KUALA LUMPUR, Sept 15 – Integrated biotech group ALPS Global Holding Bhd, which is en route to a Nasdaq listing in the fourth quarter of 2024, aims to raise US$100 million to fund its expansion, clinical studies, and manufacturing plant.
It has an enterprise value of approximately US$1.6 billion.
Group chief executive officer Datuk Seri Dr Tham Seng Kong said Nasdaq is an open market that is particularly friendly to biotechnology (biotech) companies.
Tham, who is also the company’s chief research scientist, said the group would like to explore opportunities to merge and collaborate with potential biotech companies there.
“Fears of a recession will certainly significantly impact us and the world. However, I am confident that the market will recover soon with minimal impact on our listing,” he told Bernama news agency.
He said its planned biotech industrial hub project known as BioValley and vaccine development efforts will be their main focus post-listing.
“We have already planned for our vaccine’s first clinical trial. Additionally, our products like deoxyribonucleic acid (DNA) tests and test kits are nearing commercialisation, and we are well-prepared to execute these plans,” he said.
On July 17, Science, Technology and Innovation Minister Chang Lih Kang said ALPS’ Nasdaq listing demonstrates Malaysia’s ability to produce high-tech companies capable of competing globally, elevating the country’s profile internationally.
This is a very high achievement. This group is facilitated by the Malaysian Bioeconomy Development Corporation Sdn Bhd (Bioeconomy Corporation), a government agency under the purview of the Science, Technology and Innovation Ministry (MOSTI), Chang said, adding that MOSTI hopes there will be more bio-unicorns.
“Our goal is to create a biotech industrial hub in a single location. BioValley in Johor is the solution. It will facilitate the management and coordination of various aspects of the industry, similar to China’s biotech hubs,” Tham said.
Known as BioValley, its assets are projected to contribute RM1 billion to Malaysia’s gross domestic product (GDP).
“We believe this will be a key industry in the next decade, which is why we need an industrial hub for it,” he said.
Construction is expected to commence in 2025 and operational in 2026.
“This is a long-term investment. We target to achieve returns within three years after operations begin,” he said, adding diverse expertise in biotech will be needed.
Tham foresees the establishment of BioValley will significantly enhance the country’s biotech ecosystem over the next 10 to 20 years. The development is expected to reduce reliance on US and China, enabling Malaysia to meet its own needs for drugs, therapies and other products.
Aside from integrating BioValley into medical tourism, he said a strategic reason for its location in Johor is to attract Singapore talent and collaborate with them.
He said Singapore has been developing its biotech industry for some time and has a certain degree of maturity.
“We aim to attract its experienced talent pool who may be looking to return to Malaysia. Many of them have been working in Singapore for years and tapping into this talent pool is a key factor for us,” he said.
According to Tham, BioValley is expected to create up to 10,000 job opportunities, including 1,000 positions for scientists.
