Skip to page content >
23 June 2006
French venture capitalist Bernard Gilly was in for a shock when he visited New Zealand in February. Gilly, a partner at Paris-based Sofinnova Partners, spent a week touring the country after speaking at the annual NZBio conference and, though he admits there is often a “criminal tendency” to believe nothing is going on in our part of the world, he was intrigued to see what New Zealand science and technology had to offer.
“It was really surprising,” says Gilly, “that a small country – in terms of the number of people – can produce results that are comparable to what’s coming out of Europe and the US.”
As an investor, Gilly looks for opportunities across the sector and he explains that what interested him most was coming to a part of the world that very few people look at, and discovering new companies in which he may eventually invest. Since Gilly’s visit, Sofinnova is in discussions with a number of New Zealand biotech groups.
Sofinnova isn’t the only European company paying attention to New Zealand. There is an ongoing and increasing interest by European pharmas, biotechs and investors says Jean-Francois Cury, Investment New Zealand investment manager for biotechnology in Europe. Most leading New Zealand biotechnology firms have increased their European visibility by attending major annual European events such as Bio Partnering London, BioEurope, Medica and BioSquare, explains Cury, who identifies four main reasons why Europe has responded favourably to exploring partnerships with New Zealand companies and research and development teams:
Hot on the heels of the World Bank identifying New Zealand as the easiest of 155 countries to do business in, Oco Consulting conducted a benchmarking study earlier this year that confirmed the speed and cost advantages of conducting biotechnology work in New Zealand.
Cury explains that the study, which compared the strengths and the weaknesses of Auckland and Dunedin with eight international biotechnology clusters (Singapore, Sydney, Shanghai, Boston, Montreal, Cambridge (UK), Munich and Stockholm), looked at three areas: research and development, manufacturing and clinical trials.
The study is currently being finalised, but results suggest that New Zealand’s competitive edge – combined with its strong research and development base – should facilitate the attraction of both new foreign direct investment and VC investment in New Zealand companies, as well as land new manufacturing and clinical trial contracts.
As further evidence of European interest in New Zealand biotechnology, the Dumont d’Urville Collaborative Science and Technology Support Programme was set up in November 2005. The programme, which aims to foster alliances between biotechnology and nanotechnology researchers in New Zealand and France, is funded 50:50 by the two governments. Rick Peterson, of the international team at the Ministry of Research Science and Technology, explains that each government contributes NZ$60,000 annually. One funding round has been completed, with three researchers in each of the two scientific fields receiving grants. The fund does not cover research costs, but travel, workshop and supportive expenses of researchers working jointly.
When it comes to venture capital funds, says Cury, most European investors would consider direct investments in New Zealand firms only if they have a sister company or subsidiary located in Australasia or on the west coast of the United Sates. Sofinnova has a west coast sister company and is also considering an Australasian office. Conversations are still underway, says Gilly, and the office would probably be in Asia to oversee the region. But Gilly, who admits it’s a long haul to get here, looks forward to his return. “Most global investors are either already looking at New Zealand and Australia as a continent, or will be in the near future,” he says, “I’ll definitely be back.”
For more information, please contact:
jean-francois.cury@investmentnz.govt.nz
+ 33 1 45 00 59 72
