Looking back at 2008, we witnessed many upturns as well as downturns that will influence the performance of the biotechnology industry in 2009. The year started with the launch of the 1000 Genomes Project, an international research consortium formed to create the most detailed and medically useful picture to date of human genetic variation. We saw the commemoration of the 25th anniversary of the Orphan Drug Act, which provides incentives for sponsors to develop products for rare diseases and has facilitated the release of over 200 drugs and biological products for rare diseases to market since 1983.

We also witnessed last year the unfolding of a major financial crisis that disrupted global markets and pushed economies into recession. There can be no doubt that the thoughts on the minds of many in 2009 will be the effects of this crisis on the biotech and healthcare industry. I believe there will be substantial cuts in R&D and investment funds available to biotechnology and biopharmaceutical companies and the academic sectors worldwide. Indeed, the year ahead will be a tough one for many.

Speaking at BIO-Europe 2008,  James Watson, Managing Director, Head of Merchant Banking, Burrill & Company outlined the implications of this economic downturn on the industry. He highlighted that the current financial crisis has major implications for the industry where capital will be much more difficult to access for private companies and the hundreds of public companies below USD 500 million in market cap. “Companies must rationalize their portfolios and reduce operating expenses to survive", he said.  "Conversely, the larger big pharma and biotech companies are less affected and still opportunity poor and cash rich.”

Despite this financial crisis, mergers and acquisitions may give the industry a reason to be optimistic. However, James Watson has pointed out that although acquisitions are growing in number, these deals are “in reality still rare.” The real win-win solution, according to Watson, is partnerships. “At Burrill, we see increasing commitment from both sides to partner and greater focus on creative deals that leverage big pharma's balance sheet in a 'banker role' but stop short of a full acquisition," he said.

Bio-IT and The Environment
OBBeC has always emphasized the role IT and Bio-IT solutions play in the biotechnology and healthcare sectors in saving time, money and resources for lead generation and drug discovery. This makes Bio-IT an important R&D strategy for the current economic downturn. We will see more and more organizations around the world implementing new Bio-IT tools and research infrastructures, since the cost of acquiring IT software and hardware is continuing to drop. Additionally, the massive and fast advancement of the Internet and semantic web platforms, as well as cloud computing, will revolutionize business strategies, research practices and data management. Bio-IT in 2009 will be all about maximum returns at absolute minimum costs. The biggest challenge, though, will be transitioning scientists and researchers away from conventional R&D techniques.

And, of course, lets not forget the environment. 2008 was the year in which most western governments and investors began to focus some of their attentions towards technologies that can reduce CO2 emissions and save the environment. We launched our Green Bio-IT campaign and a dedicated section in OBBeC in 2008, highlighting the latest developments in 'Green IT' and 'Green Biotech' initiatives and solutions available to the biotechnology, healthcare and pharmaceutical sectors worldwide. Green Bio-IT is not only about the good cause, but it is also about saving costs. I do believe that 'Green Bio-IT' will be an important part of the 2009 agenda for many organizations.

Barack Obama's Science Focus
On December 20th, 2008, President-elect Barack Obama announced his new key members of the administration's Science and Technology team. He emphasized that his new Administration will engage leaders in the technology community and "harness technology and innovation" that will create jobs, enhance America’s competitiveness and advance its national priorities. "Whether it’s the science to slow global warming; the technology to protect our troops and confront bioterror and weapons of mass destruction; the research to find life-saving cures; or the innovations to remake our industries and create twenty-first century jobs – today, more than ever before, science holds the key to our survival as a planet and our security and prosperity as a nation." he said in his radio address.

It is clear that Obama's focus is predominantly around biotechnology and ecology sectors, based on  the backgrounds of the new members of his science team. However, how this focus  will be translated as an action plan once he moves into the White House remains to be seen.

Here at OBBeC we will be keeping a close eye on all the events of the year with particular attention on the financial developments in the biopharmaceutical sectors and how Bio-IT will fit in. Keeping this in mind, we have introduced a new dedicated section on OBBeC.com for Business and Industrial developments in the Biotechnology and Bio-IT sectors worldwide, which can be accessed at www.obbec.com/business. We have also introduced a new directory of free resources and downloads available to all of our readers, offering a variety of information ranging from white papers, podcasts, product demos, educational opportunities, videos, and much more. You can access the new Resources & Downloads section at www.obbec.com/resources.

We look forward to working with you in 2009.

Best wishes

Teacha Hamilton BSc (Honours), Msc
Editorial Director