It has been a tortuous nine years or so for investors in biotech companies, requiring patience and deep pockets.
But a new business direction for two of Dunedin's original companies could signal an end to the pain.
Botry-Zen and Blis Technologies have in recent weeks announced major policy shifts in a bid to finally turn a profit and, in the case of Botry-Zen, to put to bed a forgettable year in which production problems took it to the brink of financial ruin.
Part of that shift was driven by the financial security of finally having cornerstone shareholders to reduce business risk, and to allow focus on business rather than survival.
The new business model moves the two biotech companies away from being traditional developers, manufacturers and retailers, to focusing and playing to their strengths, which is the science.
The reason for the shifts has partly been necessity.
The appointment of a new chairman, Dunedin accountant Stephen Higgs, and a new manager, Stephen Lorimer, has resulted in Botry-Zen embarking on a three-phase plan: to stabilise production and finance, optimise what the company has, and expand with the focus on international markets.
Mr Higgs said priority would remain supplying New Zealand vineyards, but profitability would come from international expansion, a move expected to begin next year.
"The future is international. To make the company profitable, it has to be."
That structure was still to be decided, whether Botry-Zen went it alone, licensed users or worked through joint ventures.
Botry-Zen planned to trial a new product this year that was complementary to its existing range, but offered full season protection against botrytis and other fungal disease.
Blis Technologies had also changed its business plan, from being a manufacturer and retailer of probiotics, to selling branded ingredients to inter-national consumer companies, which moved the responsibility of marketing and distribution from Blis to the product maker.
Chief executive Barry Richardson said recently it had a distributor in the key United States market, Frutarom, which was opening doors and helping develop relationships with potential customers.
Shareholders in both companies have become impatient.
They have injected about $10 million in extra capital since the companies were launched in 2001.
But, in recent months, both companies have found cornerstone shareholders which have been crucial to their survival.
Again, that was out of necessity.
A year ago, production problems and shareholder rejection of a $1.8 million capital notes and rights issue brought Botry-Zen to its knees.
But a rescue package from German biotechnology pioneer Claus Hartge and Melic Innovators, with Melic injecting a further $1 million last month, ensured its survival.
Twice in the past year, Edinburgh Equities Nominees has injected capital into Blis, including $500,000 through a share placement and then $1.5 million out of $3 million raised through a preference share issue.
That outside capital has also signalled a new phase in the lives of the companies.
Mr Higgs said Botry-Zen's previous executive and staff had positioned the company with an excellent product, a known market, production systems and international relationships.
Dr Lorimer said correcting production hiccups last year had been a priority.
The company had introduced a process approach.
It had also moved its head office to the harbourside factory.
The production of fungal spores from which botry-zen was made was vital to ensure it had enough product to meet demand, but the move to export meant production would have to grow further.
Production this year had been well above budget, while focusing on the company strengths had slashed $200,000 in overheads.
The domestic market was readily identifiable, and Botry-Zen had started selling directly to vineyards, but also through a distributor.
Dr Lorimer said when it looked overseas to the United States and Europe, the plan was to target specific areas and the top vineyards within those areas.
"It's not just grapes - it's valuable grapes. If they are not really valuable, they are not going to pay extra to protect them."
But exporting would cost money, and shareholders would once again be asked to inject money to pay for four new fermenters, cover working capital, and fund the expansion of Botry-Zen into Europe and/or the United States.
Mr Higgs said he hoped to have an enticing story to encourage shareholders to contribute.
Dr Richardson said the focus for Blis was to grow sales in New Zealand and Australia.
The company had made a strong start, with sales in the last six months double that of the same time last year.
While growing sales in New Zealand and Australia remained a priority, Dr Richardson hinted it had several irons in the fire, including its relationship with Frutarom, and product trials with two major international retailer and consumer companies.
Blis was also looking for regulatory approval in the United States, Canada, Europe, China, South Korea, Indonesia, Malaysia and Taiwan, and it intended releasing a suite of new products.
ABN Amro Craigs Broker Peter McIntyre said the changes gave the companies a better chance of survival.
He was not surprised with the changes at Blis, given the background in ingredients Dr Richardson had gained as chief executive of Westland Milk Products.
"It has gone from trying to produce bulk product to trying to clip the ticket. It makes sense, and Barry Richardson is the driver."
The tie-up with Frutarom in the United States was key and strategic.
"It means Frutarom can get out and market the product, and sell the product, and talk to the Coca-Colas of this world and the Nestles of this world, and Blis can get on with their business."
Botry-Zen had a tougher task, given it had a smaller product range and its main markets were offshore, and it had to get regulatory access to those markets.
But while the two firms appeared to have greater security, profitability was still some way off, with shareholders in both companies told the accounts would not be in the black for a further two to three years.
