By SIMON COLLINS
Investors from four continents are eyeing New Zealand's growing biotechnology industry.
Teams from Israel and Ireland have visited local biotech companies, universities and research institutes in recent weeks.
In addition, a Trade NZ investment manager, Nick Arathimos, reports "strong interest" from Asian investors arising out of a biotech investment
mission in May to Singapore, Malaysia, Hong Kong, Taiwan and China.
"There may be, within the next six weeks to two months, several of those people visiting New Zealand to meet with the companies and institutions that we were talking to them about," Mr Arathimos said.
"They are serious, and they are going to prove that by jumping on a plane and coming here."
The rising interest in New Zealand reflects the worldwide view that biotechnology - and specifically, new products and processes based on understanding the genetic structure of plants and animals - is the next big technological revolution, following on from computers and communications.
Countries such as Australia, Singapore and Taiwan are investing billions of dollars in genetic research.
The Israeli mission to New Zealand in March was organised by Trade NZ with Krukziener Venture Capital, a new company formed by the developer of Auckland's Metropolis apartment hotel, Andrew Krukziener.
As a result of that trip, Israel's Clal Biotechnology is looking at 10 possible investments in New Zealand.
Irish investors Thomas McDonogh & Sons were here in May and June and have set up a five-person team in Auckland to analyse potential NZ investments in both agricultural technology and biotech, including vaccines.
Galway-based McDonogh is one of Ireland's biggest privately owned companies, with an annual turnover of £100 million ($331 million), mainly in agricultural technology and fertiliser.
Chairman Dr Thomas McDonogh also has extensive interests in racing, and has sponsored the $250,000 McDonogh Stakes (formerly the Railway Handicap) at Ellerslie for the past three years.
His NZ agent, Thomas Lawlor, said the Irish company had earmarked £20 million ($66 million) to invest in New Zealand and was looking at finalising deals within six months.
"They think the country is on the way up over a long period of time, and now is the time to come in and do some serious investment here," he said.
"He sees New Zealand as 20 years behind Ireland in terms of the development side of things and, despite the high tax system, still sees investment as quite good here."
From Asia, Mr Arathimos said the strongest initial interest was from Singapore and Taiwan, but a large company in Shanghai was also interested in investing in nutriceuticals (foods with specific health additives) and herbal medicines.
In Europe, Finance Minister Michael Cullen was calling on the London headquarters of pharmaceutical giant GlaxoSmithKline to discuss its plans to invest in New Zealand biotech companies and to hear its plea for Pharmac to pay more for subsidised medicines.
The chief executive of the company's NZ subsidiary, Peter Schweikert, said three senior executives from the group's research and development company would visit New Zealand in September to meet local biotech firms and take part in two forums with the Government.
But he said the group could not afford to manage local biotech projects unless it earned higher returns from selling medicines here.
Britain's PPL Therapeutics, which has invested between $7 million and $10 million so far on breeding transgenic sheep near Whakamaru, on the Waikato River, is waiting for the report of the Royal Commission on Genetic Modification on July 27 before deciding on its long-term plans.
Its farm manager at Whakamaru, Mike Aitkenhead, said a multimillion-dollar milking and processing facility for its 3500 sheep was in the design phase.
If its trials are successful, the company plans to buy a second farm and could eventually employ about 25 people at each site. It now has 14 staff at Whakamaru.
The commercial manager of AgResearch's Celentis subsidiary, David McCall, said he was working with United States investors who had now visited several times.
Dr William Rolleston, of the industry group Biotenz, said there was also interest from Australian investors, although Australian Government initiatives made them more interested in what was happening on their own side of the Tasman.
Between 350 and 400 international delegates are expected in Auckland in November next year for the eighth Pacific Rim Biotechnology Conference.
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Catching the Knowledge Wave
By SIMON COLLINS
Investors from four continents are eyeing New Zealand's growing biotechnology industry.
Teams from Israel and Ireland have visited local biotech companies, universities and research institutes in recent weeks.
In addition, a Trade NZ investment manager, Nick Arathimos, reports "strong interest" from Asian investors arising out of a biotech investment
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