Growing science and research companies

That’s according to Larry Stenswick, CEO of Christchurch-based Migco Pharmaceuticals.

Stenswich says New Zealand has great depth in its science capabilities.

In drug development, for example, it’s possible to grow a company to return $300 million to $400 million in three to four years, he says.

“Most of the companies have offices in the US. You have to be big enough to be recognised.

“New Zealand is not on people’s radar [so] it’s much more difficult for investors to see a value proposition: they don’t have experience with the country.

“It’s a unique challenge for New Zealand companies.”

New Zealand produces numerous science and research successes.

In October 2008, for example, Auckland-based Living Cell Technologies Ltd gained conditional approval for a clinical trial to transplant pig cells into diabetes patients to stimulate insulin production.

In the same month, Marlborough company Carbonscape revealed its patented industrial microwave charcoal know-how.

The technology captures large amounts of carbon dioxide from the atmosphere to help reduce the impact of global warming.

Also in October, Marlborough company Aquaflow Bionomic Corporation announced it has developed a way to turn streams laden with nutrients and green micro-algae into acceptable drinking water.

The system could also be used to convert the algae into next-generation fuel.

Stenswich’s own company, Migco Pharmaceuticals, is developing a preventative and treatment drug for migraines.

It plans to trial the drug – a derivative of Pinus radiata bark – early in 2009 and is working through US Food and Drug Administration stages.

When approved for sale, the ingredient would be produced in New Zealand, Stenswick says.

“We’re optimistic about what we’re doing and about New Zealand.

“It will require patience and major investment to make things happen here. But we have the science and also our unique ability in approaching and solving problems.”

Leveraging offshore conferences

Migco was one of 13 New Zealand companies to attend the AusBiotech08 industry conference in Melbourne in late October 2008.

Another AusBiotech08 attendee – Selwyn Yorke, market development manager of New Zealand Pharmaceuticals – says he leveraged the conference to advertise his company’s capabilities as a contract manufacturer.

“American companies don’t know where New Zealand is: let alone that we are a long-established manufacturer of pharmaceutical intermediates and ingredients for pharmaceutical, biotech and diagnostic clients,” he says.

“We offer secure manufacturing according to Good Manufacturing Practice in a cost-competitive environment.”

Yorke says New Zealand Pharmaceuticals’ main interest is in long-term manufacturing contracts when products reach phase three stage.

Most Australian and New Zealand companies are too small for his company he says, although his firm does have a strategic alliance with Industrial Research Ltd’s GlycoSyn.

“It’s a highly competitive market with strong loyalty to US and European manufacturing.

“India and China make it hard too but our close national relationships with Australia are useful.”