Taiwan's biotech fund spurs startup investment

ROC government-sponsored Taiwan Medtech Fund aims to invest in biotech companies whose new drugs or medical equipment has market potential. (CNA) n Date：08/17/2011 Source： Taiwan Today   Taiwan Medtech Fund, the country's first biotechnology venture capital fund with both public and private involvement, is ready to invest in promising startups and stimulate further investment, fund manager Jang Yue-teh said Aug. 16. Jang said TMF, in cooperation with U.S.-based The Vertical Group, has a capital target of NT$5 billion (US$172 million), with 20 percent already promised by the National Development Fund. The remaining 80 percent will come from local companies including semiconductor heavyweights and state-run enterprises, he said. Unwilling to name these investors at present, Jang said the TMF will begin operations by the end of the year. "In the initial phase we aim to finance startups manufacturing highly profitable medical equipment or developing new drugs. Our expectation is that they will assume pioneering roles for other Taiwanese biotech companies," Jang said. He added that the management group is evaluating several cases related to minimal incision surgery facilities and medical implants. Stan Shih, founder of Acer Inc., will also offer advice on TMF investment, Jang said. "We are honored by Shih's participation. With his experience and contacts in the country's information communications technology industry, we believe the fund will get extra investment from local ICT corporations," Jang said. The global medical equipment market in 2010 has an estimated value of US$245.6 billion, with North and South America, Western Europe and Asian-Pacific markets accounting for 44 percent, 28 percent and 19 percent, respectively, Jang said. The annual growth rate of this market is projected at 4 percent to 6 percent, reaching US$284.1 billion by 2013, he added. Taiwan should take advantage of its strong medical resources and competitiveness in ICT to boost the biotech industry, Jang said. (THN)