Genis signs Biotemed deal for new Iceland biotech plant

Icelandic biotechnology company Genis and affiliated businesses have signed an open-ended, three-party cooperation agreement with Chinese conglomerate Biotemed that will involve building a new biotechnology plant in Iceland, Morgunblaðið reports.

Genis founder Róbert Guðfinnsson signed the agreement at Biotemed’s headquarters in Qingdao last Thursday, with Icelandic Foreign Minister Þorgerður Katrín Gunnarsdóttir in attendance. Guðfinnsson spoke to Morgunblaðið about the deal after arriving in Shanghai on Sunday.

The agreement covers three areas: Biotemed will sell Genis’s Benecta product in China; the companies will work to advance Genis’s bone-related projects; and they will prepare to manufacture some of Biotemed’s products in Iceland for export to Europe and the Americas.

The start date and location for production have not been decided. Preparatory work and further market research are planned, and manufacturing would be carried out by Genis and its sister company, Arctic Biomed. Arctic Biomed is bringing a Biotemed mouth-ulcer patch to Iceland, making the country the entry point for the Chinese company’s first product in the European market. The partners are also assessing other products that could be made in Iceland for export.

Guðfinnsson said it was too early to estimate the deal’s financial scale. Biotemed plans to bring Genis products to Asian markets and sells products to around 1,000 hospitals in China. Some of Genis’s bone products will be developed in part by Biotemed scientists and sold through the company’s sales network.

The partnership will also give Genis access to Chinese scientists with expertise in using chitosan’s bioactive properties to develop products. Biotemed has about 70 products on the market and is preparing to expand its range. Guðfinnsson said the companies are also considering foreign investment in Genis to strengthen its operations and its cooperation with Arctic Biomed in Iceland.