22 June 2006

New Zealand Trade and Enterprise (NZTE) biotechnology sector director Chris Boalch says that this year’s mission to the world Biotechnology Industry Organisation's annual convention was the most successful of the five NZTE has led to date. Thirty New Zealand biotechnology companies were present at BIO 2006, held the first week of April in Chicago, and the New Zealand delegation represented all facets of the growing biotech industry. Top New Zealand companies, research organisations, government representatives and support services were in the “Windy City” to build relationships, make deals and lift the sector’s international presence.

“Our mission over the last few years has been to raise the profile of New Zealand biotechnology and this year,” says Boalch, “more people came to the stand to talk serious business, rather than just have a look.”

One example of serious business was between the governments and companies of the State of Iowa and those of New Zealand.

“In the last two and a half years,” says Boalch, “we’ve been brokering a relationship with the State of Iowa. It had small beginnings, but trust has developed and there has been a lot of commitment of energy – both from government and companies. In Chicago, there were 26 direct partner meetings between New Zealand and Iowa companies. There was a set of meetings with Minister Mallard around investment structures between New Zealand and Iowa on how to help provide capital to drive the sort of opportunities that are coming through.”

Other regions at the meeting also expressed interest in setting up a similar strength of alliance with New Zealand, says Boalch, including the State of Illinois and the Canadian Province of Manitoba.

Alliances don’t happen overnight and Adam Podmore, Investment New Zealand Biotechnology business development consultant, explains that part of the measure of BIO’s success is in making contacts that lead to long-term relationships. BIO’s business forum, for example, is like speed dating for companies looking to partner: in Chicago, there were 10,031 meetings involving 1,476 companies.

That first meeting is important but just like any relationship, Podmore reminds us, investment partnerships evolve, and it’s too soon to know exactly what has come out of the partnership meetings at BIO 2006.

But one deal was signed in real time at the Chicago meeting. Initiated last year between Ovita and IMBcom (the commercialisation arm of the University of Queensland's Institute for Molecular Bioscience), a collaborative research agreement focusing on characterising a series of molecules involved in the regulation of muscle growth in humans, was finalised at BIO. Ovita’s CEO, Damian Camp, said that it signalled the beginning of a very promising long-term collaboration. Boalch believes this is the first time a direct deal has been signed by a New Zealand company at the industry meeting.

New Zealand has one of the world’s fastest growing biotechnology sectors and income from biotechnology for the 2004–2005 financial year was NZ$811 million, up from NZ$675 million for the previous year. Overseas investment is showing confidence in New Zealand’s fast-growing sector, made evident through specific investments in New Zealand companies. For example, last year’s highlight was Antipodean Pharmaceuticals, a clinical-stage pharmaceutical company, raising capital to a total investment of NZ$23 million; investors in the company come not only from New Zealand but also from Australia (GBS Venture Partners) and the United States (including Delphi Ventures, 5AM Ventures and Versant Ventures).

While the company’s operational base is in New Zealand, during BIO 2006, Antipodean announced the opening of its corporate headquarters in San Francisco. The next month, Antipodean announced that MitoQ, its lead compound for the treatment of Parkinson’s disease, will enter Phase II trials, which will be led by Dr Barry Snow, the head of neurology at Auckland Hospital.

Antipodean is the most recent in the list of New Zealand biotechs with a potential blockbuster in the development pipeline. Economic development minister Trevor Mallard attended high-level strategic investment meetings and presentations at the Chicago conference and says, “BIO 2006 is a tremendous opportunity for New Zealand’s biotechnology companies to show they are producing world-leading products.”

For more information please contact:

BIO@investmentnz.govt.nz