commercial manufacture of 'bioeffective'

24 August, 2004
Company Announcement

Agreement with Galenopharm

The Directors of Solagran Limited (“the Company”) are pleased to announce that the Company has entered into an agreement with Galenopharm Limited (“Galenopharm”) to manufacture commercial quantities of Bioeffective R, the Company’s flagship product for treatment of liver disease. In addition, Galenopharm has agreed to function as Solagran’s Russian partner for progressing local regulatory approvals for both Bioeffective R and end-user products based on this substance.

Galenopharm is a natural products arm of the St Petersburg Pharmaceuticals Factory Limited, a leading Russian pharmaceuticals manufacturer and distributor since 1937. In addition to producing a wide range of natural therapeutic products for both local Russian and export European pharmaceutical markets, Galenopharm is the manufacturer of Solagran’s Bioeffective R used in the clinical trials currently underway in Russia and scheduled for completion by end of October, 2004.

This agreement follows 12 months of negotiations and production of several pilot batches that ensured that Galenopharm could upscale Solagran’s patented production technology to commercial levels.

The completion of this agreement allows the Directors to progress plans for the introduction of Bioeffective R into the Russian pharmacopoeia as a treatment for liver disease in the financial year 2006.

This agreement also enables Solagran to transport Bioeffective R in bulk form to other parts of the world for processing into finished products under GMP conditions. In anticipation of Australian commercialisation, Solagran is currently in discussions with a major Australian pharmaceuticals manufacturer for developing different finished forms of Bioeffective R. This will aid Solagran in trialling alternate forms of Bioeffective R for other promising applications, for example, treatment of Alzheimer’s disease (as indicated in the Company Announcement dated 19 July 2004).


Peter Stedwell, Director
On behalf of the Board of Directors