citrofresh keeps the devil in the detail

How would you value a company that had in one day announced it could kill AIDS, influenza, avian flu virus and the cause of the common cold with one miracle drug?

Investors were left wondering just that yesterday when biotech minnow Citrofresh International made explosive claims about eliminating some of the most dreadful diseases on the planet in a statement to the Australian Stock Exchange.

Shares in Citrofresh rocketed more than 230 per cent to 70 ¢ on the news and were up 154 per cent when it called a trading halt in the afternoon.

In Citrofresh's four-page press release, there were no details of the size of the trial it conducted, its nature, if it was done on animals or humans or its scientific parameters.

A spokesman for the ASX said it was seeking more information.

Citrofresh chief executive Ravi Narain said he wasn't totally responsible for the press release.

"Look, I didn't write all of it, I read it," he said. "I signed it and what-have-you, but look, it is correct, it does kill AIDS but it's not a vaccine."

He said it could act as a steriliser that could be put on the human body.

The headline of the Citrofresh press release read: "Test results confirm Citrofresh is effective against four major virus types including HIV and avian."

Later it said concentrations of its compound were sufficient to "eliminate all of the viruses".

"There is nothing incorrect in that announcement insofar as it's totally effective against those four viruses and obviously other viruses that are formed under that structure," Mr Narain said. He admitted the trial was only in a test tube the product was not tested on animals or humans but he would not release more details.

"We don't have to release the details of the trial. I mean, some of that information is obviously confidential."

Last month, the Australian Securities and Investments Commission fined Solbec Pharmaceuticals after the market was not properly informed that a successful cancer trial was actually only conducted on five mice. Solbec paid the fine but did not admit wrongdoing.

There is no ASX rule to force the release of details of drug trials.