Good newsRockeby to acquire bird flu rapid tests...

Good news


Rockeby to acquire bird flu rapid tests globally
Singapore & Sydney: 29 May 2006: Rockeby Biomed (ASX: RBY) today
announced that it had signed a Memorandum of Understanding (MOU) with Pacific
Biotech, whereby Pacific Biotech will assign the ownership of the avian and human
influenza rapid diagnostic tests to Rockeby .
The change from the previous marketing agreement to a full rights agreement will
result in a reduction in the direct cost of both products of approximately 70%. This
significant reduction will give Rockeby a competitive edge in the market, and improve
the long-term financial return to Rockeby. With the spread of the H5N1 virus,
commonly referred to as the avian or bird flu, this test has become an important
product in the Rockeby portfolio of rapid tests and is expected to be a major
contributor to revenue growth over the next few years.
Upon the successful execution of the MOU, Rockeby will pay an upfront fee and a
single digit royalty. The figures cannot be disclosed under a confidentiality agreement
between the parties The key components of the MOU are:
• Rockeby will acquire all the intellectual property relating to the Vet-Smart
Avian Influenza Virus and Bioline Human Influenza A tests, and its related
manufacturing technology. These are marketed respectively as the Rockeby
Avian Influenza Virus rapid test and Rockeby Human Influenza A Virus rapid
test;
• Rockeby will pay an initial upfront fee and a royalty on sales of these
products based on audited accounts;
• Rockeby will acquire the rights globally, significantly extending opportunities
to increase sales;
• A manufacturing agreement with Pacific Biotech will result in a reduction in
the cost of goods sold by Rockeby of approximately 70%;
• Rockeby must order a minimum annual quantity of 100,000 of the Avian
Influenza Virus test and 50,000 of the Human Influenza A Virus rapid test;
and
• The term of the assignment is for an initial three years with an automatic
extension for another three years
“Rockeby has a suite of rapid diagnostic tests and is now considered a leading
provider of a test to quickly detect the avian flu which is spreading at an alarming
pace,” said Dr Sze Wee Tan, CEO of Rockeby Biomed.
“By acquiring the rights for these tests from our current licensor we have much
greater scope to respond to the demand for both the avian and human tests, and to
control costs which will ensure we improve our sales margins.”
Avian Flu, also known as bird flu, is an infectious disease of birds caused by Type A
strains of the avian influenza virus (H5N1). All birds are susceptible to infection and
there are also now cases of the virus spreading to humans. The virus has now been
detected in 32 countries with millions of bird destroyed and 124 human deaths.
Since the launch of the tests in November 2005, Rockeby has won a number of
tenders to supply its rapid diagnostic tests to governments, veterinary associations
and commercial poultry farms in countries including Singapore, Thailand and
Romania. Additionally, Rockeby is selling its tests in Singapore, Malaysia, Thailand,
India, Japan, Korea, UAE, Iraq, Iran, Lebanon, Greece, Switzerland, Poland and
Italy.
The company expects to execute the MOU into a full agreement within 3 months
subject to the satisfactory completion of due diligence.
About Rockeby’s test
The two test kits are for the detection of influenza A virus, including the H5N1
subtype, the agent that causes the bird flu that has been found to infect humans who
come into close contact with birds, causing serious and often fatal disease.
One of the tests is a rapid screening method that measures bird flu proteins in
samples taken from human nose or throat. The other is a veterinary diagnostic for
on-site testing of bird faeces.
Both tests rely on immunological detection of viral protein and have the advantage of
being self-contained and yielding the result within 10 minutes of application of the
sample to the testing device.
About Rockeby Biomed:
Rockeby Biomed Limited is Singapore-based, ASX-listed (ASX: RBY) biotechnology
company specializing in research, development and marketing of rapid testing
technologies for infectious disease in humans and animals. The company’s core
specialization is the development of rapid testing diagnostics.
For further information, please contact:
Media: Company:
Rebecca Wilson, Buchan
(02) 9237 2800 / 0417 382 391
[email protected]
Dr Sze-Wee Tan, Managing Director
+65 6735 2363
[email protected]