Paterson #3 heads for private placement

Friday 27th July 2001

Howard Paterson

By Chris Hutching

A third biotechnology company is being launched by Dunedin entrepreneur Howard Paterson at the same time as his Blis Technology company is listed on the Stock Exchange.

Blis arrives on the local bourse on Monday and is commercialising research that prevents a range of serious infections like streptococcal throat.

Another biotech company, A2 (NBR, July 20) is also due for listing soon.

The new company, which also has plans for eventual listing, is Botry-Zen and a prospectus is in the process of being registered.

A site has been bought in Dunedin for manufacturing.

The key people are Mr Paterson and former University of Otago biology Professor Max Shepherd, whose Dunedin company Zenith Technology Corporation conducts clinical trials and develops, manufactures and markets animal health products.

The technology discovery is a biological control agent that prevents bunch rot in grapes. This is a major problem for the wine industry, costing $18 million a year in sales and $12 million a year to control.

The disease is also known as noble rot and grey mould and is arguably the biggest disease problem confronting the international wine industry.

One of the main attractions of Botry-Zen is that it is organic rather than chemical-based and controls botrytis without affecting the plant.

The Wine Institute, which is a research partner in the venture, believes the cost savings just to the local industry will be considerable and immediate.

Research was undertaken by HortResearch as part of the Winegrowers of New Zealand research programme, which is jointly funded by the Wine Institute and the New Zealand Grapegrowers Council.

It was facilitated by support from the Foundation of Science, Research and Technology, through Technology New Zealand.

Laboratory tests and field trials by HortResearch have shown the biological control agent is effective against Botrytis cinerea and successful field trials have been undertaken between 1997 and 2000 in selected vineyards in Hawke's Bay, Gisborne and Marlborough.

The botrytis discovery may also help Mr Paterson with his development plans for 2000ha of grape plantings in the Waitaki Valley east of Kurow. Trial plantings have begun.

Meanwhile, Blis recently raised $6 million from institutions, placing 8.25 million shares at 73c each. The money will be used to develop Salivaricin B products and other bacteria-fighting substances from the large group identified by Professor John Tagg, of the University of Otago. The university is Blis' biggest single shareholder with 20%.

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