busy february coming

Plenty to come from the quarterly report.
Cash in bank is good - let's see what they're going to ann first!! Something they've already mentioned in here - or a left fielder?


THE MANAGER
COMPANY ANNOUNCEMENTS
AUSTRALIAN STOCK EXCHANGE
LEVEL 4, 20 BRIDGE STREET
SYDNEY NSW 2000
25 January 2007
QUARTERLY REPORT FOR PERIOD ENDED 31 DECEMBER 2006
AND APPENDIX 4C
Corporate
The Company held its AGM in Perth on 29 November 2006. General Manager, Mr
Warwick Dowse gave a presentation of the company’s vision and current major
activities which was released to the market on the same day and is also available on
the company’s website.
Finance
The attached Appendix 4C shows that the company ended the December quarter
with just over $1.4m cash on hand and is well placed to undertake significant
research and development activities pertaining to its natural termiticide product
“TERMILONETM”.
Development Projects
TERMILONETM (PREVIOUSLY AP778)
This quarter has seen significant progress on finalising the detailed research and
development programmes with collaborators in order to ensure eventual registration
with the Australian Pesticides and Veterinary Medicines Association (APVMA). The
following is a summary of the key contractors and research work commenced during
the quarter:-
Ensis – A joint venture between CSIRO FFP Pty Ltd and Scion Australia. Ensis is
developing a number of formulations that will be used to carry the active ingredient
(Eremophilone Oil) in TERMILONE for the impregnation into commercial timber
products. This stage commenced in November and is expected to be completed by
the end of February 2007. The impregnated timber samples will then undergo
bioassay and analytical assessment.
2
ICP Firefly Pty Ltd - Work commenced in December 2006 on the second level
genotoxicity trials. The results of these trials should be available by the end of
February 2007. The company has already completed the first stage genotoxicity work
with positive (low toxicity) results. Further toxicity work will continue based on the
second level genotoxicity results.
Eureka! AgResearch (Vic) Pty Ltd. This project also commenced in November 2006
in order to develop formulations for the contact spray application of TERMILONE on
existing termite incursions. This is an essential early stage task to determine whether
the oil can be made into a formulation that is stable with known low toxicity coformulants
(food grade products). Results are due in early February 2007. Bioassay
work will commence as soon as a number of formulations are chosen by the
company.
University of Western Sydney (UWS). The UWS have been working with BioProspect
for a number of years and managed the TERMILONETM trials at Narrandera for the 2
year timber field study completed in September 2006. BioProspect yesterday
appointed UWS to conduct regulatory data generation work for TERMILONETM.
UWS will be the lead contractor and will manage and complete trials and other
development projects to ensure successful registration of TERMILONETM
The UWS, led by Associate Professor Robert Spooner-Hart will generate data on the
compound in association with Southern Cross University (Centre for Phytochemistry
and Pharmacology) and CSIRO (Ensis).
Stage 1 of the project will cover bioassay analysis, analytical methods and
biochemical properties on the compound and the end use products being developed
by BioProspect and other contracted parties. This is expected to take approximately
6 months with key milestones related to efficacy of the compound on termites tested
under Australian and international standards.
Over the next 18 months BioProspect Ltd will generate data on its natural termite
compound with the objective of gaining registration in Australia in mid 2009 for the
active constituent, Eremophilone Oil and at least three commercial products that will
use the TERMILONETM name.
Under the arrangement with UWS, BioProspect will retain all commercial rights to
TERMILONETM whilst UWS will be granted a non-exclusive royalty free licence to use
the project Intellectual Property for research and education purposes other than
commercialisation.
BioProspect Ltd has applied for a registered Trade Mark using TERMILONETM as the
commercial brand name.
Commercial Ready Grant
The Company is finalising a submission for a Commercial Ready Grant which should
be submitted for review in February 2007. The Commercial Ready Grant is an
AusIndustry initiative whereby funding for the project is matched dollar for dollar over
the life of the project. A successful outcome for the grant would result in significant
funding inflow to the company for its TERMILONETM project.
3
Apath LLC
During the quarter, BioProspect supplied additional plant extracts and sub-fractions
at the request of Apath LLC. Apath continues with their analysis of samples that have
been sent to them in prior periods and have several samples in stage 2 which are
showing positive activity in regards to Hepatitis C (HCV).
Astrum Therapeutics Pty Ltd
Astrum’s drug development program continued to move ahead during the quarter
with synthesis of new chemical entities being performed at facilities in Melbourne.
Since June 2006 Astrum has had two new chemical entities (NCE’s) produced. The
optional delivery of an additional four NCE’s may take place in March quarter 2007.
Astrum is currently negotiating with a second synthetic chemistry group in Perth,
Western Australia for synthesis of four NCE’s that Astrum believes will round out the
initial chemistry needs for the drug development program.
Astrum currently has three patent applications at various stages of
submission/review. The Astrum patent related to novel NCE’s that prevent the death
of pancreatic beta-cells received a favourable initial response with respect to novelty
from the European patent office (EPO). The EPO suggested restructuring the initial
single patent into several smaller patents. Astrum has approximately one year to
determine the best course of action for this patent’s final structure.
The second patent related to novel medicine combinations aimed at treating diabetes
and diabetes-related illnesses and, the third patent relate to Astrum’s drug
technologies for the treatment of Alzheimer’s disease have not yet been reviewed by
the EPO. None of the Astrum patents has been reviewed in full by the United States
patent office. Astrum scientists continue to identify and develop other molecular
targets and clinical targets for diabetes and diabetes-related disorders.
Qcide
The company continues to work on achieving a commercial outcome for Qcide.
Yours sincerely
Colin Johnston
Company Secretary