ACC lifts its Genesis Research holding to 6.89pc

The Accident Compensation Corporation is taking a punt on the success of Genesis Research's latest clinical trials, snapping up more shares ahead of the verdict.
From a holding of 4.98 per cent, the ACC now holds 6.89 per cent of the biotech company. A stock exchange notice confirmed 500,000 more shares were added to ACC's basket via on-market trades on Wednesday. Before this, ACC's holding in the company was not required to be disclosed as it sat below the 5 per cent threshold.

Genesis Research shares are worth 48c each - a fraction of the $7 they fetched during the biotech boom.

After a setback last month when Genesis' British partner SR Pharma said trials of childhood eczema drug SRP299 had failed, ACC is obviously hopeful of the latest venture.

Genesis and SR Pharma share joint rights to two potential eczema treatments - SRP299, which was developed in Britain, and AVAC, which was developed in New Zealand.

Hope now rests with AVAC and the results - including the drug's fate - are expected this month.

The company said yesterday that this was still the timeline and declined to comment further.

Last month, chief executive Jim Watson told investors that without any new investment, the company had enough cash to see it through to the end of 2007, but that new partnerships were expected to strengthen the books before then.