Ferret's Stock to Watch: MEDICAL THERAPIES LTD09:09, Wednesday,...

Ferret's Stock to Watch: MEDICAL THERAPIES LTD
09:09, Wednesday, 29 March 2006

BIOTECH DRUG INHIBITS MANY ACUTE INFLAMMATORY SITUATIONS

Sydney - Wednesday - March 29: (RWE Aust Business News)
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OVERVIEW
********

Medical Therapies (MTY) doesn't appear to be a robust company at
this stage but looks to be prospective down the track, backed by research
from one of Australia's leading universities.

Yesterday the company described some of its research as producing
"profound results" from a pilot study using a rabbit involving
acute vascular inflammation using two of its lead compounds.

This pilot study was conducted at the Heart Research Institute
(Sydney) under the direction of Professor Philip Barter and Dr Raj
Puranik.

It was designed to examine the anti-inflammatory effects of a
single oral dose of MTY's patent-protected compounds Copper Indomethacin
and Copper Acemetacin (CuACM).

The activity of these drugs was measured against the Heart
Research Institute's apoA1, the chief protein component of HDL - the
body's "good cholesterol".

ApoA1 almost completely inhibits inflammation and serves as a
control or "gold standard" in this model.

In this pilot study, the two MTY compounds were found to be at
least as effective as the "gold standard" apoA1.

According to Professor Barter, the MTY compounds exhibited
"profound inhibition of acute arterial inflammation".

MTY will now immediately conduct expanded trials and believes
that if the pilot study results are mirrored in these new trials, there
is significant potential for these drugs as human therapeutics in the
treatment of the inflammation associated with heart attacks, stroke and
other acute inflammatory states like post-surgery trauma.

PRINCIPAL ACTIVITIES
********************

The principal activities of Medical Therapies are the development
and commercialisation of pharmaceutical products to treat various cancers
and chronic inflammatory diseases.

The key developments have been:

* The University of Sydney irrevocably assigned its intellectual
property to the group in exchange for 17,142,857 shares in Medical
Therapies.

* Management met with the company's US FDA consultants as part of
its strategy to pursue the early registration of Copper Indomethacin as a
'generic' equivalent drug in the US.

Indications to date are that short-term registration is possible
under the FDA's 505(b)2 application, with timing still on track for the
New Drug Application (NDA) being submitted in late 2006.

* The group has commenced a large-scale mouse trial on a topical
(cream) therapy for the treatment of skin cancer.

Preliminary results are anticipated to be available in the third
quarter of 2006, with final results anticipated by the end of the first
quarter of 2007.

* The group is investigating various intellectual property
acquisitions and other opportunities aimed at extending its pipeline of
future products and enhancing shareholder value.

* Malcom Castle has been appointed as a non-executive director of
the group.

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

Shares of Medical Therapies yesterday sold 6c higher at 49c,
its rolling high for the year while the low was 12.1c. The company has
29.9 million shares on issue with a market cap of $12.89 million.

As proposed in the company's IPO prospectus, the company is
making a non-renounceable entitlement issue of 16,033,091 options at an
issue price of 5c per option, on the basis of one option for every three
shares held which raised about $80,165 before expenses.

Revenue from ordinary activities for the six months to December
31 jumped 706 per cent to $34,801 while loss from ordinary activities
after tax for the period rose 194 per cent to $874,149.

The company did not pay a dividend for the period.

BACKGROUND
**********

Medical Therapies Ltd was admitted to the Australian Stock
Exchange's official list on December 6 and its ordinary shares began
trading on December 9.

The IPO generated gross proceeds of $3,085,300.

Medical Therapies is an Australian pharmaceutical company that
has been formed to commercialise Australian medical discoveries.

In exchange for a substantial shareholding in the company, the
University of Sydney has assigned to Medical Therapies a valuable
portfolio of a number of ground-breaking pharmaceutical compounds it has
discovered and developed over the last 10 years.

These patent-protected compounds offer the potential for
substantially less toxicity in the treatment of inflammatory diseases
such as arthritis and a new way to treat various cancers including skin
cancer.

Inflammatory disease and cancer represent two of the world's
biggest medical markets, with sales of $US12.4 billion and $US42.4
billion respectively.

Since Medical Therapies listed on the Australian Stock Exchange,
directors have been assessing various opportunities with the view of
generating wealth for shareholders, including acquisition of further
intellectual property and companies that fit with the company's
strategic direction in the treatment of inflammation and cancer.

Medical Therapies is focused on developing products to treat
various cancers and chronic inflammatory diseases such as arthritis.

ENDS