asx probe into qut-linked biotech tissue thera

ASX probe into QUT-linked biotech Tissue Therapies
MARK SOLOMONS THE COURIER-MAIL AUGUST 17, 2013 12:00AM

THE Australian stock exchange is investigating QUT-linked Brisbane biotech company Tissue Therapies over possible breaches of market rules.

The probe follows allegations the company, set up to market products invented by a group of QUT scientists, failed to notify investors about the retraction of a research paper authored by the group.

Tissue Therapies could sell VitroGro by 2014

QUT reputation at risk over grant application

A whistleblower has also alleged that the company misled investors in 2008 by claiming in stock market announcements that a cell growth media product using VitroGro, primarily used as a wound healing product, had been used to culture two stem cell lines for more than 40 generations.

An internal QUT investigation last year found that external analysis commissioned by the scientists had shown the two cell lines used were in fact identical.

A leading world expert told The Courier-Mail that a cell growth media of this type, which eliminated the use of animal serum, should work on any viable stem cell line.

``All of the major serum-free media currently available commercially and widely used in the field are tested … on many cell lines before being introduced to market,'' Netherlands-based Professor Christine Mummery said.

The research paper had described the use of VitroGro, Tissue Therapies' only product, to grow one line of stem cells in the lab for more than 30 generations, a major achievement. But the article was this year retracted by the journal that published it in 2010 after errors in its reporting of some parts of the research was found.

Professor Zee Upton, the group's leader who is also chief scientific adviser to Tissue Therapies, has admitted errors occurred in the writing of the paper and a related application for a $275,000 federal grant but told The Courier-Mail last month they were ``inadvertent''.

QUT's investigation cleared the scientists of misconduct.

Tissue Therapies, in which QUT owns shares worth more than $2 million, has been trying to commercialise VitroGro as a wound-healing product.

An ASX spokesman confirmed the market operator had received a complaint on Monday.

``We treat all complaints seriously and confidentially,'' the spokesman said. ``The issues raised will be thoroughly examined.''

Company chief executive Steven Mercer said he was ``aware of the matter''. He said he had no plans to make any market announcement.

``We were informed some time ago that it wasn't two cell lines it was only one,'' he said in relation to the stock market announcement about culture of two stem cell lines.

``The board and Tissue's corporate lawyers and the ASX consider it immaterial.''

He declined to say when the ASX had told him this.

``That is all I am going to say.''

Dr Mercer told The Courier-Mail last month that the retraction of the research paper was ``commercially immaterial'' because the company regarded the cell growth media market as unimportant, so there had been no need to inform the stock exchange.

``Continuous disclosure'' obligations on companies listed on the ASX require companies to tell the market immediately about ``information concerning it that a reasonable person would expect to have a material effect on the price or value of its securities''.

http://www.heraldsun.com.au/news/national/asx-probe-into-qutlinked-biotech-tissue-therapies/story-fnii5v70-1226698775323