The collapse of sheep-cloning pioneer PPL Therapeutics has cast doubt on New Zealand's ability to cash in on a genetic engineering project that is expected to have a global market of nearly $2 billion a year. 

Celentis, a wholly owned subsidiary of AgResearch, had been counting on a joint venture with Scotland-based PPL to create complex proteins from genetically engineered cattle to treat human diseases. 

But PPL said this month it would sell its assets, which include a Waikato farm with New Zealand's largest flock of GE sheep, after its shareholders failed to agree on a restructuring plan. 

"We remain absolutely committed to the bio-pharming opportunity," said Celentis' marketing manager, Adam Barker. 

"It is still, from AgResearch's perspective, a very, very attractive business to be in ... but we're not prepared to disclose what we're actually doing regarding PPL, regarding the PPL assets, and regarding our other activities to try and continue the business." 

The joint venture was working on producing cow's milk with a human enzyme that helps people digest fats.