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Biotech firms boost sales but suffer losses

The Swiss biotechnology industry posted record revenues in 2007 but made losses overall after heavy investment in research and development.

The branch’s umbrella organisation, Swiss Biotech, said turnover for biotechnology firms rose by ten per cent to SFr7.11 billion ($7 billion).

However, they made an overall loss of SFr143 million after pumping SFr1.7 billion into research and development. Losses the previous year totalled only SFr3 million, Swiss Biotech noted in its annual report published on Tuesday.

Biotech firms attracted SFr885 million from new investors last year, an increase of SFr105 million compared with 2006.

The report noted that some firms could become takeover targets this year from large pharmaceutical companies that were “plagued by expiring patents and rather hollow R & D pipelines”.

It added that the focus for business in 2007 remained biotechnology for medical and health purposes.

Swiss Biotech represents 220 firms in Switzerland, 148 working in product development and 72 in supplies. The industry employs more than 14,000 people.

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