Life Science Sector Booming in Austria
“Big Pharma has invested close to €700 million in Vienna’s biotech scene. Mega-deals such as the one concluded between Apeiron Biologics and GlaxoSmithKline clearly show that Austria boasts innovative companies with promising development approaches which are highly attractive to international organisations”, says Hans Loibner, CEO of Apeiron Biologics.
This view reflects the position of the multinationals involved in the deals, as well as businesses of all sizes that are part of Austria’s booming life science sector. The strength of the sector is thanks to a whole set of favourable conditions; an innovative environment, a worldwide biotech boom, a highly educated workforce, tax breaks, funding for R&D and strong industry networks – as well as quality of life in Austria, which is important when we’re talking about world-class scientists who could work anywhere they like.
Innovation
Young, innovative firms in Austria are setting new standards based on world-class research and development. More than 30 dynamic start-up companies in biotechnology have been established since 1997. Their technology and products quickly began to attract the attention of international investors as well as large pharmaceutical companies. Apeiron, Onepharm, f-star and Ionimed have huge development potential on a European level, especially in the areas of individualised vaccine development, cancer research, and white and red biotechnology.
‘Creating values through innovation’ is the guiding principle for the activities of Boehringer Ingelheim. The international pharmaceuticals group, with significant operations in Austria, ranks among the top 15 pharmaceutical firms in the world, and has been carrying out research and development in Austria for more than 60 years.
Biotechnology
Biotech products account for more than 20% of the global pharmaceuticals market. Worldwide biotechnology revenues are expected to more than triple over the next decade, from €150 billion to €500 billion.
In Austria, more than one hundred specialised companies and some 170 research institutes are working in the field of biotechnology, employing more than 10,000 people. The Boston Consulting Group predicts an increase of 12,000 new biotechnology-related jobs annually by the year 2015, especially in the so-called 'red biotechnology' sector.
Austria is a cutting-edge pioneer in cancer research. Oncotyrol, a Centre of Excellence benefiting from the nationwide COMET funding program, will devote its efforts over the next four years to the research and development of technology to fight cancer. Its aim is to develop individual, tailor-made therapeutic and medical treatment concepts. Moreover, several companies belonging to the Life Science Cluster Austria Vienna Region (LISA VR) have come up with very promising approaches in the search for anti-cancer drugs.
In 2000, Boehringer Ingelheim selected Vienna to bundle its company-wide efforts to develop innovative drugs to combat cancer, and now an international team with more than 200 researchers is working here on new treatment approaches for cancer patients. They work in close cooperation with the Research Institute of Molecular Pathology (IMP) in Vienna.
Education
“The educational level of Austrian employees is excellent”, says Markus Reinhard, board member of Baxter AG and Managing Director of the research company Baxter Innovations GmbH in Austria, in praising the pool of highly qualified potential employees for the pharmaceutical and biotech sector in Austria. Austria’s university graduates do receive an undesputed top-class training; the educational standard of biotech graduates from the University of Natural Resources and Applied Life Sciences Vienna is absolutely world-class.
Strong Networks
lISA VR: (Life Science Austria Vienna Region) is Austria’s largest life sciences cluster, and the flagship model of a successful network. As one of the top 15 biotech regions in Europe, multinational companies such as Boehringer Ingelheim, GlaxoSmithKline, Henkel and Baxter proactively exploit the advantages of this cluster (and others) for progressing their R&D activities.
Innovation is based on linking heterogeneous partners, and Austria places heavy emphasis on its research and development being carried out within networks consisting of universities, research institutes, small and medium-sized enterprises and multinational companies as well as strong public and private financial institutions. The ‘Life Science Cluster Austria’ is fertile hotbeds for successful research, development and application in the pharmaceutical and biotechnology sectors.
Funding
Austria grants a ‘research premium’ of 10% of all R&D expenses, and tax incentives are also available. Start-ups to multinational companies benefit from tailor-made financing measures and an extensive range of research grants - and the straightforward application process.
As Bernhard Küenburg, CEO of onepharm, illustrates, “Using the existing funding opportunities, onepharm could more than triple every euro in capital which it raised.”
For more information on Life Science in Austria, visit Invest in Austria’s listing, which includes contact details.
