KUALA LUMPUR: Malaysian Biotechnology Corp (BiotechCorp) is targeting to have 21 new BioNexus-status companies by year-end, bringing the total number of biotech companies awarded the status to 147. A BioNexus status is similar to Multimedia Super Corridor-status where companies, local and international, qualify for government incentives such as grants and tax breaks. BiotechCorp chief executive officer Datuk Iskandar Mizal Mahmood said the Malaysian biotechnology industry’s growth was encouraging, despite the tough times.

Datuk Iskandar Mizal Mahmood ... ‘Many of the companies in our stable are not very far from commercialisation stage.’

“We believe many of the companies in our stable are not very far from commercialisation stage,” he said at a media briefing on the BioMalaysia 2009 Conference and Exhibition yesterday.

BiotechCorp was established in 2005 by the Government with the objective to develop a strong biotechnology hub in Malaysia over time.

The country now has biotech companies involved in agriculture, healthcare and industrial biotechnology with total approved investments of RM1.4bil.

To date, BioNexus companies have generated total revenue of RM546.5mil, while total research and development (R&D) expenses stood at RM33.2mil, according to Iskandar.

“Also, three of the BioNexus companies have a total market capitalisation of RM2.2bil and they are listed on the London Stock Exchange, Australian Stock Exchange and Bursa Malaysia,” he noted.

As at Oct 13, the market capitalisation of biotechnology and biotech-related healthcare companies listed on Bursa stood at RM1.84bil.

On problems faced by the industry, Iskandar said the immediate task was to accelerate scientific discoveries and innovations from R&D stage to commercialisation stage, especially on a global scale.

“This can be hastened by the creation of biotechnology start-ups from commercialisation initiatives done by institutions of higher learning and research institutes,” he said.

On the growth sectors of biotechnology, Iskandar said industrial biotechnology was an exciting field that held great commercial possibilities.

“After healthcare and agriculture, we foresee industrial biotechnology gaining traction and expect it to be the next engine of growth,” he said.

Industrial biotech, often also referred to as white biotechnology, involves the use of bio-based chemicals like enzymes and micro-organisms to produce commercial, environmentally friendly and sustainable products in a range of industries.

BioMalaysia 2009, themed “Accelerating Commercialisation in Biotecnology”, will be held at Kuala Lumpur Convention Centre from Nov 17 to 19.

The event is jointly organised by the Science, Technology and Innovation Ministry, BiotechCorp and Protemp Exhibitions Sdn Bhd, and is expected to draw 8,000 participants from over 30 countries, and 1,500 local and international delegates.