Stock to Watch: CARDIA TECHNOLOGIES 08:50, Thursday, 18...

Stock to Watch: CARDIA TECHNOLOGIES
08:50, Thursday, 18 September 2003

Sydney - Thursday - September 18: (RWE)
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A COMPANY WITH A LOT OF IRONS
IN THE FIRE INCLUDING BIOTECH

Overview:
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Cardia Technologies operates in three key areas, biotechnology,
environomental rehabilition and mineral exploration.
The company seems to have spread itself very thinly around the
world.
Cardia interests can be found in Japan, Hong Kong, China,
Botswana, Papua New Guinea, New Zealand as well as Australia in relation
to all three of its activities.
The company's most promising developments have emerged out of
its biotech projects especially relating to diabetes.
The number of diabetes suffers in Australia has climbed
dramatically and the medical profession puts its down to much greater
detection of the disease along with an increase in individuals failing
to look after themselves.
This is in line with the world explosion of "Type 2 diabetes
with in excess of 190 million sufferers worldwide and this number is
expected to increase to 330 million by 2025.
Diet, exercise and weight-watching can control type 2 diabetes
along with medication.
But scientific research has been working on a project which
focuses on a natural insulin sensitising agent.
Cardia Technologies Ltd has reported that its fully-owned
subsidiary, Dia-B Tech Ltd, has agreed to fund Intramed Ltd's research
project.
The company says the agent has the potential to be developed as
a new therapy for obesity and Type 2 diabetes.
Intial research showed treatment of diabetic animals with IM014
resulted in a clear antidiabetic effect from the aqueous bark extract.
The preliminary data suggests that IM014 contains an
insulin-sensitising agent that has the potential to be developed into a
new therapy for Type 2 Diabetes.
The proposed funding by Dia-B will be over a two-year period,
subject to milestone performance, with a minimum of $600,000 budgeted
for the project.
Cardia chairman Dr Michael Wooldridge said: "This agreement is
in line with our corporate strategy of developing a portfolio of
research projects with a particular emphasis on diabetes and obesity.
"The IM014 project compliments and expands our current
portfolio that encompasses Type 1 and Type 2 diabetes.
"The IM014 Project is exciting because the naturally active
ingredients which were discovered in tree bark have shown to have an
anti-diabetes effect.
"Should the research prove successful, the potential commercial
benefits to Dia-B would be substantial given that the active compounds
are derived from natural sources," Dr Wooldridge declared.
Cardia Technologies Ltd reports its fully-owned subsidiary,
Dia-B Tech Ltd, has agreed to fund Intramed Ltd's research project which
focuses on a natural insulin sensitising agent.

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Share price: 8.8c
Share high/low for year: 13.5c/6.5c
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The latest year showed a net loss after tax for the year of
$1,859,167 - up 49 per cent on the previous year.
An operating loss of $538,868 incurred by Cardia’s WaterPower
Systems Ltd included the development of various application solution
programs and the set up of operations in Hong Kong and China.
Research and Development expenditure of $282,196 ($251,000 last
year) incurred by Cardia’s wholly owned subsidiary Dia-B Tech Limited
for the ISF402 Diabetes Type project with the International Diabetes
Institute and Monash University.
There was a cost of $163,545 for the lodgement of patents to
protect the intellectual property of WaterPower’s technology and
applications.
Cardia Technologies divisions include the environmental
activities led by the wholly owned Waterpower Systems.
Ecoremediation PNG is rehabilitating the PNG's Fly River.
Other areas of operations covered Big Pharma, Bioglobal and
Mineral exploration.