August 3, 2010

New Zealand invests US$2.1 million in animal health company

The New Zealand's Foundation is investing US$2.1 million into Argenta Ltd to support the development of an improved device to administer multiple doses of drugs to cattle.

The device is expected to lower costs to farmers worldwide. The investment by TechNZ, the Foundation's business development programme, will help Argenta Ltd to commercialise a bolus (drug delivery device) that is fully degradable, unlike current commercial boluses with hardware components that remain in an animal's stomach.

The improved bolus will also allow the controlled administration of multiple drugs for up to 100 days, and will be produced at a lower cost than current products.

The initial outcome of the TechNZ investment will be an anthelmintic (parasite-killing) cattle boluses, but the applications of the new technology could also extend to the delivery of greenhouse gas control products to ruminants. Richard Bentley, Foundation group manager, Manufacturing & High Growth Firms, said the investment will lead to increased revenues to New Zealand.

Bentley noted that the market size for animal pharmaceuticals targeting worm control alone is around US$4.5 billion.

Argenta Ltd chief executive officer Doug Cleverly said a degradable bolus system that leaves no residue in the animal has strong appeal particularly in the EU, one of the company's target markets.