Biotech breaks back in 2003
FDA to ban ephedra products
New kit for advanced food tests
Irish pick innovation as presidency theme
Over-consumption threatens world stability
Tropicana introduces New Essentials line
Henkel deals may spark more mergers

Biotech

Biotech breaks back in 2003

The worst may be behind it following a year in which the biotechnology industry won 37 approvals from the Food & Drug Administration, raised $16.4 billion in new money and won some big political battles.

Biotechnology Industry Organisation (BIO) president Carl Feldbaum said the FDA approved 25 new biotechnology drugs and biologics in 2003, up 25% from 2002. The new approvals include first-in-class medicines for genetic disorders, HIV/AIDS, Alzheimer's disease, psoriasis, asthma and cancer. The agency also cleared 12 new indications for previously approved biotech products.

FDA approvals and stellar earnings at companies with marketed products drove the Nasdaq biotech index up 46%. This helped biotech companies to raise $16.4 billion in new financing, up 56% from 2002.

Venture capitalists poured $3.3 billion into privately held biotechs. This made 2003 the first year more venture capital went into life sciences than into software.

Among the political wins Feldbaum counted a better financial and tax climate, energy bills that could pump in more than $800 million in bioenergy incentives and which set mandatory usage levels for biofuels, the thwarting of efforts to ban therapeutic applications of cloning technology, and the acceptance by international food safety organisation Codex Alimentarius of science-based risk-assessment rules for foods derived from biotechnology.

BIO will push tax reform and energy legislation, as well as Project BioShield, the Patent and Trademark Office fee bill, and small business legislation so that venture-backed biotech firms qualify for Small Business Innovation Research grants.

Red tape

FDA to ban ephedra products

The US government is to ban foods that contain ephedrine alkaloids or ephedra, an adrenaline-like natural substance commonly found in weight-loss products, and warned consumers of the dangers of consuming them.

The move follows an FDA review of the available evidence about the risks and benefits of ephedra, including its pharmacology, studies of ephedra's safety and effectiveness, adverse event reports, and reviews by independent experts.

"Consumers should stop buying and using ephedra products right away, and FDA will make sure consumers are protected by removing these products from the market as soon as the rule becomes effective," said FDA chief Mark McClellan.

Test kit

New kit for advanced food tests

British test equipment maker Lloyd Instruments has produced a new catalogue of materials testing kit. The new 57 page catalogue covers the firm’s universal testing machines, ranging from the 1kN low force single column LFPlus, right up to the 300kN high force dual column LR300K Series.

Special instruments such as the TAPlus food texture analyser also feature, along with instrument accessories such as loadcells, splinter protection shields, compression cages, grips and fixtures, extensometers and thermal cabinets.

The catalogue includes all the NEXYGEN™ software for comprehensive instrument control.

Typical applications involving Lloyd Instruments’ solutions include testing plastics, packaging, metals, electronics, medical devices, rubber, food, automotive components, textiles and general manufacturing.

EU

Irish pick innovation as presidency theme

The Irish government hopes to raise research investment, improve basic research and develop an effective European space policy during its six month presidency of the European Union.

Key targets are the creation of a European Research and Innovation Area and to achieve the research and development investment target of three per cent of GDP by 2010.

Consumption

Over-consumption threatens world stability

The world is consuming goods and services at an unsustainable pace, with serious consequences for the well-being of people and the planet, reports the Worldwatch Institute in its annual report, State of the World 2004.

Around 1.7 billion people worldwide—more than a quarter of humanity—have entered the "consumer class," adopting the diets, transportation systems, and lifestyles that were limited to the rich nations of Europe, North America, and Japan during most of the last century. In China alone, 240 million people are now "consumers"—a number that will soon surpass that in the US.

Worldwatch Institute President Christopher Flavin says "Rising consumption has helped meet basic needs and create jobs. But this is undermining the natural systems we all depend on, and making it even harder for the world's poor to meet their basic needs.

"Higher levels of obesity and personal debt, chronic time shortages, and a degraded environment are all signs that excessive consumption is diminishing the quality of life for many people.

"The challenge now is to mobilise governments, businesses, and citizens to shift their focus away from the unrestrained accumulation of goods and toward finding ways to ensure a better life for all."

Household spending on goods and services has rise fourfold since 1960 to more than $20 trillion in 2000. The 12% of the world's people living in North America and Western Europe account for 60% of this consumption, while the one-third living in South Asia and sub-Saharan Africa account for only 3.2%.

Consumption has become an end in itself, say project directors Lisa Mastny and Brian Halweil. "Nearly half of all global consumers now live in the developing world," says Mastny. "While the average Chinese or Indian consumes much less than the average North American or European, China and India alone now boast a combined consumer class larger than that in all of Western Europe."

Consumption is not a bad thing in itself, adds Halweil. "Almost three billion people worldwide barely survive on less than $2 per day. They will need to ramp up their consumption to satisfy basic needs for food, clean water, and sanitation. And in China, the rush to meet surging consumer demand is stimulating the economy, creating jobs, and attracting foreign investment."

In the US there are now more private vehicles on the road than people licensed to drive them, the report notes. The average size of refrigerators in US households increased by 10% between 1972 and 2001, and the number per home rose as well. New houses in the US were 38% bigger in 2000 than in 1975, despite having fewer people in each household on average. Similarly, the US, with just 4.5% of the world's population, produces 25% of global carbon dioxide emissions.

Yet only a third of Americans say they are "very happy," the same as in 1957, when Americans were only half as wealthy. Americans are also some of the most overworked people in the industrial world, working some nine more weeks a year than the average European.

The planet can’t take it anymore, says the report. Despite alternative sources, more than 90% of paper still comes from trees that represent about one fifth of the total wood harvest worldwide. Some 75% of global fish stocks are now fished at or beyond their sustainable limit. And even though technology allows for greater fuel efficiency than ever before, cars and other forms of transportation account for nearly 30% of world energy use and 95% of global oil consumption.

The report suggest a number of strategies to minimise the effects of over-consumption. These include shifting taxes so that manufacturers pay for the harm they do to the environment, and by introducing production standards and other regulatory tools. Take-back laws require companies to "take back" products at the end of their useful lives, and typically ban landfilling and incineration of products.

Other strategies include finding ways to cut the raw materials needed and by making goods more durable and easy to repair and upgrade. But it will take millions of individual decisions about everything from our use of energy and water to our consumption of food to make a difference.

NPD

Tropicana introduces New Essentials line

US beverages firm Tropicana Products has launched a new sub-line of fortified orange juice and juice beverage products. Pure Premium Essentials is available in five varieties essentially offering less sugar, fewer calories and extra nutrients.

M&A

Henkel deals may spark more mergers

In the run-up to Christmas, Germany’s Henkel Group announced major acquisitions in two of its core business areas. First it bought soap-maker Dial Corp for $2.9 billion, and a week later, the cosmetics and hair care products marketer Advanced Research Laboratories (ARL).

"There are other acquisition candidates out there that are ripe for the picking," says Lenka Contreras, group director of the Consumer Products Practice for specialist market research firm Kline & Company.

Dial's US home care products business is worth about $500 million at the manufacturer level and ranks sixth in this market, says Kline. Its Purex laundry detergent business has had double-digit growth over the past few years, while sales for many of its competitors have been flat. The brand's value positioning has pushed it into second slot, just behind Procter & Gamble's Tide.

ARL may give Henkel third position in the US hairstyling products market behind Procter & Gamble and Unilever, worth almost $70 million in 2002. Henkel says it will combine the ARL business with the company's Schwarzkopf & Dep subsidiary.