A new way of thinking
In Christchurch, a pioneering biotech company is betting big on an often overlooked by-product of sheep farming – their skin.
Tertiary Extracts Ōtautahi Ltd (TEO) identified a waste stream from the freezing works: after meat is harvested, thousands of sheepskins are left unused. Rather than letting these go to landfill, TEO saw potential in extracting collagen, a protein used in health and wellness applications.
“We’re using science to turn what was once waste into something profoundly valuable – for human health, for the environment, and for our economy,” explains Dr Rob Kelly, joint founder and Chief Scientific Officer.
Collagen extraction from animal skin isn’t new, but processing sheep skin presents unique challenges due to its dense wool follicles. The TEO team cracked the code by developing a method that processes the whole skin – wool and all – unlocking what they call “the world’s most complete collagen.” This bioactive, multifunctional protein is now driving innovations in women’s wellness, sports nutrition, and sustainable biotech.
“What we discovered is that instead of removing the wool before extraction, we could process the entire skin and extract proteins from both the wool and skin, as both are rich in proteins,” says CEO Paul Sapsford. This innovative approach is currently patent-pending.
Their flagship product, Ovitage, is an edible ovine collagen ingredient produced through proprietary extraction methods. Packed with amino acids like cystine, tyrosine, and glutamic acid, Ovitage supports more than just skin health – it promotes gut wellness, muscle tone, mood stability, and cognitive function. Co-CEO Kimberley Bray describes it as “untapped potential hiding in plain sight.”
Ovitage is already making waves, shortlisted for the 2025 Fieldays Innovation Awards and nominated for the 2025 Primary Industry Awards. It forms the core of Everee Women, TEO’s supplement range designed specifically for women navigating hormonal changes. “There’s too much noise and not enough science in the wellness industry,” says Kimberley. “Everee cuts through that with simple, effective products grounded in years of research and development.”
TEO has invested over $1 million into studying bioavailability, efficacy, and delivery formats. Support from AGMARDT, Callaghan Innovation, and a $1.7 million friends-and-family raise enabled the company to open a dedicated manufacturing facility in 2024.
Sustainability is at the heart of TEO’s mission. Their circular business model turns skins destined for landfill into high-value, functional proteins, reducing waste and emissions while providing new income streams for farmers. Every batch is fully traceable to South Island farms, with processes designed to minimise inputs and maximise regeneration. “We’re transforming how people think about food, supplements, and agriculture – restoring what we’ve taken from the planet,” Kimberley says.
The company’s impact extends beyond the environment. Since launching, TEO has created more than 30 STEM jobs in Christchurch, spanning manufacturing, biologics, microbiological R&D, quality systems, and export logistics – alongside providing science industry experience for new graduates. “We’re proud to offer science graduates meaningful careers and expose them to the full scope of biotech’s potential here in Christchurch,” says Paul.
Though rooted in Aotearoa, TEO’s ambitions are global, with the US market already a big contender. Their product pipeline is also rapidly expanding into areas like GLP-1 support, functional lipids, sports recovery proteins, and skin microbiome health, with growing interest in mood and cognitive wellness.
Dr Rob says. “We’re building something that serves people, the planet, and the next generation of wellness.”