BioPharmica intends to seek an IPO for investee Cortical Dynamics on the Australian Securities Exchange.
Under a planned 'spin off' process, BioPharmica (ASX Code: BPH) shareholders would receive a free $0.20 share in Cortical Dynamics for every listed BioPharmica share that they hold on July 15th 2007.
This means that an eligible BioPharmica shareholder could retain the shares they hold in BioPharmica whilst receiving the same number of $0.20 shares (at no cost) in the new IPO of Cortical Dynamics. The spin off and listing is subject to approval from shareholders and regulatory bodies.
Any option holders in Biopharmica who exercise their options prior to the expiry of these options on 30 June 2007 will be eligible for these free shares.
Cortical Dynamics
Cortical Dynamics is working with BioPharmica and Swinburne University of Technology (SUT) to commercialise and develop the Brain Anesthesia Response (BAR) index monitoring system. The BAR Monitor is designed to detect and record the electrical activity of the human brain in order to assist anesthetists to keep patients optimally anaesthetised during surgery.
The BAR system measures a patients brain electrical activity (EEG) to indicate how deeply anaesthetised a patient is during an operation via an adhesive sensor applied to the forehead. This monitor is designed to assist anaesthetists and intensive care staff in ensuring patients do not wake up un-expectedly, as well as reducing the incidence of side effects associated with the anaesthetic. International patent coverage is pending regarding the use of the BAR Monitor in a range of applications.
Market
The depth of anesthesia market is predicted to be worth AUD$1 Billion by 2008. There are eight products in the market and two companies whose focus is purely depth of anesthesia monitoring. The benchmark monitor at present is BIS (the Bispectra Index at Aspect Medical systems Inc). It has been shown in extensive clinical trials that improved monitoring of the depth of anesthesia reduces recovery times, the costs of anesthesia and the incidence of postoperative recall.
Clinical Trials
A pilot trial at Royal Melbourne Hospital (RMH) tested the sensitivity of the BAR Monitor in quantifying the effect that various levels of the anesthetic agent nitrous oxide have on measures of anesthetic depth. The results of the 60-patient study indicated that the BAR index may be superior in quantifying brain function compared to current approaches. One critical discovery was that the BAR index could measure both brain state and input, something that other brain function monitors have trouble in doing separately.
A second pilot trial at RMH, that utilizes the BAR Monitor in patients given opioids as anesthetic agents, is currently underway in order to extend the validation of the monitor. The National Health and Medical Research Council (NH&MRC) in Australia will be providing supporting funding that includes trials that are expected to take place during 2008 at various Australian hospitals.
The Cortical Anesthetic Monitoring Device which was recently featured on ABC's “Catalyst” on 3rd May 2007 was recently awarded a Federal Government National Health Medical Research Council Development Grant of $182,500.
(20min delay)