Biotechnology

Commercialization Funds under

the Ninth Malaysia Plan

Managed by

GUIDELINES FOR APPLICANTS

INTRODUCTION

Under the Ninth Malaysia Plan , Malaysian Biotechnology Corporation Sdn

Bhd ( BiotechCorp ) has been allocated RM100 million of Commercialization
Funds comprising Seed Fund, R&D Matching Fund and International
Business Development Matching Fund. The objectives of the
commercialisation are as follows:-

a. To provide funding to priority biotechnology areas and to bridge gaps

between existing public and private sector funding;

b. To complement existing public and private sector funds and provide a

comprehensive to mechanism to channel Funds, encompassing the
entire R&D value chain, from pre-seed, seed to development &
commercialisation funding;

c. To attract and provide incentives to researchers and companies to

develop the biotechnology industry; and

d. To provide funding and capital for bio-entrepreneurs to commercialise

viable biotechnology products and services.

APPLICATION AND APPROVAL PROCESS

1. In order to determine which type of grant to apply, please contact

BiotechCorp’s Client Support Services Division for the requirement and
eligibility criteria. Application forms can be downloaded from the
BiotechCorp website: www.biotechcorp.com.my.

2. A complete application form and business plan together with supporting

documents, can be submitted to the Evaluation & Funding Unit of Unit
Client Support Services Division.

3. The Evaluation and Funding Unit will review the application to ensure
complete documentation. A letter of acceptance will be issued upon
fulfilment of this requirement.

4. All application will be assessed based on commercial and technical

viability. A technical and commercial due diligence assessment may be
performed on each application.

5. BiotechCorp ‘s Commercialization and Technology Acquisition Grant

( CTAG) Technical Committee will evaluate the merits of each application
and issue a final recommendation to the CTAG Approval Committee. A
final decision on the grant application will be made by the CTAG
Approval Committee.

6. Successful applicants are required to enter into an agreement with

BiotechCorp covering the scope, amount and tenure of funding,
milestones, deliverables and other conditions precedent. All rejected
applicants can appeal within 30 days.
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DOCUMENTATION

For funding application purpose, applicants are required to submit the

following:-
• Completed Application Form
• Detailed project proposal or business plan
• Resume of key management/relevant individuals involved in the project
or proposal including business partners
• Certified true copies of the relevant Forms lodged with the Company
Commission of Malaysia- Form 9, Form 24, Form 49, Form 44
• Certificate of Charter/Statute or Memorandum & Article of Association or
a similar instrument defining its constitution
• The audited accounts of corporate investor in the company (if any)
• Audited financial statement or latest management account statement of
the company

* All applications shall be addressed to:

Malaysian Biotechnology Corporation Sdn Bhd

Level 23, Menara Naluri
161 Jalan Ampang
50450 Kuala Lumpur
(Attn: Vice President, Client Support Services Division)
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c. Eligibility Criteria

To apply for the fund, applicants must meet the following criteria:-
i BioNexus Status companies;
ii Within BiotechCorp’s Focus Areas;
iii Majority owned Malaysian companies;
iv The applicant must have ownership / or intellectual property of the
product;
v The developed product has export potential.
vi The company’s products have been internationally benchmarked; and
vii The potential market value / distribution network for the proposed
product has been evaluated.

d. When to Apply?
Applications should only be submitted once applicants have concrete
implementation plans for international business development.

e. Quantum and Mode of Funding

The maximum funding per project is RM1.25 million. The grant is a
matching grant, hence, BiotechCorp would match “dollar-for-dollar” spent on
the project up to the approved grant and based on the agreed milestones.
The grant shall be disbursed upon actual claims. The maximum
disbursement period is 4 years from the date of approval.

f. Expenditure Covered by International Business Development

Matching Fund
The funding shall cover expenditure in relation to a particular business
development within BiotechCorp Focus Areas and has been or will be
incurred on:
i country pre-clinical and clinical trial expenditures;
ii product registration costs; and
iii IP protection in other jurisdictions.
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GRANT COMPONENTS

1. SEED FUND

a. Objectives
The objectives are:-
i To fund seed or start-up costs in setting up biotechnology
companies.
ii To assist towards the development and commercialisation of
biotechnology projects and R&D findings of priority and core areas,
in particular projects and findings that are central to achieving the
objectives of the National Biotechnology Policy.

b. Who Should Apply?

i Individuals and researchers who are in the early stage of setting up
companies (approval is subject to the company being granted
BioNexus status); and
ii Start-up companies.

c. Eligibility Criteria
To apply for the Fund, applicants must meet the following criteria:-

i BioNexus Status companies;

ii Within Biotech Corp’s Focus Areas;
iii Malaysian majority owned companies;
iv The applicant must have ownership of, or beneficial use of, any
intellectual property necessary to commercialise the innovation;
v The innovation has commercial potential; and
vi The majority of the applicant’s business activities, employees or
assets must be within Malaysia or transferred to Malaysia within a
reasonable period.

d. When to Apply?
Applications should only be submitted once applicants have a viable
and proven concept that is within BiotechCorp’s Focus Areas for
development and commercialisation.

e. Quantum and Mode of Funding

The maximum seed fund to be granted per company is RM2.5 million.
The grant shall be disbursed based on approved budget and made out
 at the beginning of each agreed milestones. The grant shall be utilised
within 2 years from the date of approval.

f. Expenditure Covered by Seed Fund

The funding shall cover expenditure in relation to the setting up of a
biotechnology company which includes:
i Recruitment of professional management;
ii Initial market development efforts;
iii IP filing and registration;
iv Market and feasibility studies;
v Preparation of further documentations for investment
vi Malaysian compliance and regulatory costs; and
vii Prototyping costs;

2. RESEARCH & DEVELOPMENT MATCHING FUND

a. Objective
The objective is to provide a matching fund for R&D projects which can
develop new or improved products and/or processes and/or technologies
and lead to further development and commercialisation within
BiotechCorp’s Focus Areas.

b. Who Should Apply?

BioNexus Status companies that are involved in BiotechCorp’s Focus
Areas.

c. Eligibility Criteria
To apply for the fund, applicants must meet the following criteria:-
i BioNexus Status companies;
ii Within Biotech Corp’s Focus Areas;
iii Malaysian majority owned companies;
iv The applicant must have ownership of, or beneficial use of, any
intellectual property necessary to commercialise the innovation;
v The innovation has commercial potential;
vi The majority of the applicant’s business activities, employees or
assets must be within Malaysia or transferred to Malaysia within a
reasonable period; and
vii The company should have an appropriate research team led by a
qualified technical personnel.

d. When to Apply?
 Applications should only be submitted once applicants have a proven
concept of R&D that is within BiotechCorp’s Focus Areas for development
and commercialisation.

e. Quantum and Mode of Funding

The maximum funding per project is RM1.0 million. The grant is a matching
grant, hence, BiotechCorp would match “dollar-for-dollar” spent on the
project up to the approved grant and based on the agreed milestones. The
grant shall be disbursed based on a reimbursement basis i.e. BiotechCorp
shall reimburse its share of the approved cost upon payments made by the
applicant. However, for large expense items such as equipment, advance
matching payment may be considered i.e.
Biotech Corp shall pay its share of the approved cost upon proof of
commitment e.g. contract or purchase order. The grant shall be utilised
within 2 years from the date of approval.

f. Expenditure Covered by R&D Matching Fund

The funding shall cover expenditure incurred on a particular research
project. This includes:-
i The provision of sites or premises (including the acquisition of land), the
construction and adaptation of buildings, and the provision of services
and other works;
ii The provision of plant, machinery, equipment and materials;
iii The payment of fees or other remuneration to technical advisers
consulted in connection with the project;
iv Salary and wages of contract researchers directly involved in the
project;
v The travel and subsistence expenses of persons engaged in the project
or in identifying product or process development prospects within the
industrial undertaking; and
vi Overhead charges associated with the project.

3. INTERNATIONAL BUSINESS DEVELOPMENT MATCHING FUND

ectives
The objective of this grant is to promote the expansion of BioNexus
companies into the global market.
b. Who Should Apply?
BioNexus Status companies that are involved in BiotechCorp’s Focus
Areas.
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