By GEOFF SENESCALL
Biotech researcher A2 Corporation is understood to have offered around $5 million to the Child Health Research Foundation for its rights to research linking milk with the onset of diabetes and heart disease.
The pair are believed to be in the final stages of negotiations to secure the foundation's
share of the patent relating to A2 milk, which is claimed to lack harmful proteins.
Both parties declined to comment yesterday on a potential deal, which would effectively up the ante in the high-stakes battle between the Dunedin-based A2 Corporation and the co-owner of the patent, the Dairy Board.
A2 Corporation - with the backing of South Island multimillionaire Howard Paterson - claims that it has its own patents over A2 milk relating to work done by a Dr Corran McLachlan.
A2 Corporation wants to commercialise the production of the A2 milk in a bid to cream profits from the $8 billion dairy industry.
The Dairy Board, however, believes its patents are robust.
While it is still in discussions with A2 Corporation, it has lodged an objection with the Patents Office in Lower Hutt challenging the validity of patents taken out by the Dunedin company.
The Dairy Board took out its patents on A2 milk back in 1997.
They were taken out with the Child Health Foundation after research by Professor Bob Elliott identified an A1 protein in milk.
Professor Elliott called for cows with A1 protein - 75 to 80 per cent of the national herd - to be phased out in favour of cows with A2 protein.
