Wrightson to invest $14m in biotech venture

Wrightson is to invest $14 million in a new international venture capital fund being set up to invest in food and agriculture life sciences.

Wrightson and Nestle will be the cornerstone investors in the fund, which is currently at $100 million.

The fund is called BioPacificVentures and is managed by Direct Capital together with AgResearch and life sciences venture capital manager Inventages Venture Capital.

The fund will have its first close in March, but further investments of up to $50 million will be accepted.

Wrightson said its investment in BioPacificVentures would be made over approximately six years, and anticipated the investment would have a total lifespan of 12 years.

The fund invests in life sciences companies with business in New Zealand and Australia at any development stage, with a focus on prevention, nutrition and agbiotech.

Wrightson chief executive officer Barry Brook said in a statement Wrightson had an important role to play in supporting new technology and new businesses related to agriculture.

"It (investing in the fund) enables us to fulfil this role using specialised external capability, and thus allow our management to continue to focus on driving cashflow from today's businesses," he said.

Mr Brook said the investment was complementary to Wrightson's existing biotechnology research, which was focused on improving seed varieties.

Mr Brook said the investment completed the realignment of Wrightson's interests in biotechnology research and development, which had also involved the recent sale of the company's shareholding in Genesis Research & Development Corporation and the establishment of a trans-Tasman collaborationto develop and commercialise improved varieties of ryegrass and tall fescue.

Shares in Wrightson were up 4c to $2.05 in morning trade today, having ranged between $1.17 and $2.20 over the past 12 months.

- NZPA