The Triple Three Society held its April meeting on the 17th, inviting Academia Sinica Academician and Vice Chairman of the Biomedical Development Advisory Committee Yang Pan-Chyr to speak. He stated that precision health industry is one of the nation's six core strategic industries, a policy which is very appropriate. However, for the biomedical industry to step out of Taiwan, there are still four major areas—talent, regulations, scale, and channels—that need to be strengthened.
Yang pointed out that the scale of Taiwan's biomedical industry is still relatively small. In 2023, there were 223 biomedical companies listed on the stock market, with a total market value of nearly NT$1.1929 trillion and total revenue of NT$217.56 billion. To expand internationally, he believes that the conclusions of the 2023 Biotechnology BTC Conference are still applicable. Taiwan should be the primary market, with a comprehensive validation platform, guidance for evidence collection, establishment of application and market access mechanisms, and cooperation with the New Southbound Policy to expand international channels and markets.
Yang suggested raising healthcare expenditure as a percentage of GDP to over 8%, in line with OECD standards. Currently, it is around 6.6%. The development of the biomedical industry should not solely rely on the national health insurance, as low prices may demotivate businesses.
Regarding the development of the biomedical industry and biotechnology field, Yang observed several years of turbulence. Starting from 2020, investments in healthcare surged due to the pandemic, but with its decline, the biotech industry faced budget cuts, layoffs, and a trend towards cautious financial management. With the official end of the pandemic in 2023, the future remains to be seen.
Looking ahead to 2024, Yang observed a renewed optimism in biotechnology and healthcare markets, with companies focusing more on efficiency rather than novelty. Merger and acquisition strategies will return, and startup companies will need to achieve profitability faster.
Additionally, Yang mentioned the application of AI. He cited the Massachusetts Institute of Technology's announcement in 2023 of the ten technologies that will change people's lives, with AI ranking first. Yang stated that the use of AI has changed the development of the biotech industry, such as in drug discovery and development, precision medicine, and the use of AI and big data for precise health assessments, which are important trends for the future.
Differentiating between precision medicine and precision health, Yang added that healthcare is not an industry for profit from patients, so it should not be called "precision medicine" but rather "precision health." Early diagnosis and risk prediction vary for each individual, so tailored preventive measures are needed to maintain health.
However, Yang pointed out that Taiwan still needs to strengthen talent, regulations, scale, and channels in the development of biomedicine. In terms of talent, he mentioned that in the IMD World Talent Ranking report last year, Taiwan ranked 20th, but lagged behind in international talent indicators. While having excellent engineers, it lacks managers, with international managerial experience dropping to 40th place, and language talent dropping to 41st place.
On the regulatory front, Yang noted that over 50 countries worldwide have adopted FHIP as the standard for data exchange, but Taiwan still lags behind, with only sporadic small-scale trials. Additionally, Taiwan should establish a national-level health data research center as soon as possible to complete health data governance and research and development, making Taiwan a globally competitive medical information powerhouse.
In terms of channels, Yang pointed out that most drug distribution channels are controlled by international pharmaceutical companies, and Taiwan lacks international brands and channels. Taiwan should make good use of the New Southbound Policy to combine industry with medical centers and expand pragmatic channels.
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