Anadis increases its potential

Again, biotechs are not sexy at the moment but I've been pushing this one from time to time as they make new announcements. This latest one seems to me to hold a good deal of promise. I have been accumulating ANX and will be holding for better days.
AnnaP

ANADIS LIMITED 2002-11-12 ASX-SIGNAL-G

HOMEX - Melbourne

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Melbourne biotechnology company Anadis has signed a major
development, distribution and manufacturing agreement with The
Development Centre For Biotechnology (DCB) in Taiwan to produce a
preventative product for Enterovirus 71, a growing public health
problem in Asia.

DCB - a Taiwanese government organisation - has been looking for a
solution for Enterovirus 71, which can cause a disease similar to
polio and has emerged as an increasingly serious problem in Asia over
recent years. Enterovirus 71 has become of intense concern to the
government of Taiwan due to regular epidemics on the island.

DCB selected Anadis because of the company's expertise in developing
innovative approaches to the use of functional foods for the control
of disease, and the existing intellectual property held in this area
by Anadis. Australian and Taiwanese scientists have drawn up a joint
product development plan to create a product that will be safe and
acceptable to children.

Enterovirus 71 isn't yet well known in Australia, but is becoming
dreaded in Asia. According to Taiwanese government figures there were
more than half a million illnesses caused by the virus in Taiwan in
1998 alone - including almost 500 severe neurological cases and 78
deaths, most of which were in children under four.

Epidemics of Enterovirus 71 are becoming increasingly common in the
Asia-Pacific region, and medical authorities are comparing the
disease with the spread of polio in Europe and North America in the
late 19th century. Outbreaks of Enterovirus 71 infection have now
also being reported in Europe and Australia.

There are no vaccines or specific treatments, and conventional
vaccines are at least 10 years away.

Anadis has begun to develop an effective food product containing
specific binding proteins to prevent transmission of the virus. The
technology will provide a product which will be readily accepted by
regulatory authorities, and will act as a 'fire-blanket' over an
epidemic. Anadis' scientists are confident that an effective
preventative can be developed over the next eighteen months. This
would represent a fraction of the time required to develop a
conventional vaccine.

A joint venture agreement has been signed that combines Anadis'
protein production and delivery technologies with Taiwan's knowledge
of the virus. The developmental stage of the programme will be fully
funded from Taiwan with Anadis receiving $293,000 from DCB over the
next eighteen months to undertake development of the final product.
The scientific development work will be undertaken at a number of
locations both in Victoria and Taipei. It is anticipated that a
product should be initially available for distribution in Taiwan
within three years. All additional intellectual property generated
during the development stage will be co-jointly owned by both
parties.

Under the terms of the agreement Anadis receives exclusive global
manufacturing rights of the bioactive materials contained in the
product for a minimum of five years from launch of the product, a
royalty stream from all sales generated throughout Asia by DCB and
sole distribution rights for all markets outside of Asia.

DCB anticipates the market in Taiwan alone to be in excess of one
hundred million doses per annum. This in itself would generate
anticipated revenue on manufacturing for Anadis of in excess of
twenty million dollars per annum. Additionally, royalties of two to
three million dollars per annum will also be received by Anadis.

It is the intention of both Anadis and DCB to open up additional
markets both in Asia and the rest of the world following the initial
launch in Taiwan.

Anadis believes that this agreement is of major commercial
significance to the company and should help to further transform
Anadis from a biotechnology research company into an income earning
end product developer and manufacturer.

C Graham
MANAGING DIRECTOR & CEO

For further information contact:

Mr Conor Graham or Dr Grant Rawlin
Telephone: 03 9358 6388
Facsimile: 03 9358 6399
Email: [email protected]