up to 2 years meerkat

Meerkat this article from intersuisse may shut you up regards when imu,s products will hit the market.

October 2004


Replacing Antibiotics in Animal Husbandry


Developments of Disease Control and Growth Enhancing Products



This report focuses on Australian companies listed on ASX that are developing new disease control and productivity enhancing products targeting the poultry and pig industries.



Antibiotics are routinely incorporated into animal feed to avoid production losses. Serious concerns have arisen over the potential for the development of bacterial cross-resistance and for residues in the food chain including bacteria being transferred to humans eating meat from treated animals.



In March 2002 The European Union called for the banning of all remaining antibiotic based medicated premixes by 2006. The emergence of antibiotic resistant bacteria and new regulatory controls to restrict the use of antibiotics in animal products means producers are keenly searching for alternatives to in-feed antibiotics that prevent disease and promote growth and feed conversion efficiency.



In response to regulatory pressures there has been a marked decrease in the demand for medicated feed additives during the last three years and this decline is expected to continue.



Three companies listed on ASX are focussing on the disease control and productivity enhancing markets: BioDiem Limited (ASX: BDM), Chemeq Limited (ASX: CMQ) and Imugene Limited (ASX: IMU). Each has products targeting poultry markets, with Chemeq and Imugene also targeting pig markets.



A fourth company, Stirling Products Limited (ASX: STI) has focussed research on growth promoters in the same markets and is commencing a study in lambs. Stirling’s product, a relatively pure beta agonist, decreases fat production and increases muscle (meat) production, whilst improving feed efficiency. However, Stirling is only targeting growth promotion and not disease control.



Poultry Overview



The poultry industry is the fastest growing meat production industry in the world. During the last 30 years it has changed from a low quality, low image product, to a premium high growth meat industry. Currently in the US, it takes less than 2 kg of feed to produce 1 kg of chicken meat. Chickens reach market size in about 43 days from hatching, the speed of growth continuing to increase. Feed is comprised of various different types of grains. Direct-fed enzymes in feeds are escalating in use to help improve digestion and nutrient usage.



However, many diseases afflict chickens resulting in death or impaired health and growth. Despite great progress over the past decades in the health management of chickens reared in confinement, there are continuous disease pressures and outbreaks. New serotypes surface and resistance develops against specific disease treatments such as antibiotics. Current costs of antibiotics in poultry are approximately 2 cents per bird and any replacement technology will have to be cost competitive.



The food conversion ratio (FCR) is an important indicator of product success. Farmers are keen to increase the size of their chickens, but at the same time decrease the amount of food consumed.



The Products



BioDiem’s BDM-I synthetic antimicrobial is still at an early stage of investigation. BDM-I treatment administered in the feed or by oral dosing may be effective against pathogens that cause coccidiosis in poultry. Coccidiosis is a highly infectious disease that can cause loss of condition and death in chickens. BDM-I has also been effective against bacterial pathogens such as Campylobacter, the major cause of human food borne gastrointestinal illness. Viruses have not been targeted in the BDM-I trials. BioDiem will decide by the end of 2004 whether to make its proposed FDA application itself or take on a partner to complete the task.



Chemeq has already built a factory and is aiming to have its product to some markets by 2005, faster than any of its Australian competitors. Submission to the US Food and Drug Administration is proposed to be completed by the second half of 2005. Chemeq owns its own technology and manufacturing facility and Chemeq’s synthetic polymeric antimicrobial can be dosed with animal feed or added to water. The prospects for Chemeq are limited by the recently completed manufacturing plant's capacity to only produce 20 000 kilograms per annum. This volume will position Chemeq in a niche position until further planned expansions take place. Furthermore, synthetic chemicals are inherently expensive to manufacture and Chemeq's poultry results suggest a cost per chicken of about 10.5-11 cents for treatment. Unless this is an overestimate or can be reduced it may not be competitive. The polymeric microbial product resulted in an average weight gain per chicken of 2.5% or 50 grams, with an established efficacy for bacterial conditions but not viruses. As infections of the respiratory system are common in poultry production, Chemeq’s chemicals that reside in the gut are only partial replacements for existing antibiotics used in poultry.



Imugene’s residue-free poultry productivity enhancer, added to drinking water, has been shown to boost a natural component of a chicken’s immune system. Boosting the immune system increases resistance to a range of bacterial as well as viral infections. In-feed antibiotics are only effective against gastrointestinal and respiratory bacterial diseases and do not provide protection against viral diseases. Imugene's patents have a long lifetime with the earliest expiring in 2014. Imugene is looking to license its technology to animal health companies and has already attracted the attention of the world’s leading animal health company Merial Limited, a Merck and Aventis joint venture, which has taken an option over Imugene products under a collaboration agreement. Submissions will be made to the Australian Pesticides and Veterinary Medicines Authority (APVMA) and the US Department of Agriculture in 2005 and 2006. The regulatory process for biological products tends to be quicker than for synthetics. Merial operates in more than 150 countries and Imugene will retain manufacturing and distribution rights in Australia, New Zealand and Japan.



Imugene advises that its biological product can be readily produced in a number of existing production facilities, with a cost to the poultry farmer of about 2.5 cents per chicken per treatment, competitive to the present antibiotic expenditure. Imugene’s product resulted in a weight increase on average of 7.5% or 130 grams per chicken with a creditable feed conversion ratio.


Pig Overview



Pork is the most widely eaten meat in the world (Pork Facts 2002/2003). With many more animals now bred intensively in small areas, contagious diseases become more common and severe. On the global level this has led to increasing roles of pig parasites and increasing susceptibility of pig herds to enteric and respiratory diseases.



On a global scale the Australian industry is quite small, accounting for 0.4% of world pork production. This production is worth approximately A$1 billion to Australian pig farmers, as measured at the farm gate. Australian pig meat production has increased steadily over the last 2-3 years resulting in an over supply of pork products in Australia. This, along with pressure from imports, has led to downward price pressures ensuring focus on cost control and production efficiency. The global market for biological products for pigs is projected to grow substantially over the next five years while at the same time medicinal feed additives (antibiotics) are projected to significantly reduce. This growth in the biologicals market will include new vaccines for emerging diseases such as Porcine Circovirus (PCV) and Porcine Respiratory & Reproductive Syndrome (PRRS) and biological productivity enhancers replacing in-feed antibiotics.



The Products





Currently only Chemeq and Imugene are preparing products in the pig antimicrobial space in Australia.



Like its poultry product, Chemeq is planning on manufacturing and marketing its polymeric antimicrobial product for pigs. The product controls post-weaning colibacillosis in pigs. The size of the compound prevents it from passing into the blood system of the animal and it is simply excreted, leaving no residue to impact further up the food chain.



Imugene is awaiting trial results of its first Receptor Mimic product. Imugene is also developing biological products, including vaccines for diseases such as PRRS. The Receptor Mimic Technology allows for the creation of non-chemical treatments with no residue or side-effects, specific for each bacterial disease or virus. The treatments will be administered in drinking water and there will be no need for injections or animal handling. The treatments can also easily be administered at the animals’ most appropriate and prevalent age for each disease, or in the event of an outbreak. Like Imugene’s poultry product, the Receptor Mimic product has some way to go before being commercially available. Also, as in the case of Imugene’s poultry product, this is a biological product that can be readily produced in a number of existing facilities. Hence it could be quicker to market than a product requiring special purpose facilities, as in Chemeq’s case.



The Future



The potential for innovative products to replace antibiotics for disease control and growth enhancement in food animal production is massive but likely to be hotly contested. Australian listed companies are developing products to meet this challenge. Biodiem is at an early stage of successfully trialling a synthetic antimicrobial. Earlier again is Stirling, but it is working on growth promotion, not disease control. The first mover advantage lies with Chemeq, looking for production approval this year; a wide—probably much wider—range of products may come from Imugene but mostly in two years time or later. Australia has joined the race, but it is too early to count our chickens.

many regards pixie