Wednesday, 07 December 2016 07:45

Synthase Biotech gets funding injection

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New Zealand investors have swung behind Synthase Biotech with an injection of $800,000 in the start-up’s first capital raising outside of its founding group.

Synthase Biotech has developed a unique enzyme that it has trademarked as AloxsynTM, which remediates damage from oxidation of fats in cell membranes.

The company’s first target market is the dairy industry, but sees its technology eventually embracing human health too.

Chairman Mark Backhaus says the initial focus is on enhancing the survival and longevity of sperm from bulls used in the dairy industry and on improving the ability of cows to conceive.

“However, AloxsynTM is a ‘platform technology’ that can be applied in many situations, including extension of shelf life in foods, providing longer storage of human organs and tissues for transplantation, or biopsy, and in human health itself,” he says.

The capital raise attracted angel investment networks Enterprise Angels in Tauranga and Hamilton and Ice Angels in Auckland, as well as the New Zealand Venture Investment Fund. Existing investors also reinvested in this round.

Backhaus says the investment follows extensive due diligence.

“The new injection of capital allows us to accelerate our scientific and IP development programmes, as well as our commercialisation effort,” he says. “Synthase has had an exceptional 12 months, including winning a grant of $950,000 from Callaghan Innovation and being listed as a finalist in the NZ Innovation Awards.”

Dr Andrew West, Synthase’ executive director, says the biotech firm has begun separate research programmes with two multinational livestock genetics companies and one in New Zealand, as well as now being in discussion with others.

“We are also talking with animal health companies and food companies as commercial interest in AloxsynTM grows,” Dr West says.

Dr Steve Hodgkinson, who is the chief technology officer, says AloxsynTM is performing well beyond his team’s expectations.

“Our initial focus on artificial insemination in the global dairy industry will expand into reproduction in beef cattle, pigs, horses and eventually humans,” he says. “Feasibility studies have also commenced on extending the shelf-life of high value export foods. “

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