Flu test research, HIV family fund hit snag with subsidiaries liquidation
Channel NewsAsia - Thursday, December 17
SINGAPORE: Could the search for faster, more sensitive tests for influenza A including the avian flu strain take longer than expected?
Given the liquidation of Singaporebased Rockeby biomeds two subsidiaries, Spring Singapore has terminated a pair of grants earlier awarded to the biotechnology company to both develop a magnetic detection platform and upscale production of a field diagnosis test.
The former could be used in detecting the human seasonal flu, while the latter could be expanded to other infectious disease tests, including dengue and Hand, Foot and Mouth disease (HFMD).
Responding to MediaCorps queries, Spring Singapore said: "In light of the companys inability to continue fulfilling the obligations under the terms of the grant due to its liquidation, the support for both projects has been terminated."
Such cases are "uncommon", it added.
According to Rockebys annual report, it will have to return A$100,496 (S$127,000) of the grant. The total value of the grants, paid on a reimbursement basis, was $660,550.
Last Thursday, MediaCorp reported Rockebys decision to liquidate its two subsidiaries as part of its restructuring process.
It will continue to trade in the same products lifestyle health product Pepp and diagnostic tests through Pepp and Rockeby biomed Corporation Singapore, respectively. Both were incorporated this year.
Other than Rockeby, scientists from A*Star are also developing methods to detect and identify influenza A virus strains.
Rockeby had also partnered the National University of Singapore (NUS) last year to develop test kits for HFMD. The latter had $200,000 in funding support from the Economic Development Board. NUS said it was "looking into" the progress and status of the partnership.
Rockebys annual report stated: "Progress has been slower than expected and the Group expects to receive a portion of the grant money in the 2010 financial year."
Another question mark hangs over the Rockebys Care for Families Fund, initiated in November 2007 for families of HIVinfected people.
Action for Aids (AFA), which administers the kitty, said it "will not be affected". "In fact, the fund will continue to thrive so as to fulfil its objectives of helping families in dire financial need," said AFA executive director Lionel Lee.
Nonetheless, during the funds launch, the firm had pledged to donate 50 cents for each of its salivabased HIV test kits sold until next year. AFA has only received the initial $5,000 seed money given in 2007, noted Mr Lee.
The voluntary organisation is in talks with Rockeby on "the outcome of their restructuring and how it will affect the pledge", said Mr Lee.
Over last year and this year, the fund has helped 20 families and disbursed $6,400. AFA will continue to raise funds through private donations, fundraising events and corporate donations.
Meanwhile, one creditor has expressed her concern to MediaCorp over the liquidations.
"Our key concern is that we are a small and medium enterprise (SME) with little recourse. So when a big company tries to restructure and function, leaving behind their debt, it negatively impacts all the SMEs," said the creditor, who declined to be named.
She noted that not many questions, however, were asked at a creditors meeting on Nov 2 though it did strike her that the appointed liquidator had stated he had known Rockebys chairman, Mr Fan Kow Hin, for some time.
In emailed responses, Rockeby and the liquidator, Mr Lai Seng Kwoon, clarified that they knew each other only on a professional basis.
Mr Lai told MediaCorp he had given this response at the meeting "when I was asked as to whether I know the chairman".
Mr Lai stressed: "The entire liquidation process is a transparent one, governed by the relevant laws, which as an approved liquidator, I have and will continue to comply."
In distributing surplus assets, if any, creditors come ahead of shareholders, he noted. Rockeby did not reply to questions on its research on influenza A and HFMD test kits.
RBY Price at posting:
1.6¢ Sentiment: Hold Disclosure: Held
