Research and Development Business and benefit sharing models

and interface biotrade / ABS « How business operates »

Pierre du Plessis Cyril Lombard Phalaborwa

Wednesday 27 February 2013

Program

• Introduction

– Utilisation

– Acess to genetic ressources

– From bioprospection to biotrade

• Group discussion

– What kind of benefits to share, at which stage?

• Conclusion

Utilisation

• What kind of ‘utilisation’ do you know?

Animal, plant, microbial

Different type of genetic resources

Research and/or commercialization

Used for different purposes

• pharmaceuticals

• seed and crop protection

• personal care and cosmetics

• botanicals and horticulture

Different types of users operating in different sectors

A large number of actors involved, rarely one provider and one user (e.g. intermediaries)

Access and benefit-sharing Uses of genetic resources

ABS in

practice

From bioprospection to biotrade

R&D Business plan Production

Set up

Investments

Time

6 months – 20 years

From bioprospection to biotrade

Knowledge exchange

Local community outreach: awarness raising, capacity building

Provide samples of target ingredient / activity (BR)

Validate as a trustworthy supplier

Provide TK on BR

Basic screening for activity

Identify bioactive molecule (GR)

Test makerting potential

Production standardisation BR / GR (inc. sustainability)

Assessments of process commercial scalability

Business plan

Time

Investments

Pilot Commercial scale production

One off and continuous access

• Classic 'one-off' approach : R&D mainly takes place in technology-rich “user” countries

Biodiversity = Diversity of …

Ecosystems Species Genes

Commiphora wildii

Cosmetic

Commiphora wildii

Cosmetic

Microorganisms & Enzymes

BIOETHANOL

Microorganisms & Enzymes

Euphorbia Peplus

Pharmaceutical

Euphorbia Peplus

P 57

Pharmaceutical

Teff

Agriculture

Teff

Agriculture

Hoodia Gordonii

Agriculture

Hoodia Gordonii

Agriculture

„One-off“ access „Continuous“ access R&

D:

pro

vid

er c

ou

ntr

y

R&

D:u

ser

cou

ntr

y

Bio

Tec

Phar

ma

CSIR

RSA

CSIR

RSA

Food

Body

care

Body

care

Body

care

Rese

arc

h-S

outh

Re

sea

rch

No

rth

What we learned in Copenhagen Public – private dialogue on ABS

• Differentiation between user and provider country is reducing

• One-off and continuous access to GR is complementary rather than exclusive

• Emergence of flexible models : – pre-identified characteristics of genetic resources – valuation of intellectual property

• Countries that provide genetic resources are setting up their own R&D capacities – in-country product development – improved market access

Busines and benefit sharing models and interface biotrade / ABS

• Business uses GR and TK in varying manners and conditions

• Implications for african countries :

– Recognize varying conditions and partners needs to adapt and optimise BS

Group discussion

• What does this mean in in terms of national coordination of PIC / MAT?

• What kind of benefits should be shared and when?

Monetary benefits may include, but not be limited to:

• (a) Access fees/fee per sample collected or otherwise

acquired; • (b) Up-front payments; • (c) Milestone payments; • (d) Payment of royalties; • (e) Licence fees in case of commercialization; • (f) Special fees to be paid to trust funds supporting

conservation and sustainable use of biodiversity; • (g) Salaries and preferential terms where mutually agreed; • (h) Research funding; • (i) Joint ventures; • (j) Joint ownership of relevant intellectual property rights.

Non-monetary benefits :

• (a) Sharing of research and development results

• (b) Collaboration, cooperation and contribution in scientific research and development

• (c) Participation in product development

• (d) Collaboration, cooperation and contribution in education and training

• (e) Admittance to ex situ facilities of genetic resources and to databases

• (f) Transfer to the provider of the genetic resources of knowledge and technology

• (g) Strengthening capacities for technology transfer to user developing country. Also to facilitate abilities of indigenous and local communities to conserve and sustainably use their genetic resources;

• (h) Institutional capacity-building;

• (i) Human and material resources to strengthen the capacities for the administration and enforcement of access regulations;

• (j) Training related to genetic resources with the full participation of providing Parties

• (k) Access to scientific information

• (l) Contributions to the local economy;

• (m) Research directed towards priority needs,

• (n) Institutional and professional relationships

• (o) Food and livelihood security benefits;

• (p) Social recognition;

• (q) Joint ownership of relevant intellectual property rights.

Conclusion

• Different approaches to Benefit Sharing – Local level : stakeholders’ issues and needs

– National or regional priorities or strategy

– Constraints from sectors and businesses

– Sectors (Pharma, foods/beverages, etc)

– Local value adding with SMEs

• Different stages of the processes

• Different sectors have different models and needs