The nation's biggest science company, AgResearch, is to sell its most successful offshoot, AgVax.
Set up in 1993, immediately after Government departments were restructured on private enterprise lines, AgVax markets and distributes vaccines developed with AgResearch to boost pastoral productivity.
The company's product range includes Toxovax, Androvax, Yersiniavax and CampyVax3.
AgVax will be sold as a going concern in a tender process that will be overseen by PricewaterhouseCoopers.
AgResearch is aiming to complete the sale process by the end of June.
In 2002 AgVax was growing at an annual rate of 120 per cent and was named as one of the 50 fastest-growing companies in New Zealand.
But AgResearch chairman Rick Christie yesterday said the time had come for AgResearch to step aside in favour of other players in the market who were better placed to take the business and grow it to its full potential.
"Our role is primarily in the development of new technologies, products and businesses that benefit the pastoral sector," he said.
"It ends once those technologies, products or businesses reach a stage where they show efficacy, are safe, useable and meet a need in the market."
Christie said the decision was "in line with a general intention for crown research institutes to divest themselves of subsidiaries that would be better positioned in the private sector".
Some rural commentators said the sale was surprising because of AgResearch's expressed desired to build science clusters with universities, and one strength of AgVax had been its developing relationship with Massey University .
The head of Massey's veterinary faculty, Professor Grant Guilford, has said the relationship between Agresearch, Massey and AgVax would add increased value to the veterinary/farming sector.
- NZPA
