Biotechnology Opportunities in New Zealand February 2005

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Biotechnology Opportunities in New
ZealandFebruary 2005
www.investnewzealand.govt.nz
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Quick Facts - New Zealand
AREA ( UK or Japan) 271,000 sq km POPULATION
4 million (60,000 Indian) Auckland 1.3
million (40,000 Indian) Wellington (Capital)
0.5 million Christchurch (South Island) 0.5
million Unemployment 3.8 Real GDP US 86
million GDP / capita US21,500 CORPORATE TAX
RATE 33.0 University Enrolments
450,000 Graduates 85,000
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Investment NZ

• NZ Government investment attraction agency
• Specialist unit within NZ Trade and Enterprise
• Team of 40 professionals at 9 locations
• Auckland Wellington, New Zealand
• Sydney Melbourne, Australia
• Singapore
• Hong Kong
• London, UK
• Los Angeles New York, USA
• Otherwise working through (48) NZTE offices

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What we do

• Promote NZ value proposition in global markets
• Support business strategies - increase the
  quality and quantity of investments - add value
  to the economy
• Match international opportunities with NZ
  economic development needs
• Coordinate investment attraction/promotion
  activities acting as single point of government
  contact for foreign investors
• Add value to NZ business through providing
  assistance and research advice, international
  alignment and focus, consistency and build
  networks and partnerships to facilitate foreign
  investment

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How we assist companies

• Facilitation
• Cut through government red tape
• Introductions - Economic Development Agencies,
  Service providers, Companies, Regulatory
  authorities
• Strategic Investment Fund (SIF)
• Projects over 50million 3 years or 200 new jobs
• Disbursed at INZ discretion
• Feasibility studies up to 100,000 for ½ costs
• Visiting Investor Programme (VIP)

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Biotech successes

• Pharmacia (Pfizer) Endocrinz (Neuren)
• PPL Therapeutics farm
• GSK Medical Research Institute NZ
• Birnie capital Protemix
• Iglobe - Treasury VIF
• Roche and Genentech - Proacta
• Inventages Life Sciences Ventures VIF
• Nupharm

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AUCKLAND
HAMILTON
PALMERSTON NORTH
WELLINGTON
NELSON
CHRISTCHURCH
DUNEDIN
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New Zealand Biotechnology Sector Overview

• Government - key economic sector
• 50 companies, 8 Universities, 11 research
  institutes
• Biomedical excellence in cancer, diabetes,
  immunology, neurological, metabolic disorders,
  nutrition, biomodels
• Leading technology underpinning agriculture and
  food production, health related foods and natural
  products
• Worlds best animal health rating for animal
  sourced bioproducts
• RD history- animal/plant breeding,
  environmentally sustainable production.
• Glaxo of GSK founded in NZ Wilkins - Nobel
  laureate DNA structure Liggins steroids for
  premature infants Murdock - inventor disposable
  syringe

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Supportive Environment

• Government is a strategic supporter of RD -
  facilitation public/private partnerships
• Innovative, highest research standards US, UK
  and Europe _at_50 cost
• Simple tax environment
• No payroll, social security, capital gains or
  regional taxes
• RD 100 tax deductible depreciation on IP costs
• High Standard Corporate Governance
• Audits, high economic freedom, low corruption
• Neutral foreign policy - seeking free trade
  agreements, IP protection WIPO and Trips
  compliant

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Opportunity Areas

• Healthcare drug discovery, manufacture,
  clinical studies, biomedical research,
  bioprospecting, medical devices, health IT
• Animal products (serum, proteins, enzymes
  antibodies) disease-free, high security and
  traceability
• Agbiotech sheep, dairy, deer, pasture, fruit,
  crop and forestry environmentally sustainable
  production of food biomaterials, bioprocessing
• Natural products, nutraceuticals functional
  foods
• Bioinformatics, structural biology, forensic
  services, waste treatment

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Biopharmaceuticals - cardiovascular, type 2
diabetes and metabolic disorders. Laszarin,
orally active small molecule, developed for
diabetes related heart disease in Phase IIb
trials. Preclinical peptide hormones for
diabetes CEO - Larry Ellingson (Eli Lilly / US
Diabetes Assn) Founder, President, CTO - Prof
Garth Cooper University of Auckland, (Amylin)
Chairman - Keith Mansford (GSK) Birnie Capital
series A 20m in 2003. USA - series B /
licensing, partners other markets www.protemix.co.
nz
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Cancer therapy physiologically targeted drugs
Low oxygen - hypoxic regions in solid tumors
Broad portfolio of IP - 9 chemical
families. Profs Bill Wilson Bill Denny
University of Auckland, 15years experience - 6
drugs developed Collaboration with Professors
Martin Brown Amato Giacca - Stanford
University CEO - Paul Cossum (NewBiotics, San
Diego) Series A in 2004 8million (Roche,
Genentech, GBS Ventures, No8, Endeavour) for
phase1 clinical trials www.proactatherapeutics.com
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Neuren pharmaceutical
Biopharmaceuticals - neuroprotection and repair,
growth metabolism regulation 5 patented
families compounds - key indications for stroke,
head injury, Parkinsons, cognitive impairment,
multiple sclerosis, and growth and metabolism
disorders Lead Glypromate phase 1 Professor
Peter Gluckman (FRS) Liggins Institute,
Auckland Partners Pfizer, Duke University (NC)
Walter Reed Army (MD), University Texas and
Metabolic Pharmaceuticals (Australia) CEO David
Clarke Listed ASX, - licensing, investment
partners www.neurenpharma.com
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Biologics for inflammatory or atopic disorders -
skin (psoriasis, dermatitis), lung (asthma),
autoimmune (lupus), tuberculosis and
cancer. Genomics based discovery and immunology
- dendritic, T and B cells. Products Zyrogen
lupus, YB1 cancer, RNAi - autoimmune Listed
NZX and ASX CEO Stephen Hall Founder Dr Jim
Watson (ex University of Auckland) Product
development partnerships www.genesis.co.nz
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CoDaTherapeutics
Wound healing connexin protein targets -
prevent lesion spread, inflammation and scarring
to improve recovery. Patented antisense
technology demonstrated in preclinical models -
skin lesions, burns, cornea damage and spinal
repair. Incorporate into wound
dressings. Seeking strategic alliances, funding,
licensing (specific indications or
markets) Professor Colin Green - University of
Auckland and Dr David Becker University College
London. CEO - Aki von Roy (former President BMS,
Europe) www.codatherapeutics.com
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Cancer diagnosis and management - develop genetic
based markers for rapid, accurate and
non-invasive tests (serum, tumour, urine) Focus
- Gastric, Bladder, Endrometrial, Colorectal
cancers Established - NZ Seed Fund (VC), listed
NZX. Pharmaceutical and other partnerships
Professor Tony Reeve University of Otago CEO
David Darling www.pacificedgebiotech.com
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Living Cell Technology (LCT, Listed on ASX,
research facilities in New Zealand, Australia,
Italy and office US Encapsulated living cell
products, treatment of Huntington's disease,
haemophilia and insulin-dependent diabetes. New
Zealand hosts worlds most advanced porcine herd
therapeutic transplantation. Focused primarily
early stage research manufacture product
pre-clinical and clinical studies, virology
department set world standard for porcine cell
characterization Products Portfolio
include NeurotrophinCell a choroid plexus cell
product, Fac8Cell a liver cell product aimed at
treating haemophilia, DiabeCell a porcine
pancreatic cell product treatment
insulin-dependent diabetes
www.lct.com.au
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NZ manufacturer pharmaceuticals skincare,
arthritus, diabetes, cardiovacular, digestive,
pain, sports, cosmetics, nasel, dietary. Solid
oral and liquid dose forms TGA (Australia),
Ministry Health (NZ) MAF - licensed Marketing
alliances and distribution Pfizer, MSD, Ego,
IBI, Nutricia, Serono, Eli Lilly, Solvay Duphar,
Mundipharma Privately owned, 2 manufacturing
sites, CEO - Graeme Douglas. Inquiries for
manufacture, development and testing
www.douglas.co.nz
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HMG is part of the Australian based API group
2000 product lines pharmaceuticals, natural
products, beauty/toiletry products Develops,
manufacture/ markets own products contract
manufacturing Markets including, Australia, North
America, the UAE, Europe, Malaysia, Hong Kong,
China, Taiwan, Korea and the Pacific Islands
Australian Pharmaceuticals Industries recently
announced shift manufacturing base from Sydney to
Auckland Kim Campbell - CEO www.psm.co.nz
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NuPharm Laboratories pharmaceutical development
with contract services (formulation, clinical
and stability batch manufacturing).Operating
from Deeside, North Wales and Hamilton, New
Zealand. Provide flexible services full turnkey
projects to individual projects. Steve Tickle
and Will Gould www.nupharmlabs.com
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www.liggins.auckland.ac.nz

• Biomedical and Clinical Research
• Pregnancy and Labour
• Fetus and Newborn
• Brain and Behaviour
• Growth Development and Aging
• Established after Prof Mont Liggins steroid use
  lung development in premature infants
• Profs Peter Gluckman and Jane Harding
• Spin offs Neuren (Neuronz and Endocrinz) and
  Brainz

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Auckland Cancer Society Research Centre
New drugs for cancer treatment Six compounds
licensed / clinical trials Targets Immature
vasculature solid tumors Protein products of
genes Improved cytotoxic drugs - more targeted /
less toxic Profs Bill Denny, Bill Wilson, Bruce
Baguley Spin off Proacta Therapeutics
www.health.auckland.ac.nz/cancer/
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Anatomical and biophysical - mathematical models
for human physiology (genes organs) Computer
models for drug development - CellMLTM
Computational bioengineering tools, platform
development Collaboration Physiome
Project Founder Prof Peter Hunter www.bioeng.auc
kland.ac.nz
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Neurodegenerative diseases
Gene therapy (decoy and antisense DNA, peptide
nucleic acids) neurotrophins for prevention
neuronal death Stem cells brain and spinal cord
repair in response to injury NZ neurological
human brain bank extensive collection Molecula
r biology and anatomy of Huntingtons,
Alzheimers, schizophrenia, Parkinsons and
epilepsy Profs Richard Faull and Michael
Dragunow
www.auckland.ac.nz
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Human immune system - particular emphasis on T
cells Developing new forms of therapeutic
vaccines for cancer, particularly melanoma
Leading synthetic chemists to design and produce
novel formulations of vaccines capable of
stimulating antigen-specific T cells, for
pre-clinical testing in our lab using human
tissue and cells.  
Associate Professor Rod Dunbar
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Cancer Genetics
Dissection - genetic events that lead to cancer
Wilms tumour - errors in genomic imprinting
involved in tumourigenesis Mutations in the
E-Cadherin gene define a cancer syndrome known as
hereditary diffuse gastric cancer, involved in
early onset of gastric cancer in New Zealand
families Professor Anthony Reeve Spin Off
Pacific Edge Biotechnology Ltd
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Biomedical research Wellington Immunological
Mechanisms of Asthma, Multiple Sclerosis, Cancer,
Infectious Diseases (TB, RSV) Biodiscoveries
group
Mouse and rat colonies for cancer, asthma and
neurological Collaboration Malaghan Institute and
AgResearch
www.malaghan.co.nz
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MOLECULAR MEDICINE AND PATHOLOGY
Focus - ways molecules regulate the human immune
response in both normal and disease
states Bacterial and super-antigens Crystallizing
superantigens with soluable MHC class II and T
cell receptors, producing a transgenic mouse to
study the superantigens function further and
searching for novel superantigens Prof. John
Fraser, Head of Medical Sciences
www.health.auckland.ac.nz/molmedpath
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NEUROLOGICAL DISORDERS
www.auckland.ac.nz
Parkinsons Disease - development of novel genetic
models of disease and investigation of the
mechanisms underlying Parkinsons
neuropathology FDA approval - worlds first
human phase 1 clinical trial using a gene therapy
approach for Parkinsons disease. Prof. Matt
During and Dr Deborah Young
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STRUCTURAL BIOLOGY
Protein Structure and Function Part of
international initiative Mycobacterium, as
cause of TB Bioinformatics, gene cloning and
expression, protein purification and
crystallization, 3D structural analysis by X-ray
crystallography, and functional assay techniques
to characterise potential new drug targets
gaining a better understanding of the biology of
this devastating human pathogen Prof. Ted Baker
www.sbs.auckland.ac.nz
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Phase I II Clinical Trial Centres
Dr Richard Robson Phase I/II studies Renal,
other Roche established / other clients
Dr Shaun Holt Prof Richard Beasley Phase I/II
Respiratory, other GSK established / other
clients
Medical Research Institute of NZ
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Other Clinical Trials Groups
Epidemiology, biostatistics, project data (IT)
management clinical trials heart, stroke,
other www.ctru.auckland.ac.nz
Beltas CRO Services all phases, NZ regulatory.
Focus European Biotechs www.beltas.com
Clinical schools Auckland, Wellington,
Christchurch, Dunedin
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NZs leading medical device company Products Resp
iratory humidification, Obstructive sleep
apnea Neonate incubators Operating theatre
(patient warmers, nerve stimulators) NZX ASX
listed www.fphcare.com
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Neonatal brain monitor for intensive care in
premature infants prevention of brain injury
(Cerebral Palsy) Developed by Professor Chris
Williams, University of Auckland. BRM-2 brain
monitor Owned by Tru-Test (NZX listed) CEO Dr
Justin Vaughan Distrubution partners and
investment www.brainzinstruments.com
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Biomatters creates software, to fill market-gaps
in the biotechnology industry. Products ISEQ
Cheesecake
ISEQ worlds first framework for integrating
different data sources, while using research
agents that update results as you are
analysing Creates order-of-magnitude time
saving, cuts down supercomputing power required
to run genome-genome analysis.
www.biomatters.com
www.reeltwo.com
Text mining tools solving some of hardest
problems facing life Science researchers,
bioinformaticists, IP analysts Products
Classifier, SureGene, SureChem, Entity Extractor
NZ Centre of Excellence Uni. Of
Auckland/Agresearch Research areas Genomics,
Evolutionary Genomics, Conservation/Foresic
Genetics, Genetic Epidemiology, Applied
Bioinformatics, Application Dev..
www.bioinformatics.org.nz
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(cGMP) certified manufacturer of natural
biochemicals - extracts from plant and animal
raw materials. Products for pharmaceutical,
dietary supplement, cosmetic, biotechnology,
diagnostic and aquaculture uses. Include
- (plants) Actinidin, D-Pinitol, Echinacea
extract and ProenOthera (animal) bile
derivatives - cholic acid, deoxycholic acid and
dehydrocholic acid (and salts), cartilage extract
including chondroitin sulphate and other
glycosaminoglycans, proteins, peptones and thymus
extracts. Contact - Selwyn Yorke www.nzp.co.nz
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www.richmond.co.nz
Serum, blood, other biologicals and organs from
meat processing bovine, ovine, caprine, and
cervine stock. Leading supplier of fetal calf
serum. NZ accorded No. I status by the European
Union in respect of BSE and related
diseases By-products an important business
sector for Richmond Richmond keen on
partnerships to develop new product lines
Suppliers to Invitrogen and Hyclone
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www.southpacificsera.co.nz
Animal blood products (serum and proteins)
custom made antibodies for use in therapeutic,
cell culture, microbiology and immunology
application Quality assured produce products
solely from donor sheep, cattle, goat Products
SeraPac, HaemoPac, ImmonoPac, PlasPac Markets
Asia, Europe, North America
Symansis Ltd
Signalomics platform - drug development and
disease diagnotics establishing signal pathway
targets using high activity polyclonal
antibodies produced for commercial supply in
sheep. Prof. Peter Sheppard
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www.biodiscovery.co.nz
High through-put screening natural products from
NZ terrestrial and marine microbes for control of
Agriculture pests and diseases. Chemistry,
protein analysis, toxicology and
formulation Sensitive and highly miniaturised
screens against a panel of agricultural test
organisms representing a wide range of plant and
animal pests and diseases Advanced flow
cytometric capability in plant and mammalian
cellular physiology
Andrew Broadwell and Peter Wigley - Directors
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www.agvax.co.nz
Business subsidiary of AgResearch RD Develops,
markets and distributes vaccines Animal health
products for sheep, dairy/beef, deer, horses,
pigs, dogs and cats
Other producers of animal vaccines in NZ include
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Animal health, animal welfare, biosecurity,
conservation for sustainable pastoral farming
productivity Research programmes food safety
quality, spatial epidemiology, emerging diseases,
wildlife health conservation, reproductive
management diseases, locomotion
musculoskeletal rehabilitation, mycobacterial
diseases, nutritional management animal
production and diseases. Cost-effective,
integrative (pasture-to-plate) applied research
to Internationally recognized quality standards
(GLP) Primary Sponsor Pfizer
Professor Grant Guilford www.ivabs.massey.ac.nz
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www.fonterra.com

• World's largest exporter of dairy products
• 13 billion litres of milk processed with 2
  million tonnes of dairy products produced
  annually, 1,000 ingredient products to the
  international food industry
• Marketing Innovation Group Fonterras
  research and development group adding value to
  NZMP products.

• Subsidiary of Fonterra
• Identification, discovery, commercialisation
  genes for improving milk production, composition,
  animal health, and pasture grasses
• Interdependent platforms based around bovine and
  forage genomics

www.vialactia.com
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Discovery bioactives from milk for human health
Therapeutic dietary products from milk for
conditions osteoporosis, infectious diseases and
various inflammatory disorders, including asthma,
inflammatory bowel disease,diabetes, and
atherosclerosis JV Fonterra University of
Auckland partners Seeks partnerships for
development IP www.fonterra.com
Food and Food components affect health at the
molecular Genetic level by using nutritional
genomic methods 1st Target - Crohns disease
Collaboration, Auckland Uni., Hortresearch,
Agresearch and Crop Food  
Prof. Lyn Ferguson
www.nutrigenomics.org.nz
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Tatua Nutritionals division focused three key
product areas ingredients specialist nutrition,
healthcare products bionutrients customised
biopharmaceutical applications
Tatua Nutritionals specialty ingredients include
spray dried milk proteins (caseinates, whey
protein concentrates), protein hydrolysates and
freeze dried biologically active proteins
(lactoferrin and lactoperoxidase).
Produces nutritional formulations, tablets and
capsules containing bioactive ingredients.
Novel therapeutics and diagnostics proteins
discovered from decades of sheep breeding
Parasites and disease lead candidates to
control parasites and selected diseases in
livestock species through genetic diagnostics,
vaccines and novel anthelmintics Muscle
development increasing production in intensive
livestock production systems extending to human
diagnostic and therapeutic applications targeting
muscle growth disorders Reproductionproducts
control mammalian fertility by increasing
ovulation or inducing reversible sterilisation
www.ovita.co.nz
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BLIS - acronym for Bacteriocin like inhibitory
substances - natural antibacterial
peptides/proteins for the control of
Streptococcal throat infection, chronic bad
breath, dental caries, ear and other
infections. BLIS K12 product throat guard - based
on S. salivarius and Salivarian B Professor John
Tagg, University Otago 20 years RD CEO Kelvin
Moffat (ex Boots) Listed NZX. Licensing and
distribution partners www.blis.co.nz
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Biotechnology company - production and marketing
A2 MilkTM and milk products Dr McLachlan
correlation - A2 beta casein, natural milk
protein variant with improved human
health. Developed simple efficient (IP protected)
means to incorporporate the protein in cows
milk. CEO Andrew Clarke. NZX listed. Licensing
and distribution partnerships www.a2corporation.c
om
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Bioactive products for health and
wellbeing Extracts - deer velvet antler,
botanical (phytoeostrogens and antioxidants),
animal (aprotinin) and marine oils Aged related
and womens health, sports recovery
performance MAF and NZFSA certified - Free TSEs
and Foot and Mouth disease CEO Ross Keeley.
AgResearch - key RD provider Contracts,
licensing and partnerships www.bioproductsnz.com
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Pure NZ colostrum (powder, capsule, tablets CEO
Trevor Lock Distribution partners www.purenz
Botanical compounds for health. Enzogenol
products Safe antioxidant extract from pine
bark Intl sales. Private Co. Partnerships and
investors. CEO Larry Stenswick www.enzo.nz
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Canterbury and Nelson Nutraceuticals
Cluster Botanical (Echinacea, red clover,
mullein, St Johns wort, manuka oil, valerian,
hawthorne, alfalfa, horopito, wheat and barley
grass) Bee (propolis, pollen, venom, manuka
honey) Marine (Greenshell mussel powder, shark
cartilage, abolone powder, pacific oyster powder,
shark liver oil, omega 3 fish oil) Other (deer
velvet, hydroxyapatite, chondoitin sulphate,
bovine cartilage, glandular extracts, blood
products, emu oil) Contract Manufacturing
private label, drying, grinding, freeze drying,
milling, blending, bottling/ labeling,
encapsulating, tabletingExtraction - Water,
Solvent, CO2, Alcohol, Countercurrent,
Maceration, Cold Pressing, Contract growing and
seed multiplication, Raw material suppliers,
Research and Development/Consulting www.nutraceuti
cals.org.nz
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• Natural Product Cosmetics (all natural
  ingredients)
• Skincare, colours cosmetics, womens and mens,
  oils, balms, soaps, ache pain relief, hair
  care, health supplements
• No synthetic preservatives paraben free
• No harmful ingredients
• Herbicide, pesticide and GM free
• No animal ingredients or testing
• Bioactive ingredients
• Recycleable, reusable packaging
• Manuka oils, honey etc, scientific testing
• Distribution partnerships and joint ventures
• www.livingnature.com

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Apple, Kiwifruit, Berryfruit, Stonefruit New
varieties and products Gene discovery pest,
disease and stress control, development,
signalling, flavour, nutrition. Bioactives
nutrigenomics CRI formed 1992, 500 staff, RD and
commercial Partnerships
www.hortresearch.co.nz
Biomaterials, Pine tree breeding, genetics, DNA
markers, wood quality, Flowering control
www.forestresearch.co.nz
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BioProcessing Natural Products - identification,
extraction and processing for cosmetic, health
supplement and biochemicals Biochemical
technologies carbohydrate chemistry, molecular
structure analysis, separation technologies,
organic natural product chemistry, chemical
synthesis, fine chemicals, pharmaceuticals and
agrochemicals GlycoSyn small molecule cGMP
synthesis Carbohydrate Chemistry design,
synthesis and characterisation IRL Biopharm
manufacturing secondary metabolites for biotech
and pharma. CEO Nigel Kirkpatrick
www.irl.cri.nz
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Marine organisms Bio-actives
Biodiversity native animals and plants
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Pharmaceutical, Forensic, Health, food,
environment monitoring
Bio-prospecting extreme environments
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Life Science Ventures Venture Capital fund
focus on life sciences in New Zealand and
Australia Agbiotechnology, Agriculture, Food
Technology and Health Partners Direct Capital,
Celentis, Inventages, Queensland State Bill
Kermode www.lifescienceventures.co.nz
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iGlobe Treasury Fund - backed by New Zealand and
Singapore governments - one of the four Venture
Investment Funds (VIF). Tony Bishop
www.iglobetreasury.com
Endeavour Capital - develop globally competitive
companies based on science and technology
innovations (biotechnology, software and medical
sectors) Neville Jordan www.ecap.co.nz
No 8 Ventures VIF technology fund Jenny Morel
www.no8ventures.co.nz
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NZ Investments
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Dr Bret A M Morris Investment Manager -
Biotechnology Investment New Zealand New Zealand
Trade and Enterprise bret.morris_at_investmentnz.gov
t.nz www.investnewzealand.govt.nz 64 9 919 9045