Investors pour $8m into Aids drug punt

By Jock Anderson

Friday 2nd June 2000

PERSUASIVE: Robin Johannink

While other venture capitalists struggle to get local backing for proven ideas, persuasive entrepreneur Robin Johannink has managed to raise $8 to $9 million to fund an untested so-called HIV wonder drug based on goats' blood.

Penrose-based Probe Pharmaceuticals - under the wing of Mr Johannink's Phoenix Management company - has claimed it is poised for an international assault on the Aids-related killer HIV disease with a drug known as HRG214.

If Probe is right it will create immense fortunes for its initial 15 backers.

Claims last July that Probe had developed an antibody using material from Bay of Plenty goats, tested on one of its own staff, and hailed by Probe as an HIV breakthrough were rubbished by medical professionals.

One senior health professional described an approach by Probe for support as "glib, white-shoed and lacking any proper clinical tests, medical and ethical reports or peer review."

Probe conceded it had not conducted any recognised clinical trials or obtained official sanction from any recognised health authority.

Probe spokesman Chris Gedye said the company intended applying to the US Food and Drug Administration (FDA) for recognition.

Several known venture capitalists claimed no knowledge of Probe. One venture capital company said any investment involving Mr Johannink would not be considered.

But committed investor, Auckland accountant Bruce Sheppard, who swears by Mr Johannink, said his spaghetti-like tangle of companies and commercial options were being restructured into a simple New Zealand-based entity, with a major announcement expected on June 24.

Mr Johannink, son of T&T Childrenswear principal Theo Johnannink, has been behind a wide range of business schemes.

He is best known for his Pacific Lithium and Vortec Energy projects, but once launched the Club Card discount shopping scheme with the backing of now defunct retailer Levenes. That went sour after Johannink signed up rival Mitre 10. Club Card did not last long after it was onsold to BNZ.

The sale of a Johannink giveaway advertising publication to INL was not remembered affectionately, according to an INL source.

Pacific Lithium - which claims to produce high quality lithium carbonate used in about 25% of lithium ion batteries made worldwide - announced last week it would "migrate" to the US after merging with Lithium Technology Corp to form Ilium Technology, raise $200 million from a US public offering and seek Nasdaq listing.

In March the government gave Pacific Lithium a $450,000 manufacturing grant.

In April, Mr Johannink's wind-powered turbine venture Vortec Energy reported securing a licensing deal with Australian renewable energy company Primenergy.

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