BIOTECHNOLOGY specialist Vivantis Technologies Sdn Bhd plans to manufacture Malaysia’s first restriction enzyme and relieve its dependency on imported enzymes, says chief executive officer E.L. Law.
Restriction enzymes, harnessed from bacteria, are used in molecular biology to chop DNA chromosomes into shorter fragments for sequencing purposes.
Currently, there are over 100 patents on restriction enzyme, but none are produced in Malaysia or within the South-East Asian region.
“We are looking to produce an enzyme with similar purposes (with those already in the market), but with more new functions.
“We want to place ourselves as a `pick and shovel’ company to support and supply raw materials to other research and teaching laboratories and hospitals,” said Law.
The company plans to first replace the imported enzymes used in Malaysia in its initial year, although “Malaysia alone will be too small a market”. It also plans to venture into Singapore before expanding to other export markets.
Vivantis received RM1.58 million “seed” funding yesterday from Mayban Ventures Capital Co Sdn Bhd under the Skali Netrepreneur Acceleration Programme.
The funding will be used mainly for the purchase of laboratory equipment and research and development activities over a period of three years. At the end of the period, Mayban Ventures will own 30 per cent of Vivantis.
The company has to hit a sales target of between RM2 million and RM3 million by its third year, something that Law is confident of achieving.
He said that Malaysia’s market for this type of enzyme is only about RM5 million, but the profit margin surpasses 50 per cent.
Law also said the company plans to get another injection of capital from Mayban Ventures after the third year, of at least RM5 million, to expand its business.
As of end-April, 60 per cent, or RM91 million, of the RM150 million fund under Mayban Ventures has been pledged for disbursement.
The venture capital company was established two years ago as part of the Government’s initiative to help finance and encourage the growth of companies in information and communications technology as well as in advanced manufacturing and life sciences.
Bank Negara Malaysia and Malayan Banking Bhd contributed RM100 million and RM50 million respectively to the venture.
