Article from Business Plus Issue April 2019

After winning two export awards in 2018, Auckland BioSciences is moving on with expanding its business of exporting animal serum, which is a key ingredient in manufacturing veterinary vaccines for the primary industry.

Managing director Dr John Chang says, “We are currently looking at a number of acquisition opportunities, here in New Zealand and overseas. It is a part of our long term growth strategy.

“And we are always looking for new staff.”

The company consists of 18 staff and utilises contractors in the processing of serum from animal blood that is sourced from abattoirs. John says the blood would otherwise be disposed of or reduced into low-value rendering products.

“The serum industry is a tiny part of New Zealand’s meat industry in terms of top-line revenue but the meat industry operates on a slim net profit, and a slightest FX movement can wipe that out. We add value to that industry and help farmers” he says.

Auckland BioSciences exports all of its premium New Zealand-made Serum to 14 different countries, with target markets being multinational pharmaceutical companies.

“Those customers have very different cultures and languages, which is par of the challenge and excitement”, says John.

“You go to visit… once we were 150km from the border of Syria. You have to be culturally aware and understand their perspective. You don’t go to these places with a colonial type attitude, rather to solve a problem for them; not just sell another litre of serum.

“When our product lands, it is two-to-three times local prices, and often those companies have not imported anything. “

“We say, “Just try.” And though our serum is more expensive than what they are used to, the yield of the final vaccine is so good they eventually convert.”

“Being in New Zealand is critical part of our success: our primary industry is at the arse end of the world but for this very reason, we have never had major diseases - a big factor for us in demanding a premium. “

Head office is located at Rosedale, Auckland, and production sites are located across the country.

The company works with Auckland Meat Processors, Alliance and Affco and is in discussion with another raw material supplier.

People make growth happen

John says, “The mantra in business has always been, it is people, people, people. And people ARE the most important part of the business. Look after them, find people you can trust and who are great together. And things will look after themselves.”

Most of the staff are young university graduates aged on average 27, such as Head of Business Operations Daniel Maxwell, who John has mentored for five years in the business.

John says, “Their energy and belief in the business have driven the growth. They are fearless, keeping on going. To prove my point, most have two or three degrees or were top of their classes, none in science, but in engineering, management, law, economics, and accounting.

“I’m not telling them to sell serum but how to do business and problem solving. The theory is if you have a degree you can think, but the attitude must be one of the giving, of your time and passion - then we start to build an amazing company.

“There are no peacocks here; it’s about collaboration and cooperation. “

The business started five years ago by John and his wife Suzana Chang under the umbrella of the parent company Jardoo investments, to which they remain as the sole shareholders.

John says, “Our background is not manufacturing. I could have done a lot of things but chose this. It could be seen as dirty, gritty manufacturing , working in an abattoir, but I see it as a venture management business, and we are growing. “

John has a PhD in Infectious Diseases from Sydney University School of Medicine. After running a State Reference Laboratory for HIV in the 90s, he moved to New Zealand and delved into venture management.

He has worked in commercialised intellectual property arising from Canterbury University and in publicly listed and unlisted New Zealand technology-based companies.

Prior to setting up Auckland BioSciences, John ran a $120 million investment fund on the West Coast of the South Island, reporting to the then-Deputy Prime Minister Bill English as the settlor of the trust, Development West Coast.

He says, “I have always been a professional executive but not called myself an entrepreneur.”

“Suzana was a lecturer in Korean language at Canterbury University and has a Masters Degree in cultural and language differences in international business - critical to our beginning this business.”

She is a director and looks after finance and administration.

“People and their passion and dedication are the reason for the business’ growth. We have wonderful staff who are so dedicated and passionate about New Zealand and the New Zealand story.”

Advisory Board

John states that he and Suzana are also indebted to their advisory board members, who meet every two months, but also talk on the phone between meetings, and are paid a pittance for what they are really worth.

They are Bill Lee (Chair), Gary Paykel (Deputy Chair), Maxine Simmons, Dennis Chapman and Keith Rushbrook.

John assembled the group from his own network based on their mixed skill sets. Their backgrounds are in sheep farming, commercialising intellectual property, turning businesses around, setting up businesses, importing innovative technology, governance, biotechnology, finance and accounting, entrepreneurship, electronics and more.

He says, “They are no-nonsense, successful people with energy and tenacity and passion for business in New Zealand. People who have been there, done that, not just charging a consultancy fee without personal experience.

“They are doing NZ Inc a huge service.”

John likewise acknowledges New Zealand Trade and Enterprise (NZTE). “They are our secret weapon when doing business overseas, and a critical part of our ongoing success.”

“Between NZTE and EMA, New Zealand’s small to medium enterprises are being looked after well.”

“We entered the ExportNZ Awards last year to raise our profile and were very grateful and fortunate to win the category of Best Emerging Business. We then won an NZTE International Business Award and became a Deloitte Fast 50 company.”

“Now we have gone back to keeping low and working hard.”

NZ as a place to do business

“It’s easy.” says John. “There’s a minimum amount of complexity and red tape. We travel all around the world and see how others do business, and it can’t be easy.”

And what is the worst thing about New Zealand? John has to think about that.

He says, “Everything is a challenge and problem that needs solving. We try not to take things too seriously.”

Advice to someone in their first year of business

John suggests to, “Seek quality advice. Plenty of people out there are only too happy to share their knowledge and wisdom - for free! Set up a diverse advisory body or a governance board of people who have strong track records.

“And get used to constant change - it will test your sanity.”