Company formed to market enzymes

Press, 9 May 1984, Page 26

Company formed to market enzymes

PA Hamilton A $4 million joint venture linking the University of Waikato, the Development Finance Corporation, and America’s third biggest biotechnology company has been officially launched in Hamilton. The consortium, which will eventually include a New Zealand company, will develop a potentially lucrative export industry based on heat-resistant enzymes produced by micro-organ-isms in Rotorua’s hot pooE. Eighteen months of negotiations culminated in a two-hour news media briefing at the University of Waikato, held mainly to confirm involvement of America’s Genex Corporation in New Zealand Enzymes, Ltd, a development company set up in 1982 by the university and D.F.C. The company expects to employ 100 people by 1989, when iE income is expected to have reached ?12 million a year. Development plans call for a 2415 sq. m manufacturing facility by 1990, in addition to the special laboratory at present under construction at the university. Genex will hold a 25 per cent share in the venture, and will supply the two top executives. The D.F.C.-uni-versity link will hold 50 per cent, with the remainder in

trust pending the outcome of negotiations with New Zealand firms. Genex E expected to send representatives to New Zealand next month. The meeting received telexed confirmation of the company’s deal with the D.F.C. Genex has described ite involvement in the project as “no sideshow, but a keystone in biotechnology development.” The organisms at the heart of the venture were discovered by two University of Waikato scientists three years ago in Rotorua’s hot pools. One at least has since been patented in the United States, and genetic engineering techniques have since been perfected to enable mass production of some of the enzymes. The enzymes, because of their stability at high temperatures, will be marketed as catalysts for a range of chemical and industrial processes, with the emphasis likely to be on food processing, waste treatment, textiles, agriculture, forestry, and energy. Briefing documents describe the Genex involvement as giving New Zealand Enzymes, Ltd, "the benefit of an infusion of American capital, specialised management, and international know-how, providing a secure environment to guarantee further expansion of the New Zealand

research, not to mention valuable research contracts.” The announcement has been welcomed by the MinEter of Science, Dr Shearer. He paid tribute to a “very patient” team of University of Waikato scientists, any one of whom could have accepted overseas jobs during the long delay involved in setting up the venture. Dr Shearer said the Government was investing increasing amounts of money in biotechnology, with about half of this already taken up by the enzyme project. “We are talking about sharing in an international industry that will soon be worth more than $5OO million a year, and it E a bit sad that the process has taken so long,” he said. “But when you are investing the kind of money needed for such a venture, I would expect any company to go over the various checks and balances very carefully.” Dr Shearer said that the project had already received more than $2 million in support from Government agencies, including $652,000 for a special-purpose research laboratory under construction. This amount aEo included a $490,000 research contract with the University of Auckland, where genetic engin-

eering techniques were being developed for mass production of marketable enzymes. Genex Corporation, established in 1977, E America’s third biggest biotechnology research company. With assets totalling $52.1 million, ite revenue comes mainly from proprietary products, enzyme-based cleaning products, food processing, and vitamin production. Overseas research has shown that many of the organisms are unique, and could be the basE of processes not available eEewhere. The enzymes are believed capable of breaking down all forms of cellulose, and could Lj used to produce fuel, ethanol in particular, from forest wastes. While the properties of the enzymes are still being researched, them main advantage will be to open up a range of new industrial processes.