COINFAR: Pioneering in Biotechnology and the Opportunity to Restore a Cooperative Model in Brazil

How to revive the cooperative model that can transform Brazil into a biotechnology powerhouse

When I received the invitation in 2005 to join the Pharmaceutical Industries Consortium (COINFAR ) as a research and development portfolio manager, I knew I was facing a rare opportunity: to join the first Brazilian biotechnology startup dedicated to radical innovation based on national biodiversity. What I didn't know was that I was entering an experience nearly two decades ahead of its time.

COINFAR was born from a bold vision of FAPESP . Through a specific public call for public-private partnerships in the development of new drugs, the foundation achieved an unprecedented feat: bringing together three of Brazil's leading pharmaceutical companies: Biolab , União Química , and Biosintética (later incorporated into the Aché group), in a consortium focused on the discovery of innovative molecules. More than a partnership, it was the triple helix in action: companies, scientific institutions, and the government connected in a real, operational orchestration.

FAPESP Institutional Engineering

COINFAR was born from a call from FAPESP , in collaboration with the São Paulo State Government , with the specific goal of bridging advanced biodiversity research with Brazilian companies willing to invest in pharmaceutical innovation. The chosen vehicle was the then-recently created Center for Applied Toxinology (CAT/CEPID) at the Butantan Institute, a robust scientific infrastructure designed specifically to facilitate long-term research focused on commercial applications.

The financial arrangement adopted, based on matched funding between public and private resources, provided for co-ownership of patents, proportional division of royalties, and a commitment by companies to finance later stages of development, including preclinical and clinical studies. It was, by the standards of the time, a cutting-edge model, anticipating concepts from the Innovation Law (sanctioned only the previous year, 2004).

However, the real revolution lay in contractual clarity and incentive logic. For the first time in Brazil, researchers affiliated with public institutions could be co-owners of patents and share in the profits from the commercial exploitation of their discoveries—a powerful incentive for protecting intellectual property, even before scientific publication.

The Elegance of a Visionary Model

COINFAR proposed a complete biotechnology value chain , starting with the Butantan Institute 's toxin collections and progressing to preclinical studies, with tasks and responsibilities evenly distributed among partners. By 2005, seven patent families had been licensed for molecules isolated from animal toxins, including substances extracted from snake venom, caterpillar hairs, and star tick saliva. The total portfolio would reach 13 patent families in the following years.

It was a firm commitment to radical innovation , not generics or incremental innovations. We proposed the development of new molecular entities with global ambition, something rare in the Brazilian pharmaceutical industry at the time.

Inspired by models such as the Japanese VLSI Project , the European Framework Programmes , and the American Advanced Technology Program , COINFAR was a strategic statement of confidence in the country's scientific and biological potential.

I had the privilege of witnessing extraordinary scientific production there. We patented molecules like Amblyomin, with antitumor properties; LOPAP, an anticoagulant extracted from Lonomia obliqua ; and ENPAK, an extremely potent analgesic derived from rattlesnake venom. Each represented a concrete promise of transforming biodiversity into global therapies.

The Cracks of an Immature Country

However, as we progressed, it became clear that the Brazilian ecosystem was not yet ready to support an initiative of this nature. Infrastructure was lacking: laboratories with Good Laboratory Practices (GLP), CROs, and the capacity for scaled synthesis of recombinant proteins. Regulation was lacking: ANVISA , still young, lacked defined frameworks for radical innovation. Legal certainty was lacking: co-ownership rules generated uncertainty, and state constitutional provisions created unexpected obstacles.

Above all, there was a lack of a culture of risk-taking innovation . The Brazilian pharmaceutical industry was still essentially a producer of generics. And academia, unfamiliar with the world of applications, remained largely sidelined by commercial interests.

COINFAR was shut down in 2008, before its molecules reached the clinic. And it wasn't for lack of resources, but rather for the absence of a mature ecosystem. There were many reasons:

• Non-existent expertise in complete pharmaceutical development;

• Insufficient infrastructure , with a shortage of national BPLs and CROs;

• Incipient regulation and restrictive biodiversity legislation;

• Weak legal governance , with disputes over ownership and constitutionality.

COINFAR failed not because it was too ambitious, but because it was born too early.

2025: When Brazil Is Finally Ready

Today, looking at Brazil in 2025, it's impossible not to notice the contrast. We have a booming biotechnology ecosystem, with over 500 healthcare startups, established technology parks, sophisticated regulations, structured NITs, and a generation of globally trained talent.

ANVISA has become an internationally respected agency, aligned with ICH and PIC/S standards, with fast-track mechanisms and specific regulations for advanced therapies. Frontier cases such as the CAR-T therapies developed by Butantan and the Ribeirão Preto Blood Center are already a reality.

Financing mechanisms have also matured: specialized venture capital funds, robust programs like EMBRAPII , BNDES lines, and calls for proposals from FNDCT and MCTI . Startups are born with a greater international focus, ready to scale and negotiate with global partners.

In short, the Brazil of 2025 meets the conditions that were missing in 2005.

COINFAR 2.0: Time to Recapture a Model That Was Too Successful to Be Forgotten

In light of this new scenario, it is legitimate to ask: wouldn't it be time to revive the cooperative model inspired by COINFAR, now with regulatory, scientific and institutional muscle?

I propose here a reflection on the outline of a “ COINFAR 2.0 ”, based on five principles:

• Institutionalized governance , with modern contracts and clear sharing mechanisms;

• Focus on frontier therapies — genetic, cellular, disruptive vaccines, and biodiversity molecules;

• Regulatory participation from the beginning , with ANVISA guiding development;

• Hybrid financial structuring , with integration of public resources and specialized private funds;

• Connected national network , connecting ICTs, startups and big pharma to reduce risks and accelerate results.

  
  

FAPESP could once again lead this movement, as it did brilliantly two decades ago. Other state foundations and the MCTI itself also now have the institutional maturity to orchestrate cooperative consortia with global ambitions. International partnerships, once nearly unfeasible, are now desirable and strategic.

The Legacy That Still Can Be

When COINFAR was discontinued, many considered it a failure. Today, I clearly see that it was a revolutionary experiment. The molecules developed continue to be the subject of research. The model inspired dozens of subsequent public-private partnerships. And an entire generation of scientists and managers learned there how to engage in ambitious, risk-taking innovation.

COINFAR didn't fail . It simply arrived early. Now, the institutional clock is finally synchronized.

A Call to Action

The future of Brazilian biotechnology will not be built by inertia; it will be the result of strategic decisions. Revisiting the COINFAR cooperative model is not nostalgia: it's vision. Brazil needs and can lead the global bioeconomy. But this requires coordination, boldness, and, above all, the conviction that science and the market do not need to be at odds.

Brazil is ready. The question remains: will we have the courage to try again and do better?

At IBIS, we believe that well-structured cooperative models are key to unlocking the potential of the Brazilian bioeconomy. We act as a bridge between science, business, and public policy and have the experience necessary to transform visionary ideas into concrete projects.

If your institution is looking to structure public-private partnerships in biotechnology, build pipelines based on national biodiversity, or explore cutting-edge therapies with global ambitions, talk to us.

by Marcio de Paula

Brazilian Health Innovation Institute - IBIS

Marcio de Paula is a board member focused on innovation and corporate strategy and the founder of IBIS. With over 25 years of experience in biotechnology and pharmaceutical development, he has participated in pioneering initiatives such as COINFAR and is currently dedicated to accelerating healthcare innovation in Brazil.