Swiss biotech fund prepares to sign first kiwi deal

Two life science companies are about to benefit from a $1 billion Swiss biotech fund, which is close to making its maiden investment here. Inventages chief executive and chairman Gunnar Weikert said in Auckland yesterday that he hoped to close the two deals this month.

Weikert said life sciences - plant and animal-based technology targeting human therapeutics, agricultural improvements, nutritionally enhanced foods and food safety - was an area in which New Zealand could have "the jump" on other countries.

He said New Zealand was in a strong position internationally because of its plant-derived products, marine-based sources and fungi.

With strong agriculture and food-processing industries, it was well-positioned to tap the growing market for preventive medicine from naturally derived resources - an area in which Inventages was increasingly interested.

The investment comes after two visits and although yet to "see the jewellery here", Weikert was positive about the health of the sector and of future opportunities.

"There's money available if you have a good idea and good results in the lab," he said.

Inventages receives 500 to 800 business plans a year, 16 per cent from Australasia.

The biotech fund co-manages Auckland-based BioPacificVentures, set up in March as the largest in Australasia, and which Weikert hopes will represent 10 per cent of a future portfolio.

He said he was often asked: "Why are you guys down there [in New Zealand]?"

And his reply always was: "It offers excellent research on a cheap price."

However, the country's biotech industry was still in an early development stage - something which was not helped by a lack of specialist funds in the region.