Biocomm capital fund launched

Victorian biosciences commercialisation group Biocomm has launched an $11.5 million capital pool to help take the state's research to the market.

The funding pool, announced by Premier Steve Bracks at Bio2002 in Toronto, comprises investments from BioTech Capital, Rothschild Bioscience Managers, Macquarie Bank and Queensland Investment Corporation.

Bracks also committed $1.65 million in continued support to Biocomm.

"This $11.5 million funding pool is about ensuring we capitalise on Victoria's excellent research and development capabilities to ensure our good ideas lead to biotech job opportunities for Victorians," the Premier said.

Biocomm was conceived by senior researchers from Monash University, Baker Medical Research Institute and RMIT University who wanted to create a company focused on business development and the commercialisation of life sciences.

It was established in January 2001 with a service contract from the State government's Technology Commercialisation Program and now has a membership base that includes Prince Henry's Institute of Medical Research, Victorian College of Pharmacy, Peter MacCallum Cancer Institute, Mental Health Research Institute, Macfarlane Burnet Centre, Murdoch Children's Research Institute, Neurosciences Victoria, St Vincent's Institute of Medical Research and the Austin Research Institute.

Biocomm has exclusive access to intellectual property emerging from each of these groups, and is understood to be currently working towards the commercialisation of about 40 projects.

Up to three of these are believed to be past the halfway mark in the commercialisation process.

Last week, Biocomm's first brokered deal was announced with a $1 million research collaboration between Melbourne's Bernard O'Brien Institute of Microsurgery and UK company Onyvax focused on breast and prostate cancer projects.

According to Biocomm CEO Dr Andy Gearing, the latest announcement meant more commercialisation opportunities for companies deemed by the organisation to have long-term sustainability.

"It is equivalent to what the large US venture firms can achieve as it provides access to sector-experienced capital for emerging life sciences companies through all stages of their development, from idea to product, and includes openings for investment in licensing opportunities," Gearing said.

"Biocomm's membership is a source of world-class life science research. Combining our capital pool with this source of opportunity will lead to major commercial benefits for Victoria."

Executive chairman and strategic biotechnology adviser to the Victorian government Stan Yakatan said the capital pool should not be looked at as a pre-seed or venture capital fund, but a novel way to maximise biotechnology investment opportunities.

"Through our private sector investment partners we have the capacity for follow-on investments to achieve the full commercialisation of life sciences opportunities," he said.

Yakatan has previously described the capital pool as a priority for Biocomm, saying it would be used to develop new companies and to out-license opportunities from its member organisations.

He has also indicated Biocomm was in discussion with at least three worldwide venture capital groups about being international partners in the capital pool.