31 March 2008

Making bio-plastic from cow dung is one of four Waikato University-developed technologies on which Endeavour Capital is taking a million-dollar punt.

The venture capital company, which specialises in science and IT investments, has put $1 million into four early stage technologies being commercialised by WaikatoLink, the business arm of Waikato University.

The money will be used to turn the four technologies into stand-alone companies, with Endeavour taking a stake of about 30 per cent in each.

Endeavour Capital chairman Neville Jordan said the company normally aimed for about two out of 10 early stage investments to turn into viable businesses and would be satisfied if one of the four was successful.

"Though we'd be happier if two were," he said.

The four fledgling companies are Novatein, which will manufacture plastic from animal waste; OBodies, which will develop a synthetic protein which mimics antibodies and can be used to diagnose and treat a range of diseases; Graftoss, a substance used to fill gaps in bones after injury or surgery and which also provides a mechanism for delivering drugs into the body; and Nouvoa, which turns animal waste into high value compounds used in the pharmaceutical industry.

The worldwide market for antibodies was projected to be US$28 billion (NZ$35 billion) by 2010 so the potential for O-Bodies was huge, WaikatoLink chief executive Mark Stuart said.

Bio-plastics' share of the worldwide plastics market (currently about 5 to 10 per cent) was also forecast to grow as a result of rising prices for oil, from which conventional plastic was manufactured, he said.

Two businesses in Endeavour's portfolio - software developer Ectus and biotech company Zygem - were originally WaikatoLink companies. "They have a very good track record at being able to nurture these start-up companies," Mr Jordan said.