Fleishman Hillard - Source: Ming-Pao Daily News(February 26, 2001)

According to Charles Hsu, General Partner of Walden International Investment Group (WIIG), WIIG planned to invest around US$100 million to US$200 million in global biotechnology industry including life science and healthcare sectors in the coming three to four years. Half of the total investment will be focused in the US, while the remaining will be invested in the rest of the world.

WIIG has a very broad definition of biotechnology, which includes drug development, gene chip, genetics and industrial usage of medicine. Hsu indicated that biotechnology also has a cyclel similar to other technology industries. Biotechnology was at a peak level of development in early 80s and 90s. And the industry has been undergoing another upward trend since last year, so now is the best time to invest biotechnology.

Hsu indicated that the global aging problem is becoming more serious. The population of people over 60 years old in US will be doubled within the coming 20 years. According to a survey, 80 per cent to 90 per cent of every hundred dollars spent on medical care will be spent in one's elderly period. The demand for biotechnology drugs is thus growing due to the increasing demand for healthcare products.

Hsu has been working in biotechnology for over 20 years. Hsu joined WIIG in October 2000 and is responsible for leading investments in biotechnology. Hsu said the quality of team is the most important consideration for deciding on an investment.

According to hsu, the market demand is also an important factor to be considered, but it is not difficult for WIIG to understand the size of market demand. Hsu added the best investment strategy is to identify the strengths and talents of a local company and then match them with the market demand.

WIIG only invests in start-ups, helping the start-ups to go listed or selling them to other companies. WIIG's general investment is around US$1 million to US$5 million on a company. For WIIG, over ten-fold cash rewards are considered success, while less then five-fold rewards are considered failure. To date, WIIG has arranged 10 to 15 biotechnology companies to go listed and there will be two more within this year.

Hsu said he had met certain departments of Hong Kong SAR Government and universities in Hong Kong, but Hsu refused to disclose the discussion content. Hsu indicated that WIIG is now exploring whether Hong Kong has suitable investment opportunity on biotechnology. WIIG has invested a Hong Kong company Asia Renal Care Ltd., which is the leading company in Asia to provide kidney dialysis and related services.

According to hsu, China has great potential in developing biotechnology and WIIG already has investment projects in China. However in China, WIIG will apply the investment strategies different from that of US. For instance, WIIG will not establish a life gene project company in China. instead, WIIG will set up companies in China to provide high level health care products.

WIIG established in 1987, investing in Internet, semiconductor, electrnics, enterprise software, healthcare, biotechnology, consume rproducts and services. To date, WIIG has established 33 venture capital funds in US and Asia, with approximately US$1 billion in assets under management.