Blis Tech just weeks away from listing

Thursday 12th April 2001

By Chris Hutching

Biotech company Blis Technologies is to list on the main board of the Stock Exchange within weeks after signing a contract yesterday with Otago University researchers.

The deal paves the way for a share placement and a joint venture with Zenith Technology.

Blis was set up late last year by Dunedin entrepreneur Howard Paterson who was approached by researchers at Dunedin University seeking to commercialise intellectual ownership of organisms that prevent streptococcal throat infections.

The first shares were issued to various individuals and 15% of the capital was placed with another of Mr Paterson's companies, listed Southern Capital. An initial flurry of trades saw the price soar to $2.20 but in recent months the shares have changed hands at around 70c.

To bring the company to the market, Mr Paterson appointed David Parker, who said yesterday the company looked as if it would be a "runner."

A share placement to various individuals and institutions to raise up to $7 million is under way and a joint venture with Zenith Technology has been signed.

Zenith has offices in Auckland and Dunedin and carries out clinical trials and develops health products for humans and animals.

It will carry out trials and obtain regulatory consents for Blis.

Under a new contract the 15% royalty on Salivaricin B products payable to Otago University has been extinguished in exchange for the university taking a 20% stake.

Mr Parker said the benefits of commercialising Salivaricin should be significant because strep throat was responsible for about 30% of children's visits to doctors.

Blis takes ownership of all rights to the extensive collection of organisms collected over many years by Professor John Tagg. The company plans to develop products that would combat afflictions like mastitis, acne and boils.

Professor Tagg and a new appointee, director of science Chris Chilcott, have taken offices in Otago University's new Centre of Innovation for Applied Research.

Mr Parker said Professor Tagg was regarded as the foremost researcher in his field and the products that would result would be among the "crown jewels of New Zealand biotech."

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