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SPECIAL REPORTS
- Thursday
13 January 2005
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The Cuban Biotech
Revolution
Douglas Starr(*)
(Prensa
Latina) Embargo or no, Castro´s
socialist paradise has quietly
become a pharmaceutical
powerhouse, says Douglas Starr
of the Center for Science and
Medical Journalism at Boston
University, in an article
published by Wired and offered
wholly to our readers.
" The end of the cold war was
cruel to Cuba. The country"s
trading partners, denied Soviet
largesse, dried up. Hard cash
ran low. What food the country
could grow languished in the
fields; trucks didn"t have
enough gasoline to bring the
crops to market. And of course
there was the US embargo.
What Cubans call "the Special
Period" produced one notable
success: pharmaceuticals. In the
wake of the Soviet collapse,
Cuba got so good at making
knockoff drugs that a thriving
industry took hold. Today the
country is the largest medicine
exporter in Latin America and
has more than 50 nations on its
client list. Cuban meds cost far
less than their first-world
counterparts, and Fidel Castro's
government has helped China,
Malaysia, India, and Iran set up
their own factories:
"south-to-south technology
transfer."
Yet at the same time as they
were selling generics, the
science-heroes of the Cuban
Revolution were inventing.
Castro made biotechnology one of
the building blocks of the
economy, and that has opened the
door - just a crack - to
intellectual property. To date
his researchers have been
granted more than 100 patents,
26 of them in the US. Now
they're setting their sights on
the markets of the West.
After the 1959 revolution, Cuba
made it a priority to find new
ways to care for a poor
population; part of the solution
was training doctors and
researchers. Cuba currently
exports thousands of doctors to
impoverished countries and
caters to an influx of "health
tourists," mostly rich Africans
and Latin Americans seeking
cheap, high-quality care.
In 1981, half a dozen Cuban
scientists went to Finland to
learn to synthesize the
virus-fighting protein
interferon. Castro sent them
with money for a shopping spree.
They brought back a lab's worth
of equipment and took over a
white stucco guesthouse in the
Havana suburbs; a decade later,
Cuba was the pharmacy of the
Soviet bloc and third world.
Most trade took the form of
barter, and development experts
estimate that by the early "90s
the business was worth more than
$700 million a year.
"And then, almost from a Monday
to a Tuesday," says Carlos
Borroto, vice director of the
Cuban Center for Genetic
Engineering and Biotechnology
(known as CIGB in Spanish), "the
Soviet Union collapsed." Cuba
lost all its credit, 80 percent
of its foreign trade, and a
third of its food imports.
Faced with economic calamity,
Castro did something remarkable:
He poured hundreds of millions
of dollars into pharmaceuticals.
No one knows how - Cuba's
economy, with its secrecy and
centralized structure, defies
market analysis. One beneficiary
was Concepcion Campa Huergo,
president and director general
of the Finlay Institute, a
vaccine lab in Havana.
She developed the world's first
meningitis B vaccine, testing it
by injecting herself and her
children before giving it to
volunteers. "I remember one day
telling Fidel that we needed a
new ultracentrifuge, which costs
about $70,000," Campa says.
"After five minutes of listening
he said, "No. You'll need 10."
Campa and her colleagues still
have to scrimp and scrounge.
Labs are filled with gear from
Europe, Japan, and Brazil. The
occasional device from the US
has traveled the "long way
around" - through so many
middlemen (and markups) that it
may well have circled the globe.
Scientists develop their own
reagents, enzymes, tissue
cultures, and virus lines. Each
institute has its own production
facility and conducts clinical
trials through the state-run
hospital system.
Still, if pharma is to become an
economic engine, Cuban
researchers acknowledge that
they'll have to join the
international business
community. South-to-south
transfers simply don't raise
enough cash.
That's where things get
complicated.
Forty years after it began,
Washington's embargo remains a
punishing weapon. Not only are
US companies banned from doing
business with Cuba, but so are
their foreign subsidiaries. No
freighter that visits a Cuban
port may dock in the US for the
next six months. For a Cuban
product to reach US companies,
the makers have to prove a
"compelling national interest"
to the US Office of Foreign
Assets Control. Consolidation in
the drug industry has made
things worse, says Ismael Clark,
president of the Cuban Academy
of Sciences. "You'd have a
supplier for several years, and
suddenly you'd get a letter from
the company saying, "We can't
supply you anymore because our
firm was bought by an American
transnational.""
The country has taken a few
steps toward bridging the gap.
The American drug company
SmithKline Beecham (now part of
a British transnational) got
permission to license Campa's
meningitis B vaccine in 1999.
The terms of the deal are
restrictive. SmithKline pays
Cuba in products during clinical
trials (now in Phase II in
Belgium) and in cash only if the
drug proves to be viable.
In July, CancerVax, a
California-based biotech
company, got federal approval to
test a Cuban vaccine that
stimulates the immune system
against lung cancer cells.
CancerVax is the first US
business to receive such
approval. CancerVax staffers saw
the research at an international
conference, and then spent two
years lobbying Capitol Hill and
Cuban-American interest groups.
Still, naïveté remains the real
obstacle to a Cuban biotech
century. Fidel's pharmacists
lack slick brochures and
golden-tongued sales staff.
Foreigners tend to find Cuba
overly bureaucratic, especially
when closing a deal.
"They just don't get
capitalism," a diplomat tells me
over coffee in Boston. "The
elite may watch American TV and
read The Wall Street Journal on
the Web, so they have a
conversational familiarity. But
on a fundamental level they
don't get it and don't want to
get it. They still think there's
something immoral about profit."
Borroto, of CIGB, remembers
talking to colleagues about
using patents to protect their
expanding market. That was the
moment Castro decided to pop
into the lab. "What's all this
about patents? You're sounding
crazy!" he said. "We don't like
patents, remember?"
Borroto stood his ground. "Even
if you're giving medicine to the
third world," he said, "you
still need to protect yourself."
Borroto knew he had to get
better at the game. He sent his
staff to Canada to get MBAs, to
learn the language of
capitalism. Yet concepts like
venture capital still escape
him. "I can't understand how 80
percent of the biotech companies
in the world make money without
selling any products," he says.
"How do they do this? Hopeness,"
he guesses, using a neologism to
stress the absurdity. "They sell
hopeness."
Asked for an annual report - a
basic necessity of international
business- Agustin Lage, director
of the Center for Molecular
Immunology, merely says, "You
know, we've actually been
meaning to produce one." Then he
smiles and shrugs.
It's like Castro said: They
don't really like patents. They
like medicine. Cuba's drug
pipeline is most interesting for
what it lacks: grand-slam
moneymakers, cures for baldness
or impotence or wrinkles.
It's all cancer therapies, AIDS
medications, and vaccines
against tropical diseases.
That's probably why US and
European scientists have a soft
spot for their Cuban
counterparts. Everywhere north
of the Florida Keys,
once-magical biotech has become
just another expression of
venture-driven capitalism. Leave
it to the Cubans to make it
revolutionary again'.
(*)Douglas Starr (dstarr@bu.edu)
is codirector of the Center for
Science and Medical Journalism
at Boston University. |
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