Botry-Zen announces half-year loss

Despite today reporting a half-year operating loss of $781,000, Dunedin-based biotechnology company Botry-Zen is looking to expand.

The company said the loss for the six months ended September was in line with its budget. For the same period last year the company reported a net loss of $126,000, which included a one-off gain of $466,000 from the sale of its Dunedin manufacturing plant.

The company, which is commercialising a natural biological agent to control the fruit-killing fungus botrytis cinerea, said the half year had been a busy period.

"In Europe and in California the interest in the Botry-Zen project and our corporate activities has not abated in any shape or form and recent in-market discussions with potential international partner organisations have been concluded in a most satisfactory manner," the company said in a statement.

Botry-Zen is planning offshore field trials and registration in the United States by early 2007 and in Europe by early 2008.

These trials and registration will be funded through a recently announced renounceable rights issue which will raise $4.2 million.

The funding will also be used to expand the company's production capacity this year to meet demand from the New Zealand market.

The board said in a statement it was aware of the "rather negative investor sentiment" towards biotechnology at the moment, but would like to think in coming months the investment markets would recognise its solid foundations.

- NZPA