AgResearch reports increased growth

AgResearch is continuing to develop scientific discoveries into world-leading products, according to its annual report.

The 2005/2006 report showed wide-ranging commercial and scientific progress during an exceptional year, chief executive Andrew West said.

"In just 12 months we helped create six joint venture companies and doubled our income from licensed IP (intellectual property)."

At $13.5 million, AgResearch increased its net profit after tax by just under $10 million from the previous financial year. This result was substantially influenced by the sale of its subsidiary AgVax and represents a return of almost 15 per cent on shareholders' funds.

AgResearch also achieved 5 per cent growth in underlying scientific and commercial revenue and paid a $5 million dividend to its government shareholders during the year.

Commercial achievements noted in the report include:

- AgResearch's role in the development of BioPacific Ventures, New Zealand's first dedicated agricultural biotechnology venture capital fund.

- The establishment of Phytagro, a joint venture between AgResearch and US venture company Finistere Partners.

- The sale of AgResearch's 100 per cent subsidiary animal health company AgVax.

- Progress on commercialising the ground-breaking Sniffertech technology in the ContainerScan joint venture, which promises to revolutionise biosecurity inspection methods for shipping containers.

- Evolution of the Ovita Consortium led to the creation of a new Ovita joint venture with Meat and Wool New Zealand and three commercial companies in which AgResearch holds equity: Catapult, Orico and ParaCo.

- Significant progress on the construction of buildings to house the Hopkirk Research Institute, an animal health research collaboration with Massey University.

- Signing of a memorandum of understanding with Otago University for establishing the National Centre for Reproduction and Genomics.

- Establishment of the EpiGen partnership, with Auckland University's Liggins Institute, England's Southampton University and the UK Medical Research Council.

Other collaborations with organisations such as PGG-Wrightson, Meat & Wool New Zealand and Dexcel were evidence of the organisation's re-engagement with the pastoral sector, Mr Christie said.

- NZPA