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Biotech company Symansis is hoping its Australian acquisition will give it a quantum leap in growth.
The company, which has laboratories in Auckland and Timaru, has purchased specialist protein manufacturer Apollo Cytokine Research for A$500,000 ($627,000) from ASX-listed parent company Apollo Life Sciences.
The Australian business develops, manufactures and sells specialist proteins for use in drug research, while Symansis is a developer of tools which help researchers predict the effects - both desirable and undesirable - of potential drugs.
Symansis chairman Andrew Turnbull said it was a "perfect fit".
"Symansis is really just beginning its sales and marketing operations, so to be able to acquire a business with an existing sales and distributor base, and marketing reach ... gives us a huge step forward from where we'd otherwise be."
Turnbull estimates the acquisition will advance Symansis' business by at least two years. It will also help create and build a pool of skilled workers in the commercialisation of diagnostic and research products.
He said the company was already recruiting for three new research positions, with up to 15 new roles expected over the next three years as it grows to its projected five year target of a $15 million plus annual turnover.
The deal sees the transfer of Apollo Cytokine's manufacturing operations from Australia to Symansis' strategic manufacturing partner, South Pacific Sera, in Timaru, where Symansis is co-locating its research laboratories.
"This is a perfect fit with their skills and allows them to build their capabilities further but gives us a more flexible manufacturing base and at a lower cost than would be required if we had to build our infrastructure from scratch."
Turnbull said its laboratory in the University of Auckland will perform the early research and development work, while Timaru will focus on the commercialisation and marketing aspects of the business.
"It's nice to see an opportunity where we're bringing products and skills in a business from Australia to New Zealand, rather than the usual purchase of New Zealand businesses by Australian companies."
Chief executive Peter Foster said the acquisition enables the company to extend its networks through Apollo's distribution agreements in North America, Europe, and Asia.
He said the protein array market, which Symansis competes in, has a global market size of around US$500 million ($660 million) a year and a compounding annual growth rate of more than 30 per cent.
"This is a significant market open to innovation from companies such as Symansis. The combination of this acquisition and our strong scientific base puts us on a very firm footing."
