some research & history

Stock to Watch: BIOPROSPECT LTD
08:05, Wednesday, 21 July 2004

CHEMICAL GIANT SUMITOMO INTERESTED IN LOCAL TERMITE REPELLENT
Sydney - Wednesday - July 21: (RWE)
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OVERVIEW
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Sydney - Wednesday - July 21: (RWE) - Termites chomp up millions
of dollars worth of wood a year if left unchecked.
Now a little company called BioProspect Ltd has come good with a
repellant product against termites that could be a winner.
Fast on the heels of this revelation, BioProspect yesterday
announced that the chemical giant, Sumitomo of Japan, had signed an
evaluation agreement for AP778, its natural termite product.
Traders became interested in the stock on Monday after
BioProspect reported exciting trial results of its natural termite
product, AP778.
And the shares suddenly doubled in price and hit 12.5c yesterday
on the Sumitomo interest.
Directors reiterated that AP778 has shown outstanding results in
recent trials, with high repellency and kill rates over an extended
period of time.
They claim the product has attracted enormous interest in
recent times given these results and its market potential.
Product toxicity and environmental contamination has meant that
most effective termite products have now been banned or are severely
restricted in their use.
Leading international industry players have been searching for
new products with acceptable control, longevity and safety.
BioProspect believes it has a product that satisfies these
criteria as internal trials have exceeded expectations.
The company is "extremely confident" that many more new products
will be produced from its unique natural product library, for life
sciences, especially human health and biotechnology, in the near future.
Comprehensive scientific trials have shown high repellency
and kill rates over an extended period of time.
AP778 is a naturally derived insecticide which is unique to an
Australian hardwood tree, and environmentally friendly and non-toxic to
mammals.
Chief executive Mr Selwyn Snell said the results for the trials
had exceeded the expectations of the company and scientists conducting
the tests.
"We knew that AP778 had good control on termites and the latest
barrier tests show it has exceptional repellency," he said.
Long-term trials from the barriers impregnated with AP778 showed
100 per cent repellency and kill rate.
The Building Code of Australia demands termite management systems
as a mandatory requirement for any new building or addition, to protect
them from termite attack.
These management systems include chemically impregnated sand
barriers.
Current synthetic products continue to be scrutinised by the
homeowner for their protection against termites, reapplication, health,
and environment issues.
BioProspect believes it may have found an answer to these issues.
Primary field trials will start in August.
The trials will take place in termite-infested grounds near
Narrandera, west of Wagga Wagga in NSW, together with trials in other
regional areas.
The field trial results will provide BioProspect with valuable
data required for registration and market development of the product.
The discovery of AP778 came through observation of several
100-year-old fence posts that had remained untouched by termites in a
heavily infested termite area.
Mr Snell said the agrochemical termiticide market had been
searching for a chemical to replace organochlorine insecticides that were
withdrawn from the Australian market in 1995 because of their negative
environmental effects.
He said termites were a growing problem with sales of termite
control products in the US totalling more than $US1 billion per annum and
about $A100 million in Australia.
AP778 is a project supported by a Federal Government
Biotechnology Innovation Grant.
SHARE PRICE MOVEMENTS
*********************
Shares of BioProspect shares yesterday moved above 12c yesterday
but finished steady at 10.5c after earlier climbing 5c on Monday on the
termite news. Rolling high for the year has been 15c and low at 3.5c
In May 2001 BioProspect Limited made an exciting discovery with
the natural insecticide Qcide.
The discovery has sparked the attention of the global
agrochemical industry and this has resulted in an on-going and exhaustive
evaluation program.
Currently scheduled for a June 2004 launch (subject to regulatory
ratification), Qcide is a naturally derived oil from the leaves of a rare
Eucalyptus sp. which is found only in North Queensland.
Laboratory testing was completed in 2002 and the results from
this testing found that Qcide is efficacious against a range of pests
including the following:
Two spotted mite, Tomato russet mites, Greenhouse thrips, aphids,
Termites,Houseflies, American cockroaches, whitefooted ants, adult
mosquitoes Ash whitefly and drug store bettle, snails, fruit fly, and
diamond back moth.
In 2002 Global agrochemical giants Sumitomo (Japan) and Nufarm
(Australia) commenced field testing in the area of crop protection with
results due to be reported in early 2003.
Field tests will be conducted in the U.S, Malaysia, Indonesia,
India, France, Japan and Australia and will be conducted on a variety of
pests including mites and heliothis.
Some of the benefits of Qcide include the knock down effect that
reduces reinfestation as well as the safety data collected that concludes
that Qcide has a minimal toxicity to mammals and fish stocks.
Currently Qcide is being tested in a variety of areas including:
* crop protection
* domestic pest control garden and household market
animal health and human health.
The potential for Qcide is enormous with a greater interest in
our health, the environment and our impact on it and our need to look for
sustainable solutions to existing chemicals.
BioProspect is committed to the development of this and other
naturally derived products that will result in a cleaner, safer world.

BACKGROUND
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Australian owned and managed, BioProspect Limited is one of
Australia's eminent natural product discovery companies.
Established in 1998 and listed on the Australian Stock Exchange
in 2001, the company is well placed to capitalise on its established
access to an impressive library of biological resources found in
Australia's natural landscape.
With its core focus in the discovery, research and development of
commercial products from a broad cross-section of biological sources
collected in Australia, BioProspect is a company committed to global
success.
BioProspect has an established Natural Extract Library
representing a collection of materials from some of the most unique and
diverse flora and fauna in the world.
This resource, combined with the company's commitment to
maintaining the environmental balance, ensures the company is charged
with a vision for the sustainable and equitable use of Australia's
natural biological resources.
Collections are permitted under licence agreements with several
states of Australia.
Licence agreements ensure the provision for and protection of
Intellectual Property.
Collection protocols are in accordance with the Convention on
Biological Diversity Collaborations (Return to top)
BioProspect recognises the value of building strong relationships
within the science and corporate communities.
The company has and will continue to forge these relationships in
an endeavour to maximise the scientific value of its resources including
continuous assessment and exploration for new potential.
Diversa Corporation of the US have aligned with BioProspect as a
part of their Biodiversity Access Program.
The Centre for Phytochemistry at Southern Cross University is
where some of the world's most respected plant specialists reside
The University of Western Sydney's Science and Horticultural
Department where some of the initial work on Qcide was undertaken
BioProspect has formed partnerships with world renowned plant
biologists and chemists, allowing the company to provide a state of the
art service that can be customised to meet the needs of a variety of
industries.
Through these partnerships, the company is committed to the
discovery and development of a broad cross-section of natural biological
resources, concentrating primarily on the pharmaceutical, nutraceutical
and agrochemical industries.
With respect to these discoveries, BioProspect continues to focus
on a number of ventures ranging from termite and pest control through to
prostate and breast cancer.
Qcide, one of the company's flagship discoveries, has the
potential to offer the global agrochemical industry a non-toxic
alternative to the ever increasing insect resistant pesticides that are
currently available.
BioProspect since its inception has worked closely with both
state and federal governments in relation to its bio-discovery programs.
The company recognises the importance of the state and federal
systems as key supporters and potential drivers to many of the programs
and opportunities being explored.
Through the delivery of a successful partnership between
BioProspect and the respective governments, the social and economic
values to Australia will be more effectively realised.