Borneo Post, October 02, 2007

Three foreign firms to invest USS280 min. US Indian biotech companies already active in Malaysia

BERNAMA

KUALA LUMPUR: Three foreign biotechnology companies are expected to invest a total of US$280 million (US$1.00=RM3.40) in their business-related activities in Malaysia by year-end, Malaysian Biotechnology Corporation (BiotechCorp) chief executive officer Datuk Iskandar Mizal Mahmood said yesterday.

The companies concerned are Actis Biologics Inc, Avestha Gengraine Technologies Pvt Ltd (Avesthagen) and Manipal Education and Medical Group (MEMG), with Actis investing the largest amount ofUS$250 million.

Actis is a US-based biotech venture technology company which has set up a joint venture with investors in Malaysia under Actis Biologics Malaysia Sdn Bhd and it recently entered into a RM1.36 billion deal to invest and build a bio-city in Melaka.

The other two firms are based in India.

Avestagen under Avesta Biotherapeutic and Research Pvt Ltd (ABRPL), its joint venture with Meditab Specialities Ltd of the Cipla group, signed a memorandum of understanding (MoU) with BiotechCorp in June this year. “

“Actis owns a lot of patents which they are trying to commercialise in Malaysia,” Iskandar said on the investments after the EU-Malaysia Biotechnology Business Partnership 2007 press conference.

“From Manipal side, it will not just be from the education perspective as they are also building a hospital in Kepala Batas, Penang, and setting up a stem cell research facility in Technology Park Malaysia,” he said.

Iskandar said all the three companies have been active in Malaysia though they are not yet accorded the BioNexus status, which is similar to the MSC Malaysia status for the information and communications technology (ICT) companies.

He said the latest development was part of BiotechCorp’s two-pronged strategy to develop local companies and at the same time to attract investments from abroad to become the industry’s development catalyst.

To date, there are 39 BioNexus certified companies with a total investment close toRM1 billion, and they have yet to include the revenues to be generated.

“By and large all these BioNexus companies are local home- grown companies, but we do have three foreign BioNexus companies,” Iskandar said, adding that the foreign BioNexus companies contributed 15 per cent of the RM1 billion total investment.

He said although BiotechCorp was not fixated on numbers when it comes to BioNexus certified companies, he was confident that the number of such companies will increase to 50 by year end.

BiotechCorp, which acts as a one stop centre for the industry, is an agency under the purview of Science, Technology and Innovations Ministry and is wholly owned by Ministry of Finance Incorporated. – Bernama