danforth

Public-Private Partnerships in Agricultural Biotechnology for the Developing World: Sounds Like a Good Idea, but…….: 

Public-Private Partnerships in Agricultural Biotechnology for the Developing World: Sounds Like a Good Idea, but……. Donald Danforth Plant Science Center April 28, 2005 Ambassador Cynthia P. Schneider Georgetown University

Rockefeller –Funded Project: 

Rockefeller –Funded Project Title: Ethics Meets the Marketplace: Towards a Model Framework Harnessing the Potential of the Life Sciences to Improve Agriculture and Animal Agriculture in the Developing World Goals: Develop/Identify model frameworks to adapt life science-based innovations to agriculture in developing world Identify ethical and practical guidelines, drawing as much as possible from concrete examples Identify/describe “Best (and Worst) Practices” in PPPs for agricultural biotechnology for developing world Use lessons learned from other fields – health PPPs, microcredit

Underlying Assumptions: 

Underlying Assumptions Life science based innovations in agriculture hold promise for developing world To be successful, PPPs should be integral to strategic plan of private partner If so, then PPPs can contribute to sustainable agriculture, poverty reduction, and improved health and nutrition in developing world Those goals can be compatible with developing or expanding a market for private partner One size does not fit all for agbiotech PPPs Different environments in developing world require different approaches: Brazil, Mexico or South Africa compared to Kenya, Uganda, Tanzania

Preliminary Conclusions: Good News: 

Preliminary Conclusions: Good News There are examples of successful ongoing projects There are creative mechanisms in development to facilitate PPPs Excellent research ongoing in national labs in developing world countries Fledgling seed industries have potential to market new products from national labs

Preliminary Conclusions: Bad News: 

Preliminary Conclusions: Bad News Lack of funds, regulatory structure, infrastructure to translate research into products Multi- nationals not likely to fill in gap, unless would fit long term strategy and benefit profitable markets (i.e. drought resistance) Regulatory approval either too costly or underdeveloped and holding up distribution Liability scares industry away from PPPs Local private sector undeveloped in much of sub-Saharan Africa

PPPs in Practice: 

PPPs in Practice Tissue culture bananas – Africa Harvest, KARI, Du Roi (South African company ) in partnership with Genetic Technologies Limited, Nairobi (Suresh Patel) , ISAAA, ABSF (for public perception), Technoserve (US NOGO, marketing), DuPont (funding) GTL only tissue culture lab in Kenya, for profit, expanding to 5 nurseries for countrywide distribution Transport of seedlings costs more than seedlings themselves Sees more potential in Tanzania than in Kenya because more large landowners In Uganda, tissue culture lab Agro-Genetic Technologies, Ltd., Erostus Nsubuga. Tissue culture without genetic engineering does not require regulation.

PPPs in Practice: 

PPPs in Practice Fast growing, disease resistant eucalyptus trees (tissue culture) Africa Harvest, Monti (South African company), Gatsby Trust. Technology donation by Monti; advantage to company = test response of trees to different climate Gatsby funded start up costs Benefits: more firewood, less time looking for firewood, commercial wood, reforestation

ILRI: East Coast Fever Vaccine: 

ILRI: East Coast Fever Vaccine Partners: TIGR, Wellcome Trust, DFID, CGIAR, KARI, University of Victoria, British Columbia, Ludwig Institute for Cancer Research, Kenyan DVS, Merial (private partner) ECF is leading cause of death for cattle in sub-Saharan Africa 17 years, $35 million (25 million research; 10 million development) Annual losses due to East Coast Fever - $300 million Status: in clinical trials

(Potential) Success Stories: 

(Potential) Success Stories AATF African Agricultural Technology Foundation – broker between public and private sector Facilitates royalty free transfers of IP Oversees and assists with funding of regulatory approval of public sector products Goal: to make innovative technologies available to small scale farmer Problem: lack of liability coverage

AATF Projects: 

AATF Projects Striga free maize AATF, CIMMYT, KARI, BASF -- goal = seed of herbicide-resistant maize (gene owned by BASF, adapted by CIMMYT) that is coated with BASF herbicide for control of Striga. AATF to pay for regulatory approval. At issue: slow release technology for Striga control herbicide. CYMMET owns significant share; BASF tying access to slow release to donation of gene.

Other AATF Projects: 

Other AATF Projects IRMA – insect resistant maize for Africa Partners AATF, KARI, CIMMYT, Syngenta Foundation Vitamin A enhancement in Maize – Harvest Plus consortium – CIMMYT, IFPRI, IITA, Univ. of Illinois, Iowa State Univ., Wageningen Univ., Monsanto Network for Genetic Improvement of Cowpea for Africa (Purdue, Univ. of Zimbabwe, IITA, Univ of California, Riverside, Michigan State, UVa., Charlottesville; Kirkhouse Trust; Monsanto)

Potential Successes: 

Potential Successes Virus-resistant sweet potato Partnership with Africa Harvest, Monsanto, KARI, KEPHIS Developed capacity for KEPHIS Problems: different standards for public GM products. When 1st generation doesn’t work, project dismissed. Fodder for anti-GMO groups William Moar, Univ. of Alabama, Auburn – working on adapting Bt for sweet potato in Uganda

Potential New Model: Drought Tolerant Crop Initiative: 

Potential New Model: Drought Tolerant Crop Initiative Drought resistance benefits both developed and developing world Multiple private players developing technology Could technology for developing world crops be “carved out” and donated? Could this work as a coalition of private companies and public sector entities, in model of health coalitions? Initial public sector partners: USAID, Rockefeller, Partnership to Cut Hunger in Africa, CGIAR, Winrock International

Key Problems: 

Key Problems Lack of private sector biotech to translate products that come out of KARI/NARO New seed companies, but only one tissue culture company each in Kenya and Uganda Lack of regulatory and/or biosafety capacity Confusion about risks and benefits of biotechnology in Africa Too little action and too much talk

Other Problems: 

Other Problems Liability – biggest deterrent for private sector Potential solutions: Create an insurance fund that is US government-backed modeled after the Federal indemnity for the Arts and Humanities; Provide government backed insurance for humanitarian purposes. Lack of regulatory or biosafety capacity – makes introduction of GMOs impossible in some countries – Uganda – and costly and difficult in others -- Kenya

Comparison with Health PD PPPs: 

Comparison with Health PD PPPs Different Need not perceived as being as urgent Solutions more long term and systemic in agriculture Pharma-Planta coalition may bridge the gap (30 orgs, 11 EU countries, South Africa) – producing biopharmaceuticals in and for developing world Similar Private sector investment in research for developing world can benefit research for commercial products Lack of local PPPs in health also Good PR

Funding Health PD PPPs: 

Funding Health PD PPPs Developing world invests 2.5 billion in health care research All the PD PPPs together only invest 200 million Should be able to capture more of investment for solutions to health care problems Lack of local translationsal private sector

How to Support Local Private Sector Growth in Developing World ?: 

How to Support Local Private Sector Growth in Developing World ? Need to fund and create new sector where agbiotech research is translated into products Could venture capital be raised for this purpose? African Agricultural Capital – new fund –Rockefeller, Gatsby, private sector (William Kalema, Uganda) Socially responsible investment companies may provide models – micro-credit on sector-side scale

Biggest Challenges: 

Biggest Challenges Translation/implementation Gap Small to non existent local private sector Lack of funds to translate research into products Lack of regulatory capacity Liability for private sector that donates technology Lack of Incentive for private sector to donate technology Lack of market and transportation infrastructure for products Cultural aversion to investment in agriculture in Africa Public opinion – developing world farmer torn between US and EU

Eliminating Roadblocks: 

Eliminating Roadblocks US government funded liability coverage for humanitarian donation “Wild card patent” equivalent as incentive for humanitarian donation Coalition of ag companies plus public sector to donate major transformative technology, plus expertise and training to execute, and rewards and incentives for developing countries to develop products. Re-invention of failed CBI advertising campaign.