Monheim (GER) /Hamilton (NZ), July 8, 2010 – Bayer Animal Health GmbH and ParaCo Technologies Limited, a 100% owned subsidiary of AgResearch, New Zealand’s largest Crown Research Institute, today announced they have signed an option agreement allowing Bayer exclusive access to ParaCo’s current lead molecules for testing and development in animal health.  The focus in the foreseen activities lies in the research of parasiticides.

Dr Peggy Dillender, Global head of acquisitions and licensing at Bayer Animal Health, said that Bayer were pleased to sign the agreement with ParaCo and to tap into some of the innovative animal health research being conducted in New Zealand.  “We hope this will be the beginning of a long and fruitful relationship between Bayer, ParaCo and indirectly AgResearch,” said Dr Dillender.

Commenting on the arrangement, Dr Ian Boddy, Managing Director of ParaCo and GM Business at AgResearch, said that the deal with Bayer was very exciting for ParaCo “as it allows us to work closely with one of the world’s most respected Animal Health companies.  It is exactly the sort of thing we were looking for when we set up ParaCo lt., it validates our belief that the big companies would be interested if we could show activity with our molecules.”

Dr Boddy said that while the company had been supported financially by AgResearch, since the acquisition the time had come to raise external funds to allow the company to progress its lead molecules quickly. “This agreement with Bayer suggests the company is on the right track and we see it as the start of a long and positive relationship with Bayer in the future.

Bayer Animal Health has a long experience in the field of parasitology. The company has been researching and developing parasiticides for 100 years and is one of the leading Animal Health Companies in the world.

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About ParaCo

ParaCo was established in 2001 after AgResearch acquired the remaining shares from Meat and Wool New Zealand  and Wool Equities Limited. 

About Bayer HealthCare

Bayer HealthCare, a subsidiary of Bayer AG, is one of the world’s leading, innovative companies in the healthcare and medical products industry and is based in Leverkusen, Germany. The company combines the global activities of the Animal Health, Bayer Schering Pharma, Consumer Care and Medical Care divisions. Bayer HealthCare’s aim is to discover and manufacture products that will improve human and animal health worldwide. Find more information at www.bayerhealthcare.com.

With a turnover of EUR 977 million (2009) Bayer HealthCare’s Animal Health Division is one of the world’s leading manufacturers of veterinary drugs. The division manufactures and markets more than 100 different veterinary drugs and care products for livestock and companion animals.

Contact:

Bayer:

Kathrin Statz, Phone:  +49 2173 38 4019

kathrin.statz@bayerhealthcare.com

AgResearch:

Allanah James             +69 (0)29 9833989

allanah.james@agresearch.co.nz

Find more information at www.animalhealth.bayerhealthcare.com.

kst        (2010-0358E)

Forward-Looking Statements

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