Asia to gain from biotech investments

Asia to gain from biotech investments

Jill Wong, Reuters, Hong Kong

Asia is set to reap substantial benefits from rising
investment in biotechnology despite sinking regional equity
markets, industry leaders said on Monday.

"Our primary interest (in Asia) are in China and South Korea,"
Donald W. Grimm, chairman of the life sciences advisory board at
Hamilton Apex Technology Ventures LP, told Reuters.

Biotechnology investments are insulated from soaring risks in
equity markets as it mainly relies on private equity for
financing, Grimm said in an interview.

Grimm said nagging anthrax scares has not had any impact on
Hamilton's business strategy as there were already many other
companies in the market with drugs and treatments for the
disease.

"Vaccines and treatments are available. From a science
standpoint, there's not much that can be done in the short term
by biotech companies," he said. "Fighting bioterrorism takes
time...it is one of our many long-term goals for development."

Hong Kong-based electronic parts makers TechCap Holdings
Limited on Monday announced plans to invest up to US$10 million
in the U.S.-based venture capital firm Hamilton Apex Technology
Ventures LP, with the first tranche at $2.7 million.

This brings Hamilton Apex's fund size to $165 million, with
most of the money to be invested in early stage start-up
biotechnology companies in the United States.

While Hamilton has invested in eight companies since its
establishment in 2000, it has not made any divestments due to the
company's strategy to lock in for a minimum of between three to
five years.

The China market offers vast growth potential for
biotechnology investments -- the country's consumption of
healthcare products is currently at $7.0 per capita, as opposed
to $220 per capita in the United States.

"China is a large market and there is a growing need for new
kind of healthcare technology," Grimm said.

The biotechnology industry in China posted revenues of $2.41
billion by end-2000, while investments in biotechnology amounted
to $1.2 billion, but these are set to grow.

Biotechnology revenues in the U.S. are estimated at some $47
billion, according to management consultants Ernst & Young.

"We're very bullish about the money that's flowing into
biotechnology," Grimm added.

The investment will see employment in biotechnology -- at some
430,000 in the U.S. -- double in the next 10-15 years.

Besides TechCap, Hamilton Apex has also forged another
strategic partnership with South Korea's Apex Technologies
Investment Co Ltd.

Besides China and South Korea, Taiwan, Singapore and India are
also set to see more capital flows into biotechnology.