Page 59 - OHKF_Biotech_EN

Figure 16 How the biotech mega research institute can facilitate the development of an industrial cluster—
rare diseases as a case in point

Opportunities for
emerging technologies
Huge market opportunities Policy incentives and
with obvious gaps expedited approval

USD
194 billions Biotech mega research institute
Attractive to
Commercialisation enterprises “List of Overseas
5~7% of advanced relocating New Drugs Catering
research outcomes to Clinical
to the Loop
Urgent Needs”
Leading transnational pharmaceutical
CNY
60-90 billions giants such as Biogen and GSK
involving a number of orphan drugs
Source: Boston Consulting Group

Capitalising on advanced opportunities: the institute should Taking rare diseases as an example (see Figure 16), studies have
focus its attention on advanced scientific enquiries and resolving identified enormous market opportunities, with the global market
major challenges in medicine, such as emerging infectious estimated to reach roughly USD 194 billions, and the Chinese
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diseases like novel coronavirus diseases, common age-related market at CNY 60–90 billions, by 2030. Meanwhile, effective
diseases like Alzheimer’s, rare diseases like albinism, and new treatments exist for fewer than 5% of rare diseases only, suggesting
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fields of study like epigenetics, as well as disruptive technologies huge unfulfilled demand. Consequently, many governments have
such as next generation testing technologies, next generation introduced policy incentives, including research grants, expedited
genetic manipulation technologies and synthetic biology technologies.

50 Epigenetics is the study of the relationships between phenotypes, diseases and genes, which can help predict the impact genetic defects may have for the invention of more targeted
prevention and treatments.
51 Statistics by the Boston Consulting Group show that the cumulative transactions made by the top 20 pharmaceutical companies of the world in the field of rare diseases amount to USD 218
billions in 2020. Established pharmaceutical giants have been proactive in acquiring companies specialised in rare diseases: in 2018, Takeda Pharmaceuticals acquired rare disease giant
Shire, Sanofi acquired Bioverative to gain a foothold in haemophilia, and Novartis acquired biotech company AveXis with expertise in gene therapies; in 2019, Roche acquired gene therapy
pioneer Spark Therapeutics; in December 2020, AstraZeneca acquired rare disease giant Alexion Pharmaceuticals.
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