12 April 2006
Trans-Tasman biotech projects receive funding
Economic Development Minister Trevor Mallard today announced $2 million in grants to the New Zealand partners in two key
trans-Tasman biotechnology projects, under the Australia New Zealand Biotechnology Partnership Fund.
Trevor Mallard made the announcement in Chicago, where he is supporting New Zealand companies attending BIO2006, the
world's largest annual biotechnology event.
"The $12 million Australia New Zealand Biotechnology Partnership Fund is designed to assist and accelerate collaboration
between the New Zealand and Australian biotech communities. The two projects funded today, involving New Zealand
companies Keratec and Livestock Improvement Corporation respectively, bring the total number of large-scale projects
funded to six," Trevor Mallard said.
The Labour-led government has been targeting biotechnology, as well as information communications technology and the
creative sectors as areas with high growth potential.
"It is imperative that the New Zealand biotechnology sector builds on its strong foundations as the government continues
to work with business to further transform New Zealand into a high-income innovative economy.
"The world-class research and innovation coming out of New Zealand must be commercialised in a strategic way. This
partnership fund assists organisations looking to work with others in the region – a region that is already the world's
fifth largest biotechnology hub and that is emerging as a global player.
"This initial funding will ensure these projects grow much faster than they otherwise would and will contribute to
projects of a far greater scale.
"In 2003, the private-sector Biotechnology Taskforce also identified trans-Tasman partnership as a priority. Through
collaboration, New Zealand and Australia stand to make significant progress in the biotechnology field. The two projects
represent opportunities for considerable growth available to New Zealand biotech companies that take a collaborative
approach."
The projects are:
· In collaboration with Australian Biotechnologies, Keratec will commercialise its patented bone graft technology
that helps bones to heal faster, cleaner and more naturally than existing biomaterials on the market. The technology
uses Functionalized Keratin™ - a natural product extracted from wool.
The global market for bone grafts is projected to grow substantially over the next few years and the funding will help
Keratec establish a significant presence in that market. The grant is worth $1 million over three years and is
contingent on Keratec putting in $1 million of its own money and in securing a matching contribution of $2 million from
its Australian partner Australian Biotechnologies.
· Livestock Improvement Corporation, in collaboration with Australian firm Innovative Dairy Products Pty Ltd, will
use cutting edge technology to identify genetic traits in some dairy cows that give them more metabolic efficiency,
which enables higher milk production. Until the genotyping technology became available in mid 2005, the costs of such a
project would have been prohibitive.
The research could lead to significant increases in diary cow productivity through genetic selection. The grant is worth
$1 million over three years and is contingent on Livestock Improvement Corporation putting in $1 million of its own
money and in securing a matching contribution of $2 million from its Australian partner Innovative Dairy Products Pty
Ltd.
Under the fund, grants are made to New Zealand organisations participating in the approved projects with funding tied to
project work. At this stage, the grants are conditional on satisfaction of certain conditions and agreement on project
milestones and eligible costs.
ENDS