Biotech company looks to raise $2m

Earl Stevens

Biotech company ICPbio is expanding into human pharmaceuticals as it makes plans to list on the New Zealand exchange.

The company makes products for use in animal reproduction, health and the fine biochemicals field. But managing director Earl Stevens wants to expand ICPbio's involvement in human pharmaceuticals.

"[We're] doing our damnedest to grow into that as fast as possible," Stevens said.

Work is under way to upgrade quality systems to meet US Food and Drug Administration and European EMEA standards.

The company's business plan also includes expansion into international markets and acquiring distribution rights for animal health products.

The back-door listing is expected to take place in early April if approved by the shareholders of proposed vehicle Australasian Property Holdings Group.

If the listing is successful Australasian Property Holdings will be renamed ICP Biotechnology.

The Henderson-based company, founded in 1983, wants to raise up to $2 million through a share placement to fund new plant, equipment and provide working capital.

ICPbio plans to invest a total of up to $5 million during the next 12 to 18 months. It is projecting a revenue for the 15 months ending March of $3.5 million, which it expects to rise to $22.8 million in 2007.

The increase in revenue will come from "new serum products, increased protein production and contract manufacturing," Stevens said.

"If someone spends $800 million on bringing a new drug to market they may or may not succeed but they'll use our products on the way through. So we are one step back from the firing line."

Stevens said animal plasma fractionation - the separation of plasma into its protein components - had been ramped up from 300 kilos to 1500 kilo each week during the last six months and the company was looking to double capacity later in the year.

One tonne of plasma is worth a few thousand dollars but about $200,000 when separated into its protein components, he added.

Despite the fact ICPbio exports more than 95 per cent of its products, primarily to North America and Europe, Stevens was keen to see the company list in its home market.

ICPbio sources its biological raw materials in New Zealand and sees the country's reputation as environmentally clean, safe, secure and disease-free as a competitive advantage.

The local stock market was considered sufficient to meet the $2 million of capital being sought. Listing was preferred to using private equity and venture capital options, he said.