Ferret's Stock to Watch: XCEED BIOTECHNOLOGY LIMITED 07:48,...

Ferret's Stock to Watch: XCEED BIOTECHNOLOGY LIMITED
07:48, Tuesday, 26 October 2004


A BIOTECH COMPANY PUTTING THE RUNS ON THE BOARD


Sydney - Tuesday - October 26: (RWE)
************************************

OVERVIEW
********

Xceed Biotechnology Ltd has so far been a good investment for its
shareholders who were lucky enough to score a bundle back in May when the
company floated to the public.

The shares were issued at 20c and this month are trading between
31 and 33c.

What is rather curious is that Xceed has a web site and its
wholly owned subsidiary Boron Molecular also has one of its own as if it
was a separate entity.

It must be said that the Boron web site is much more user
friendly than its parent Xceed.

It may well have occurred before the two came together as a
public company.

But in any case Boron is on the ball and moving along nicely
with significant promise.

Boron Molecular Pty Ltd is a chemistry company providing leading
pharmaceutical and biotech companies with small molecules to enhance
their drug discovery programs.

Boron Molecular's proprietary chemistry expertise is in the
creation of organoboron compounds that facilitate the synthesis and scale
up of potential drug candidates.

The company offers organoboron and coupled compounds, provides
custom synthesis and toll manufacture, leading to partnerships with
companies in drug discovery and development.

Meanwhile last week Xceed Biotechnology reported its first
quarterly results to the ASX since listing in May 2004.

Since listing Xceed Biotechnology has recorded a number of
significant achievements both at a corporate level and within its
investee companies.

At the corporate level Dr Michael Dalling has been appointed as
chairman to the Board of Xceed Biotechnology.

Ms Narelle Lloyd has been appointed as chief financial officer
and company Secretary of Xceed Biotechnology and its investee companies.

The cashflow used in operations for business development,
financial management, compliance and public company administration was
$129k for the first quarter of the financial year.

Directors said PolyNovo Biomaterials Pty Ltd (PolyNovo), has made
significant progress with both its research and development plan and
entry into commercial and strategic alliances.

The company is developing a injectable, biodegradable and
biocompatible polymer platform technology with potential application in
orthopaedics, stents, drug delivery, wound care, orthodontics, tissue
engineering and cartilage repair.

The various commercial and strategic alliances signed to date
will assist PolyNovo in the commercialisation of its polymer technology.

These include facilities and Access Agreement with CSIRO.

PolyNovo has negotiated a two year agreement to locate its
research and development activities at the CSIRO Division of Molecular
Science's Ian Wark Laboratories in Clayton, Victoria, with an option to
extend for a further year.

Alliance with Aortech Biomaterials PolyNovo and AorTech
Biomaterials ("Aortech") have entered into an agreement under which
PolyNovo's novel biodegradable polyurethane technology will be scaled-up,
stabilised and manufactured at AorTech's ISO certified Melbourne
Australia Technology Centre. -

PolyNovo Biomaterials Pty Ltd has forged a research alliance
with Imperial College London, UK to further develop aspects of its novel
polymer technology for use in bone repair activities.

Initial mini-pig trial for coronary stent coatings delivers
positive outcome Recently obtained histology data from the initial animal
study involving pigs provided positive results.

This is the first time that PolyNovo’s polymer has been evaluated
in arterial blood flow and represents a significant validation for
potential utilisation in stent manufacture.

At the start of the new quarter Polynovo announced a research
alliance with the Bionic Ear Institute in Melbourne that may potentially
lead to the development of new devices for nerve regeneration.

Along with PolyNovo's solid progress in its research and
development program, the company was also able to keep cash outflow from
its operations of $186k significantly under budget for the first quarter.


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

Xceed shares yesterday closed steady at 33c. Rolling high to date
has been 34.3 cents and low 20.3c.

During the quarter Boron Molecular continued increasing its
catalogue of available organoboron compounds, which now stands at more
than 400.

Organoboron compounds are used by the global pharmaceutical and
biotechnology industries for that facilitate the synthesis and scale up
of potential drug candidates.

Sales of compounds sales increased by approximately 10 per cent
in the first quarter of 2005 compared to the previous quarter.

The continuing sales growth is due to several factors including,
the increasing range of compounds available, increasing numbers of
customers and increasing quantities being purchased by customers.

Further significant sales growth is expected to result from the
appointment of an Exclusive Agent in the United States, which was
announced at the end of the quarter.

Recruitment of an Exclusive Agent Boron Molecular Inc has been
established in the USA as the exclusive sales agent for Boron Molecular.

The USA agency arrangement allows Boron Molecular to further
establish, promote and increase the sale and distribution of its unique
range of organoboron compounds throughout the USA market.

During the period under review, Boron Molecular was granted US
and European patents.

The patents are entitled Hydroboronation Process and Boron
Molecular has been issued with US patent number 6,680,401 and European
patent number 1,127,060.

Boron Molecular's EBITDA for the first quarter was a loss of
$129k.

Earnings performance is expected to improve with anticipated
increased revenues.

Boron Molecular's cash outflow from operations was $31k for the
first quarter.


BACKGROUND
**********

Xceed Biotechnology is a biotechology investment company that
made its debut on the Australian Stock Exchange on May 19,2004.

It focuses on investment in revenue producing and research based
leading edge patentable technologies.

Xceed currently has two core assets in its portfolio, a 50 per
cent stake in Polynovo Biomaterials pty and 100 per cent interest in
Boron Molecular pty.

The core technologies of each company has been developed by the
CSIRO.

Xceed's investment in the life sciences sector include a
$5.1 million investment into PolyNovo Biomaterls with the retention of 50
per cent equity ownership and the acquisition of 100 per cent of Boron
Molecular.

The company will initially focus on the development and
commercialisation of Polynovo Biomaterials' novel biodegradable polymers
and increase the sales of Boron Molecular range of products and
collaborative partners.

Xceed Biotechnology's first annual general meeting will be held
at 11.30am on November 26, in Perth, Western Australia.

Boron Molecular background
***************************

Boron Molecular Pty Ltd was formed in 2001 to develop and
commercialise novel organoboron technology invented and developed by the
Commonwealth Scientific and Industrial Research Organization, Molecular
Science (CSIRO) in Australia.

The current range of products and services include: organoboron
compounds, Suzuki coupled compounds, intermediates, custom synthesis and
chemistry services.

Boron Molecular dedicated chemistry and support staff operate
from well-equipped facilities in Melbourne, Australia.

Boron Molecular's skilled team of chemists has expertise in the
design of syntheses of milligram to multi-kilogram quantities of
compounds.

The laboratory facilities and full-time personnel are versatile
in performing research and development of the organoboron product
portfolio or synthesizing challenging custom molecules or undertaking
contract chemistry service work.

Boron Molecular's core skills not only include boron chemistry,
but also medicinal chemistry (including nucleoside chemistry), scale-up,
discovery, development, and commercialisation.

In addition, Boron has established a successful track record of
servicing multi-national pharmaceutical companies.

ENDS

Copyright © 2004 RWE Australian Business News. All rights reserved.

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

I don't hold XBL

Cheers,

Fig Jam