afr - japan tests for termite killer

Japan tests for termite killer
Author: Matthew McAdam
Date: 21/07/2004
Words: 202
Publication: Australian Financial Review
Section: Market Wrap
Page: 20

One of Japan's biggest chemical makers has signalled an interest in the all-natural termite-killing insecticide responsible for doubling the share price of junior biotechnology outfit BioProspect earlier this week.

The Brisbane-based bioprospector said yesterday that Sumitomo Chemicals Corp would spend the next six months evaluating its non-toxic and environmentally friendly termiticide AP778.

BioProspect had been in talks with several global chemical makers, including Sumitomo, since last October. On Monday, it said that tests at Southern Cross University and the University of Western Sydney had shown AP778 to be 100 per cent effective in killing and repelling the timber-munching pests.

The announcement fuelled a 114 per cent surge in its share price.

Investors viewed the Sumitomo deal as a precursor to a formal licensing agreement that could help BioProspect grab a slice of the $100 million market for termite treatments in Australia, pushing the stock up another 30 per cent to an intraday high of 13.5 ? yesterday.

More than 75 million shares changed hands, making BioProspect the top-traded stock by volume on the Australian Stock Exchange for a second consecutive session.

BioProspect research and development manager Matt Kealley said it could be two years before the treatment was fully commercialised.