The Number of Biotechnology Companies has Only Decreased by 10% Despite the Crisis

PAMPLONA, Spain, September 30, 2010 - The global biotechnology industry has been more resistant to
the economic crisis than expected. This has been one of the main conclusions
of the international round table "Opportunities and Challenges of the Global
Biomarkets", held as part of the 5th International Meeting on Biotechnology,
BioSpain 2010, organised by the Spanish Association of Biocompanies (ASEBIO)
and the Government of Navarre through SODENA. During this event, experts from
around the world have talked about their experience of each of their
geographic locations in the field of biotechnology. Among the most important
issues discussed they highlighted two: the increasing selectiveness of
investors and the cuts in R&D+i. An important figure that was discussed was a
"modest decrease" of 10% of the number of biotechnology companies worldwide,
despite the crisis. During the round table it was made clear that "financing
is the main problem faced by biotechnology today".

The Minister of Science and Innovation, Cristina Garmendia,
has visited BioSpain 2010 to "see how Pamplona has become the nerve centre of
European biotechnology". The Minister has mentioned the support offered by
the central Government. "Undoubtedly, the biotechnology sector is bound to
become one of the crucial sectors involved in our economic recovery, and I
think that the figures and the international interest shown are proof of
this; this helps us understand that it is the way forward". Garmendia
referred to the General State Budgets, presented today, which allocate over
5.35 billion euros to the Ministry of Science and Innovation, 1.2 % more than
the previous year. "With this budget, which has yet to be passed through
parliament, we can guarantee the financing of all the contracts, grants,
research projects and transfers of research to public bodies".

The protagonist of today's plenary session was Larry Fritz,
president and CEO of Covella Pharmaceuticals, who stressed that the current
model of venture capital has to be revised. "Venture capital has lost its
entrepreneurial mindset; today investors leave their decisions in the hands
of external consultants who, in many cases, are too critical of the projects
that require financing". Larry Fritz, who focused his talk on how to create
and develop a successful biotechnology company, insisted that investors are
more conservative and that work is done more slowly than a few years ago.

    More information:
    Lucia Cecilia Mercado
    +34-91-210-93-74
    lcecilia@asebio.com

More information: Lucia Cecilia Mercado, lcecilia at asebio.com, +34-91-210-93-74