Helico Bio Enters Liquidation After Research Setbacks

Helico Bio, a deep tech startup based in Auckland, has entered liquidation following research that failed to yield the anticipated outcomes for its plant-based therapeutic products. The company, which operated under the name Rau Bio Limited, received significant backing from the New Zealand government agency Callaghan Innovation and the venture capital firm Icehouse Ventures.

On December 19, 2023, shareholders voted to liquidate the company, as detailed in the initial report from the liquidators. The report cites two primary factors for this decision: an inability to achieve expected results from research and development activities, and increasing financial obligations to creditors coupled with a reduced capacity to attract new capital.

Helico Bio’s leadership included Thomas Furlong from Icehouse Ventures, who served as a director alongside Harley Williams, the largest shareholder with a stake of 36.53 percent. Co-founders Wayman Puna, Ilya Vensky, and others also held shares, but inquiries to the company’s founders for further comment have gone unanswered.

The company’s ambitious goal was to create “edible medicine,” leveraging agricultural methods to produce high-value therapeutic compounds. A previously published article by Callaghan Innovation highlighted Helico’s potential to enhance the accessibility and affordability of essential medicines. The focus was initially on developing insulin as its first product, with the long-term vision of establishing a platform for producing multiple compounds.

In its earlier stages, Helico Bio benefited from Callaghan’s R&D Experience Grant, which facilitated the recruitment of bioinformatics engineers through internships, and the R&D Career Grant, which supported postdoctoral students in the company.

Despite the initial optimism, Stan Denisenkov, an analyst from Waterstone, emphasized that the challenges arose from research shortcomings 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.”

As the company transitions into liquidation, the extent of its debt and creditor claims remains unclear, with no claims lodged at this time. Additionally, the value of Helico Bio’s assets, including patents, trademarks, and physical property, has not been disclosed.

Currently, Helico Bio’s website is inactive, displaying a 404 error message, indicating that the page is no longer available. The rapid decline of this once-promising venture underscores the inherent risks associated with research and development in the highly competitive biotech sector.