Malaysia plans US$100m vaccine facilities in Nilai

Business Times MALAYSIA, which aspires to become a global pharmaceutical and biotechnology player, plans to build its first US$65 million (RM240 million) influenza vaccine manufacturing plant.
The country will also see the birth of its first and the world's fourth systems biology centre dedicated to all sorts of vaccine research and development at a cost of US$35 million (RM129 million).
To be based in Nilai, Negri Sembilan, both facilities will be owned by newly set up biotechnology firm Medusa Biotechnology Corp Sdn Bhd.
Both plants are expected to start operations in three years once it has sealed agreements with investors. Medusa will also build a US$35 million measles rubella vaccination plant in Catania, Sicily, in Italy.
Medusa is 51 per cent owned by Malaysian individuals and is expected to be part of BioNexus, a hub for local and foreign biotechnology firms.
BioNexus is managed by the sector's watchdog Malaysian Biotechnology Corp Sdn Bhd. More details of BioNexus such as tax incentives, guidelines and other goodies will be announced by Prime Minister Datuk Seri Abdullah Ahmad Badawi today.
Medusa chairman Andrew Moore said the firm is currently seeking foreign and local investors to participate in the venture by funding a total of US$135 million (RM498 million) for the two vaccine plants and for working capital.
"Once the plants are up and running, the company forecasts a revenue of US$250 million (RM923 million) a year which will mainly be for the local and global markets. We are talking to three parties to own a stake in Medusa, of which two are Malaysian entities," Moore told Business Times.
Moore said the influenza vaccine plant in Malaysia will enable Medusa to be among the world's five influenza vaccine manufacturers, and will have a capacity to produce 30 million doses per season (winter and summer).
"Rather than just produce generic drugs, Medusa also wants to be an innovative vaccine company," said Moore, who is also Novartis Malaysia's former chief executive officer.
According to World Health Organisation estimates, the world's five influenza vaccine makers are only able to produce one third of the world's 1 billion vaccine shots requirement.
World health authorities have developed some 30 vaccines compared with thousands of diseases still affecting the global population.
Moore said Medusa is working closely with Jabatan Kemajuan Islam Malaysia to comply with the halal certification standard so that its vaccines can also be sold in Islamic countries.
He said Medusa, which is an acronym for Malaysia Drug and Science Europe, USA, Asia and Africa, decided to build its measles rubella vaccination plant in Italy due to a grant provided by the Italian Government.
"This could possibly mark the first foray by a Malaysian-owned biotechnology and drug firm into Europe, and Malaysians will own a minimum of 60 per cent stake," said Moore.
The Italian plant, which will be among seven such plants in the world, will produce 60 million doses a year. It is expected to be ready in three years.
Moore said most of the vaccines will be sold on a government-to-government basis via state contracts because it has no budget for sales and distribution.
Previously a shelf company, Medusa has a paid-up capital of RM100,000 and its establishment was inspired by Abdullah's call in April last year at the 10th Organisation of Islamic Conference for the need by Malaysia to embark on self-sufficiency in vaccine production.
Germany's University of Aachen Institute for Molecular Biology head, Professor Dr Rainer Fischer, said Medusa has many plans in the pipeline.
Malaysia is striving to trim expensive drug imports partly supplied by the world's top five drug and pharmaceutical firms like the US-based Pfizer, France's Sanofi-Aventis, the UK's Glaxo Smith Kline, the US-based Johnson & Johnson and the Switzerland-based Novartis.