Qld biotech fund calls for proposals

The $100 million Queensland BioCapital Fund, whose formation was announced five months ago by the State government, is finally swinging its doors open for business.

The QBF is ready to "start seeing proposals now", commercial manager Stephen Barnard said at the recent Queensland state conference of industry association AusBiotech Ltd. The fund wants the proposals to start flowing in even though its five-person assessment team won't be in place until January.

Under the auspices of the government's fund management arm, the Queensland Investment Corp, the QBF plans to invest in about 20 biotech projects over the next four years. They will be focused on human bioscience from drug development to medical devices, Barnard said.

But he warned conference delegates that successful applicants will have to conform to some clear ground rules.

Leading the list will be a capacity to strip away scientific jargon when presenting their projects plus a clear passion for their proposals, he said. "To get through the door, you will have to explain your concepts to non-scientific financial people. If they lose the plot, it is unlikely you will get to the next stage."

Besides proposals with substance, investors will be looking hard at the commitment of the applicants, he said: "You must live and breathe your proposal and show that passion to the investors."

Other assessment criteria will include scientific data that is peer reviewed and independently confirmed, a strong IP position and a visibly competitive product in a well-defined end market.

The QBF has selected a chief executive officer and intends to make a formal announcement in the near future, Barnard said. It has also received 70 applications for five staff positions which cover legal, financial and scientific skills and has been "staggered" by the quality of available applicants, Barnard said.

It will have a team in place to start assessing investment proposals in January.

The QBF intends to bring its most promising projects to market by injecting not only money but management, global investors and strategic partnerships.

Its exit strategies will revolve around trade sales or share market listings and it will seek compounded annual internal rates of return for individual projects of at least 30 per cent.