State-owned science company sells its star performer

The nation's biggest science company, Agresearch, says it will sell its most successful offshoot AgVax to a Dutch chemical company Azko Nobel.

A wholly-owned subsidiary set up in 1993, immediately after government departments were restructured on private enterprise lines, AgVax is one of New Zealand's most profitable companies in relation to its size.

A decade after its establishment, AgVax was growing at an annual rate of 120 per cent, and was named as one of the 50 fastest growing companies in New Zealand, as it prepared to expand into exporting vaccines.

Today it has just 18 workers but last year recorded a turnover of approximately $20 million.

Financial terms of the takeover have not been disclosed.

AgVax will be run by Intervet -- an animal health arm of Azko Nobel.

Intervet's New Zealand operation is based at Tauranga. With AgVax, Intervet will acquire other vaccines developed with Agresearch to boost pastoral productivity, including Toxovax, Androvax, Yersiniavax and CampyVax3.

Distribution rights for Toxovax have been licensed to Intervet in some overseas markets for nearly two decades.

John McNally, Intervet's Australasian manager, said the takeover would cement a relationship between Intervet and Agresearch going back 15 years.

"Both companies have a similar approach to the market with their respective farmer education programs," he said. Their combined portfolio "significantly improve" Intervet's market position in New Zealand.

Intervet was well positioned to further expand AgVax's animal health product range and boost its research investment, to the benefit of New Zealand farmers.

An added attraction of the deal was the opportunity to have a continuing relationship with Agresearch, which was at the forefront of developing leading edge technology products.

Agresearch decided to put AgVax on the selling block after reviewing its portfolio of subsidiaries.

Ian Boddy, Agresearch's commercial group manager, said: "The decision to offer AgVax for sale is in line with the general intention of Crown Research Institutes to divest subsidiaries that would be better positioned in the private sector".

- NZPA