New Blis plant for Dunedin revealed

Blis Technologies has opened a new manufacturing plant within its Birch St premises in Dunedin.

Chief executive Dr Barry Richardson said the ''time was right'' to establish commercial premises outside the University of Otago where the company was formed as a commercialisation of science from within the university.

The company was getting necessary export approvals before the plant became fully operational.

Blis shares opened at 1.1c on Tuesday and, following the announcement to the market, reached a high of 2c before closing at 1.6c. Yesterday, they last traded at 1.7c.

Blis focuses on niche human health markets producing probiotics targeted specifically at oral health.

It has already built a business supplying ingredients through its global distributer Novus Nutrition Brands to manufacturers and marketers in North America, Japan, Southeast Asia, Taiwan and Europe, Dr Richardson said.

Its retail business was now being broadened with oral probiotic lozenge formulations being marketed in the Asia Pacific region and in Europe under its own brand, and supplied to other companies for marketing under their brands.

Blis had GRAS (generally recognised as safe) approval for the United States and also approvals for New Zealand and Australia, as well as China.

Regulatory approval was essential for a food ingredients and human health business as it determined market access, Dr Richardson said.

It was fortunate the company had a ''sophisticated'' shareholder base that understood what was required to get that market access.

There was also growth in shareholders and business connections in China and other key markets were able to assist with business development in those sectors.

The company targeted opening the plant before a reciprocal visit by senior executives of China's largest pharmacy group, Sinopharm, next month. It had been working hard on establishing the right market channel in China and Sinopharm's visit was ''an important step on the way'', he said.

Blis is currently targeting $3.5 million to $4.5 million from a shareholder purchase plan to offset further short-term financial losses and progress product sales to Asian markets.