Botry-Zen plan stalls

By IRENE CHAPPLE

Shares in biotech company Botry-Zen dropped 4 per cent yesterday after cold water was poured on its plans to merge with Pharmazen.

Botry-Zen chairman Dr Max Shepherd said yesterday it was too early to make the move, but the companies would start sharing management resources next month.

The Dunedin-based companies have been developing natural biotechnology products and want to merge to improve efficiencies.

Botry-Zen, whose share price dropped from $1.25 to $1.20, has patented a biological control for the grape disease botrytis. Pharmazen has a number of colostrum-based health products for humans and animals.

Shepherd said merging was "premature" while Botry-Zen was still in a developmental phase with its product.

They had been advised to wait until Botry-Zen's product was "in the market and making money."

However the companies, which have directors in common, were working closely together.

Sharing management resources would begin when Pharmazen chief executive Charles Williams, left on February 20.

Williams was setting up his own consultancy and would not be replaced in the short term.