Australia's newest research institute, the AUD$100 million Bio21 Institute, based at the University of Melbourne, officially opened its doors today.

Housing 230 biochemistry, genetics and chemistry researchers, as well as three companies, the institute expects to grow over the next two years to host 450 researchers -- including more than 150 students -- and 15 companies.

"Businesses are already seeing the benefit of working with Bio21," said institute director Prof Dick Wettenhall, pointing to the example of CyGenics (ASX:CYN), an anchor tenant at the Bio21 business incubator. "The company has initiated two clinical trials for cancer treatment planned at Melbourne hospitals. And it plans to initiate research and development into stem cells related drug discovery and screening tools."

US equipment manufacturer Agilent has also made available $850,000 of sophisticated laboratory equipment in the institute's visitors' laboratories, he said.

The University of Melbourne contributed $50 million and Atlantic Philanthropies $30 million to the institute, with the federal Department of Health adding another $9.5 million.

-- Ruth Beran attended the opening of Bio21 today. We'll present follow-up reports in coming days.