Drench resistance is seen as a serious threat to the sustainability of our livestock industries and has been estimated to cost New Zealand farmers up to $250 million annually. AgResearch scientists, led by David Leathwick, developed a new method for delivering a high-dose, slow-release combination drench with a better initial kill than existing drenches and a shorter period of activity without the normal slow-release "tail", thus limiting the opportunity for parasites to develop resistance.

Internal Pre-seed funding allowed the team to take the product (with the working title "Magnum") to proof of concept stage. IP protection was established through a patent application, and industry partners sought. This highlights one of the benefits of the Pre-seed fund. It provides the flexibility to develop selected projects further along the value chain before introducing partners, thereby adding value and increasing the likelihood of a successful take-up by industry partners.

Commercialisation of Magnum will proceed along a licensing route. In return for a licence to the technology, the partnering companies will manage product development and regulatory approvals, and take Magnum to market. AgResearch will be paid a royalty on sales.