Queensland Premier Anna Bligh has announced a major new collaboration between DSM Biologics of The Netherlands, The University of Queensland's Australian Institute for Bioengineering and Nanotechnology (AIBN), and the Queensland Government.

The collaboration involves the development of next-generation smart medicines, called biologics, at a $65 million scale-up facility under construction at the Princess Alexandra Hospital.

Biologics are medicines based on natural proteins made using DNA technology, offering exciting new treatment options for a wide range of diseases including cancer and auto-immune disorders.

Biologics may be used for a variety of medical conditions for which there are no other treatments – and offer the only known potential treatment for Hendra virus infection.

The collaboration makes it possible for both development and potential large-scale commercial production of the experimental Hendra virus antibody, among other therapeutics, in Queensland.

DSM Biologics will operate the scale-up facility, owned by the Queensland Government entity Biopharmaceuticals Australia Pty Ltd, under construction next to the Translational Research Institute (TRI). The facility will produce clinical and commercial grade biologics for global markets.