ferret's stock to watch: bioprospect limited

Ferret's Stock to Watch: BIOPROSPECT LIMITED
08:27, Friday, 18 March 2005

A NEW COMPANY DIRECTION OF RESEARCH FOR TYPE 11 DIABETES

Sydney - Friday - March 18: (RWE Aust Business News)
****************************************************

OVERVIEW
********

Often investors disregard companies with prospects of market
improvement if they are in the penny dreadful class.

A company should not be written off because it's at the bottom
of the heap.

One little company Ferret has spied that might break into a
recovery mode is BioProspect Ltd (BPO).

Its shares are selling at a miserable 5.7c despite announcing an
agreement to acquire a strategic investment in a US/Australian drug
discovery company called Astrum Therapeutics Pty Ltd, which is focused
on Type II Diabetes Mellitus.

The most common form of diabetes is Type II, or non-insulin
dependent diabetes (T2DM).

This disease affects beta-cells of the pancreas.

T2DM commences with insulin resistance, whereby the body's cells
fail to respond to insulin, which in turn diminishes glucose transport
into cells, leading to an increase in blood glucose levels.

The beta-cells of the pancreas compensate by increasing insulin
secretion.

Clinical diabetes then emerges.

It is treated initially with diet, weight loss and exercise,
with often the later addition of drugs designed to promote further
production of insulin by the body.

In many people with T2DM the beta-cells progressively die off
due to the accumulation of a beta-cell protein called Islet Amyloid
Polypeptide (IAPP), which is toxic to beta-cells.

Insulin production then falls and insulin replacement is needed.

The active destruction of beta-cells inevitably results in
worsening of the diabetes and the shortening of lifespan.

The company has identified the crucial fragments of IAPP that
can be targeted with drugs designed to prevent IAPP mediated beta-cell
toxicity and aims to synthesise such drugs.

Astrum's science is considered to be unique in its approach to
the treatment of T2DM as opposed to the current oral drug and insulin
replacement approaches.

The company has a strong intellectual property position, and has
existing and pending patents with:

* An experienced scientific management team to focus on the
commercialisation path.

* Positive synergies flowing from Astrum to BioProspect in
boosting its scientific capabilities, increasing its ability to access
the US biotechnology market and further opportunities for Astrum to
utilise BioProspect's unique natural library and screen a number of new
and unique compounds for future research.

BioProspect is acquiring a 33.3 per cent interest in Astrum for
$US530,000 with a first right to increase its interest by an additional
9 per cent

Behind Astrum Therapeutics
**************************

Astrum scientists have identified the basic principles of
building drugs that prevent the destruction of beta-cells and critical
fragments of IAPP that interact with such drugs.

The company has designed, and plans to synthesise and test,
non-toxic compounds with the premise of arresting the progressive
decline in insulin secretory capacity that occurs inexorably in
established T2DM

Such a compound would have major potential in the first-line
treatment of type 2 diabetes mellitus and preventing the major burden of
its complications.

Current main-line drugs used in the treatment of diabetes
replace insulin, promote greater insulin release or improved glucose
uptake and utilisation by alternate mechanisms.

Astrum has modelled small molecules which can allow delivery and
potency without toxicity.

Currently available drugs for treatment of T2DM are largely
ineffective in controlling the symptoms of the disease and in delaying
many of the direct and indirect adverse health outcomes.

No single drug prevents the death of beta-cells associated with
progression of the T2DM state.

Astrum has designed drugs that are expected to provide
protection against the death of pancreatic beta-cells in T2DM.

Founded by Dr Alexander Zolotoy, Dr Eric Hayes, Mr Bob Besley
and Dr Martin Soust, Astrum's business activities are focused on
capitalising on its solid intellectual property position through novel
drugs that target T2DM and creating world-leading approaches for
the treatment of T2DM.

The key Astrum personnel have experience in developing
effective non-toxic drugs for other conditions such as cardiac
arrhythmias, and reproductive disorders and inflammatory diseases.

Astrum is one of a few companies with a T2DM drug development
approach that is focused on preventing beta-cell death.

The Astrum advantage is based on the ability to produce small
orally available molecules that are very potent and expected to be
nontoxic.

Key commercial milestones targeted by Astrum over the next six
to 24 months are:

* Synthesise and test novel drugs that prevent the death of
insulin-secreting cells of the pancreas (beta-cells);

* Finalising patents for drug combinations based on the Astrum
platform that targets the three major metabolic problems associated with
T2DM;

* Continue research and development efforts focusing on novel
target identification and drug development for specific cardiovascular,
inflammatory and neurological complications of T2DM; and

* Commence commercial discussions with potential partners and
initiate clinical trials within 18 months.

About 177 million people suffer from T2DM and this number is
projected to grow to 370 million by 2030.

The problem is fuelled by increasing affluence in developing
countries with increased sugar consumption, sedentary life styles and
aging populations.

The overall cost of T2DM is approximately $US45 billion annually
in the US alone with current treatments for T2DM generating sales of
$US8 billion annually.

Sales of antidiabetes therapies are expected to reach $US20
billion by 2007.

The key personnel involved with Astrum include Dr Alexander
Zolotoy - PhD in Physical Chemistry and with expertise in molecular
design.

He is involved in eight patents for the pharmaceutical industry
and including a $68 million drug for Cardiome Pharma Corp.

Dr Zolotoy has chalked up a successful clinical trial for Immune
Network Research Ltd.

Dr Eric Hayes - PhD in Pharmacology has expertise in target
identification and model development for drug discovery.

BioProspect's vision has always been to further expand its
activities into the human health sector.

The company is currently boosting its scientific capabilities,
increase its ability to access the US biotechnology market and work with
Astrum to utilise BioProspect's unique natural library and screen a
number of new and unique compounds for future research.

SHARE PRICE MOVEMENTS
*********************

Shares of BioProspect yesterday crept up 0.5c to 5.7c a share.
Rolling year high is 13.5c and low is 3.5c.

As part of the investment in Astrum, BioProspect is completing a
placement to investors on the following terms:

A parcel of 21.8 million shares at 4c a share.

This will immediately raise about $870,000 with 21.8 million
free attaching options (existing listed class - 20c, 25 January 06) to
be issued subject to shareholder approval.

An amount of 10.75 million shares at 4c a share to raise about
$430,000 with 10.75 million free attaching options (existing listed
class - 20c, 25 January 06) with the shares and options to be issued
subject to shareholder approval.

BioProspect also has the right to participate pro rata in any
subsequent capital raising by Astrum.

In addition it has a priority right over the next $US510,000
raised by Astrum whereby it can acquire an additional 9 per cent for
US$430,000.

The requisite shareholders meeting will be convened shortly.

BACKGROUND
**********

BioProspect Limited's business has been based on the sustainable
and equitable use of natural biological resources to service the
burgeoning agrochemical, pharmaceutical and nutraceutical industries.

The company was listed on the Australian Stock Exchange on
January 29, 2001 after initially issuing 41 million 20c shares.

Shares now issued total 150.4 million with a market
capitalisation of $7.8 million.

There are also 19,652,171 options expiring on January 25, 2006
exercisable at 20c.

The company was a start-up operation, having acquired a licence
for the collection of biota and extraction of natural compounds from the
associated collections for licensing to pharmaceutical companies and
other third parties.

BioProspect has focused on the development of client
relationships and sales opportunities in the overseas markets of the US,
South-East Asia and Europe.

ENDS


>>>>>>>>>>>>>>

I don't hold BPO