1. A Story of Two Countries Biotechnology Industry
Partners for the Global Market
November 2007
28th Joint Conference of the Korea-Australia/Australia-Korea Business Councils

2. Strength of the Collaboration
Biotechnology
Business Models
Strength of the Collaboration
Case Study
Summary and Future Vision
28th Joint Conference of the Korea-Australia/Australia-Korea Business Councils

3. 1. Biotechnology
Biotechnology is a broad term for a group of technology based on the application of Biological Processes
Medicine
Agriculture
Food
Environmental Management
Medical Devices
Energy, etc..
We need partners for the R&D and Investment.
We need the substantial market for the self growing industry.

4. 1. Biotechnology Mission
Attract Global investment and development partners to add commercial value to Biotechnology and R&D.
Develop key global market

5. 2. Business Model Korea is the Gateway to Japan and China
Capital Investment
Commercial Packaging
Market Accessibility
Research Capability
Strong links to Japan and China

6. 2. Business Model Australia is the gateway to US and Europe
High Level of Standard Guidelines
Strong Research Platform
Global Capital Links
Vast Natural Resources
Strong links to US and Britain

7. 2. Business Model

8. 3. Strength of the Collaboration
Globalization Factors
Pharma and big Biotech need broader Market
Companies listing on multiple stock exchange market
Venture capital investors need new opportunities
New research based on vast amount of information through global internet connection
Governments acknowledge that Biotechnology is major economic driving force for 21st Century
Harmonizing regulations / FTA
Increasing Number of Fusion Industries
Global Market Size : U$91b Annual Growth Rate : 11%

9. 3. Strength of the Collaboration
Korea
R&D Expenditure : U$0.47 b (2005)
Market U$2.3 b (2005)
Australia
R&D Expenditure U$0.60 b (2005)
Market – U$1.7 b (2005) US
R&D Expenditure U$14 b (2005)
Market – U$47 b (2005)

10. 3. Strength of the Collaboration
International partnering will be crucial if we are to successfully transfer Australian technology to the global marketplace.
by Dr Ian Edwards, Chair, AgBio Advisory Group, AusBiotech Ltd

11. 4. Case Study MEDICANEX KOREA Production & Sales Sublicense Business
World best production infrastructure
Competitive quality & Price
Global sales network - major 45 countries
Technology License
MEDICANEX
Sublicense Business
Australia
Value add to the stagnated Australian sugar market
* Governmental Benefit (Funding, Tax)
* Cooperation - Sugar Plant & Farm (Raw Materials , Infrastructure, etc)
Sublicense

12. 4. Case Study Various trials to make Xylitol Sugar cane Bagasse
Film of white birch : Limited supplies, Low productivity, Destruction of forest
Heart of corn : Decreasing supplies after being the source of bio ethanol
Sugar cane, Bagasse, Film of coconut etc : They are about to be used as new source
Sugar cane Bagasse
Film of White Birch
Heart of Corn
Film of Coconut

13. Required quantity of bagasse
4. Case Study
Confidential
Competitive Location and Infrastructure
The most crowded locations of sugar manufacturing companies in Australia
No.1 production location of Sugar cane in Australia
* Space of sugar cane : 400,000 ha
* Annual production of sugar cane : 36,000,000 tons
* Annual production of bagasse : 4,000,000 tons
Required quantity of bagasse
102,270 tons initially (2.5%)
Purchasing cost : 40 AU$/ton

14. Capacity for growing Market + Competitiveness of Products
4. Case Study
Partnership with big customers
Rise of land value (Plant Location)
Success of Business
Capacity for growing Market + Competitiveness of Products
Korea
AUSTRALIA
Experience & Know how
Raw Materials
Technology
·Stable source of
raw material
Low unit price
Cost reduction
·Environment Protective
Stability of organism
High yield rate of production
Ability to commercialize
·Best team members
Experience of xylitol production
Know-how on Ferment& Material Industry
Global sales network
Brand recognition
Good quality of Infrastructure
Support of Australian Government
Ability to fund raising

15. 4. Case Study KOREA China Japan Market US EU Market Australia
Regulatory
Sales and Marketing Partnering
Localisation
BioKOREA
Solagran
Unitract
QCTN…
US EU Market
Regulatory
Manufacturing
Marketing
Commercial Packaging
Ausbiotech
Australia
SK Chemicals
Purimed
Body tech…

16. 5. Summary and Future Vision
Essentials
Sales and Marketing Pathway
Funding Pathway
R&D Flow
Patience /Patience / Patience
Global Market
Partnering
Expansion
Team Work
Fusion Everywhere
Industrial Fusion
Science Fusion
Country Fusion

17. Thank You !