Ambri back to the drawing board

Medical diagnostics company Ambri (ASX:ABI) is busy back at the drawing board developing a new chip biosensor after suspending the development of its SensiDX project.

The chip, which is part of a yet unnamed device, uses the same Ambri ion channel switch technology used in SensiDX. The new chip is being targeted for use in point-of-care, where rapid response is needed to a blood test.

"The areas that we've identified are in diabetes management, in influenza, respiratory diseases management -- that type of area initially," said Ambri managing director and CEO Roman Zwolenski.

With SensiDX failing to meet expectations, Ambri has had preliminary discussions with a number of possible partners early on in the development of its new chip.

"They're the logical players in the industry who have an interest in the diabetes market, or in the influenza market, or indeed just generally point-of-care testing," said Zwolenski.

However, the chip has not yet been sufficiently developed to be demonstrated at industry standards, although Zwolenski said that this will occur "well before the end of the year".

"Partners will follow only when we demonstrate successfully the technology, the chip platform and hopefully then that leads to either make a product with them backing us or making a product to their specifications by some other commercial arrangement," said Zwolenski.

Cash burn

While Ambri's cash burn is forecasted at AUD$500,000 per month by September 2005, it is currently running somewhat higher. However, Zwolenski is confident that the company's cash burn will be reduced in the next couple of months.

"We pay considerable development dollars presently. Once we enter into the stage of just ordering chips and getting quantity, those development dollars are no longer there," he said.

Zwolenski said there is no need to make any further staff cutbacks top reduce cash burn: "There is absolutely no intention to make structural changes. We are moving fast towards our milestones. We took the hit, we made the painful decision in March, and that was clearly with no intention for further cuts."

German interest

Ambri has also seen keen buying by international investors. In particular, German shareholding has doubled over the last six months to a collective holding of some 30 per cent.

"As far as we can see it is people responding to the potential that they see for nanotechnology companies with product designs such as Ambri has," said Zwolenski.

The German interest could result in Ambri moving its attention to the German market and possibly listing in Germany, he said.

"I don't really see a downside because as far as we can make it, it's not a single shareholder, it's a lot of shareholders," said Zwolenski. "If it were an aggregate of some of those, well then that may have implications in terms of someone having designs on the company, but we have no sign of that."