Eastland Medical Takes an Active Stand Against Malaria
According to WHO (World Health Organization), every thirty seconds in Africa a child dies as a result of malaria. It infects at least 500 million people each year, killing one million. Ninety per cent of those who die are in Africa, where malaria accounts for about one in five of all childhood deaths
Eastland Medical Systems Ltd. believes that something needs to be done to combat these alarming statistics. It has recently announced that it will manufacture and distribute a new, anti-malaria treatment to Asia, India and the Pacific region following the signing of an Agreement with UK Scientific Research & Development Company ProtoPharma Ltd.
I had the pleasure of speaking with the Company’s CEO, Mr. Dermot Patterson who happily found the time to explain to the Australian Investor the significance of this announcement as well providing an insight into Eastland Medical and what the Company is all about.
According to Eastland Medical’s recent announcement, it plans to manufacture and market a unique treatment that uses a new method of administration and a formula that offers a number of significant advantages over the current tablet style medications.
“Malaria tends to get far less coverage than other major diseases,” Mr. Paterson told the Australian Investor, “However, its effect worldwide is a very serious issue, especially in terms of its death rate in children.”
“The problem with traditional anti-malaria tablets,” Mr. Paterson continued, “Is that they are ineffective in the treatment of children suffering from malnutrition and diarrhea. Their bodies are too weak to digest it. This creates a major problem for poor countries, such as Africa.”
“We have developed a product to help administer the drugs that will attack the malaria parasite at a far greater speed than the conventional tablets,” he continued. The method is particularly effective in children and reduces the need for continued hospitalization and results in significant cost savings to Governments and relief organizations.
This announcement follows a Contract signed in December between Eastland Medical Systems South Africa Ltd. (EMSSA) and Star Medical Limited, which granted EMSSA the exclusive distribution of the new treatment in Sub-Saharan Africa.
As a result of the additional contracts Eastland Medical has now secured access to approximately 97% of the world’s malaria-infected countries and their combined 485 million reported cases of malaria. These two deals are expected to generate combined direct revenues of up to A$40 million in the second year of production, increasing to A$80 million by Year 4 as the treatment increasingly gains market and Aid subsidiary support.
“Malaria may get less media attention than other diseases, but it is a problem that is well documented with a lot of global interest,” Mr. Paterson told the Australian Investor, “There are numerous world aid organizations who are working to help prevent it and help those who contract it. We hope to work with these institutions to help contribute to their cause.”
This current project has and element of synergy with the Company’s other ongoing projects.
Eastland Medical is a publicly listed international medical device company that develops, manufactures and distributes medical treatments and devices in Australia and overseas.
“We are involved in bringing to market safe medical devices,” Mr. Paterson told the Australian Investor, “One of our main products is our ClipOn device that is attached to standard syringes to help prevent needle stick injuries. The problem with the devices that are currently out in the market is that they only comply with a particular type of needle. Our ClipOn device, on the other hand, can be attached to the majority of syringes.”
The Company has formed strong alliances via investment in other companies that strengthen both the manufacturing and distribution arms of the Group.
Eastland Medical has a 50% holding in West Australian sterile barrier and packaging manufacturer, Ampack Medical Pty Ltd. In the United Kingdom through the Company’s alliance with International Medical Devices it has associations with Meddis Ltd. and Response Medical Equipment. In South Africa, the Company has a distribution agreement with Health In Form. It also holds 65% in its subsidiary, Eastland Medical Systems South Africa Ltd.
“These alliances create a revenue base for the Company,” explained Mr. Paterson, “We are not simply waiting for our ClipOn device to pass through the various stages of regulatory approval. We are actively acquiring businesses that are related to the medical industry to generate capital and in the long way hopefully help promote ClipOn. We believe this will help grow our Company and create value for our shareholders.”
Mr. Paterson believes that their ClipOn product could benefit the world aid organizations that they will be potentially working with on their malaria project. “It is common for organizations such as these to have needlestick injury problems with their staff,” Mr. Paterson said, “We believe ClipOn could help prevent these problems and in turn help prevent the spread of diseases by needlestick, such as AIDS and Hepatitis.”
Mr. Paterson brings to Eastland 25 years of extensive, senior executive experience, having demonstrated strong management performance with both national and international companies. A career spanning 20 years with Huntleigh Technology plc, a leading global healthcare company, provided a wealth of international marketing experience in the United Kingdom, Europe, North & South America and more recently Asia Pacific region. During the latter term of his employment he also established several subsidiaries in China, Japan, Singapore and Australia.
However, he told the Australian Investor that this was one of the first times he has been involved in the pharmaceutical side of the medical industry.
“The beauty of the health care industry is it allows you to help people,” Mr. Paterson commented, “At Eastland Medical we believe that we have something effective. We are very keen to support a project that targets the issue of child mortality, even outside its commercial impact. Children are our future, which is particularly important for countries such as Africa. Each child that dies as a result of malaria, is one less that will be able to help build up Africa’s future.”
The Company’s primary focus will be working to bring this product to market. The clinical trials of the treatment are due to begin in Malaysia and South Africa within three months as part of the regulatory approvals process. They anticipated that the product will be in the market by late 2008 or early 2009.
EMS Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
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