#BIOSPAIN2023Interview | "There has been a growing trend in recent years in key indicators reflecting the maturity of the biotechnology sector in Southern European countries"

Innovation is one of the main drivers of the European Union. Economic progress, social well-being, and the quality of life of Europeans depend on their ability to promote productivity and growth, which largely rely on their capacity for innovation.

Horizon Europe, the European Union's framework program for research and innovation (2021-2027), states that to harness the innovation potential of European researchers, entrepreneurs, industry, and society, "the environment in which innovation can emerge must be nurtured at all levels." The development of an effective innovation ecosystem that encourages cooperation, networking, and the exchange of ideas and knowledge is crucial. This goal can only be achieved by creating national, regional, and local innovation ecosystems with the aim of supporting all types of innovation and reaching all innovators in the European Union.

In this regard, Southern Europe has gained relevance in recent years in the field of innovation. Examples of this include a significant increase in the number of companies in countries like France, Spain, or Italy, as well as events of the caliber of BIOSPAIN, an international reference in the biotechnology sector. Jose Terencio, Vice President of Grifols Innovation and New Technologies (GIANT), a global leader in plasma medicines and Platinum Sponsor of BIOSPAIN 2023, discusses how to strengthen this ecosystem.

AseBio. In terms of innovation, what is the current snapshot in Southern Europe?

Jose Terencio. Without a doubt, in recent years there has been a growing trend in the key indicators that reflect the maturity of the biotechnology sector in Southern European countries. In Spain, we have seen an increase in the number of venture capital funds specialized in biotechnology, such as Ysios, Asabys and InVivo, to name a few. They have not only increased in number but also in scale, making larger investments in projects in more advanced stages.

The fact that established international funds are increasingly interested in companies from Southern Europe is reflected in the growing size of investment rounds. A recent example is the funding closed by the company SpliceBio.
Another important element is the increasingly evident commitment to innovation by local companies with a significant presence in international markets, such as Grifols, and the establishment of R&D centers in the region by international pharmaceutical companies such as Alexion/AstraZeneca in Barcelona.

All these are examples of how Southern Europe is closing the gap that has traditionally differentiated it from countries in Central and Northern Europe.

AseBio. What currently differentiates this area of the continent from others that have historically been more associated with innovation?

Jose Terencio. Perhaps I would cite as a fundamental difference the commitment that central and northern European countries have to using knowledge as an economic driver and an inherent component of their companies' competitiveness. The biotechnology sector is highly dependent on innovation and this, in turn, is fueled by knowledge. Southern European countries have exploited other sectors such as tourism, agriculture and other services, which has perhaps hindered the growth of technological sectors and has generated a gap, creating a Europe with two different speeds.

The biotechnology sector needs essential elements to converge and feed off each other: basic and applied research leading to the generation of intellectual property, a network of powerful hospitals, and cutting-edge companies that catalyze the creation and growth of other technology-based initiatives. All these factors reached southern European countries later than in the north.

Another factor that has possibly helped narrow the gap is the lower cost of living in Southern Europe. If we are competitive in the generation of knowledge, we are in a better position to attract talent and more investment due to lower developmental costs.
All of this has contributed to the maturity of the ecosystem and has fomented public and private investments.

AseBio. You have a network of R&D centers that allows you to easily share knowledge. What does it consist of?

Jose Terencio. At Grifols, we have several innovation centers in both the United States and Europe, all dedicated to developing treatments to improve people's health and well-being. In the U.S., we have two hubs, one on the West Coast in California (mainly in the San Francisco area) focused on the development of both biological therapies (mostly non-plasma) and diagnostics, and another on the East Coast, in the Research Triangle Park in North Carolina, which specializes in plasma-derived therapeutics. In Europe, we have several R&D centers in Barcelona, Dublin, Bilbao and Zaragoza that develop both therapeutics and diagnostics. Since our innovation pipeline is global, the centers work together, their collaboration depending on the project and its development stage.

AseBio. What role do new technologies play in the development of innovation?

Jose Terencio. New technologies play two fundamental roles. On the one hand, they help improve the efficiency of the discovery process and aid in the development of new therapies and medical devices, which could help speed up their market introduction and benefit patients faster. Artificial intelligence is one example. 

On the other hand, in recent years new technologies have given us access to new drug modalities and platforms such as RNA-based treatments, with the recent COVID-19 vaccines as an example, as well as gene therapy, which can cure diseases that until now could only be treated with drugs that act on the symptoms. 

At Grifols, an example of our commitment to innovative technology is the acquisition of GigaGen in 2021 after an initial investment in 2017. Its platform enables the production of recombinant polyclonal immunoglobulins that allow us to reproduce the antibodies generated by our immune system and select the most potent and diverse ones.

AseBio. Each of your global, interconnected research centers specializes in specific therapies and technologies that impact human health. How does this aid in the development of new therapies?

Jose Terencio. We have some R&D centers that are more transversal and can participate in multiple developmental stages of our products. Others, mainly focused on research, are more specialized in the identification and validation of therapeutic targets or the discovery of new biologics.

To complement our in-house R&D, in recent years we have driven more external innovation. GigaGen, mentioned above, is an example of the type of company – with groundbreaking and disruptive technology – we are interested in incorporating into our growing ecosystem. A robust and balanced mix of investments, collaborations and alliances with startups, academic institutions, industry associations and others will enable us to leverage and diversify our internal capabilities and accelerate the development of different types of medicines. This helps us innovate to offer patients better treatments.

AseBio. What does Grifols expect from BIOSPAIN 2023?

Jose Terencio. As with the previous BIOSPAIN events, we hope to be able to identify new projects, reconnect with companies that we have been in contact with, as well as meet with other industry players such as venture capital funds. In short, we hope to gain access to more opportunities, including disruptive technologies aligned with our strategic priorities and that complement our portfolio in the different therapeutic areas that interest us.