CHEMICAL GIANT SUMITOMO INTERESTED IN LOCAL TERMITE REPELLENT
Sydney - Wednesday - July 21: (RWE) ***********************************
OVERVIEW ********
Sydney - Wednesday - July 21: (RWE) - Termites chomp up millions of dollars worth of wood a year if left unchecked. Now a little company called BioProspect Ltd has come good with a repellant product against termites that could be a winner. Fast on the heels of this revelation, BioProspect yesterday announced that the chemical giant, Sumitomo of Japan, had signed an evaluation agreement for AP778, its natural termite product. Traders became interested in the stock on Monday after BioProspect reported exciting trial results of its natural termite product, AP778. And the shares suddenly doubled in price and hit 12.5c yesterday on the Sumitomo interest. Directors reiterated that AP778 has shown outstanding results in recent trials, with high repellency and kill rates over an extended period of time. They claim the product has attracted enormous interest in recent times given these results and its market potential. Product toxicity and environmental contamination has meant that most effective termite products have now been banned or are severely restricted in their use. Leading international industry players have been searching for new products with acceptable control, longevity and safety. BioProspect believes it has a product that satisfies these criteria as internal trials have exceeded expectations. The company is "extremely confident" that many more new products will be produced from its unique natural product library, for life sciences, especially human health and biotechnology, in the near future. Comprehensive scientific trials have shown high repellency and kill rates over an extended period of time. AP778 is a naturally derived insecticide which is unique to an Australian hardwood tree, and environmentally friendly and non-toxic to mammals. Chief executive Mr Selwyn Snell said the results for the trials had exceeded the expectations of the company and scientists conducting the tests. "We knew that AP778 had good control on termites and the latest barrier tests show it has exceptional repellency," he said. Long-term trials from the barriers impregnated with AP778 showed 100 per cent repellency and kill rate. The Building Code of Australia demands termite management systems as a mandatory requirement for any new building or addition, to protect them from termite attack. These management systems include chemically impregnated sand barriers. Current synthetic products continue to be scrutinised by the homeowner for their protection against termites, reapplication, health, and environment issues. BioProspect believes it may have found an answer to these issues. Primary field trials will start in August. The trials will take place in termite-infested grounds near Narrandera, west of Wagga Wagga in NSW, together with trials in other regional areas. The field trial results will provide BioProspect with valuable data required for registration and market development of the product. The discovery of AP778 came through observation of several 100-year-old fence posts that had remained untouched by termites in a heavily infested termite area. Mr Snell said the agrochemical termiticide market had been searching for a chemical to replace organochlorine insecticides that were withdrawn from the Australian market in 1995 because of their negative environmental effects. He said termites were a growing problem with sales of termite control products in the US totalling more than $US1 billion per annum and about $A100 million in Australia. AP778 is a project supported by a Federal Government Biotechnology Innovation Grant.
SHARE PRICE MOVEMENTS *********************
Shares of BioProspect shares yesterday moved above 12c yesterday but finished steady at 10.5c after earlier climbing 5c on Monday on the termite news. Rolling high for the year has been 15c and low at 3.5c
In May 2001 BioProspect Limited made an exciting discovery with the natural insecticide Qcide. The discovery has sparked the attention of the global agrochemical industry and this has resulted in an on-going and exhaustive evaluation program. Currently scheduled for a June 2004 launch (subject to regulatory ratification), Qcide is a naturally derived oil from the leaves of a rare Eucalyptus sp. which is found only in North Queensland. Laboratory testing was completed in 2002 and the results from this testing found that Qcide is efficacious against a range of pests including the following: Two spotted mite, Tomato russet mites, Greenhouse thrips, aphids, Termites,Houseflies, American cockroaches, whitefooted ants, adult mosquitoes Ash whitefly and drug store bettle, snails, fruit fly, and diamond back moth. In 2002 Global agrochemical giants Sumitomo (Japan) and Nufarm (Australia) commenced field testing in the area of crop protection with results due to be reported in early 2003. Field tests will be conducted in the U.S, Malaysia, Indonesia, India, France, Japan and Australia and will be conducted on a variety of pests including mites and heliothis. Some of the benefits of Qcide include the knock down effect that reduces reinfestation as well as the safety data collected that concludes that Qcide has a minimal toxicity to mammals and fish stocks. Currently Qcide is being tested in a variety of areas including: * crop protection * domestic pest control garden and household market animal health and human health. The potential for Qcide is enormous with a greater interest in our health, the environment and our impact on it and our need to look for sustainable solutions to existing chemicals. BioProspect is committed to the development of this and other naturally derived products that will result in a cleaner, safer world.
BACKGROUND **********
Australian owned and managed, BioProspect Limited is one of Australia's eminent natural product discovery companies. Established in 1998 and listed on the Australian Stock Exchange in 2001, the company is well placed to capitalise on its established access to an impressive library of biological resources found in Australia's natural landscape. With its core focus in the discovery, research and development of commercial products from a broad cross-section of biological sources collected in Australia, BioProspect is a company committed to global success. BioProspect has an established Natural Extract Library representing a collection of materials from some of the most unique and diverse flora and fauna in the world. This resource, combined with the company's commitment to maintaining the environmental balance, ensures the company is charged with a vision for the sustainable and equitable use of Australia's natural biological resources. Collections are permitted under licence agreements with several states of Australia. Licence agreements ensure the provision for and protection of Intellectual Property. Collection protocols are in accordance with the Convention on Biological Diversity Collaborations (Return to top) BioProspect recognises the value of building strong relationships within the science and corporate communities. The company has and will continue to forge these relationships in an endeavour to maximise the scientific value of its resources including continuous assessment and exploration for new potential. Diversa Corporation of the US have aligned with BioProspect as a part of their Biodiversity Access Program. The Centre for Phytochemistry at Southern Cross University is where some of the world's most respected plant specialists reside The University of Western Sydney's Science and Horticultural Department where some of the initial work on Qcide was undertaken BioProspect has formed partnerships with world renowned plant biologists and chemists, allowing the company to provide a state of the art service that can be customised to meet the needs of a variety of industries. Through these partnerships, the company is committed to the discovery and development of a broad cross-section of natural biological resources, concentrating primarily on the pharmaceutical, nutraceutical and agrochemical industries. With respect to these discoveries, BioProspect continues to focus on a number of ventures ranging from termite and pest control through to prostate and breast cancer. Qcide, one of the company's flagship discoveries, has the potential to offer the global agrochemical industry a non-toxic alternative to the ever increasing insect resistant pesticides that are currently available. BioProspect since its inception has worked closely with both state and federal governments in relation to its bio-discovery programs. The company recognises the importance of the state and federal systems as key supporters and potential drivers to many of the programs and opportunities being explored. Through the delivery of a successful partnership between BioProspect and the respective governments, the social and economic values to Australia will be more effectively realised. ENDS !END
