Singapore generic giant SciGen Ltd. (ASX:SIE) will set up an R&D and manufacturing facility in Rehovot at an investment of $30 million over three years. The facility will be called “SciGen Israel”. SciGen had $4.87 billion in sales in 2005.
Singapore businessman Saul Mashaal is the founder, executive vice chairman and CEO of SciGen. The Investment Promotion Center, which sought to bring Mashaal to Israel, declined to comment on the precise size of the investment, but industry sources predict that Mashaal will make additional investments in Israel.
SciGen Israel will develop vaccinations against hepatitis-B based on molecules SciGen bought from their discoverer BioTechnology General. BioTechnology General, which was the global biologics manufacturing business of Savient Pharmaceuticals, was acquired by Swiss company Ferring in July 2005.
SciGen Israel will handle the R&D for the jaundice vaccine, which will be produced both in Israel and by SciGen’s Chinese plant.
Two years ago, Serono (NYSE: SRA; SWX: SEO) closed its Rehovot facility, InterPharm Laboratories Ltd., which developed multiple sclerosis drug Rebif (interferon beta-1a).
Investment Promotion Center and Invest in Israel director Rachel Roei said Mashaal had considered investing in Singapore, India and Israel. She said Israel’s human resources were the deciding factor in the final decision, and that the salaries of Israeli manufacturing workers were not a factor. SciGen Israel will rely on Israeli manpower, generating dozens of jobs.
The Ministry of Industry, Trade and Labor and the Office of the Chief Scientist have declared biotechnology as a preferential target for R&D grants. Biotechnology companies will be eligible for grants covering 50% of approved plans, compared with 30-50% for grants in non-preferential sectors. The purpose is to encourage local investment, and, more importantly, to attract foreign investment in the sector.
Economic Mission of Israel in Singapore commercial attache Anat Katz said Mashaal told her that, although the Rehovot location would render SciGen ineligible for substantial benefits and grants (because Rehovot is not an outlying area), its human resources tipped the scales in favor of investment proximate to the Weizmann Institute of Science.
Founded in 1988, SciGen is a biotechnology company that specializes in endocrinology and immunology.
Published by Globes [online], Israel business news - www.globes.co.il - on May 29, 2006
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