Nextec BioSciences and council combine to foster biotech

Investment banking group Nextec BioSciences has joined forces with the Melbourne City Council to establish an entrepreneurial incubator for biobusinesses.

To be set up with an $80,000 infrastructure grant from the council, the Melbourne Biotechnology Business Development Centre is expected to provide a central-city cluster for emerging biotechnology enterprises.

Nextec CEO John Grace, a former managing director of Amrad Corporation, said the aim of the centre was simply to provide a business development environment with mentoring and networking opportunities.

"Emerging bioscience companies need a global market focus to facilitate growth," Grace said.

"We have access to extensive funding networks and a range of business, marketing and scientific technology resources.

"The business development centre provides a genuine opportunity to assist companies turn innovative biotech ventures into thriving companies."

Melbourne City Council Business Committee chair councillor Irene Goonan said the council was proud to be the foundation sponsor for the centre.

"Council has supported this exciting project because we are committed to nurturing a strong entrepreneurial environment to foster and grow early stage biotechnology companies," Goonan said.

"We believe this centre will create vibrant businesses that will further strengthen Melbourne's global reputation as a significant biotechnology city."

Nextec Biosciences - a new entity formed out of Nextec Corporation and Grace's own company iBIO - will offer office space on an as-need basis to selected young biotechs.

Grace said the company, which was expecting to sign on an international third party shortly, comprised an investment banking division, a funding pool of about $60 million that was not expected to close for at least another year, and the business development arm.

He said the businesses that would be selected to take part in the centre would be those that had a strong business plan and that might be thinking about raising money in the medium-term.

As well as central city office space and access to industry specialists, Grace said the centre hoped to aggregate a few other biotechnology groups around it the establish a cluster.

He hoped that about six companies - selected through a bidding process - would be actively using the centre within the coming year.