COMMERCIALIZATION

OF
BIOTECHNOLOGY

Where do I begin?

IRR- Internal Rate of Return

The return that a company would earn if it expended or
invested in itself rather than investing the money
elsewhere

Payback period
An investments payback period in years is equal to the
net investment amount divided by the average annual
cash flow of the investment
How long it take to get my money back?

 Definition:
Biotechnology isusage of biological
systems for the production of goods
and services using science and
engineering principles.

Commercial values:
Products
Services
IPs

Two major aspects for

commercialization:
I. The Business
II. Business Model/Plan

I The Business

Value of technology/IP
Funding
Investor
Partnership/Shares/Equity
Listing

Routes to commercialization

Product
R&D
Market
Production
Sales

Product

Innovativeness
Novel
Improvement
Process
Quality and reliability

R&D
Short term/product development
Long term

Market
Size
World or local
New product
Potential captive market/niche market
Competitor and competitive
advantages
Sustainability

Production
Capital-CAPEX
Manpower
Cost-OPEX

Sales
Direct
Distributors

II Business Model/Plan

Company name: XYZ SDN BHD

Title of Proposal: Nutraceutical Products Business
Philosophy
Background of Product
Technology/IPs/R&D
Market and Potential of Vaccine Business
Organization Structure
Key Figures of Promoters
Brief Manufacturing Layout
Investment and Financial Plan

Some key terms of a financial

statement:
Income statement
Cash flow
Balance sheet

Income Statement
How much revenue and profit a company has generated
over a certain period

Cash flow
Total amount of money that moves in and out of a
business over a given period

Balance Sheet
A financial statement that summarizes a companys
assets, liabilities and shareholders equity
Assets=Liabilities + Shareholders Equity; the two sides
balance out.
Its a snapshot of potential investor of what a company
owns and owes at that point in time and the amount
invested by shareholders.

PERFORMANCE MEASUREMENTS:
IRR Internal Rate of Return. The return that a
company would earn if they expended or invested in
themselves, rather than investing that money abroad
Payback Period- The length of time required to recover
the cost of an investment, calculated as COST OF
PROJECT DIVIDED ANNUAL CASH INFLOWS
ROI- Return of investment- to determine whether a
proposed investment is wise and how well it will repay
the investor and calculated as the ratio of the amount
gained or lost relative to the basis