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Bionet makes landmark investment in Shanghai firm

Bionet Corp (訊聯生物科技), a leading cord blood bank company, announced yesterday that it was investing in biotechnology research firm Vita Genomics Inc’s (賽亞基因科技) subsidiary in Shanghai, the first such cross-industry integration in the domestic biotechnology industry.

“Unless the biotechnology companies in Taiwan are integrated, it will be extremely difficult for us to compete with other global competitors,” Bionet chairman Chris Tsai (蔡政憲) told a media briefing yesterday.

CAPITALIZATION

With the new capital injected from Bionet, the Shanghai Genecore Biotechnologies Co (上海基康生物技術), which was acquired by the Taipei-based Vita Genomics in February 2003, will have a paid-up capital of US$7.5 million (NT$227 million).

Bionet accounts for one-seventh of the venture’s capitalization and Vita Genomics will take up the remainder.

“With the two companies now joining hands, Bionet expects our revenue from prenatal and postnatal gene examinations in China to grow to NT$1 billion in three years,” Tsai said.

Furthermore, the out-of-control medical expenses in China are expected to help boost the popularity of gene detection in that country, he said.

LISTING

The companies also plan to list Shanghai Genecore Biotechnologies on the upcoming “second board” in China.

China is preparing to launch the NASDAQ-like bourse in Shenzhen in a bid to attract high-tech start-ups to trade there.

However, Chinese authorities have not set the standards and application process yet.

“We are now waiting for the Chinese government to make the official announcement [about the second board], which should take place sometime this quarter,” Vita Genomics chief executive officer and president Ellson Chen (陳奕雄) said yesterday.

“If requirements are met, we expect to complete the listing within half a year,” Chen said.
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