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SKJ
SKJ
Sekunjalo - Joint Press Statement
Sekunjalo Investments Limited
(Incorporated in the Republic of South Africa)
(Registration number 1996/006093/06)
Share code: SKJ & ISIN: ZAE000017893
("Sekunjalo" or "the group")
Date: 15 November 2006
Boost for SA Biotech Industry
Cape Town - The South African biotech industry took another significant leap
onto the world stage with the announcement today that Solidago AG, a Swiss based
company that develops and licenses strains of micro-organisms and cell lines,
has concluded a G-CSF licensing and technology transfer agreement with local
company Bioclones (Pty) Ltd. Bioclones is owned 49,9 % by African Biotechnology
Medical Innovation Investments Limited (ABMI) a wholly owned subsidiary of JSE-
listed Sekunjalo Investments Limited.
The conclusion of this Agreement was made possible by a US $ 5.3 million
investment by BioPAD a biotechnology Regional Innovation Centre established by
the Department of Science and Technology to promote the development of the
Biotechnology industry in South Africa into Ribotech Pty Ltd, a subsidiary of
Bioclones. The agreement and others will enable Bioclones to manufacture
locally advanced recombinant biotechnology products for world markets.
The product expressed by the licensed cell line, recombinant human granulocyte
colony stimulating factor, is a companion product to recombinant human
erythropoietin which since 1998 has been produced and sold in South Africa by
Bioclones. Recombinant human granulocyte colony stimulating factor (r-HuG-CSF)
stimulates bone marrow to produce mainly neutrophil granulocytes, a class of
white blood cells. G-CSF is widely used in oncology to combat the effects of
chemotherapy on the bone marrow.
The Minister of Science and Technology, Minister Mosibudi Mangena heralded
BioPAD"s investment and the license agreement between Solidago AG and Bioclones
and said; "To achieve success in biotechnology a country requires a government
agency to champion biotechnology, to build human resources proactively, and to
develop scientific and technological capabilities.
"Successful commercialisation of public sector supported research and
development requires strong linkages between institutions and a vibrant culture
of innovation and entrepreneurship," Minister Mangena said.
Butana Mboniswa, CEO of BioPAD said; "We at BioPAD are committed to support
technology transfer activities, which is a clear mandate of our organisation. We
believe that through local technology development and international technology
transfer, we will be able to grow the South African Biotech sector."
Bioclones is the leading South African Biotechnology company developing modern
biotechnology products for human pharmaceutical use. Dr Cyril Donninger,
Bioclones Chief Executive Officer, described the agreement as a major
development which will enable a South African biotechnology company to become a
player in the world biotechnology industry.
"We are immensely proud to have concluded this licensing agreement with
Solidago. This is the first time Solidago has given such rights to a company in
the developing world which makes it a first for South Africa and a first for
Africa", Dr Donninger said.
He said Bioclones was able to conclude this agreement because of its track
record in producing and taking recombinant human erythropoietin to the market in
South Africa.
Dr Iqbal Surve, Sekunjalo Chairman and Chief Executive Officer said: "The
support of the Department of Science and Technology and BioPAD played a vital
role in the closure of this agreement. This opportunity to enter the global
biotechnology industry is made possible by the foresight of Minister Mangena and
the recognition of the investment opportunity by BioPAD. Their unequivocal
support made this happen".
Dr Surve said he hoped the rationale for Sekunjalo investing in the
biotechnology sector was starting to become apparent to the market. "The
product which will be produced as a result of this agreement together with our
current product portfolio has the potential to generate hundreds of millions of
dollars revenue for South Africa and retain our best talent.
"We said at the time there was substantial value to be unlocked in Bioclones and
the ability of Bioclones to conclude agreements like this one demonstrates
this", he said.
ENDS
Prepared by: Bruce Hetherington
Beachhead Media & Investor Relations
082 458 2199
Contact details: Sekunjalo
Zenariah Barends
Mobile: 082 441 0433
Bioclones
Dr C Donninger
CEO
Tel: (011) 656 9700
Mobile: 083 226 2666
Department of Science and Technology
Nelvis Qekema
Mobile: 082 571 2571
BioPAD
Dumisane Mangwane
Tel: (012) 844 0417
Mobile: 083 387 3596
Date: 16/11/2006 03:50:08 PM Produced by the JSE SENS Department
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