Argenta

An 'interactive' relationship

“It’s great that the Government agencies like NZTE and TechNZ bank on the innate ability of New Zealanders to succeed globally. Support from those entities improves the chances of New Zealand companies making it in international markets,” says Doug Cleverly, CEO of animal health company Argenta.

Founded in 2006, Auckland-based Argenta works with multi-national pharmaceutical companies and smaller start-up firms to develop products for use in animal health. It exports its products and services to 59 countries around the world.

It has a state-of-the-art manufacturing facility on the outskirts of Auckland and a US-based subsidiary, AlcheraBio, which carries out contract research into animal health products and technologies.

NZTE began working with Argenta soon after the company was formed and Cleverly describes the relationship as ‘interactive’. “They use their brains and come to us with ideas.”

One example is an NZTE initiative to introduce the idea of consolidated purchasing to reduce company expenditure, with the agency coordinating meetings between ‘the big four’ - Douglas Pharmaceuticals, Bomac Laboratories, New Zealand Pharmaceuticals and Argenta.

“While it is more aptly named the big three, with Argenta as small fry groupie, there is nothing small fry about the potential savings that can be had from the interaction. We are working to dovetail our ordering of raw materials, consumables and the like and are getting much better prices as a result. The move has the potential to save Argenta NZ$150,000 in the cost of consumables alone.”

Encouraging Argenta to enter business awards was another NZTE suggestion that has paid dividends. Argenta made the Deloitte list of the 50 fastest growing companies in New Zealand in 2009 and won the Enterprising Manukau Excellence in Exporting Award in the same year. In 2010, it was named the NZBIO Emerging Company of the Year.

“Combined with improved staff communications, winning these awards has been part of a paradigm shift in our business culture. Our staff are proud to work for the company and we take time out to celebrate as a team. Raising our profile has helped everyone who works here buy in to our vision.”

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Attracting new business through Beachheads

Argenta joined NZTE’s North America Beachhead in 2007. Cleverly says the impetus was the need for better links in what had become Argenta’s largest market.

“I had worked in the US for some years and we were getting a lot of work through a contract research company there (which we subsequently acquired) but we didn’t know how to get other business out of the US, especially in manufacturing.”

Argenta has tapped into the networks of members of the Beachheads Advisory Board to make connections into large US companies leading to new work, particularly in research and development but also contract manufacturing. “The gestation period is longer with manufacturing – because of the huge barriers to change you have to present a very compelling reason for someone to move to a new manufacturer.”

Beachheads advisors have given strategic advice to Argenta and were instrumental in its purchase of US-based contract research organisation AlcheraBio. “It was a big call for us but the advisors pointed out that we couldn’t afford not to do it. We were getting millions of dollars of work from AlcheraBio and if someone else bought it, we could have lost that revenue.”

Beachheads advisors have also introduced Argenta to an ex-pat New Zealander who has worked in the US for many years and has specialist knowledge in the company’s field. He is helping Argenta implement its business strategy and may be appointed as an advisor to the Argenta Board of Directors.

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Funding provided in 2006/2007 by TechNZ, the business investment programme of the Foundation for Research, Science and Technology, has been crucial to Argenta’s export success.

The NZ$130,000 investment helped Argenta employ a US Food and Drug Administration (FDA) consultant to gain FDA-approval for its manufacturing facility. As a result, it has been able to clinch deals for millions of dollars of manufacturing work.

“There were additional spin-offs too,” says Cleverly. “The whole exercise promoted a very high level of pride in the company, making Argenta a much better place to work.”

In 2010, TechNZ approved further investment of $2.1 million to help Argenta undertake a challenging project to produce a fully degradable controlled release bolus for use in sheep and cattle. Existing slow release devices include components such as plastic wings that remain in the animal’s system.

Cleverly says the TechNZ funding will help get the product to market faster. “It’s not just about the money though. TechNZ staff challenge our thinking and the application process makes you focus on concrete deliverables. That’s good for your business.”

Cleverly says the return on investment by both NZTE and TechNZ in Argenta is ‘many hundred percent’ but there have also been other, less tangible outcomes.

“It’s pretty lonely out here at times and there are discussions you can’t have with your staff or your board members. Having these relationships with our NZTE and TechNZ client managers are really important – they get what we are about, are on our side and are pro our business.” 

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Argenta company details

Location: Auckland
Staff: 125 permanent and 20 casual in New Zealand and 15 in the United States
Markets: Exports to 50 countries
Exporting: 75 percent of its products and services exported
Revenue: over NZ$40 million
Website: www.argenta.co.nz