Otago University, Malaghan Institute and Callaghan Innovation have joined the fund that already includes more than 50 Australia-based research institutes and hospitals.

Three New Zealand-based institutions, Otago University, Malaghan Institute and Callaghan Innovation, have become members of Australia’s A$200m ($150m) Medical Research Commercialisation Fund, NBR reported yesterday.

Malaghan Institute is an independent biomedical research institute affiliated with Victoria University of Wellington. Callaghan Innovation is the innovation agency of New Zealand’s government.

The three institutions’ decision to join the fund follows a A$500,000 commitment made by New Zealand’s government in February 2016.

The Medical Research Commercialisation Fund, managed by VC firm Brandon Capital, has first right to invest in intellectual property from its partners, which include more than 50 Australia-based medical research institutes, research hospitals, Australia’s federal government and five state governments.

Members receive a share of any profits made by the fund – also backed by superannuation funds AustralianSuper, Hesta, Statewide Super, and Hostplus – in order to encourage collaboration efforts between the different institutes.

The fund supplies up to A$3m to early-stage ventures to help with preclinical development, with follow-on funding between A$17m and A$30m available. A total of A$50m is allocated to seed rounds, with the remainder going to the most promising spinouts to support them through mid-stage clinical trials.

The superannuation funds have the option to separately invest in spinouts.

The Medical Research Commercialisation Fund is the third such vehicle managed by Brandon Capital, though it is the first time that New Zealand has been allowed to participate.

Duncan Mackintosh has joined Brandon Capital as its New Zealand investment manager. Mackintosh was previously chief executive of Waikatolink, the tech transfer office of Waikato University.

Pete Hodgson, chief executive of Otago Innovation, the commercialisation unit of Otago University, said: “Over the course of the next year or so Otago University IP is sufficiently deep that we anticipate one or more investment opportunities.

“These guys are strong and have a longer track record than anyone in New Zealand.”