Press Release
CSIR and Bioventures launch Mbuyu Biotech
03 July 2003
For immediate release
A new South African company entered the biotechnology business domain today when
Bioventures, the specialist biotechnology venture capital fund, and the CSIR, through its
Bio/Chemtek business unit, announced the formation of Mbuyu Biotech (Pty) Limited.
Mbuyu has been granted a world-wide licence to further develop, demonstrate and commercialise
three CSIR-developed biotechnology manufacturing processes that are being spun out from the
CSIR for further technology packaging.
Announcing the formation of the new company, Bioventures Fund Manager , Dr Heather Sherwin,
says that Bioventures is excited by the potential of the initial portfolio of technologies for which
Mbuyu has been granted a licence. The first process in the portfolio is a novel process to address
the worldwide nutraceutical demand for natural β-carotene, found in carrots, palm oil and fruits.
The second process is the conversion of low-value Aloeresin found in the sap of the Cape Aloe
plant to high-value Aloesin, commonly used in the cosmetics market; and the third is the
development of a process for the production of the aroma compound, I-menthol from low-value
raw material. Both nutraceuticals and bioprocessing are areas Bioventures has tagged for
investment.
Negotiations between Mbuyu and the CSIR are ongoing regarding the exploitation of seven
additional CSIR biotech processing technologies. Mbuyu will also be seeking to expand its
biotechnology portfolio with promising new biotechnologies developed at local incubators,
universities, and other research organisations.
CSIR Bio/Chemtek Director, Dr Petro Terblanche says, “The scientists at the CSIR have made
significant breakthroughs in biotechnology manufacturing in recent years. We believe that Mbuyu
is the correct vehicle to commercialise these manufacturing processes, allowing the rewards
earned from the licensing agreements to be reinvested into local biotechnology research. The
new company is a testament to the CSIR’s commitment to the implementation of Government’s
biotechnology strategy.”
Sherwin says Bioventures will continue to invest in organisations that have a competitive
advantage as a result of the Intellectual Property (IP) that resides within the organisation. “Mbuyu
represents Bioventures’ first investment in a company from its inception and our initial cash
injection of R2 million is aligned with our strategy of investing in a range of companies across
different sectors and at different generations of biotechnology ”, she says.
Bioventures and the CSIR each hold an equal number of shares in the total issued share capital
of the company with both groups having two directors on the Mbuyu board. A non-executive,
independent Chairperson, Joyce Matlala, from the Development Bank of South Africa has been
appointed. A CEO for Mbuyu will be appointed before the end of the year.
Mbuyu will pay the CSIR a share of any future royalties or revenues that may be earned as a
result of the exploitation of the CSIR-developed technologies and these royalties or revenues will
be negotiated on a deal by deal basis.