Business, science merge in joint project

Auckland University's Peter Hunter (left) and Duane Malcolm (right) with William Randle from New Zealand Diagnostics. Photo / Greg Bowker

Some of New Zealand's best-known business and scientific minds have combined forces with the Government to help establish a new life science technology businesses.

Lion Foundation chairman Mike Smith, Rakon's Bryan Mogridge and former ANZ broker head William Randall are three of the names behind New Zealand Diagnostics - a company which has finalised a relationship with the Government's New Zealand Seed Investment Fund.

That fund was set up in 2005 to co-invest in start-up businesses alongside private investor groups.

Randall, spokesman for NZ Diagnostics, said those involved in the group came from a medical or scientific background and wanted to use that knowledge and experience to help further the development of companies in the life science sector.

So far they have invested in three businesses - two of which have emerged from New Zealand universities and a third, private company.

Randall said the tough economic climate meant it had to be particularly careful about companies it selected.

"In the current economic environment the market is difficult - it is worthwhile being careful because cash is a scarce commodity."

Randall said it had selected Auckland University business Ebonz because of its unique offering and high level of expertise.

Ebonz, which stands for Evidence- Based Orthopaedics New Zealand, is the culmination of 20 years research at the university's bioengineering institute. It began with research into computer modelling of how the heart, lungs and intestines work and moved into other parts of the body.

A grant from the government to look at skeletal modelling saw it move into bones and joints and now it is hoping to provide ways to help surgeons better fit implants such as hip and knee replacements.

Peter Hunter, Auckland University's Bioengineering Institute head, said the investment enabled it to show the institute could get an economic outcome out of its research and had the potential to provide more jobs and wealth in New Zealand.

Hunter said one of the issues in New Zealand was the lack of investors with a scientific understanding.

"If you don't have a really technical knowledge and understanding of what you are investing in it's very hard to make a good investment."

Randall said the potential of Ebonz was enormous.

While it will match the Government's funding with $250,000, Randall said there was no specific amount of time or money it would put into Ebonz.

"It's not just a question of throwing dollars at it," Randall said.

Investors also offered their knowledge of business and science and contacts to get the business running.