Govt funds biotech companies collaborating with Australian firms

Two New Zealand biotechnology companies working in collaboration with Australian companies are to get $1 million each in grants, Economic Development Minister Trevor Mallard announced today.

The money was coming from a $12m pool of funding designed to help New Zealand companies working with Australian biotech companies on projects, he said.

Today's announcement brought the total number of large-scale projects funded under the scheme to six.

The two New Zealand companies receiving the grants are Keratec and Livestock Improvement Corporation.

Mr Mallard said Keratec would collaborate with Australian Biotechnologies to commercialise its patented bone graft technology, which used a natural product extracted from wool.

The funding would help Keratec establish itself in the growing market for bone grafts.

Its grant was worth $1m over three years and was contingent on Keratec putting $1m of its own money and securing a matching contribution of $2m from its Australian partner.

Livestock Improvement Corporation, working with Australian firm Innovative Dairy Products Pty Ltd, would use technology to identify genetic traits in some dairy cows that gave them better metabolic efficiency enabling higher milk production.

The genotyping technology had only become available mid-2005 and Mr Mallard said the project could lead to significant gains in productivity in dairy cows through genetic selection.

Its $1m grant was under the same conditions as that of Keratec.

- NZPA