Ferrets Stock to Watch BIOSIGNAL LIMITED 09:24, Thursday, 29 June 2006
A BIOTECH EXUDING A LOT OF VISION IN BACTERIAL FIELD
Sydney - Thursday - June 29: (RWE Aust Business News) *****************************************************
OVERVIEW ********
Biosignal Ltd (ASX:BOS) has its own vision ... to become a world leading company in the antimicrobial field by providing permanent, effective and safe solutions by removing and preventing bacterial contamination on all types of surfaces, including biological surfaces.
This has led to yesterday's development in which Biosignal reported to the ASX that it was conducting the first human human trials of the company's new contact lens.
Biosignal and the Institute for Eye Research (IER) have received ethics approval for an initial overnight human trial of their anti-bacterial, extended-wear contact lens.
Existing extended-wear lenses are designed to be worn continuously for one month but clinical data suggests that wearers are five times more likely to develop an infection from this type of wear.
A lens able to minimise such infections would significantly increase convenience and comfort for contact lens wearers and is sought by all of the major lens manufacturers.
The IER has lodged a clinical trial notification with the Australian Therapeutic Goods Administration for the study, which is scheduled to begin today.
The aim of the study is to compare the safety performance of the anti-bacterial contact lens developed jointly by Biosignal and the IER with standard contact lens.
The comparison will involve evaluation of ocular health, lens performance on-eye and subjective responses when the lenses are worn for one night.
The trial will involve 10 patients and be conducted at the clinical facilities of the IER at the University of New South Wales under the guidance of Professor Mark Willcox.
Results are expected in early July.
It follows a successful two-week study in guinea pigs that demonstrated the anti-bacterial lenses were well-tolerated during overnight wear.
Earlier this month Japanese Restoration Group and Biosignal signed a memorandum of understanding and share subscription agreement regarding a commercial collaboration and an investment of up to $1.6 million by Restoration into Biosignal.
The investment will be made at a share price of 15c per share in two tranches, the first up to $450,000 to subscribe for shares in any shortfall from Biosignal's current rights issue and the remainder as a placement.
Biosignal has agreed to grant a board position to Restoration on completion of the investment.
The head of Tokyo-based Restoration group is leading Japanese businessman Yasuhiro Sakakibara.
JP Morgan in New York and London has advised Mr Sakakibara on the investment into Biosignal and the memorandum of understanding.
The Restoration group has identified the field of biomimicry as a key investment target.
Biomimicry is a branch of science that studies nature's models and then imitates or takes inspiration from these designs and processes to solve human problems.
Biosignal, whose technology is based on models from marine organisms, is a classic case of biomimicry and is one of Restoration Group's first investments in this field. Restoration expects to make a dozen additional investments over the next few years.
The investment by Restoration is not aimed specifically at activities in Japan but is designed to drive Biosignal's global business success.
However, the initial focus will be on opportunities in Japan. Restoration expects to provide further resources, in addition to the equity investment, to promote the development and launch of products based on Biosignal's technology in Japan.
Biosignal and Restoration will initially focus Japanese activities on a suite of industrial products aimed at biofilm prevention and removal in different product applications in the housing and construction sector.
Biosignal and Restoration have also agreed to assess manufacturing of Biosignal's compounds in Japan.
Michael Oredsson, managing director of Biosignal, said he welcomed Restoration Group as its first international institutional investor and looked forward to working with this highly respected business group with strong links to Japanese industry and government.
Mr Sakakibara, Restoration Group's chairman and founder, recognised Biosignal has a unique opportunity to succeed globally.
SHARE PRICE MOVEMENTS *********************
Shares of Biosignal yesterday drifted down 0.5c to 16.5c. Rolling high for the year has been 25.96c and low $13.72. The company has 68.7 million shares on issue with a market cap of $11.6 million.
Meanwhile in May Biosignal and technology venture company Q-Stat Pty Ltd received funding and technical support from Santos Ltd to develop a product that counters corrosion of oil and gas pipelines and equipment.
Biosignal announced that BHP Billiton had also contributed funding and resources to test the effectiveness of Biosignal's anti-biofilm compounds in halting bacterial corrosion of metals.
Santos, one of Australia's leading oil and gas exploration and production companies, agreed to provide funding, field data and technical advice.
Biosignal will first conduct bench scale trials of compounds against organisms known to cause corrosion problems and replicate oil and gas pipeline conditions.
Biosignal's compounds will be used alone and in combination with biocides already used in the industry.
If this work is successful, a field study will be conducted at an operating oil facility.
The bench scale trials are expected to be completed at the beginning of the fourth quarter this year. Intellectual property arising from the work will be owned by Biosignal.
"Microbiologically-Induced (Bacterial) Corrosion (MIC) of pipelines and consequent leaks in particular poses an environmental risk to the oil and gas industry as a whole," said Harry Moss of Santos.
"We support this project and are keen that effective tools are developed to assist Santos in managing the risk of such leaks to as low as is reasonably practicable."
Mr Oredsson said microbiologically induced corrosion (MIC) was a global problem and he was pleased to be working with multi-billion dollar companies to develop this product.
MIC occurs throughout oil and gas fields, at wellheads, in the gathering system, on oilrigs, on the internal and external surfaces of pipelines, storage tanks and refining facilities.
MIC is often responsible for leaks and blowouts.
Corrosion of steel infrastructure is estimated to cost the Australian oil & gas industry around $675 million per annum in direct and deferred costs, based on corresponding US industry figures.
BACKGROUND **********
Biosignal was established in 1999 with the aim of commercialising a unique anti-biofilm technology developed at the University of NSW in Sydney.
The company listed on the Australian stock exchange in April 2004 and is now focused on commercialising an initial range of products, primarily in the medical field.
Biosignal's primary technology founders, Professors Staffan Kjelleberg and Peter Steinberg, began their research in this area in the early 1990's and in 1994 observed that the Australian seaweed Delicia Pulchra was rarely covered in biofilms (bacterial colonies).
They established that the seaweed uses natural chemicals, furanones, to keep it free of biofilms.
The furanones jam cell-to-cell signalling systems that are pivotal to the ability of bacteria to form and maintain biofilms.
Professors Kjelleberg and Steinberg and a team of researchers at the Centre for Marine Biofouling and Bioinnovation at UNSW then embarked on a strategy to produce protective coatings that incorporate furanone compounds for a range of commercial applications.
A compound library of synthetic analogues was developed by a team of chemists under Dr Naresh Kumar.
The synthetic compound development was aimed at improving the properties of the natural compounds and to make them suitable for medical and industrial markets.
ENDS
BOS Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held
