KUALA LUMPUR: Malaysian Genomics Resource Centre Bhd (MGRC) is drawing up plans to set up a regional headquarters and establish new partnerships to tap the Middle East/North Africa (MENA) region for its genomics, biopharmaceutical products and services.
Executive director Azri Azerai said MGRC's ambitious plans to be a regional leader in the MENA region would also involve strengthening current partnerships namely with Saudi Arabia-based United Doctors Hospital (UDH) and Ajlan & Bros Holding Group.
"MGRC's expansion into MENA involves strategic co-operation with one or more local partners that share our vision to improve access to the latest in genomics for human health as well as agricultural biotechnology, and cell therapies for clinicians and patients in the region.
"Other than the shared vision and eagerness to work together, this effort will require a combination of capital expenditure for the setting up and equipping of one or more laboratory facilities, hiring of local talent, and the input of MGRC's experience and know-how.
"The level of capital expenditure will be determined by the geographical roll-out strategy, which has yet to be finalised," Azri told the New Straits Times.
MGRC signed a strategic partnership with Riyadh-based UDH in July this year to collaborate in genomics and cell therapies.
Under the three-year partnership, MGRC and UDH will promote cooperation in the sales and marketing of genetic screening tests and cell therapy products, collaborate in research and development (R&D), and other areas of cooperation in the genomics and cell therapies.
Late last month, MGRC signed a memorandum of understanding (MoU) with Jeddah-based with Ajlan for the distribution of biopharmaceutical and genomics products and services in the region.
As part of the MoU, both companies will explore the feasibility of Ajlan becoming a marketing and distribution representative for MGRC for genetic screening tests, mesenchymal stem cell and exosome products.
Ajlan will also identify commercial R&D opportunities for genome sequencing and analysis in the MENA region in the areas of agriculture, aquaculture, plantations, healthcare and industrial biotechnology.
MGRC, on its part, will analyse samples for genetic screening tests and provide Ajlan with genomic and bioinformatics expertise to bid for projects in MENA through Ajlan.
"Our genetic screening products, contract genomics research services, and bioinformatics analysis services we bring to the MENA region will be directed towards the healthcare and agricultural biotechnology markets.
"The MENA region is home to more than 580 million people across 20 countries. Populations are young and growing, and many countries are net importers of foods and specialised medical services and products. We see lots of potential in this region," Azri said.
According to the United Arab Emirates (UAE) Genetic Testing Market Report 2022-2030, the market in the Middle East was projected to reach US$121.2 million by 2030 on a compounded annual growth rate (CAGR) of 21.92 per cent between 2022 and 2030.
The wider region of the Middle East and the whole African continent has a projected market size of US$3.68 billion in 2022, according to Market Data Forecast, and is estimated to reach US$5.07 billion by 2027 on a CAGR of 6.64 per cent.
Azri pointed out that MGRC's life science activity, such as genomics and genetics expertise, is important contributors to the economic development of a country.
This is achieved through the upskilling of human capital and the creation of new knowledge and technology required to generate economic value across a range of market segments from agriculture, aquaculture, industrial biotechnology and healthcare, to name a few.
"Many MENA countries are undergoing rapid growth, so the demand for our genomics products and services is expected to be strong.
"At the same time, demand for our biopharmaceutical products will be driven by the growing healthcare spending, increasing awareness of preventive care, rising incidence of non-communicable diseases, including cardiovascular disease and cancer," Azri said.
Elaborating on its cooperation with Ajlan and plans to setup a regional centre in MENA, Azri said this would be an exciting possibility for MGRC down the road as it supported its mission to improve lives by increasing access to the latest in genomics and biopharmaceutical innovations.
"At this juncture, the establishment of a MENA region headquarters for MGRC would be realised by positive earnings generated from the domestic markets in MENA for our products and services.
"The amount to be allocated would be determined by those earnings," he added.
Ideally, such a headquarters could give MGRC greater, on-the-ground visibility of business opportunities as well as opportunities for new genomics and biopharmaceutical products and services, demand for which may be specific to the region.
"A MENA headquarters could conceivably also give us access to markets in parts of Europe," Azri said.
He said the Middle East was experiencing an economic boom driven by oil-price rallies and the desire of governments in the region to diversify their asset bases into new areas such as fintech, biotech, and healthcare among other sectors.
The region is also home to ambitious strategic development plans such as Saudi Arabia's Vision 2030 that provides a roadmap for technological, economic, and social development goals.
Quoting news reports, Azri said this year, the world's best performing stock markets were in the Middle East and capital inflows continued to be strong.
"This is driving business and value creation, which provide the opportunities for professional growth that will stem any outflow of talent. For the Middle East, we will look to engage local talent where possible.
"At the same time, we will provide opportunities for the transfer of knowledge through mentorship programs run by long-serving members of the MGRC community who may also be eager to gain professional experience from working in the Middle East," Azri said.