Auckland biotech firm CoDa Therapeutics has received the inaugural NZBio Deal of the Year Award, in recognition of the company’s outstanding success over the past 12 months. The award was announced at the annual NZBio Conference Dinner in Auckland on Monday 12 March 2007.

“This is the first year that NZBio has bestowed an award for Deal of the Year and we were very impressed by the level of interest as well as the diversity of entries in this new category. We received nominations from across the biotech spectrum; from human health and nutrition to mergers and fundraising to cancer therapy,” NZBio’s CEO Brian Ward says.

CoDa Therapeutics has developed two novel platforms for tissue repair; Nexagon™ for topical application to wounds, and Peptagon™ which is being developed for systemic delivery and the treatment of stroke, cardiac ischemia and inflammatory diseases.

Over the past year CoDa has formed a strategic alliance with a US partner, Mr Brad Duft, who has become the company’s president and CEO, established a base in San Diego, and raised significant venture capital funding for its drug development work. Together, these factors have enabled CoDa to move forward very rapidly in a relatively short space of time.

To date, CoDa Therapeutics has raised $US20M in Series A venture capital funding with Domain Associates and GBS Venture Partners. Nexagon™ could be commercialised by 2010, with potentially large economic benefits to New Zealand through royalties.

“Entries were judged on five criteria, the first of which was the financial impact of the deal,” Mr Ward adds.

“Secondly, the deal’s strategic importance to New Zealand was considered, and how it will help strengthen the company overall. The next measure was barriers overcome, or any obstacles that were dealt with before the deal could be successfully completed. Judges also considered teamwork, and how the cooperative efforts of several individuals helped achieve the end result.

“And finally persistence. Long time frames are one of the hallmarks of the biotech sector and it could be said that patience and perseverance are prerequisites for any aspect of this industry. CoDa stood out because of several factors, including the persistence of Dr Colin Green over a number of years to take this technology forward, the first round fundraising of US$10 million, which is substantial even by US standards, and the company’s plans to run the first clinical trials in New Zealand.

“We congratulate Dr Green and his colleagues at CoDa Therapeutics on receiving this inaugural award. Their hard work and achievements have deservedly won the New Zealand biotech sector’s recognition.”

The other award nominees were:

Speirs Nutritionals

Speirs Nutritionals was established in November 2006 to target the growing worldwide demand for omega-3 oil-enriched food products and supplements. The company is a joint venture of Manawatu-based interests, and is commercialising a world-leading patent-protected micro-encapsulation technology developed by the Riddet Centre, a world-class functional food research group based at Massey University. The technology allows very high levels of fish-derived omega-3 oil to be delivered in a variety of food products with no fishy taste or smell.

Speirs Nutritionals will manufacture omega-enriched emulsions for world markets, and license technology solutions to the world’s leading food companies. This will be strategically important to New Zealand’s future participation in the growing US$50billion global functional food market and expects to generate several millions of dollars in annual sales.

Healtheries of NZ Ltd

Healtheries is a company which has quadrupled in size over the last 8 years, growing from a NZ Health firm with minimal exports to an Australasian Health & Wellbeing company with an extensive portfolio covering the key drivers of the nutritional industry such as sport, organic, health foods and supplements. In 2006 after 15 years of private ownership they were put up for sale.

In a deal that took just four weeks, Healtheries was combined with Nutra-life, the number one health company in the healthfood and pharmacy channel in NZ and healthfoods in Australia, to create the largest Health & Wellbeing business in Australasia. Financially this is significant for NZ, in terms of the revenues that the combined company can generate and strategically it provides a powerful platform for growth both in Australasia & globally.

Vital Food Processors Ltd

Vital Foods’ principal activity is processing fresh fruit, particularly kiwifruit, into a range of high value functional food and nutraceutical products for world markets. The company has taken up the challenge of developing products to harness the bioactives present in kiwifruit and to do this based on best practice science and clinical development, with the current focus on products that enhance digestive health.

Vital has a proprietary and patented method of extracting and stabilising a protease enzyme complex from kiwi-fruit with strong evidence of efficacy and safety in relieving symptoms of digestive dysfunction. After extensive consultation with and an investment of $7 million from Auckland venture capital firm, BioPacificVentures, Vital Foods is planning clinical trials in digestive disorders, the successful results of which will be used internationally to promote Vital products and support the sales and marketing efforts of its partners.

Proacta Therapeutics

Proacta is a clinical stage biotech company focused on the discovery and development of small molecule pro-drugs for treating critical unmet needs in oncology. The company’s lead candidate is PR-104, a pro-drug compound that targets hypoxic cells in tumours.

In January this year Proacta announced the successful completion of a US$35 million series B financing deal, after a year of intensive lobbying, personal visits, road shows, offers and negotiations. This money will enable Proacta to complete current phase 1 trials as well as two important phase II trials with PR-104, and will help enhance New Zealand’s profile in the global biotechnology and investor communities.

WaikatoLink

Comvita is a NZX listed Natural Health Care products company founded on honey and bee products. Therapeutic Honey has been a major growth area for Comvita and it is anticipated that revenue from these products will increase significantly, especially as honey wound dressings gain market penetration in the United Kingdom.

Brokered by WaikatoLink, the University of Waikato’s commercialisation office, this deal recognises the expertise of Professor Peter Molan, who has spent many years investigating the healing properties of honey. WaikatoLink has sold and licenced to Comvita:

Patents connected with the antibacterial and other properties of manuka honey New patents related to the extraction and isolation of the active component, and additional wound gel patents IP rights for future product development in the wound and skin care fields.

With upfront payments of $3.5 million, plus future royalties, the total value of this deal stands to be significant and includes the opportunity to promote the New Zealand honey industry and brand in high value international markets.

Pictured: Dr Colin Green receiving his award for NZBio Deal of the Year from Minister for Economic Development, Trevor Mallard.