Agri-biotech exporter eyes P500M in loans, IPO to finance diversification plan

Secura Plant Genetics Inc., a leading exporter of agri-biotech products, is raising P500 million through a combination of bank loans and an initial public offering to fund plans to diversify into high-end, plant-based pharmaceuticals production, particularly monoclonal antibodies (MAbs).

"There are already several interested foreign parties that are eyeing partnerships with local companies engaged in plant-based pharmaceuticals because of the advanced biosafety regulations in the country," said Danilo P. Manayaga, president and chief executive officer of Secura.

He said the company is now laying the groundwork to put up the required additional investment of P500 million to elevate its plant in Gingoog City, Misamis Oriental into a good manufacturing practice (GMP) facility. A GMP seal serves as an assurance that the manufacturer’s products conform with internationally-accepted standards.

Manayaga, whose company recently bagged a P95-million contract to partially supply the papain extract requirements of Belgian firm Enzybel International SA, a global leader in proteolytic enzymes manufacturing, has been approached by a US-based firm for a possible joint venture for the production of an MAb derived from the tobacco plant.

MAb refers to a substance, usually a protein, that can be synthesized in the laboratory in pure form by a single clone or population of cells. This antibody can be made in large quantities and have a specific affinity for certain target molecules called antigens found on the surface of cells and those that are malignant.

Data shows that the global market for MAb therapeutics reached $11.2 billion in 2004 alone. The market has been growing at an impressive compound average annual growth rate of 42 percent in the last five years.

The key advantage of MAb therapeutics is their high levels of specificity for the relevant disease targets. This makes it easier to prevent harm to healthy cells, thus resulting in fewer adverse effects compared to other medicines.

Many of the leading multinational pharmaceutical companies have entered the MAb sector, attracted by quicker and less costly development, higher success rates, premium pricing, and a potentially reduced threat from generics.

Manayaga said Secura wants to take advantage of this extremely fertile ground for development and wants to pick up speed on the production of an MAb from recombinant tobacco.

"I am quite positive that if we go into full production, not only would our company benefit, but it will also revitalize the languishing local tobacco industry. It can be a major income earner for tobacco farmers because the tobacco will become a high-value crop again," noted Manayaga.

He said that Secura could produce MAb-based vaccine from tobacco by transferring MAb gene into the cell of a tobacco plant.

"Since the transformed tobacco plant already carries the MAb gene, this can easily be replicated such that when the tobacco plants are ready for harvesting, all that is required is to extract that potent gene. Essentially instead of using a bioreactor to produce the MAb, we will use tobacco plants," explained Manayaga.

"This is a cheaper method of replicating the gene of the vaccine compared to the investment required for putting up bioreactors. This can easily be replicated by tissue culture" he added.

A bioreactor is a vessel in which a chemical process that involves organisms or biochemically active substances derived from such organisms is carried out. It also refers to a device or system meant to grow cells or tissues in the context of cell culture. These devices are being developed for use in tissue engineering.