NZ firms join hunt for biotech investment

Leading New Zealand biotech companies will be looking to grab some of the global spotlight when they front up at Bio 2006 in Chicago today - the biotech industry's equivalent of the Cannes film festival.

New Zealand Trade and Enterprise (NZTE) director of biotechnology Chris Boalch said the world's biggest biotechnology conference would provide an opportunity for more than 30 Kiwi companies to forge partnerships, raise capital and sell products.

More than 20,000 people are expected to attend the conference, which last year pulled in 1500 companies from 24 countries.

The NZTE has funded a pavilion which will house the Kiwi stands.

"It's all about showcasing the companies," Boalch said.

New Zealand has one of the world's fastest-growing biotechnology sectors.

Statistics released last week show income from biotechnology for the 2004-05 financial year was $811 million compared with $675 million the previous year.

Exports of biotechnology goods, services, processes and knowledge for the 2004 financial year were valued at $108 million.

But the Ernst & Young Global Biotechnology Report - also released last week - found that New Zealand still faced big challenges in attracting enough capital for its large number of early-stage and start-up companies.

It found the country's isolation and focus on agricultural biotech were often viewed as barriers to attracting foreign investment "since venture capitalists typically like to remain close to their portfolio investments and are more likely to favour health biotech over the agricultural sector".

Boalch said New Zealand and Australia planned to work together at the conference to create a buzz about biotech in the region.

By positioning their pavilions together, the Australasian contingent had created the fifth-biggest hub at the conference.

Kiwi companies represented at the conference include Genesis Research, Livestock Improvement, Pacific Edge, Neuren Pharmaceuticals and Living Cell Technologies.

Partnering with international companies is an increasingly popular way for local companies to develop their technology in foreign markets.

And the conference caters for this by having a dedicated partnering forum.

NZTE has also worked to create a strong link between the local biotechnology sector and the US state of Iowa, with more than 42 partnership meetings organised.

Boalch said: "They've got an agricultural economy; they've got an aggressive international partnership approach and they also have a strong interest in biofuels."

Biofuels - petrol alternatives made from plant matter - are one area where New Zealand companies such as Genesis Research have patented world-class technology.

Science Minister Trevor Mallard, in Chicago as cheerleader, will attend several high-level, strategic investment meetings and presentations.