Royalty income on cards from GEN subsidiary

By Phil Boeyen, ShareChat Business News Editor

Wednesday 15th August 2001

Genesis (NZSE: GEN) has moved to full ownership of its subsidiary cellular preservation business, BioStore, and announced the first commercial application of its technology.

Genesis already held a majority interest in the firm but has acquired the remaining 23.7% at independent valuation.

It will pay for the purchase by issuing 230,000 shares and will also make a small cash payment.

Genesis chief, Dr Jim Watson, says by acquiring the minority interest, Genesis can now provide the support required for the development and commercialisation of BioStore products.

Dr Watson says BioStore is a patented preservation technology, which physically induces dormancy in cellular products.

"This allows cells to be stored at 4 degrees C, or frozen and later thawed without deterioration.

"Alternatively, BioStore treated cells can be freeze-dried, stored without refrigeration, and later reconstituted. This provides new storage and distribution opportunities and can reduce the costs of traditional storage technologies."

Genesis has also announced BioStore's first commercial application.

The technology has been licensed to Australian veterinary pharmaceuticals and animal health products manufacturer, Jurox, to enable it to freeze-dry nucleated cellular products and later revive them in a novel veterinary application.

"As a result of this agreement BioStore will realise royalty income based on Jurox's commercial success. Meanwhile Jurox is exploring further potential veterinary applications for BioStore," says Dr Watson.

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