Celentis has focused primarily on commercialisation of AgResearch’s science by forming new technology companies in conjunction with industry partners.  Today it owns or jointly owns eight subsidiaries and associates including fast-growing animal health company AgVax and EnCoate – a joint venture with Ballance Agri-Nutrients to exploit a novel coating technology developed by AgResearch.  

Of Celentis’ eight subsidiaries and associates, four are currently profitable even after reinvesting approximately $3m back into AgResearch’s science each year.  Another two, including EnCoate, were formed last year and have attracted $6.6m in investment capital to seed their growth.  The final two are primarily IP holding companies.  Compared to international benchmarks of commercial outcomes per research dollar spent, the rate of company formation, profitability and growth from Celentis compare very favourably. 

Rick Christie, Celentis chairman said that the Celentis Board has been considering for some months whether Celentis has the potential to play a greater role in the New Zealand biotechnology sector.  “One option is to determine whether the investment component of Celentis’ business could be split off from the rest of Celentis to allow other shareholders to own a part of the business.” he said.  “This would allow each of the investment and commercialisation activities to have a greater focus and faster growth.”

Stewart Washer, Celentis CEO expanded on Mr Christie’s comments. “The current Celentis business could form the core of a unique ‘public / private partnership’ that will to attract private sector investment into early stage biotechnology ventures.  It will be a great outcome for New Zealand biotechnology”. 

Over the next few months Celentis will work though the issues raised by the proposal, including the best way to meet the needs of AgResearch and the broader biotechnology sector in New Zealand.