Vita Genomics branch established

The long awaited arrival of Celera Genomics' Taiwan branch kicked off yesterday with the company, formerly billed as Celera Asia, being officially renamed Vita Genomics Inc (賽亞基因科技), a biotechnology research company invested in by only local companies.

Established in Taiwan with an eye for focusing on Asian specific genetic research, Vita Genomics plans to carry out gene sequencing in order to identify genes related to diseases common in Asia, such as liver and nasal cancer.

Ellson Chen (陳奕雄), a former scientist at Celera Genomics is president and CEO of the new company, while his brother, and founder of Ho Tung Chemical (和桐化學), Preston Chen (陳武雄), is the chairman.

The new company will be housed in the Taipei Biotechnology Park (台北生技園區) until construction is completed on its primary research center in the Tainan Science-based Industrial Park (台南科學園區). Once the Tainan location comes on line, the Taipei office will remain open as a branch office only. The company also opened a branch in Burlingame, California to handle bioinformatic research.

Although Vita's intended purpose and management team remain the same as previously reported, some of its strategies have changed.

Originally, Vita officials planned to raise NT$3.5 billion (US$100 million) to capitalize the venture, with major stakes going to Ho Tung Chemical, President Enterprises (統一集團) and US-based Celera Genomics. Instead, only NT$1.75 billion (US$50 million) has so far been raised and Celera appears to have been squeezed out of the picture.

According to an anonymous source close to the situation, Celera is now part of the Vita deal with a US$5 million investment -- stock shares traded in return for unlimited access to Celera's extensive genetic database. (Originally, Celera was to invest up to 20 percent of the US$100 million needed to establish the company.)

Apparently, the management at Vita did not want Celera to have a seat on the company's board of directors "to prevent a potential future conflict" in the event that the two firms eventually become fierce competitors, the insider said.

Investors who have put up Vita's current financing include Ho Tung Chemical, China Development Industrial Bank (中華開發工銀), Cathay Life Insurance Co Ltd (國泰人壽), National Securities Corp (建弘證券) and the Executive Yuan's Development Fund (開發基金).

The arrival of Vita Genomics sent the stock of one of its prime investors, Ho Tung Chemical, up above 100 percent over the course of the year, doubling since Jan. 2 when it opened at NT$13.2.

In its last few sessions, the stock has gone on a wild ride. Last Friday, the stock price rose 6.15 percent in heavy trading, as 19.6 million shares of Ho Tung stock changed hands, far more than a normal trading day for the stock. Yesterday, the stock dropped 3 percent to NT$26.5, and analysts said the Friday session indicated that investors thought yesterday's announcement might be positive for the stock.

To highlight the importance officials place on the addition of Vita Genomics to Taiwan's biotechnology industry, the meeting held yesterday to introduce the firm attracted heavy hitters from Taiwan's biotech sector, including Academia Sinica (中央研究院) President Lee Yuan-tse (李遠哲) and the heads of the Development Center for Biotechnology and the Biotechnology & Pharmaceutical Investment Programs Office (生物技術與製藥工業發展推動小組).