#AseBioID24 | Keys to the Basque biotech ecosystem that reinforce the potential of AseBio Investor Day 2024: “San Sebastian is a city of science and research”

Asebio

29 April 2024

Data from the AseBio 2022 Report indicate that, in 2021, Spain had a total of 898 biotech companies. This figure represents a growth of 4.2% over the previous year and reflects a growing trend with an average annual creation of 48 new biotech companies over the last decade.

The picture we observe of the biotechnology sector in Spain reflects a living ecosystem in which we identify different regions with a high biotechnology potential, as is the case of the Basque Country. The region ranks among the top nationally in terms of the number of biotechnology companies, with a total of 87, a figure that represents 9.7% of Spain as a whole. The work carried out by these companies translates into an average turnover of 2.1 million euros, which represents 1.42% of the total turnover at national level and 0.16% of the Gross Value Added (GVA) of the regional total.

These data position the Basque Country as one of the leading Spanish regions at national level in the biotechnology sector. For this reason, AseBio has chosen one of its main epicenters for the celebration of AseBio Investor Day 2024: San Sebastian (Donostia).

On May 15, 2024, the Kursaal Conference Center in Donostia / San Sebastián will be the meeting point for investors and Spanish biotech companies with a common nexus: biotechnological innovation. Data from the last edition show the growing interest that each new edition of AseBio Investor Day generates: more than 265 delegates from 146 companies from 12 countries and more than fifty investors attended the last edition of AseBio Investor Day.

The forecasts for the new edition are optimistic and the objective is to exceed these figures. A goal to which the venue chosen for the event contributes significantly: San Sebastian/Donostia, one of the spearheads of the flourishing biotechnology ecosystem in the Basque Country. To learn more about it in depth, we interviewed Ane Insausti, Deputy for Economic Promotion and Strategic Projects of the Provincial Council of Gipuzkoa.

AseBio. The data in the AseBio 2022 Report show the Basque Country as one of the regions with the greatest biotechnology potential in Spain. What are the main elements that are making this possible?

Ane Insausti. I would highlight two main ones: the first is that it is a sustained and long-standing commitment, which began in 2000 with the launch of the Biobasque Strategy by the Basque Government. And secondly, that this strategy is based on a culture of public-private collaboration, which is what characterizes us as a territory.

This commitment has made it possible to strengthen a series of differential capacities to stand out in this sector: a network of leading R&D&I centers, a solid and well-established ecosystem of support for entrepreneurs, a strong manufacturing and ICT sector, and a health system such as Osakidetza, which is a benchmark at national level. Thanks to this, a generation of really promising start-ups has been emerging.

AseBio. According to your experience and figures, what is the current picture we observe of the Basque biotechnology industry?

Ane Insausti. Despite our size, we have a remarkable strength. According to a report presented in 2022, the Basque Country's internal R&D expenditure in biotechnology-related activities was 126.6 million, and there were around 200 Basque companies in the sector employing more than 8,000 professionals with a high level of specialization and professionalization. At the national level, the Basque Country was in fourth position in terms of the number of companies, third in R&D, and eighth worldwide in scientific production in biotechnology.

AseBio. The recognition of the importance of the region for the biotechnology industry at national level is clear, but what about at international level? What is its projection?

Ane Insausti. Obviously we cannot compare ourselves with the great world giants in this field, but we can consider ourselves an advanced territory if we take into account our population and our economic weight. An interesting ecosystem has been generated here that has not gone unnoticed at the international level, and that explains why tractor companies such as Viralgen have decided to establish themselves here since 2018. It is not by chance, but because they see here a favorable place to develop in terms of talent, knowledge ...

We are convinced that if we maintain this commitment there will be more cases like this, and we have no shortage of projects to do so. For example, the GANTT strategy (Gipuzkoa Advanced New Therapies Territory), which aims to consolidate the international positioning of Gipuzkoa as a reference in the development of cell, gene and RNA therapies with an industrial orientation.

AseBio: What do you consider to be the main challenges facing the Basque Country to further boost the potential of the biotechnology sector?

Ane Insausti. One of our weaknesses is the difficulty in making business projects grow. We see the need to generate dynamics that allow us to scale up our business projects so that they gain in competitiveness, so that the ideas, technologies and advanced knowledge that are generated are translated into viable business initiatives, become established in the market, and can gain dimension to be competitive. In this sense, we have been working to consolidate an investment industry that strengthens the innovative and entrepreneurial ecosystem of Gipuzkoa, with encouraging results.

Another obvious challenge is that of talent. Training for the generation of local talent, and the attraction and retention of external talent. Fiscal measures have been adopted and aid programs have been implemented to achieve this, but we surely need to go further.

There is also room for improvement to be more agile in clinical trials and in the management of certifications, validations and intellectual property. We need to be more flexible and work on these issues from the beginning of R&D&I projects, because many of the companies that have emerged here come from universities or technology centers.

AseBio. San Sebastian/Donostia has been the city chosen for the celebration of AseBio Investor Day 2024. What elements does it offer that can boost the momentum of the event?

Ane Insausti. San Sebastian is a city of science and research. According to a study recently presented by the COTEC Foundation, it is the capital of the state with the greatest weight of employment linked to R&D, with 2.34% of the total. In 2022 the British magazine Nature published the ranking of the top 200 cities with the highest number of scientific productions and among them was San Sebastian.

To this we have to add the establishment of various leading companies in the biotechnology field, or infrastructures such as the BioIncubator.

We are also talking about a city with an undeniable attraction, with a great quality of life, a first class gastronomic offer, well communicated and also specialized in everything related to MICE tourism (congresses, etc.).

Taking all this into account, I can think of few places more suitable for holding an event of these characteristics. We believe it has all the ingredients to be a success and we sincerely hope it will be.

AseBio: What do you expect from the celebration of an event of these characteristics?

Ane Insausti. Earlier I mentioned the need to scale business projects and we are confident that new opportunities for growth, business and shared work will come out of this event. Startups in this field not only need financial muscle, but also specialized support, with strategic and business vision, so meeting points like this one are very necessary, contribute a lot, and are aligned with our commitment to promote smart capital for the growth of innovative business projects.

We cannot forget that on the eve of AseBio Investor Day, BioEquity Europe, the most important international investment event in the biopharmaceutical industry, will take place in San Sebastian. Earlier we spoke of the need for internationalization in this field, and this milestone will surely help us to achieve this goal.

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