Malaysian Biotechnology Corporation: Interview with the CEO, Iskandar Mizal Mahmood

PROFILE OF THE CEO

Iskandar Mizal Mahmood, is the founding CEO and Member of the Board of Malaysian Biotechnology Corporation (BiotechCorp), the Malaysian government's lead agency for biotechnology development. Iskandar is also Chairman of the Board of Malaysian Bio-XCell, a 60% subsidiary of Biotech- Corp, that is undertaking the development of a biotechnology ecosystem and park in Iskandar, Malaysia. Under his leadership, BiotechCorp has grown to be one of the leading biotechnology development organizations in the region. We have filed 97 IPs, 16 of which have been granted. According to the IP Rights Index 2010, Malaysia has moved up six positions to 31 from 37 in 2009 for the Protection of IP Rights. We've seen a significant increase in foreign investments. Whilst 98% of companies in the agricultural biotech sector are Malaysian owned, healthcare and industrial biotech companies have 21% and 16% foreign shareholding, respectively. Investments come from UK, US, France, Germany, Italy, Belgium, India, China, Japan, Taiwan, Hong Kong, Singapore, Thailand, Australia

1. What places Malaysia on the global biotech map? What do you have to compete?

Malaysia is only a small economy in an open competitive global market. Nonetheless, our geographical, historical and social make-up has provided a competitive advantage, even in the space of biotechnology.

Firstly, our biodiversity. Commercialization of discoveries in natural products will place Malaysia in the growing wellness market. In the past few years, we have seen the successful commercialization of a number of natural substances, some globalized.

Secondly, our racial mix provides a diverse genetic pool—a great hub for clinical trials. With effective costs in R&D and a well regulated framework, we have made inroads in this area. Recently, the BioNexus company, Stempeutics, with its stem cells research in neurological and orthopaedic areas has placed Malaysia as one of the leading countries, after the USA, to reach such a high level in stem cell research.

Thirdly, our strength as a manufacturing hub and our proximity to raw materials and feedstock bodes well for the bioprocess and biomanufacturing sectors. Products currently being developed by our network of BioNexus companies are also being produced for global markets. Cumulative revenue from 2007 to 2010 hit USD 224.8 million (RM696.9 m) (48%) from export sales and USD 242.8 million (RM752.8 m) (52%) from local sales.

Fourth, our position as a halal hub gives us the opportunity to lead in APIs, vaccines and generics within the halal space. With an estimated 1.8 billion Muslim consumers worldwide, the global market for halal food and non food products is valued at USD 2 trillion annually. Our companies are already producing halal products. BioNexus company, Holista Colltech is the only company producing halal collagen.

Finally, our R&D&C capabilities. We have made breakthroughs in R&D on oil palm and rubber genomics. Our BioNexus companies have won awards—Siogen Biotech recieved the "Most Innovative Start-up in Asia Pacific in 2009" (BioSingapore Asia Pacific Biotechnology Award) with their proprietary technology for drug delivery. Pure Circle, listed on the London market, is known as the world's leader in high purity stevia technologies and innovation.

2. The National Biotechnology Policy (NBP) implemented by BiotechCorp went into effect in 2005. How has that promoted growth in biotechnology?

Phase 1 was about capacity building. BiotechCorp has placed itself as a results-based corporation facilitating strategic collaborations, partnerships and developing standards for the promotion of the Malaysian biotechnology industry internationally and locally. Industry revenues grew at a CAGR of approximately 60% between 2006 to 2010. There's ongoing progress from building the biotechnology business, to funding and enhancing key talents within the country—all aimed at creating an attractive investment climate for global biotechnology players.

Amongst our notable progress, most significant is the BioNexus Program, which awards incentives and assistance to companies accredited with the BioNexus status. Since 2006, we have developed and groomed 188 BioNexus companies. 54% have started to commercialize and generate revenue. 2% of our companies are classified as matured, five companies are listed on the local and international exchanges. 51% are classified as small and medium enterprises. To support the R&D framework of BioNexus companies, we established the BioNexus Partners Programme (BNP) where over 40 labs in public universities and research institutions are funded to ensure industry access to R&D services, equipment and facilities. BNP has brought about an effective change which strengthens public-private partnerships.

We have filed 97 IPs, 16 of which have been granted. According to the IP Rights Index 2010, Malaysia has moved up six positions to 31 from 37 in 2009 for the Protection of IP Rights.

We've seen a significant increase in foreign investments. Whilst 98% of companies in the agricultural biotech sector are Malaysian owned, healthcare and industrial biotech companies have 21% and 16% foreign shareholding, respectively. Investments come from UK, US, France, Germany, Italy, Belgium, India, China, Japan, Taiwan, Hong Kong, Singapore, Thailand, Australia and New Zealand.

The fact that the first BioNexus company was only established in 2006 and that we have been able to populate the industry on an accelerated pace is very encouraging. BiotechCorp was recognized with the "Excellence in Growth Award" from Frost & Sullivan in 2010. Our BioNexus program was recognized as one of the best in a class global programs.

3. What are some of the biotechnology breakthroughs that Malaysia can be proud of?

Bio-XCell—we are developing the first dedicated biotechnology park and ecosystem in Malaysia. It's designed for healthcare and industrial biotechnology, with a focus on manufacturing and R&D. We've had a positive response - international investors identify with the infrastructure, logistics, accessibility and connectivity that supports Bio-XCell. Biocon, Metabolic Explorer and Glycos Biotechnologies are the early entrants to this knowledge-intensive bio processing and bio manufacturing hub—ideal as a launch pad to unlock the potential of the Asian market.

Some of our significant R&D includes the assembly and annotation of the oil palm genome. This was a collaboration between BioNexus company, ACGT and the J. Craig Venter Institute. An international team of researchers led by Universiti Sains Malaysia (USM) has decoded the first draft genome of the rubber tree, empowering Malaysia to remain as the leader in rubber research and at the forefront of the global rubber industry.

Another BioNexus company, GranuMaS, in collaboration with the International Islamic University Malaysia, has produced a bone graft substitute using calcium phosphate ceramics, which is an excellent alternative for the repair of bone defects. This product alleviates concerns over halal and ethical issues. Medical Biotherapy, also a BioNexus company, has developed larval therapy in wound healing.

We've also made headway in stem cells research and commercialization of some of our unique natural products.

4. With respect to the US market, do you see Malaysia playing a pivotal role?

Malaysia will play a very strong and complementary role to biotech initiatives from the US and other biotechnology leaders in the years to come as more technologies are produced and developed here, as human capital competencies and technical capabilities are enhanced under the government transformation program.

We anticipate greater foreign participation in industrial-based biotechnology in the near term.

5. What is your personal view on future of biotechnology in Malaysia?

I have been driving the sector for 7 years—I've been through the challenges of laying the infrastructure. I've been bitten by stiff competition, yet I have also seen real and significant growth. Malaysia is in Phase 2 of the National Biotechnology Policy (NBP); we are ready to scale up - it's all about commercialization, so the next 5 years will be the ultimate test of delivery, i.e., to build on this strong foundation, to create and commercialize Science to Business. We will see larger investments, bigger revenues, new technologies and more products for domestic and global consumption. Biotechnology should contribute 4% to national GDP—as what we have committed in the NBP.

Malaysia will make many, many small steps, which, together with global giants, will make great strides to feed, fuel and heal the world.