The Edge Financial Daily, October 02, 2007

Biotech sees RM1b worth of investments

by Ellina Badri
FD@bizedge com

KUALA LUMPUR: The Malaysian biotechnology industry has seen close to RM1 billion worth of investments from the 39 companies accredited with BioNexus Status.

Malaysian Biotechnology Corporation (BiotechCorp) chief executive officer Datuk Iskandar Mizal Mahmood said since the launch of the National Biotechnology Policy in 2005, the industry had seen strong development from local and internal companies, with 11 more companies expected to be awarded BioNexus status by year-end to bring the total to 50.

BioNexus status is a designation given to qualified biotechnology companies, entitling them to privileges such as freedom of ownership, freedom to source funds globally and freedom to bring in knowledge workers.

Meanwhile, he said of the 39 BioNexus companies, there were three foreign companies which contributed to the bulk of investments in the industry. “Out of the 39 companies, about 15% of them are coming from these three companies,” he said.

Iskandar also said the industry would see an additional US$280 million (RM980 million) in investments from California-based Actis Biologics through its Malaysian between joint venture Actis Biologics Malaysia Sdn Bhd, and India’s Avestha Gengraine Technologies Pvt Ltd and Manipal Education and Medical Group International Ltd, which this year announced the undertaking of bio-pharmaceutical initiatives, the manufacture of bio-similar product and the setting up of a stem cell research and development facility and private hospital, respectively.

BiotechCorp had a two-pronged strategy to develop local companies and bring in foreign investment to become a catalyst of development for the industry, he said.

“We have thus far brought in a significant number of biotechnology companies and over a period of two years we have seen strong interest in the field,” he said.

He was speaking to reporters at the EU-Malaysia Biotechnology Business Partnership 2007 (EUM-BIO) media briefing here yesterday. The event, to be held in Kuala Lumpur in October, aims to promote trade and investment as well as technology and research collaboration in the biotechnology industry between EU countries and Malaysia and targets small-to medium-sized enterprises in particular.

A total of 220 organisations from Malaysia and the EU were expected to participate in the event, of which the targeted participation-rate of 200 had been achieved, Iskandar said.