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Why invest in Biotechnology? Why invest in New Zealand Biotechnology companies? Why invest through Pacific Channel? Investment strategy and process
Why invest in Biotechnology?
The global life sciences/ biotechnology industry is one of the greatest sources of innovation available today.
Life science research has resulted in scores of breakthrough therapies and new methods for the early detection of disease.
Life science research has also improved agricultural yields to meet increasing demands for food, reduced pesticide use and new methods of environmental remediation.
Mega trends such as the worldwide increase in populations over the age of 60, and forecasted substantial increases in the populations of underdeveloped countries will drive the need for an increasing range of new, cost-effective health care and agricultural products for decades to come.
Industrial and environmental biotechnologies are developing new processes to replace fossil fuels. Industrial biotechnology applications have led to cleaner processes that produce less waste and use less energy and water.
It is clear that the endeavours and applications of life sciences are broad and increasingly global in scope. The Life Sciences markets today represent a unique opportunity to invest in companies at varying stages of development at prices that are depressed relative to historical levels.
For more information visit the Biotechnology Industry Organization’s site http://www.bio.org/
Why invest in NewZealand Biotechnology companies?
New Zealand has a history of excellence in life sciences research in food and agriculture as a result of its significant government investment, focus on biology based industries and researchers trained in leading institutions around the globe.
Pacific Channel believes that New Zealand companies offer an excellent opportunity to yield substantial returns for investors. New Zealand has world leading science yet, there is a lack of available investment funding. Technology and company valuations are relatively low from a global perspective.
A significant advantage is enjoyed by New Zealand through low research costs and time and cost efficient early-stage clinical studies.
New Zealand has a high per capita population of scientists and industrial engineers. This has resulted in an integrated workforce capable of the manufacture of products resulting from life sciences research.
New Zealand has a long history of investment into research and development in academic laboratories and in the country’s government owned Crown Research Institutes.
Development and manufacturing costs are expected to be significantly lower than in most developed countries, with the Government establishing supportive policies and regulations to promote industry growth.
New Zealand is ranked number 1 out of 145 countries surveyed by The World Bank in its 'Doing Business' 2005 Survey for overall 'Ease of Doing Business'.
New Zealand is ranked as the world's second least corrupt country (TI Corruption Perceptions Index 2004).
Why invest through Pacific Channel?
Pacific Channel has global links and affiliates. Prospective investments will be managed and reviewed by a team of global experts based in New Zealand and the United States. The team has direct experience in the formation, growth, management and value enhancement of life science companies.
Investors are assured that investments will be in companies where Pacific Channel anticipates playing an active role in the corporate development process.
Pacific Channel has access to significant deal flow in New Zealand as a result of its linkages with all the major academic and commercial research centres.
Pacific Channel will provide an important global perspective and access to the North American markets and follow-on investors for portfolio companies.
Investment Strategy and Process
Pacific Channel and associate start-up and early stage investors seek to facilitate investments in companies that have product ideas in biomedical and agricultural biotechnology fields. These will be based on proprietary intellectual property, and make innovative use of existing technology.
Pacific Channel will focus on biomedical applications, where the profit potential is greatest and where its managers have significant expertise.
Pacific Channel will select and evaluate potential investments on an as-needed basis with specialist scientific advisors from within its network. It will also seek to ensure influence either directly or for the investor, the management decisions within the invested company, by vote or by contract.
Pacific Channel must be satisfied that the relevant eventual market for a company’s lead product(s) is in the range of $50 -$500 million per year, with a time span for an adequate return on investment through initial public offering, strategic alliance, or trade sale will be within five years.
Pacific Channel utilizes its skills and experience to select and evaluate potential investments; consulting on an as-needed basis with specialist scientific advisors from within its network on scientific matters. Pacific Channel seeks to be able to exert influence, by vote or by contract, over the management decisions within the invested company.
The overriding strategy of Pacific Channel is to invest and/or introduce investment into portfolio companies that have the potential to advance to the commercial stage in worldwide markets. Exits from portfolios after a holding period of 2 to 5 years will be through initial public offerings, outright sales, or mergers.
Pacific Channel anticipates facilitating follow-on investments in portfolio companies via private equity investments of more than $1,000,000, utilising relationships with New Zealand venture capital funds and private equity investors locally, in Australia and the US.
To achieve results, Pacific Channel will seek to assist or invest in biomedical and agricultural biotechnology companies that are positioned to lead in the following categories:
- Technological
- Management Excellence
- Excellence in Business Strategy and Plan
- Superior Growth and Market Potential
- Superior Alliance Potential
- Superior Probability of Financing
- Profitable Exit Potential
Pacific Channel seeks to acquire positions in companies that will enable it to participate actively in the implementation of their strategic direction, assisting these entities in:
(1) instituting effective management;
(2) formulating development and financing strategies;
(3) establishing effective marketing and distribution of Pacific Channel and;
(4) identifying partners to provide strategic and/or synergistic benefits in the areas of technology, marketing, and management;
(5) establishing sound financial control and accounting practises.
Please contact us for more information.