Sydney - Tuesday - January 19: (RWE Australian Business News) - BioProspect Ltd (ASX:BPO) today announced a new agreement with Bio-Gene Technology Ltd governing the intellectual property (IP) rights for natural insecticide Qcide, which is being developed as "a new, environmentally friendly treatment for household and human pests". Under the agreement, BioProspect and the University of Western Sydney (UWS) have assigned Qcide's IP rights to biotechnology company Bio-Gene, in exchange for fees and royalties split between BioProspect and UWS. BioProspect managing director Mr Charles Pellegrino said the agreement replaced the previous licensing deal announced in June 2008, and would facilitate rapid development of products derived from the essential oil, Tasmanone, found in the leaves of Australian tree Eucalyptus cloeziana. "Qcide is an exciting Australian discovery and part of our expanding portfolio of natural products. "We have been greatly encouraged by the progress made by Bio-Gene, and the new agreement provides the commercial certainty to ensure the successful development of a range of natural, non-toxic insecticides," Mr Pellegrino said. He said the new agreement could prove highly valuable to the parties involved. It comprised $200,000 of fees paid to BioProspect and UWS on four one-year anniversary dates, with royalties payable as 4pc of the first $1m in commercialisation income, plus 2pc of any additional income over this amount.
BPO Price at posting:
3.1¢ Sentiment: Buy Disclosure: Held
