PUTRAJAYA: Biocon Ltd, a biotechnology company from India, plans to invest RM500mil in the first phase of its new biomanufacturing and research and development (R&D) facility for insulin products in Bio-XCell, Iskandar, Johor, said chairman and managing director Kiran Mazumdar-Shaw.

"The investment is just the beginning, as much more than this will be put in the years to come," she said at a press conference after the document signing ceremony between Biocon and Malaysian Biotechnology Corp Sdn Bhd (Biotech Corp).

The event was witnessed by Prime Minister Datuk Seri Najib Tun Razak and his India counterpart Dr Manmohan Singh.

Bio-XCell, a 60:40 joint venture initiative between BiotechCorp and UEM Land Holdings Bhd, is being developed to cater to the needs of industrial and healthcare biotechnology initiatives, particularly in renewable and green technologies.

The investment by Biocon is the largest in Malaysian biotechnology thus far and the facility is targeted to be operational by 2014.

Kiran said Malaysia was a compelling global destination for biotechnology, backed by world-class infrastructure and attractive tax incentives.

"Investing in Malaysia provides us with an international location with strategic geographical proximity to India," she said.

She added that Biacon was pleased to be an early mover in this emerging opportunity as the company dovetailed its research and biomanufacturing operations with those in Malaysia to gain a global competitive advantage.

Kiran also said the project would also focus on R&D and production of high-end biosimilars and other bio-pharmaceutical products.

Biotech Corp chief executive officer Datuk Iskandar Mizal Mahmood said Biacon's strategic and impactful investment in Bio-XCell would move the industry to the next level.

"It will be a catalyst in our commercialisation efforts as we enter phase 2 of our National Biotechnology Policy - the Science to Business Phase," he said.

He added that Biocon would stimulate growth for this sector, providing commercial opportunities for Malaysian biotechnology's small and medium enterprise in its supply chain, growing specialised local services and products.

"This will also promote a more vigorous domestic direct investment especially in the value chain. We can also expect greater presence of global giants in biotechnology which are affiliated with Biacon, driving the sector to new heights," he said.

- The Star Online