Sector: Biotechnology

Investment in New Zealand’s niche life sciences companies is growing steadily, a result of sound science finding elegant solutions to increasingly sophisticated consumer demands.

Heading the charge is life sciences venture capital fund, BioPacificVentures. The NZ$103 million fund is supported by strategic and financial investors with global reach and industry-specific expertise. The consortium comprises: premier venture capital firm Direct Capital; New Zealand’s largest government research organisation, AgResearch; and inventages, a Swiss venture capital fund manager with NZ$2 billion under management and strong relationships with Nestlé and many other global food and drug companies.

The largest local investor is Australasian agribusiness PGG Wrightson, followed by the government’s Venture Investment Fund, a testament to the high growth potential throughout the biotechnology sector.

New Zealand is a world leader in food production and has a well deserved reputation for innovative food and health research resulting in new ventures. BioPacificVentures matches this ethos, with a particular focus on opportunities in the emerging “wellness through prevention” market, reflecting the increasing trend in healthcare towards the prevention of chronic diseases.

Opportunities of particular interest for investors include functional and medical foods, nutraceuticals, cosmeceuticals, skin care, dietary supplements, infant and sports nutrition, immune stimulation and anti-aging therapies.

Dr Andrew Kelly, BioPacificVentures Executive Director, says the life sciences area is a particularly healthy landscape for investment. “Both New Zealand and Australia have strong pedigrees in food and are internationally competitive in biotechnology. It’s right where those two areas meet that we stake our claim; a vigorous space and highly investment-worthy.”

Since its inception in 2005, BioPacificVentures has made nine investments, five of which are directly into New Zealand companies. Over half the fund has now been invested, but Dr Kelly says there is no lack of potential and the fund is seeing a continuous flow of good opportunities. Portfolio companies are uniquely positioned to leverage the deep commercial experience and strong network of industry relationships of the BioPacificVentures partners in global nutrition, pharmaceuticals, cosmetics, food and biotechnology.

The largest investor is Nestlé, investing through inventages as part of its own vision to become a nutrition, health and well-being company. Its involvement in the New Zealand-based fund provides a two-way flow to food and health research, and investment opportunities in these emerging technologies.

Investment New Zealand worked with BioPacificVentures to facilitate the relationship with inventages. The result, according to Dr Kelly, is an enhanced ability to operate at the highest level in global markets.

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