of biotechnologies.

It is equally important that scientists in this sector were not only able to preserve and multiply scientific reserves, but also found such forms of organization of activities that ensured the survival and even prosperity of enterprises practically without the help of the state. Access to foreign markets was facilitated by international relations established during the Soviet period. But much has already been done in a market economy.

Fermentas has been operating on the world market for 15 years, exporting products under its own trademark to more than 70 countries around the world, where about 95% of the biotechnology market is concentrated. Fermentas seemed to be an attractive partner for German, British and American businesses – the created joint ventures were merged into Fermentas International holding.

Another "chick" of the Research Institute of Enzymology, Sicor Biotech, developed in a slightly different way. This company joined the international pharmaceutical company SICOR Inc., which, in turn, became part of the largest pharmaceutical corporation TEVA Pharmaceutical Ltd. In fact, today it is an enterprise of foreign capital, for which the entire world market is open.

Biocentras has been a private company from the very beginning (since 1998). Unlike the two companies mentioned above, it has found its sales market in its own region, selling drugs to oil companies, utilities and other enterprises. The Mazheikiai refinery even provided her with its territory to create a treatment site. Biocentras is engaged not only in the development and production of drugs, but also provides services for the elimination of environmental accidents – the company's specialists are able to work quickly in extreme conditions.

Since 2001, Biocentras has joined the international cooperation, but as a participant in scientific projects aimed at creating economical modern technologies for soil purification and new effective substances.

Period of stagnationProfessor Valdas Bumyalis, Chairman of the Biotechnological Commission at the Lithuanian Academy of Sciences, very soberly assesses the current state of the Lithuanian biosector.

The three main enterprises mentioned above have a total turnover of only about 35 million euros per year. "This is too little to be able to talk about the presence of the industry," says Bumyalis. He notes that after 1994, in fact, not a single large scientific and technological enterprise appeared. The most obvious reason for the stagnation of the innovative scientific direction is the lack of own funds to increase the financing of fundamental developments and their promotion.

The state, until recently, was not distinguished by generosity. In 2006, the expenses for research and experiments from the republican budget amounted to 157 million euros. And although funding has more than doubled since 2000, its level does not exceed 0.8% of GDP. Whereas, according to UNESCO estimates, science can really influence the development of a country's economy if the share of investments in it is at least 1%. The EU average is about 2%, and this figure is designated as a benchmark in the Lisbon Declaration.

But the picture is gradually changing – the total budget of science and education in 2008 increased by almost 30%. In addition, it is planned to allocate more than 36 million euros for the development of high technologies under a special program in the period 2007-2013, which is five times more than in 2003-2006. Biotechnologies demonstrate a willingness to fight for the attention of the state.

Response impulseIn 2006, a dozen and a half enterprises and institutions working in the field of biotechnology signed an agreement on the establishment of the Lithuanian National Biotechnology Platform (LNBP), which assumed the mission of combining science and production with the prospect of its transformation into an industrial industry.

At the same time, two directions of development are clearly defined – industrial and agrobiotechnologies, the main purpose of which is to create alternative and environmentally friendly fuels, as well as pharmaceutical biotechnology. 
This matrix, created almost without the participation of the state, is a strong argument in order to attract a state resource. And it looks like it will succeed. Last year, a memorandum on the creation of the so-called biotechnological valley was also signed. We are talking about the Visoryai-Santarish Integrated Center for Biomedical Science, Research and Business: scientific institutes and production centers will be concentrated on an area of 12 hectares. It is assumed that the state will build an incubator enterprise at its own expense and will provide financial assistance to it during the first two or three years. After the company gets back on its feet, it will start looking for investors on its own.

Prime Minister Gediminas Kirkilas promised to assign the project the status of national significance. The status will allow you to rent land for a long time, and most importantly, it will open access to European structural funds. LNBP aims to bring the level of production of biotechnological products in Lithuania to 60-90 million euros by 2015 and provide employment for 800-1000 people. To do this, according to forecasts, the number of enterprises in the industry should reach two dozen. The fact that this is a very real goal is evidenced by the appearance in recent years of several plants and workshops for the production of biofuels, as well as new research and production complexes, such as Biopolis, Biota, Biotechfarma.

Portal "Eternal youth" www.vechnayamolodost.ru25.01.2008

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