cgs - cogstate diagnostics division announces mark CogState...

cgs - cogstate diagnostics division announces mark CogState Ltd
www.cogstate.com
July 21, 2004
CogState Diagnostics Division Announces Marketing Milestones:
a) CogState’s “Concussion Sentinel” offered free for first year to all
US High Schools and Colleges for 1 year under endorsement deal
with Schutt Sports; and
b) Sales prospects following major audit by a US Pharmaceutical
company
a) In a deal that will see unprecedented marketing exposure for an Australian
biotechnology company in the US - major US sporting goods manufacturer, Schutt
Sports, will announce today that it is sponsoring CogState’s (ASX: CGS) computerised
concussion testing to be given free to every US College and High School for one year.
CogState and Schutt plan extensive advertising and promotion in the lucrative US market.
Integral to the US launch is a multimedia press-pack, to be made available on Monday,
July 26 (see www.concussionsentinel.com/press for details then). It will include filmed
endorsements from Notre Dame University’s head sports physician, amongst others. It
will be announced in Texas on Monday at a 10,000 attendee meeting of American
Football High School coaches. It will bring the Australian technology to the immediate
attention of the more than 1 million American football players in High Schools. Further
significant press activities in the US and Australia are also planned.
The CogState test – branded Concussion Sentinel for the US market – uses a simple
computerised test based on playing cards to record cognitive (brain) activity. Following
concussion, the test is the fastest most accurate way for a doctor to determine whether
the athlete can return to the field. The free offer will be made to all 1,200 Colleges and all
18,000 High Schools across the US.
Dr. Peter Bick, CEO of CogState comments “This alliance exposes CogState to a
potential market size of approximately AUD$18 million per annum for American Football
alone. We expect our exposure to extend into the equally lucrative US soccer market as
well, building on the media attention we expect to begin next week, generated by this
novel offer”.
CogState Ltd
www.cogstate.com
The alliance with CogState gives Schutt a way to differentiate its brand, new ways to
market helmets and a greater market share. Julie Nimmons, President and CEO of Schutt
explains, “Tests and technology are wonderful, but only if they are useable. Concussion
Sentinel has incorporated a test methodology that is very user-friendly, and provides a
way for medical decisions to be made by the team doctor or family physician. We could
not be more pleased to be a part of this offer.”
b) CogState is also able to announce that it is seeking compliance with quality assurance
standards that will make it eligible to have the CogState Clinical product used to measure
changes in cognitive function in a series of clinical studies for a major US Pharmaceutical
company. This follows an audit of Cogstate by a quality assurance employee of the US
Company who was sent to Australia with the specific purpose of auditing CogState.
The company is substantially progressed in respect of compliance and is expected to
reach full compliance within 2-3 months, by which time it will be able to pursue major
Phase II/III trials in bipolar disorder, schizophrenia and Coronary Artery Bypass Graft
patients and several Phase I trials.
Revenues from these trials are expected to range from US$20-100k each and will be
recognised over the 2-18 month course of these trials.
About CogState: The Company specialises in computerised technology for the detection
of neurological problems and one of its major markets is the detection of concussion in
athletes. By taking baseline data using their computerised tests, coaches and parents can
then retest following injury – to determine when the player can return to the game.
CogState has a significant client list of elite sporting clubs and organizations including
AFL, the US Olympic Ski Team and the UK Jockey Club. Major Pharmaceutical
companies also purchase the computerised test in human clinical trials to determine the
effect of drugs on cognitive performance.
The CogState test is also used for the very early detection of Alzheimer’s Disease. The
test was recently recommended by the Alzheimers Association of Australia (Victoria) for
use by all people over 50 for baseline data and for annual testing to detect any evidence
of Alzheimer’s. While there is no cure for the disease there are a number of drugs that
can delay the disease if used early on.
CogState has a therapeutics division which has in-licensed two drug targets from leading
medical research organisations in Japan and Israel for the treatment of Alzheimer's
Disease and Parkinson's Disease respectively.
CogState’s total sales from its diagnostic division for the 2003-4 financial year are
expected to be less than $200k, so the importance of the deals announced in this release
are significant for the company.
About Schutt Sports: One of the last family-owned sporting goods companies in the
United States, Schutt Sports is the largest provider of football helmets and faceguards in
the world. The company also markets protective and field/court equipment for baseball,
basketball and softball and is the Official Base supplier of Major League Baseball.
Contact: Dr. Peter A. Bick, CEO CogState Ltd 0408 415 823