A proposal to start a JVC between Bioland and Nam Khoa Biotech

1. Eligibility study and initial establishment of aEligibility study and initial establishment of a
Join-Venture Company in Vietnam for theJoin-Venture Company in Vietnam for the
production of Rapid Diagnostic Testsproduction of Rapid Diagnostic Tests
By Le Tien DungBy Le Tien Dung
For Bioland LTDFor Bioland LTD

2. Current situation and perspectives onCurrent situation and perspectives on
rapid diagnosticsrapid diagnostics
 Populations of tropical countries such as Vietnam, ChinaPopulations of tropical countries such as Vietnam, China
and India has higher risk for several diseases such asand India has higher risk for several diseases such as
malaria, HCV, HBV and HIV.malaria, HCV, HBV and HIV.
 Increasing demands for rapid diagnostic tests for theIncreasing demands for rapid diagnostic tests for the
detection of several diseases in those countries as welldetection of several diseases in those countries as well
as in the world.as in the world.

3. Uses of Rapid TestsUses of Rapid Tests
 DiagnosisDiagnosis - rapid tests can be used to identify, confirm,- rapid tests can be used to identify, confirm,
or rule out disease in symptomatic patients.or rule out disease in symptomatic patients.
 Patient ManagementPatient Management - rapid tests can be used to- rapid tests can be used to
accurately prescribe therapeutic drugs and to monitoraccurately prescribe therapeutic drugs and to monitor
treatment.treatment.
 EpidemiologyEpidemiology - rapid tests can be used to detect and- rapid tests can be used to detect and
monitor the incidence or prevalence of disease formonitor the incidence or prevalence of disease for
targeting and evaluating health programs.targeting and evaluating health programs.
 ScreeningScreening - rapid tests can also be used in case-finding- rapid tests can also be used in case-finding
to determine the prevalence of disease in asymptomaticto determine the prevalence of disease in asymptomatic
individuals.individuals.

4. Advantages of using rapid testAdvantages of using rapid test
 EasyEasy to use, with minimal training required.to use, with minimal training required.
 RelativelyRelatively rapidrapid; same-day results are possible, resulting; same-day results are possible, resulting
in fewer patients lost to follow-up.in fewer patients lost to follow-up.
 AA shelf lifeshelf life as long as 1-2 years at ambientas long as 1-2 years at ambient
temperatures, with no need for refrigeration.temperatures, with no need for refrigeration.
 Limited or no need forLimited or no need for instrumentationinstrumentation, allowing these, allowing these
tests to be performed at point-of-care, where there is notests to be performed at point-of-care, where there is no
laboratory or electricity.laboratory or electricity.
 Since it relies on antigen-antibody interaction, rapid testSince it relies on antigen-antibody interaction, rapid test
is highlyis highly specificspecific and hence, in some case, can provideand hence, in some case, can provide
more accurate results.more accurate results.

5. Objectives of the JVC projectObjectives of the JVC project
 To understand the situation and market shares inTo understand the situation and market shares in
Vietnam regarding diagnostic testVietnam regarding diagnostic test
 To identify potential collaborating partners in VietnamTo identify potential collaborating partners in Vietnam
 To establish a Join-Venture Company (JVC) with aTo establish a Join-Venture Company (JVC) with a
Vietnamese partner specializes in BiotechnologyVietnamese partner specializes in Biotechnology
 To produce rapid diagnostic test KIT for sale in Vietnam,To produce rapid diagnostic test KIT for sale in Vietnam,
Korea and other countriesKorea and other countries
 To create and maintain profit through the production andTo create and maintain profit through the production and
sale of rapid diagnostic testssale of rapid diagnostic tests

6. The potential partnersThe potential partners
 Nam-Khoa Biotek, LTD:Nam-Khoa Biotek, LTD: Locating in HCMC, this is the firstLocating in HCMC, this is the first
private company in Vietnam specialized in Biotechnology.private company in Vietnam specialized in Biotechnology.
Since establishment, the company has gained publicSince establishment, the company has gained public
reputation. Dr. Chong and I have established a dialogue withreputation. Dr. Chong and I have established a dialogue with
this company and the company is interested in our JVCthis company and the company is interested in our JVC
project.project.
 PHARBACO:PHARBACO: A second biggest state-owned company inA second biggest state-owned company in
Vietnam majoring in drug manufacture. Recently the companyVietnam majoring in drug manufacture. Recently the company
has invested 20 millions USD to build a new factory nearbyhas invested 20 millions USD to build a new factory nearby
Hanoi that meet GMP standards. We have made connectionHanoi that meet GMP standards. We have made connection
with the company and they seem to be interested inwith the company and they seem to be interested in
collaborating with us.collaborating with us.

7. The advantages of NK-biotek LTD overThe advantages of NK-biotek LTD over
PHARBACOPHARBACO
 Majoring in Biotechnology & PCR-based diagnostic testsMajoring in Biotechnology & PCR-based diagnostic tests
 Locating in HCMC, a better place for business in comparisonLocating in HCMC, a better place for business in comparison
to Hanoi, including the business environment and policyto Hanoi, including the business environment and policy
 A private company where the corruption potential is lowerA private company where the corruption potential is lower
than state-owned companythan state-owned company
 Having a research and development division which will beHaving a research and development division which will be
able to collaborate with us on R & D of new diagnostic testsable to collaborate with us on R & D of new diagnostic tests
 Having a sale network for biotech-based products in VietnamHaving a sale network for biotech-based products in Vietnam

8. Bioland-NK
JVC LTD
60-70% investment 30-40%
Manufacturing factory for Rapid IC KIT ...
Sell products to NK-Biotek
Sell products to Bioland
Purchase raw materials from Bioland
Public benefit re-investment

9. Contributions and functions of eachContributions and functions of each
investorsinvestors
NK-Biotek Co.Ltd
• Cooperation on the R&D of the
Rapid IC kits
• Land, building & infrastructure
• Marketing in Vietnam
• Assist the JVC to obtain legal
documents for sale of products
in Vietnam
Bioland Co.Ltd
• R&D of raw materials in
Ochang in Korea
• Equipments for Rapid IC
• Manufacturing technologies of
Rapid IC
• Raw materials for productions
• Marketing in Korea and in the
world

10. Products to be manufactured byProducts to be manufactured by
Bioland-NK JVC LTDBioland-NK JVC LTD
 Rapid immuno-chromatographic (IC)
 HIV
 HBV, HCV
 Malaria
 Sexual transmitted diseases
 Drug-abuse
 Others . .
 PCR-based diagnosis (!)
 ELISA (biochemical and molecular - PCR)
 RPHA/PHA
 Latex agglutination

11. How each investors will control the JVC?How each investors will control the JVC?
Management board
5 members: 3 appointed by
Bioland; 2 appointed by NK-
Biotek
JVC regulations JVC business policy Public relation policy
Managing Director
Manufacturing TeamManufacturing Team
Production of rapid test KITs
Imex & Sale Team
Import raw materials & export
products from & to Bioland,
Sale of products to NK-Biotek
PR & promotion Team
Public relation, promotion of
domestic sale, advertisement &
public benefit re-investment
Accountant & General
affair Team

12. Mode of operation of the proposed JVCMode of operation of the proposed JVC
 The JVC will not do direct marketing (retailer) in
Vietnam, instead, it will sell products to NK-biotek. NK-
biotek will be responsible for retailing at their own policy.
JVC may, in co-operation with NK, promote domestic
sale through advertisement. (why JVC does not do retailing in Vietnam?)
 The JVC will export products to Bioland Korea.
Bioland will be responsible for exporting to other
countries at its own policy.
 Raw materials will be imported directly from Bioland
LTD

13. Capital investmentsCapital investments
Estimated
amount Contributed by
Fixed capital (x103
USD)
Land & building 100 NK-Biotek
Production line 300 Bioland
Technology know-how 100 Bioland
Stationery equipments
& office facilities 50 NK-Biotek & Bioland
TotalTotal 550550
Variable capital (x103
USD)
Raw materials 50 NK-biotek & Bioland
Electricity & ITC cost 20 NK-biotek & Bioland
Salary 50 NK-biotek & Bioland
Total 120120
Except the fixed capital, the variable capital will be contributed by each
investors by depositing the money into the JVC bank account

14. Timeline of activitiesTimeline of activities
11stst
QuarterQuarter 22ndnd
QuarterQuarter 33rdrd
QuarterQuarter 44stst
QuarterQuarter
JVC contractJVC contract
RegistrationRegistration
Investment licenseInvestment license
Import equipmentsImport equipments
Installation & testingInstallation & testing
Training technical staffsTraining technical staffs
Trial operationTrial operation
ProductionProduction
* Each quarter equals to 03 months

15. Distribution of profitDistribution of profit
 60% to investors (Bioland and NK-Biotek)60% to investors (Bioland and NK-Biotek)
 20% to re-investment fund20% to re-investment fund
 10% to public relation10% to public relation (social meetings with high-rank officials and news(social meetings with high-rank officials and news
agencies)agencies) and public-benefit investment fundand public-benefit investment fund (giving scholarship to(giving scholarship to
Medical & Biology students, donating malaria KIT to poor communities)Medical & Biology students, donating malaria KIT to poor communities)
 10% to employees10% to employees

16. With a careful plan, we areWith a careful plan, we are
looking forward to seeing alooking forward to seeing a
successful JVC projectsuccessful JVC project
Thank you for your attentionThank you for your attention
Le Tien Dung, PhDLe Tien Dung, PhD
letiendzung@yahoo.comletiendzung@yahoo.com
http://www.cynosura.orghttp://www.cynosura.org