theage

Biotech rushed after mention of HIV result
By Helen Westerman and Rebecca Urban
September 28, 2005
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FULL DISCLOSURE

THERE'S nothing quite like a market announcement containing the words "HIV", "efficacy" and "landmark result" to whip day traders into a state of delirium.

And there's no better word to describe the 155 per cent jump in the share price of Citrofresh International yesterday, after it claimed that its hospital-grade disinfectant was able to eliminate the HIV virus, the flu virus, SARS and the human rhinovirus (which causes the common cold). Pretty sizeable claims indeed from this Geelong-based micro-cap stock.

Not even the current absence of any corroborative data deflected the market's enthusiasm for the story. More than 19 million shares had changed hands by 3pm, when the company — apparently flabbergasted by the reaction — was forced to call a trading halt in a bid to cool things down.

"We thought the share price might jump 3¢ or 4¢ on the back of it," said Haydn Wright, a consultant to the company. The shares opened at 22.5¢ and closed at 53.5¢.

For the record, Citrofresh's trials were carried out in test tubes, not on actual HIV patients.

And, while the company believes it now has a "unique opportunity" to market a range of barrier protection products — such as a post-intercourse spray (to zap the nasty virus) or a vaginal gel — any investor who has dabbled in biotech stocks at any stage knows such an outcome could be many years, and many millions of dollars, away.

Citrofresh plans to release some clarifying details about its trial to the market today, which will include website links to the European mob that conducted the tests and to the World Health Organisation. The links were requested by the Australian Stock Exchange.

"We certainly weren't making any claims about a cure for AIDS," Wright said.

Still, it will be interesting to see which direction the share price travels when trading resumes.