ASX listed and Singaporean-based
biopharmaceutical company SciGen Limited (ASX:SIE) has announced its involvement in a joint
venture to establish a manufacturing facility for biopharmaceuticals in the People’s Republic of
The facility will be GMP (good manufacturing practice) compliant and will produce a range of
biopharmaceuticals including SciGen’s recombinant human insulin SciLinTM and hepatitis B
vaccine Sci-B-VacTM. The benefit to SciGen will be a third facility capable of producing its lead
products and allowing the company to meet its current and future supply agreements in the
region. SciGen will also own 51% of the facility.
The joint venture involves the Hefei Life Science & Technology Investments and Development
(HLSTP), which recently signed a sales and distribution contract with SciGen for Sci-B-VacTM at a
guaranteed value of more than US$140 million over seven years commencing in 2008. The third
party is Polish biopharmaceutical company Bioton which is a significant investor in SciGen.
All three parties have agreed to create a joint-venture to be based in Hefei, in the Province of
Anhui, China for the production of biopharmaceuticals. The primary materials are to be supplied
by SciGen for the distribution, marketing and sales of these products in China. The Chinese
government in Hefei has endorsed the joint venture and is expected to assist in securing the
majority of establishment costs of the $US30 million development through government related
financial institutions. Establishment of the facility is expected to take between 18 to 24 months.
The local production will greatly enhance market penetration in this important and growing
market. The proportion of the Parties’ equity interest in the Joint Venture Company will be as
follows: SciGen – 51%, HLSTP – 25%, and Bioton – 24%. Each Party shall use its reasonable
best efforts to enter into definitive documents for the establishment of the JV Company prior to
April 30, 2006. The Heads of Agreement is governed by the laws of the People’s Republic of
SciGen Ltd is a biopharmaceutical company involved in commercializing later stage research. It
co-develops and markets biopharmaceutical products for human healthcare. SciGen focuses in
the areas of gastroenterology, endocrinology and immunology. Its product portfolio includes
vaccines and therapeutics.
SciGen acquires rights to manufacture, distribute and market biopharmaceutical products under
exclusive licensing arrangements. SciGen’s portfolio currently includes proprietary biotechnologyderived
products, and biogeneric products, which allow for faster entry into the market, as
biogeneric products have undergone much of the clinical development and trials required to bring
drugs to market. This minimizes the risks associated with early stage product development.
SciGen currently undertakes R&D activities in collaboration with strategic partners and
SciGen’s competitive advantage is in identifying research with commercial potential at an early
stage to which it adds its expertise in gaining regulatory approval and bringing products to
SciGen is a Singaporean biotechnology company, established in 1988 and listed on the
Australian Stock Exchange (ASX code SIE). SciGen is headquartered in Singapore, with offices
in Australia, USA, Korea, Vietnam, Hong Kong, and Philippines and partners in India, China,
Indonesia, Israel, Poland, Austria and the Netherlands.
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