NZ bio calls for $650m biotech bridge; SA govt approves incubator

New Zealand’s biotechnology industry wants the NZ government to establish a NZ$650-660 million, taxpayer-funded bridge between the nation’s research laboratories and its biotech business sector.

Brian Ward, CEO of the biotechnology industry association NZBio, said the pre-seed capital fund was essential to build a viable biotechnology industry in New Zealand.

Ward said New Zealand shared the problem of all industrialised nations: the reluctance of private investors to back new ideas in the earliest phase of commercial development.

This was properly an area for investing taxpayer funds, on the basis that the creation of new biotechnology companies would benefit the national economy and employment, he said.

The NZ Government has established a NZ$4.5 million pre-seed fund, but it is spread across all research disciplines.

A consultants’ report commissioned by NZBio in 2003 had found a large imbalance between the level taxpayer funds invested in early-stage research and development, and the funding required to develop innovative ideas to the point where they became attractive to private investors.

The report had estimated the shortfall at $50 to $60 million. Ward agreed that this was a substantial amount for the NZ economy, but was small compared to the amount of money invested in early-stage R & D.

Scientist-entrepreneurs seeking to commercialise their discoveries might need to find some level of private investment to secure a grant from the proposed pre-seed fund.

Ward said NZBio estimates the biotechnology industry is already worth $400 to $500 million a year to the NZ economy, and is aiming to increase this figure to $1 billion by the end of the decade.

Ward said that if New Zealand couldn’t develop a world-class biotechnology industry, it would adversely affect the nation’s primary-production sector.

Go-ahead for SA incubator

South Australia’s state biotech industry agency BioInnovation SA is moving rapidly to build Australia’s first biotech business incubator at its Thebarton Bioscience Precinct, after the SA Government approved a $9 million investment in the project.

The 2000-square metre facility will provide office space, a laboratory and storage space for up to 15 start-up companies, for a maximum of three years. The incubator will also provide access to shared equipment, specialist advice from bioscience business mentors, and meeting facilities.

Ann Nelson, director of biotechnology infastructure for BioInnovation SA, says companies will be selected on the quality of their science and IP porfolio, and market opportunity, the calibre of their management team, and the level of external funds raised.