Press Release
February 12, 2015
DCI Partners Co., Ltd.
Daiwa Corporate Investment Co., Ltd.

Establishment ofDaiwa Taiwan-Japan Biotech Fund Investment Limited Partnership
DCI Partners Co., Ltd. (“DCIP”), a group company of Daiwa Securities Group, Inc. and wholly owned by
Daiwa Corporate Investment Co., Ltd.(“DCI”), announces the first closing of Daiwa Taiwan-Japan Biotech
Fund Investment Limited Partnership (total capital commitment of JPY 9.3 billion, the "Fund") with theparticipation of the Organization for Small & Medium Enterprises and Regional Innovation, JAPAN ("SMESupport, JAPAN"), National Development Fund, Executive Yuan ("NDF"), a Taiwanese government fund, andother investors in and outside Japan. Total Fund’s commitment size may be increased to around JPY 12 billion
at the subsequent closings.
1.

Overview

The Fund is a venture capital fundi that will invest in privately-held biotechnology companies centered on thetherapeutic field in Japan and Taiwan.
In Japan, since the global economic turmoil triggered by Lehman bankruptcy in 2008, the supply of risk
capital for biotech companies has been reduced. Due to these funding constraints, many startups have facedfunding difficulty for growth. Venture capital firms, the primary providers of such risk capital to venturebusiness, have also experienced difficult time of fundraising throughout the period.
DCIP has successfully launched one of the largest biotech funds in Japan with strong support from SME
Support, JAPAN, NDF and other investors in and outside Japan in order to satisfy such risk capital needs inbiotech industry by capturing improvement of economic environment and development of regulatory
framework.
DCIP aims to provide risk capital for growth through the Fund to Japanese and Taiwanese biotechnology
companies and will endeavor to promote their research and development efforts and to enhance their enterprisevalue, in pursuit of high investment returns.
2.

Investment Climate and Features of the Fund

Investment Climate in Japan
In its Healthcare Policy and Japan Revitalization Strategy, the Japanese government is firmly promoting
development of the healthcare industry. Particularly for drug development environment centered onregenerative medicine, various forms of support are being provided by developing new regulatory frameworks

Press Release(e.g., enforcement of Pharmaceuticals and Medical Devices Act (revised Pharmaceuticals Affairs Act) and theAct on the Safety of Regenerative Medicines, and launch of the Drug Discovery Support Network).
Biotech companies in Japan have also been steadily building a track record of out-licensing deals andsuccessful launch of drugs to the market in recent years.
The recent trend of drug development has been shifting from conventional small-molecule drugs to the newfields (e.g., cell therapies and biologics) where many biotech companies tackle. While large pharmaceuticalcompanies are actively forging tie-ups with biotechs due to the expiration of patents on their key products andthe decline in development efficiency. Thanks to such movement, out-licensing deals by biotech companies
and M&A activities are expected to increase in this field.
Investment Climate in Taiwan
The Taiwanese government has positioned the biotechnology industry as one of the Six Emerging Industries
and is firmly moving forward with its development. Taiwan boasts an excellent drug development platform
and has a geographical advantage as a clinical development hub in Asia.
In Taiwan biotech space, in addition to traditional manufacturers of active pharmaceutical ingredients,generic drugs and medical devices, a large number of startups conducting new drug developments areemerging in recent years. This movement provides significant investment opportunities for the Fund.
The number of listed biotechnology companies in Taiwan has increased year after year, with their market
capitalization grown more than six-fold between 2007 and 2014 to over JPY 2 trillion. Favorable capital
market circumstance will surely support further growth and development of biotech companies in Taiwan.
Features of the Fund
The Fund will invest in privately-held biotechnology companies in Japan and Taiwan. In addition, the Fund
will take an initiative to create new biotech startups by carving out of promising projects or businesses fromother companies or academia (“Venture Creation Investment”).
The Fund also intends to provide active hands-on support to investee companies in collaboration withwell-experienced external advisors both in Japan and Taiwan who possess expertise such as drug development,
licensing, regulatory affairs and business development. DCIP will utilize its extensive network withuniversities, research institutes, biotech companies and pharmaceutical companies that have been built
throughout investment experiences of team member of DCIP.
In Taiwan, the Fund will source investment opportunities, conduct research and seek to enhance theenterprise value of investee companies by leveraging strategic partnerships with Hotung Group, a leading
Taiwanese venture capital group, and the Development Center for Biotechnology, a well-establishedTaiwanese research and development organization.
DCIP believes that, by actively promoting corporate alliances between Japan and Taiwan, the Fund will beable to provide various forms of support to biotechnology companies which are required to develop global
business operations.
DCIP hopes that the Fund's investment activities will contribute to the further development of the healthcare

Press Reeleaseand pharmaaceutical induustries in Taiiwan and Jappan.
3.

Fund S
SchemeOverview oof the Fund
Namee
Date oof Establishm
ment
Total Committed Capital
Generral Partner (GGP)
Operaation Period
Investtment Periodd
Overview oof DCI Partneers
Namee
Date oof Establishm
mentCapital
Head Office
Shareeholder
Presiddent and Reppresentative
Director
4.

Daiwa Taiiwan-Japan Biotech
BFundd Investmentt Limited
Partnershipp
January 155, 2015
JPY 9.3 biillion
DCI Partnners Co., Ltd..
10 years
5 years

DCI Partnners Co., Ltd..
May 20, 22014
JPY 50 miillion
1-9-1 Marrunouchi, Chhiyoda-ku, To
okyo
Daiwa Corrporate Investment Co., Ltd.
L (100%)
Hiroki Narrita

Contacct

DCI Partnners Co., Ltdd.: Kodama (+81-3-5555(-6337)
Daiwa Coorporate Inveestment Co.,, Ltd.: Marutta (+81-3-55555-6300)

i

Investments in Japan's meedical device companies
cwilll be made thrrough the "Staartup Growth SSupport Fundd" andmajor business locations in thhe six prefectuures of the Tohhoku region orr
investments iin companies with their heaad offices or min Ibaraki Preefecture will beb made throu
ugh the "Reconnstruction Funnd" (DCI serv
ves as GP for bboth funds).