It pays to fly under the radar

Doug Cleverly says US experience has helped seal deals. Picture / Greg Bowker

Auckland contract research company Chem Laboratories may be winning recognition and contracts internationally but it is still playing it softly-softly at home.

The pharmaceutical development specialist last week won a contract with US biotechnology company Gel Med Sciences to develop a gel-based formulation for improving the reproductive efficiency of pigs.

Chem fought off competition from several "big players", although who they beat and the value of the contract remain commercially sensitive information in an industry where John le Carre would feel at home.

Chem doesn't even advertise its presence with a company sign outside its 2800sq m site.

Co-founder Doug Cleverly says being "a bit cagey" protects the interests of clients.

"When we get to specifics, we've got to be very, very careful because there's a lot of industrial espionage.

"And things like reports and scrap paper have to be destroyed before leaving the site because people could go through bins and get all sorts of information from here that would make it back to the States, and all of a sudden another company has got the jump on them."

In the two years that the contract is expected to last, Chem will develop a formulation, manufacturing process, packaging and testing methods. Gel Med will carry out clinical testing during the following two years before the product is ready to market.

The "substantial" Gel Med contract builds on credibility gained last year when, after eight months of negotiation, Chem was awarded a five-year deal by pharmaceutical giant Pfizer Animal Health.

The nature of the Pfizer contract, which is centred on the development of a new generation of veterinary products, is also sensitive.

Cleverly says being "under the radar" in New Zealand has helped attract clients keen to keep their latest products quiet.

But it's not secrecy but success that is gaining the company momentum.

"Success is our life blood basically, because we don't have the reputation that these large [competitor] companies have or, at least, not at this stage."

Experience gained working for animal health company Merial in the US from 1998 to 2001 is proving invaluable in sealing the deals.

"I was on the receiving end, I was the person listening to contract research companies like Chemlabs selling their wares," he said.

"So I sort of knew what they needed to hear and it was that experience which gave me the confidence and ability to really make the thing a go."

The specifics

* Who: Doug Cleverly, Chem Laboratories.

* What: Animal pharmaceutical development.

* Where: Auckland-based.

* Why: "It's always been my dream to do exactly what I'm doing now."