As a collaborative partner and developer of animal health pharmaceutical delivery solutions, theultimate ownership of the intellectual property associated with
The managing director of the Hamilton-based company that devotes 10-12% of its annual turnover toR&D says it is not always possible to own the rights to a design, even if that is its preferredoption.
“We attempt to own the IP if we feel there’s a wider market for the device, and it’ssomething that can come to market faster than normal,” says the part owner, along with threeothers, of the company which they successfully tendered for in a sales process three years ago.“In that case, we develop the solution and bear the cost of its development.”
“Sometimes the pharmaceutical company we’re dealing with wants complete exclusivity.They’ll fund the development, but in that case we want an exclusive supply contract.”
Novartis Animal Health , which distributesthe Optiline drencher with some of its premium products, owns its IP and name. This has someadvantages Rouse says, notably in that the huge multinational has the financial clout to defend anyintellectual property infringement.
Simcro recently won the ‘Best use of R&D in International Business’ Special Award in the
“The IP of the Sekurus is quite defendable,” Rouse says. “It’s clever, and we’ve spenta long time developing that mechanism, so we’re happy to take out patents.”
Though the company has 70 products under current development, admittedly with only 10-12 at anyone time, in a couple of years Rouse wants “turnover to be really ramping up.” Currently over90% of its products are distributed alongside an animal health company’s product, the deliverysystem part and package of the whole.
Simcro currently has a 13 person product development team, but he wants to double that within two years time. A sharemarket listing may be on the cards by that time, as may be a complementaryacquisition, along with a bigger footprint in North America and Europe. Though Simcro already hassales people in those two continents as well as South Africa, more sales people would enable thecompany to engage with more pharmaceutical personnel in sections other than farm animal health.
“The United States is a big country and we’d benefit from more people on the ground,” Rousesays.
In five years time, Rouse wants Simcro to have the majority of its business in the companionanimal and human health pharmaceutical delivery space. Though a much bigger potential market thanfarm animal health, “it’s a completely different ballgame,” he says.
“Products take longer to get to market, it is more heavily regulated, and it’s muchdifferent. However, we already have an open invitation from a major pharmaceutical player to developproducts for these markets. Our circle of excellence in animal health delivery technologies isdefinitely able to be migrated to the human space.”
The company’s most limiting factor is capital for development he says. Given unlimited funds,he’d hire more product development personnel, being confident Simcro’s management culture canexecute the company’s strategy.
“From a small place like New Zealand we’re able to produce inventions at the highestlevel,” Rouse says. “These days, we’re well aware of what we’re capable of.”