Diatranz denies trans-Tasman plans

A New Zealand company working on a pig-derived cure for type 1 diabetes has denied reports of a planned move to Australia.

Auckland based Diatranz is developing insulin-producing islet cells from pigs that could be suitable for transplant in people with the disease.

But the New Zealand Herald reported this week that the company intended to relocate to Australia because of strict laws banning animal to human transplants.

In New Zealand, researchers wanting to perform such procedures require an exemption granted by the Minister of Health. By contrast, Australia's National Health and Medical Research Council (NHMRC) recently recommended that animal to human transplants should proceed cautiously under centrally administered guidelines, which covered such issues as the experience of the researchers and clinic, and patient monitoring.

The newspaper reported that Diatranz had been unable to raise money for the research because of New Zealand's strict laws and was currently negotiating a trial of 10 patients at a Sydney clinic.

It also reported that while the pig cells would initially continue to be extracted from animals at Diatranz' South Auckland clean facility, up to 20 jobs could ultimately shift to Australia.

According to reports, the Sydney trial is to involve the transplant of pig cells protected by an alginate - or seaweed - coating, in patients aged over 45 years to reduce the risk of viral transmission to unborn children.

A spokeswoman for Diatranz today said that a lot was happening at the company, but that the newspaper report had got "the wrong end of the stick".

She said Diatranz was currently involved in delicate negotiations that could not be disclosed, but that were likely to be resolved next week.