Biotechnology

Biotechnology Commercialization Funds under the Ninth Malaysia Plan Managed by

GUIDELINES FOR APPLICANTS

INTRODUCTION Under the Ninth Malaysia Plan , Malaysian Biotechnology Corporation Sdn Bhd ( BiotechCorp ) has been allocated RM100 million of Commercialization Funds comprising Seed Fund, R&D Matching Fund and International Business Development Matching Fund. The objectives of the commercialisation are as follows:a.

To provide funding to priority biotechnology areas and to bridge gaps between existing public and private sector funding;

b.

To complement existing public and private sector funds and provide a comprehensive to mechanism to channel Funds, encompassing the entire R&D value chain, from pre-seed, seed to development & commercialisation funding;

c.

To attract and provide incentives to researchers and companies to develop the biotechnology industry; and

d.

To provide funding and capital for bio-entrepreneurs to commercialise viable biotechnology products and services.

APPLICATION AND APPROVAL PROCESS

1.

In order to determine which type of grant to apply, please contact BiotechCorp’s Client Support Services Division for the requirement and eligibility criteria. Application forms can be downloaded from the BiotechCorp website: www.biotechcorp.com.my.

2.

A complete application form and business plan together with supporting documents, can be submitted to the Evaluation & Funding Unit of Unit Client Support Services Division.

3.

The Evaluation and Funding Unit will review the application to ensure complete documentation. A letter of acceptance will be issued upon fulfilment of this requirement.

4.

All application will be assessed based on commercial and technical viability. A technical and commercial due diligence assessment may be performed on each application.

5.

BiotechCorp ‘s Commercialization and Technology Acquisition Grant ( CTAG) Technical Committee will evaluate the merits of each application and issue a final recommendation to the CTAG Approval Committee. A final decision on the grant application will be made by the CTAG Approval Committee.

6.

Successful applicants are required to enter into an agreement with BiotechCorp covering the scope, amount and tenure of funding, milestones, deliverables and other conditions precedent. All rejected applicants can appeal within 30 days.

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DOCUMENTATION For funding application purpose, applicants are required to submit the following:•

Completed Application Form

•

Detailed project proposal or business plan

•

Resume of key management/relevant individuals involved in the project or proposal including business partners

•

Certified true copies of the relevant Forms lodged with the Company Commission of Malaysia- Form 9, Form 24, Form 49, Form 44

•

Certificate of Charter/Statute or Memorandum & Article of Association or a similar instrument defining its constitution

•

The audited accounts of corporate investor in the company (if any)

•

Audited financial statement or latest management account statement of the company

* All applications shall be addressed to: Malaysian Biotechnology Corporation Sdn Bhd Level 23, Menara Naluri 161 Jalan Ampang 50450 Kuala Lumpur (Attn: Vice President, Client Support Services Division)

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c. Eligibility Criteria To apply for the fund, applicants must meet the following criteria:i ii iii

BioNexus Status companies; Within BiotechCorp’s Focus Areas; Majority owned Malaysian companies;

iv

The applicant must have ownership / or intellectual property of the product; The developed product has export potential. The company’s products have been internationally benchmarked; and The potential market value / distribution network for the proposed product has been evaluated.

v vi vii

d.

When to Apply? Applications should only be submitted once applicants have concrete implementation plans for international business development.

e.

Quantum and Mode of Funding The maximum funding per project is RM1.25 million. The grant is a matching grant, hence, BiotechCorp would match “dollar-for-dollar” spent on the project up to the approved grant and based on the agreed milestones. The grant shall be disbursed upon actual claims. The maximum disbursement period is 4 years from the date of approval.

f.

Expenditure Covered by International Business Development Matching Fund The funding shall cover expenditure in relation to a particular business development within BiotechCorp Focus Areas and has been or will be incurred on: i ii iii

country pre-clinical and clinical trial expenditures; product registration costs; and IP protection in other jurisdictions.

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GRANT COMPONENTS 1. SEED FUND a. Objectives The objectives are:i

To fund seed or start-up costs in setting up biotechnology companies.

ii

To assist towards the development and commercialisation of biotechnology projects and R&D findings of priority and core areas, in particular projects and findings that are central to achieving the objectives of the National Biotechnology Policy.

b. Who Should Apply? i

Individuals and researchers who are in the early stage of setting up companies (approval is subject to the company being granted BioNexus status); and

ii

Start-up companies.

c. Eligibility Criteria To apply for the Fund, applicants must meet the following criteria:i

BioNexus Status companies;

ii

Within Biotech Corp’s Focus Areas;

iii iv

Malaysian majority owned companies; The applicant must have ownership of, or beneficial use of, any intellectual property necessary to commercialise the innovation; The innovation has commercial potential; and The majority of the applicant’s business activities, employees or assets must be within Malaysia or transferred to Malaysia within a reasonable period.

v vi

d. When to Apply? Applications should only be submitted once applicants have a viable and proven concept that is within BiotechCorp’s Focus Areas for development and commercialisation. e. Quantum and Mode of Funding The maximum seed fund to be granted per company is RM2.5 million. The grant shall be disbursed based on approved budget and made out

at the beginning of each agreed milestones. The grant shall be utilised within 2 years from the date of approval. 3

f. Expenditure Covered by Seed Fund The funding shall cover expenditure in relation to the setting up of a biotechnology company which includes: i Recruitment of professional management; ii Initial market development efforts; iii IP filing and registration; iv Market and feasibility studies; v Preparation of further documentations for investment vi Malaysian compliance and regulatory costs; and vii Prototyping costs; 2. RESEARCH & DEVELOPMENT MATCHING FUND a.

Objective The objective is to provide a matching fund for R&D projects which can develop new or improved products and/or processes and/or technologies and lead to further development and commercialisation within BiotechCorp’s Focus Areas.

b.

Who Should Apply? BioNexus Status companies that are involved in BiotechCorp’s Focus Areas.

c.

Eligibility Criteria To apply for the fund, applicants must meet the following criteria:i BioNexus Status companies; ii Within Biotech Corp’s Focus Areas; iii Malaysian majority owned companies; iv The applicant must have ownership of, or beneficial use of, any intellectual property necessary to commercialise the innovation; v The innovation has commercial potential; vi The majority of the applicant’s business activities, employees or assets must be within Malaysia or transferred to Malaysia within a reasonable period; and vii The company should have an appropriate research team led by a qualified technical personnel.

d.

When to Apply?

Applications should only be submitted once applicants have a proven concept of R&D that is within BiotechCorp’s Focus Areas for development and commercialisation. 4

e.

Quantum and Mode of Funding The maximum funding per project is RM1.0 million. The grant is a matching grant, hence, BiotechCorp would match “dollar-for-dollar” spent on the project up to the approved grant and based on the agreed milestones. The grant shall be disbursed based on a reimbursement basis i.e. BiotechCorp shall reimburse its share of the approved cost upon payments made by the applicant. However, for large expense items such as equipment, advance matching payment may be considered i.e. Biotech Corp shall pay its share of the approved cost upon proof of commitment e.g. contract or purchase order. The grant shall be utilised within 2 years from the date of approval.

f.

Expenditure Covered by R&D Matching Fund The funding shall cover expenditure incurred on a particular research project. This includes:i

ii iii iv

v vi

3.

The provision of sites or premises (including the acquisition of land), the construction and adaptation of buildings, and the provision of services and other works; The provision of plant, machinery, equipment and materials; The payment of fees or other remuneration to technical advisers consulted in connection with the project; Salary and wages of contract researchers directly involved in the project; The travel and subsistence expenses of persons engaged in the project or in identifying product or process development prospects within the industrial undertaking; and Overhead charges associated with the project.

INTERNATIONAL BUSINESS DEVELOPMENT MATCHING FUND

ectives The objective of this grant is to promote the expansion of BioNexus companies into the global market. b. Who Should Apply? BioNexus Status companies that are involved in BiotechCorp’s Focus Areas.

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