Helico Bio Enters Liquidation After Failed Research Outcomes

Auckland-based startup Helico Bio has entered liquidation following a failure to achieve anticipated results in its research aimed at producing therapeutic compounds from plants. According to a report from the liquidators, Helico Bio was placed into liquidation by a special resolution of its shareholders on December 19, 2023.

The company, which operated as Rau Bio Limited, had previously secured funding from Callaghan Innovation, a government agency, and Icehouse Ventures, a venture capital firm. Notably, a company affiliated with Icehouse Ventures holds a 14.17 percent share in Helico.

Two primary factors led to the decision for liquidation. The liquidators indicated that Helico Bio struggled to achieve expected outcomes from its product research and development activities. Additionally, the company faced increasing obligations to creditors coupled with a diminished capacity to raise new capital.

Helico Bio’s website is currently inactive, displaying a 404 error, which indicates that the page is not found. A 2021 article from Callaghan Innovation described Helico’s mission to produce “edible medicine,” suggesting that the company’s technology could enhance the accessibility and affordability of essential pharmaceuticals. The article highlighted the potential for Helico to replace traditional pharmaceutical factories by growing high-value therapeutic compounds through low-tech agricultural methods.

The company’s initial focus was on developing insulin as its first target, with plans to expand into other compounds facing conventional production challenges. Co-founder Ilya Vensky expressed a vision of transforming New Zealand’s agricultural landscape from commodity-based to specialized research and development. He stated, “Our real aspiration is to reposition the New Zealand agricultural story…”

Helico Bio received financial support through Callaghan’s R&D Experience Grant, which facilitated the recruitment of two lead bioinformatics engineers via internships. The company also benefitted from the R&D Career Grant, aiding in the employment of two postdoctoral researchers.

Stan Denisenkov, an analyst with Waterstone, emphasized that the issues leading to liquidation were rooted in research failures rather than market conditions. He noted, “The company didn’t achieve the expected results related to the research and the products. As a result, they lost the potential funding for the product.”

The liquidators’ report did not provide details regarding the number of creditors or the level of debt owed, stating that such information was “unknown.” Furthermore, the value of Helico Bio’s assets, which include patents, trademarks, and property, remains undisclosed.

As the story of Helico Bio unfolds, it highlights the challenges faced by innovative startups in the competitive field of biotechnology, where research outcomes can significantly impact financial viability.