Dr Ganesh Kishore, CEO Malaysian Life Sciences Capital Fund

Malaysian Life SciencesCapital FundTechnology and Innovation – Thekey to Firm Competitiveness?Dr. Ganesh M KishoreKuala LumpurSeptember 26, 2011

Key Messages• New technologies are essential to address majorunmet societal needs for diverse goods andservices and will shape new businesses• Innovation is more than R&D – innovation isessential to transform new technology to newbusinesses• Interdependencies – within and outside institutionsis an integral part of high quality innovation• Focus, Leadership & Enabling Environment areessential to nourish innovation and its deployment2

The MLSCF‣ Privately managed, US $162 Million Fund‣ Investors - Malaysian Institutions‣ Implementing Malaysia’s objective of building aninnovation led economy; establish Malaysia as aplayer in the biotech industry‣ In operation since November 2006‣ Best practices of Venture Investment in US‣ Investments across life science businesses‣ Global investments with Malaysia relevance

The Innovation Value ChainProducts &ServicesTechnologyInnovationEntrepreneurialTranslationBasicScienceAnd Firm Competitiveness RequiresContinuous Innovation to maintain aCompetitive Edge!4

Innovation led change is a part ofemerging and established businesses• The case of DuPont5

Examples of Innovation LedCompaniesA mix of large, mid and small cap across sectorsSource: NVCA

Innovation Led Economic SectorsSource: NVCA

DNA synthesis and SequencingAnd gene transfer and expression are at the heart of modern biotechnology8

Genomic Tools – ApplicationsC. Fraser et al., Science 324, 1557 -1561 (2009)H1 N1 Pandemic

Metagenomics – an emergingdisciplineWith significant applications inside and outside of human gut!

Building Body PartsThe need for matching organs continues toescalate:– Kidneys– Liver– Heart– Lung– Skin, Cartilage– Neuronal tissues– Others??“Organs on Demand” – Stem Cell Technology

Sci Am, Oct 2009Doing more with less is an imperative, not a choice!Gains in Labor, Land, Natural Resource Productivity declining!2003 projectionAnother 10% contribution fromIncreased acreageSource: Rabo bank

Green revolution has peaked; Corn exampleillustrates potential of Green Bio

Exceptionally wide selection of high-qualityvegetable products.Confidential

Microbial enhanced oil recovery –an emerging theme!

Technology migration from fossilchemistry to biological chemistry

A Global Transformation ……From/ToTo/From…BiochemistrySystems BiologyGenotypePhenotypeGenomicsComparative GenomicsPlant and PrayPredictable AgricultureTreating sicknessMaintaining WellnessOne drug/One diseaseGenomic medicine

… Is In Progress…From/ToTo/From…Fossil fuelsRenewable fuelsSynthetic ChemistrySynthetic BiologyFully integrated business model(FICO)Virtually Integrated business model(VICO)Local companiesGlobal companiesLocal FinancingGlobal FinancingChanging theenvironmentNurturing the Environment

Innovation Led Companies addressUnmet Societal Needs• Better products• Lower cost• Convenient to use• Easy access. . . . .Biotechnology Sectors:• Human Health Care• Agriculture• Natural ResourceManagement• IndustrialBiotechnologyGovernmental policies and regulations are centralfor the development of new businesses21