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Difficulties in obtaining early stage funding are hampering the biotechnology industry, but the mood will nonetheless be upbeat at this week's annual get-together, it says.
NZBio chief executive Brian Ward said about 550 visitors and 40 exhibitors were expected at the conference, which runs in Auckland until Wednesday.
The industry's future looked bright, although it was falling behind Australia in raising early stage funding, Ward said.
"I think the industry's going to succeed," he said. "We probably need to back ourselves a little bit more and really capitalise on the opportunity we have."
There were roles for the private and public sectors during early stage funding - the gap between discovery and commercial proof of principal - although during very early periods there could be too much uncertainty for the private sector, he said.
The Government had increased its contribution, "but if we're really serious and we want to foot it with other countries internationally I think we need a much larger commitment from the Government", Ward said.
Public funding for early stage development was probably not more than $20 million compared to hundreds of millions in Australia, he said.
A Ministry of Research, Science and Technology spokesman said Government funding in biotechnology was about $195 million in 2004-2005 - 25 per cent of all state funding in research and development.
The proportion of Government investment in biotechnology was the highest in the OECD, he said.
The Biotechnology Industry Growth Report 2006 says expenditure (excluding higher education) grew 20 per cent to $517 million in 2005. Total expenditure was $642 million.
Net profit in 2005 (excluding higher education) fell from $245 million to $159 million. Total net profit was $169 million.
Investment was a more important indicator than profit of the industry's development, Ward said.
"I think the future's very bright," he said.
The change in the New Zealand industry over the past three or four years had been significant, and the amount of investment coming from overseas had increased.
The conference aims to provide an environment in which companies can meet potential partners. It will include a business partnering forum where short presentations can be made to interested parties.
Multinational companies Johnson & Johnson, Merck Sharp & Dohme and BASF are attending the conference, detailing the technology they are seeking and holding meetings with companies.
An NZBio Deal of the Year Award, announced this evening, will recognise the success of one company.
Biotechnology
* Income: $811 million
* Expenditure: $642 million
* Net profit: $169 million
* 126 private and public entities
* More than 2200 people employed
(Figures are for 2005)
