For all of you nervous traders who are 'caught' with buys above...

For all of you nervous traders who are 'caught' with buys above 5c, consider the SP potential with respect to the following:

On 1 June 2007 HGR announced the following:

The Company’s wholly owned subsidiary, Sun Biomedical Laboratories, Inc., has signed an alliance agreement with Biosensia Limited, a research and development company based in Cork, Ireland.

Sun Biomedical Laboratories is recognized as a leader in the acquisition, transportation and assaying human saliva for the purpose of detecting the presence of illicit drugs.

Biosensia has extensive expertise in polymer micro-fluidics, micro-optics systems and Molecular Imprinted Polymers (MIPs) technologies that they are applying to the development of hand held instruments that use disposable chips containing MIPs to detect drugs of abuse to the parts per billion level in saliva.

Under the terms of the alliance the parties will evaluate the potential to integrate their respective technologies, jointly developing intellectual property that will decrease the detection time of illicit drugs in workplace and roadside testing programs.

While HGR remain focused on the global commercialisation of the Sun Biomedical saliva device OraLine, the further optimisation of saliva diagnostics and the OraLine device would represent a significant improvement to and opportunity for the Company’s existing lead product. This alliance seeks to ensure that the Company remains at the cutting edge of saliva diagnostics technology increasing the Company’s prospects for the successful development and commercialisation of an even more effective platform for demanding applications such as roadside drug testing.


WHY IS THIS ALLIANCE SO INTERESTING?

The following article in the Irish Sunday Independent on 6 May 2007 (ie. 4 weeks before) provides some clues:


Irish firm's invention is big blow to drug drivers

RALPH RIEGEL

IRISH scientists have made a multimillion euro breakthrough that will allow
police conduct on-the-spot tests for drug drivers.

A new invention made by Cork-based firm Biosensia is being hailed as one of the
greatest Irish inventions, with inquiries from police forces worldwide for the
drug-driving test kit.

Gardai fear drug use by drivers is on the increase, with figures indicating that
one in four fatal accidents now involve drug abuse.

In Ireland in 2006, 16 per cent of drivers tested proved positive for drug traces.
In Australia, a recent pilot study showed that one in 46 motorists tested positive
for drug driving - compared to just one in 250 driving after imbibing excess
alcohol.

But the new Irish test kit has been designed so that it can easily be adapted for
use in the workplace, within educational systems or for individuals requiring
special security screening.

Biosensia boss, Dr Gabriel Crean, admitted that they are thrilled with the global
reaction to their scientific breakthrough.

"We are particularly pleased that an Irish company is at the forefront of
development for this global problem.

"Drug driving is a recognised issue, with an increasing number of governments
looking to introduce roadside drug testing. The time is right for our product," he
told the Sunday Independent.

The new test uses revolutionary technology to offer police a handy kit where a
simple saliva sample is taken from a suspect and an indication of drug use can
be obtained in less than three minutes.

The new kit is as easy to use as the 'Intoxiliser' test for alcohol, as used by the
Gardai.

Existing police technology requires police to seek a urine sample for drug testing
and this is then sent off to a laboratory where a result can take several days to
be processed. However, the new Biosensia drug-test kit is a hand-held device
that is simple and easy to use by non-medically trained staff.

The new device revolves around a revolutionary new testing method which uses
Molecular Imprinted Polymers (MIPs).

These MIPs - which act like plastic antibodies - have the advantage in that they
can withstand a greater range of temperatures than the normal antibody tests
which police have so far relied upon.

The old technology could not have samples stored above 40 degrees - whereas
the new MIPs-based system can handle temperatures of up to 100 degrees. The
device also has a specially designed micro-fluidic chip - and this means that
saliva sample swaps can be immediately tested and police do not require
complex and time-intensive mixing agents for a test.

The Biosensia test kit is also designed to be robust and to withstand continuous
field usage by police forces - as well as the demands of being stored in patrol
vehicles.

The Cork firm have designed the kit so that it can also have applications in the
workplace - where employers concerned about workers, particularly those
involved in dangerous occupations, can be randomly tested.

The kit also has potential applications in schools and universities where drug use
is a problem.

The global market for drug testing is now estimated to be worth €1.6bn - and
Biosensia has already signed an exclusive commercial agreement with LION, a
leading Anglo-American firm which specialises in alcohol-testing equipment.
LION chief executive, Tony Lewis, said they were very excited by the potential of
the new product.

The first Biosensia kits will be commercially available from early 2008..


Clearly, Biosensia is well advanced in its drug testing initiatives and HGR has the potential to gain significant leverage through this alliance.