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Cape Town - The much mooted offshore listing of Bioclones, the biotechnology company controlled by BEE group Sekunjalo, looks certain after a key licensing and technology transfer agreement was clinched with Swiss-based Solidago AG.
This week's agreement allows Bioclones to manufacture locally advanced recombinant biotechnology products like G-CSF (widely used to combat the effects of chemotherapy on bone marrow) for world markets.
Bioclones, with 22 global patents under its belt, already produces and distributes recombinant human erythropoietin (Epo) to the market in South Africa.
Bioclones is owned 49.9 % by African Biotechnology Medical Innovation Investments Limited (ABMI) a wholly owned subsidiary of Sekunjalo Investments.
Sekunjalo acquired a majority stake in Bioclones last year, buying the shares from mining conglomerate JCI in a paper based transaction.
Could become a major player
Bioclones CEO Cyril Donninger says the agreement with Solidago could see the local company become a major player.
"This is the first time Solidago has given such rights to a company in the developing world..."
Epo is the biggest biotechnology product in the world with sales estimated at around $12bn.
Sekunjalo chairperson Iqbal Survé says the group is currently mulling whether to take Bioclones - subject to reserve Bank approval - to the Nasdaq in the US or London.
Reserve Bank approval would probably determine whether Bioclones would hold a primary listing offshore or a secondary listing in SA (possibly on the AltX).
'Might get stronger support in the US'
Survé reckons sufficient capital could raised at listing to allow Bioclones to enter into more licencing agreements and aggressively pursue new markets.
"We are in talks with overseas advisors, and at the moment it seems like we might get stronger support in the US. In the US we are seen as a 'mini-Amgen'."
Amgen is the biggest biotechnology company in the world.
He reckons the new product - together with the current product portfolio owned by Bioclones - has the potential to generate hundreds of millions of dollars revenue and add significant value to Sekunjalo.
"We said at the time there was substantial value to be unlocked in Bioclones and the ability of Bioclones to conclude agreements like this one demonstrates this."