Genesis forms new company

By LIAM DANN

Genesis Research has completed the conversion of its plant science division into a standalone company - AgriGenesis Biosciences.

Chief executive Jim Watson said the move was important to make the real value of Genesis more transparent to investors.

About half of the company had been dedicated to plant sciences yet analysts and investors had consistently failed to factor that into the value of the company.

"The market has viewed us primarily as a one-product company and that's just not the case," he said.

Genesis' fortunes have tended to rise and fall on the progress of its psoriasis drug PVAC.

Results from crucial clinical trials of the drug are due in the next few weeks.

There was actually greater scope for short-term product development in the plant business than in the health business, Watson said.

AgriGenesis will have its own chief executive, Dr Peter Lee, reporting directly to the Genesis board.

The company has long-term goals to develop a bioethanol industry in New Zealand but already has several revenue streams. These include designing software to analyse plant DNA and biological controls for plant diseases like botrytis.

"We have licensed technologies to other parties so there will be revenues through fees and milestones," Watson said.

AgriGenesis will eventually become a listed company in its own right with shares being allocated to existing Genesis shareholders.

In the interim, AgriGenesis will look to raise its own capital.