Datuk Seri Dr Tham Seng Kong
KUALA LUMPUR: Integrated biotech group ALPS Global Holding Bhd, which is en route to a Nasdaq listing in the fourth quarter of 2024, aims to raise US$100 million to fund its expansion, clinical studies, and manufacturing plant.
It has an enterprise value of approximately US$1.6 billion.
Group chief executive officer Datuk Seri Dr Tham Seng Kong said Nasdaq is an open market that is particularly friendly to biotechnology (biotech) companies.
Tham, who is also the company’s chief research scientist, said the group would like to explore opportunities to merge and collaborate with potential biotech companies there.
"Fears of a recession will certainly significantly impact us and the world. However, I am confident that the market will recover soon with minimal impact on our listing,” he told Bernama.
He said its planned biotech industrial hub project known as BioValley and vaccine development efforts will be their main focus post-listing.
"We have already planned for our vaccine’s first clinical trial. Additionally, our products like deoxyribonucleic acid (DNA) tests and test kits are nearing commercialisation, and we are well-prepared to execute these plans,” he said.
On July 17, Science, Technology and Innovation Minister Chang Lih Kang said ALPS’ Nasdaq listing demonstrates Malaysia’s ability to produce high-tech companies capable of competing globally, elevating the country’s profile internationally.
This is a very high achievement. This group is facilitated by the Malaysian Bioeconomy Development Corporation Sdn Bhd (Bioeconomy Corporation), a government agency under the purview of the Science, Technology and Innovation Ministry (MOSTI), Chang said, adding that MOSTI hopes there will be more bio-unicorns.
BioValley assets contributing RM1 billion to GDP
"Our goal is to create a biotech industrial hub in a single location. BioValley in Johor is the solution. It will facilitate the management and coordination of various aspects of the industry, similar to China’s biotech hubs,” Tham said.
Known as BioValley, its assets are projected to contribute RM1 billion to Malaysia’s gross domestic product (GDP).
"We believe this will be a key industry in the next decade, which is why we need an industrial hub for it,” he said.
Construction is expected to commence in 2025 and operational in 2026.
"This is a long-term investment. We target to achieve returns within three years after operations begin,” he said, adding diverse expertise in biotech will be needed.
Tham foresees the establishment of BioValley will significantly enhance the country’s biotech ecosystem over the next 10 to 20 years. The development is expected to reduce reliance on US and China, enabling Malaysia to meet its own needs for drugs, therapies and other products.
Aside from integrating BioValley into medical tourism, he said a strategic reason for its location in Johor is to attract Singapore talent and collaborate with them.
He said Singapore has been developing its biotech industry for some time and has a certain degree of maturity.
"We aim to attract its experienced talent pool who may be looking to return to Malaysia. Many of them have been working in Singapore for years and tapping into this talent pool is a key factor for us,” he said.
According to Tham, BioValley is expected to create up to 10,000 job opportunities, including 1,000 positions for scientists.
In March, ALPS signed a memorandum of understanding (MoU) with JLand Group Sdn Bhd, the real estate and infrastructure arm of Johor Corp, to establish BioValley.
Through the partnership, JLand will develop the biotech hub within the 2,950-hectare Ibrahim Technopolis (IBTEC) while ALPS will be the anchor tenant and operator.
BioValley is anticipated to generate an estimated gross development value of RM980 million. It will complement IBTEC’s existing data centre campus, logistics and manufacturing, and artificial intelligence hubs.
Meanwhile, Tham said ALPS plans to enter the Middle East market due to the region’s developing biotech sector and the rising demand for expertise in this field.
"We have already started engaging with counterparts in the Middle East. Our local representatives are actively involved in negotiations and working on various business plans,” he said.
ALPS and Bioeconomy Corporation's joint effort
The July 17-18 National Bioeconomy Showcase (NBiOSHOWCASE) 2024 summit and exhibition also saw ALPS and PT Biotis Pharmaceuticals Indonesia sign MoUs to collaborate on vaccine manufacturing.
The event was organised by MOSTI with Bioeconomy Corporation as the main organiser.
At the NBiOSHOWCASE 2024, ALPS, which is facilitated by Bioeconomy Corporation, was recognised as Malaysia’s first biotech company to achieve unicorn status.
"As a private sector entity, we aim to collaborate with Bioeconomy Corporation as this will allow us to connect with a broader network of scientists and companies, enabling us to build the industry together,” said Tham.
Bioeconomy Corporation has provided support and facilitated more than 520 biotech and bio-based companies, including BioNexus and Bio-based Accelerator companies and others involved in high-impact biotech projects in Malaysia.
Companies in the biotech industry have cumulatively achieved approved investments of RM14.3 billion in Malaysia, having contributed RM37.5 billion to the country's GDP, and successfully created nearly 17,000 jobs. - Bernama
