PABME 2009 conference to take place in Dubai next month

The pharmaceutical and biotechnology industries are two areas that are beginning to attract the attention of venture capitalists in the region as being potentially lucrative.

According to a recent report from URCH Publishing, the pharmaceutical market in the Middle East is expected to grow by 15% annually over the next three years. The fledgling biotechnology industry is also expected to witness consistent growth in the coming years with projects including Dubai Biotechnology & Research Park (DuBiotech) in the UAE and Qatar Science & Technology Park (QSTP) keen to build life science clusters.

The positive forecasts for both these sectors highlights the reason behind the US-based life science consultancy firm, SHI Consulting taking a leading role in the Pharmaceutical and Biotechnology Middle East (PABME) exhibition and congress running from April 20-22 at the Dubai Exhibition and Conference Centre.

SHI are putting together an intensive programme at PABME that will focus on how the rapid development of the biopharmaceutical market can be harnessed and opportunities realised.

Borys Chabursky, President, SHI Consulting believes it is the perfect time for investors to enter the market.

"The opportunities being explored at PABME are incredible. It's a region coming to terms with the knowledge that the Middle East can leapfrog other countries by learning what's been done well in the past, and what's been done badly. It's a capital-rich environment with a population excited about building a centre of excellence," he said.

"It's early days and not an easy road to follow, but can the region become a niche player at the worldwide level? Absolutely."

One of the key factors behind the growing consensus trumpeting the potential of the Middle East's life science sector is the support being offered by governments to the industry. Both DuBiotech and QSTP illustrate the backing the public sector is currently offering.

Dr. Rudaina Alrefai, Director of Regulatory Affairs at DuBiotech claims all aspects of building a successful life science cluster are being addressed. She indicated that introducing an adequate regulatory framework and a high level of grants and investments were all being tackled.

"As a biotechnology park, we can't ask any pharmaceutical or biotech company, particularly in the Top 20, to come and set up a manufacturing facility overnight. They're not going to do that because almost every country in the world is competing for the same type of business," she said.

"Our strategy is to attract some divisions of industry majors that already exist in the region. For instance, the sales and marketing office for Amgen or Pfizer have joined the park. Generally, major corporate players wait for two to three years to ensure internationally-based regulations are being implemented properly on existing smaller companies. Once they gain confidence regarding regulations, they will also see how far approvals and registrations are expedited."

Elaborating on the future steps, Dr Alrefai said: "As we move forward, we aim to expand on the sales and marketing activities we're already witnessing within the park. I see the logistics being the next big thing - the packaging and distribution centres at the park. We see this as a gradual step and the eventual goal of manufacturing and R&D. We know in reality we can't expect top-tier companies to locate their operations here straight away. Biotechnology strategies don't work like that," she concluded.

Although the situation at the moment cannot compare to the highly developed pharmaceutical and biotechnology industries in Europe and the United States, smaller research companies are making tentative moves into the market.

Biogem, an Italy-based biotech firm is collaborating with QSTP. For Pasquale Vito, the group leader from the company, the enthusiasm from the science park was a factor in Biogem's decision to bring research to Qatar. He also thinks other European companies will follow.

"I saw the interest from the Qatari's to bring in technological knowledge. It makes it very attractive and we're open to new experiences," he said. "In Italy there has been a diffusion of small universities with their own research institutions, who can dedicate their time to do smaller scale projects. This diffusion can also be applied to countries in the Middle East, which need active research communities."

Building these communities is a difficult task, but Eulian Roberts, the Managing Director of QSTP believes it is happening and hopes venture capitalists will invest in the sector in the region.

"We have a $130million fund that we can not only use to encourage [companies to QSTP], we can come and invest with them," he said. "It's a challenge to actually have a conversation with someone about investing in a technology based business where the returns may be potentially large, but the risks are slightly higher too. Getting people into that mindset, we're going to have to demonstrate that you can get returns out of these activities. We need to take the lead role in making those investments."

The Middle East is primed to deliver in the pharmaceutical and biotechnology industries and PABME 2009 will have around 100 companies from over 20 countries exhibiting. Alongside the exhibition are several major high level conferences tailored for professional delegates. They include: Current Trends in Pharmaceutical and Biotechnology; Innovative Therapeutics; Pharma and Biotech Opportunities in Emerging Markets; Facilities Design, Upgrade and Expansion; Pharma and Biotech Marketing; and the Clinical Trials Congress.

Simon Page, Director of Life Sciences Division, IIR Middle East believes PABME has now become the premier pharmaceutical and biotechnology exhibition and congress in the region.

"PABME is essential, not only to all stakeholders involved with the pharma and biotech industries in the Middle East, but also to anyone interested in entering the market here,"

he said.

"Some of the leading firms in the world are showcasing their latest products and services and the range of conferences covers everything that industry professionals need to know about these lucrative sectors in this region."