bioprospect signs new qcide agreement with bio

Sydney - Tuesday - January 19: (RWE Australian Business News) -
BioProspect Ltd (ASX:BPO) today announced a new agreement with Bio-Gene
Technology Ltd governing the intellectual property (IP) rights for
natural insecticide Qcide, which is being developed as "a new,
environmentally friendly treatment for household and human pests".
Under the agreement, BioProspect and the University of Western
Sydney (UWS) have assigned Qcide's IP rights to biotechnology company
Bio-Gene, in exchange for fees and royalties split between BioProspect
and UWS.
BioProspect managing director Mr Charles Pellegrino said the
agreement replaced the previous licensing deal announced in June 2008,
and would facilitate rapid development of products derived from the
essential oil, Tasmanone, found in the leaves of Australian tree
Eucalyptus cloeziana.
"Qcide is an exciting Australian discovery and part of our
expanding portfolio of natural products.
"We have been greatly encouraged by the progress made by
Bio-Gene, and the new agreement provides the commercial certainty to
ensure the successful development of a range of natural, non-toxic
insecticides," Mr Pellegrino said.
He said the new agreement could prove highly valuable to the
parties involved.
It comprised $200,000 of fees paid to BioProspect and UWS on
four one-year anniversary dates, with royalties payable as 4pc of the
first $1m in commercialisation income, plus 2pc of any additional income
over this amount.