Naz Lee Kamal

8/15/2019 Naz Lee Kamal

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FROM SCIENCE TO BUSINESS :

WHAT IT TAKES TO BUILDA BUSINESS

BIOMALAYSIA 201122 November 2011


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“INNOVATION is the central issue in

economic prosperity.”

Michael Porter

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3

Yesterday and Today

1975

The idea of a portable

computer..

2011


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4

Yesterday and Today

1975 2011

A new drug could be

developed andapproved (on average)

for about $150 million

and could take about

7 years.

Today, the cost is $US 1.5 to

2 billion and it takes morethan a decade.


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5As the oil source runs out, the price will increase..

The world now consumes 85 million barrels of oil/day, or 40,000

gallons/second, and demand is growing exponentially.


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6

Marketing Mass marketing DIFFERENTIATION

Size:

The BIG eats the small

Speed :

The FAST eats the slowCompetition

Drivers of growth Labour, land, capitalTalent, knowledge,

capabilities

Economy Supplier-driven Customer-driven

Education

requirementsDegree

Continuous learning: It's not

what you know, it's how fast

you can learn

Employees seen

as..Expense Investment

Conventional

business

Knowledge-based

business


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• Recognizes the importance of knowledge to their

business bottom line Intellectual Property Rights

• Develops new measures of corporate performance

based on knowledge

Creative ways to measure and manage

innovation

• Provides a technology infrastructure to enhance

knowledge creation and sharing Have a Knowledge Management System in place

Encourages the sharing of knowledge through

effective Internet settings and business

practices.


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8

Access to funding

Regulatory &

Business

Environment

Sustainableinnovation

ecosystem

Industry presence

Biotechnology Industry Cycle

Key Success Factors

Biotechnology

Industry Cycle


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9

Cash Flow Management

• Creative cash flow management to reduce burn rate and capital

requirements.

• Reach meaningful milestones to increase capacity to raise more

cash.


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10

Take Off Before the Runway Ends


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11

Limited Access to Financing Will Starve Growth

Development and Financing of Bio-based Start-ups

Source : Burrill & Co.


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• In addition to less available innovation capital, biotechcompanies face increased competition from other

sectors for a smaller pool of venture capital.

Cutting the Same Cake in A Different Way

Will Not Solve the Funding Issue

• Creative approaches to sustain

innovation in this increasinglychallenging environment.

• Moving to the next level -

accessing capitalinternationally.

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CEOInnovator

Leave the Experts to What They Do Best

Takes care of strategy, funding,

direct involvement with the Board,

market strategy, and everything

else besides innovation.

Innovate,

innovate and

innovate.

However, the CEO is responsible for the stewardship of the

innovation process.


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• Critical mass infrastructure –human capital is critical toinnovation.

• Innovation-driven jobs create

higher value.• Strengthen workforce: attract

talent back to Malaysia.

• We need a sustainable supply in

the talent ecosystem to drivethe industry.

Talent =↑ Competitiveness.

Knowledge &

Skill Building

Creativity

Entre-

preneurship

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• 6-month intensive training programto provide additional skill sets to

meet industry requirements.

• Expand program outreach to cover

local and global context.

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• Job placement,industrial training and

internship in companies

for graduates.


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• Participates in collaborative research

– Amgen has more than 100 activecollaborations worldwide to complement

in-house capabilities.

– More than 800 firms now work with MIT

on multidisciplinary research programs.

• Entrepreneurial focus is the key

to success of industry/academic

collaboration.

• Strengthen network and increase

level of collaboration.

INDUSTRY GOVERNMENT

UNIVERSITY

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• Industry will at best benefit from lesscostly high quality research.

• Universities will benefit from the

funding from the Industry.

• The joint effort makes it possible to

conduct research leading eventually to

new products and services.

• The NBP aim is to spin off 25 companies

from Universities by 2015.


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Networks of the weak do not survive.

Identify assets that have value to partners and strengthen them.

Build your strengths

More people at more levels must get involved. The more people feelincluded, the easier it will be to implement partnership activities.

Spread involvement. Create more ties for more people

Organisations that derive greater value from alliances tend to have greater

communication, share information, promote an atmosphere of

learning.

Help everyone win


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•The competition landscape is

• Greater competition would lift the productive

efficiency of innovators/entrepreneurs and inducethem to innovate and develop better products.

• Be aware of changing market dynamics.

FLAT, INTERCONNECTED

BORDERLESS.and

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Moving on from Capacity Building to Commercialisation Phase

Bigger challenges are ahead

of us

Indicators Phase 1

2005-2010

Phase 2

2011-2015

Phase 3

2016-2020

Total

Phase 1 to 3

New Investment RM 6 billion RM 9 billion RM 15 billion RM 30 billion

Employment 40,000 80,000 160,000 280,000

Annual Revenue RM 20 billion RM 50 billion RM 100 billion RM 100 billion

Contribution to GDP 2.5% 4.0% 5.0% 5.0%

New Spin-off

Companies- 25 25 50

Global Companies - - 20 20

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One Stop Centre

Facilitation

Domestic Direct

Investment

Foreign DirectInvestment

Advocacy 22


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Aligned

Funding /

incentives /tax structure

Human Capital& Science

Legislation

&

RegulatoryFramework

Funding &Incentives

International

Accreditation

PhysicalInfrastructure

Public Sector

DeliverySystem

Development of scientists,

engineers, specialists, etc

Shared

infrastructure

& services

Laboratories,

Pilot Plants

etc.

GLP, GCP, GMP, etc.

Policies on

biosafety, IPR,

ABS

Aligned to

best practices

Benchmarkingof service levels

BioNexus Status • BioNexus Partners

(BNP) Initiatives


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• BioNexus Programme - a key element ofthe National Biotechnology Policy

(NBP).

• Competitive fiscal incentives for both

foreign and domestic investors.• Supported by BiotechCorp’s other

initiatives in building a conducive,

enabling environment.

• 204 BioNexus companies today - acredible representation of Malaysia’s

emerging biotechnology sector.

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207


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Healthcare Agriculture Industrial

207

25

Bi N C i Li t d St k E h

http://www.holistabio.com/


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Market

capitalisation:

RM 670.7 million

Market

capitalisation:

RM 65.9 million

Market

capitalisation:

RM 31.9 million

Marketcapitalisation:

RM 34.4 million

Market

capitalisation:

RM 44.6 million

Note: Market capitalisation value as at 28 October 2011

Total Market capitalisation

RM 847.5 million

BioNexus Companies Listed on Stock Exchange

http://www.purecircle.com/http://www.holistabio.com/http://www.londonstockexchange.com/home/homepage.htm


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• Malaysia is among the first few

advanced-thinking countries driving abio-based economy.

• It is not only in line with global trends,

it will also have long-term benefits toMalaysia’s economy, welfare,

productivity, health, environmental

and societal well-being.

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• Understand the role of knowledge in

international competitiveness.

• Collaboration is integral to manage

business risks and success rate.

• The true winners will be those that

recognize today’s challenges and take

a long-term and global view, and are

creative in the design of their

strategies.

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THANK YOU

Dato’ Dr Mohd Nazlee Kamal

Chief Executive Off icer

[email protected]

www.biotechcorp.com.my

Tel : +603 2116 5588

Fax : +603 2116 5577
mailto:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]

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Naz Lee Kamal