Astop Biohealth plans ASX listing

Astop Biohealth, an unlisted natural medicines company established in 2001 and chaired by Perth entrepreneur Kevin Parry, is planning to list on the ASX before the end of the year.

Originally called Asthma Stop, the Perth-based company holds the exclusive rights to a natural remedy which targets the causal factors of asthma.

Asked why the company changed its name, Parry, Astop's executive chairman, explained: "Even though our trials have been so successful, we're very limited in what we can say. You're not allowed to say things about asthma... unless you go through the TGA empirical trial situation for drugs."

Astop's first product, ASTOP, is a powder administered in capsule form, approved and listed by the Therapeutic Goods Administration (TGA) as a complementary medicine. While the specific ingredients remain closely guarded, the product is comprised of probiotics, antioxidants, vitamins and minerals as well as a homeopathic content. According to the company, ASTOP is thought to work by assisting the liver enzyme system in detoxifying free radicals, thereby correcting nutritional imbalances and enhancing the body's immune system.

"It's got no known side-effects, it's all natural product, and it has been rigorously analysed, cleared by a couple of reputable scenarios," said Parry.

ASTOP was developed over a period of more than 10 years by clinical nutrionist Kay Whyte, when she found that her asthmatic son was allergic to the commonly prescribed asthma treatment Ventolin.

The company claims to have conducted its own trials over the past four years on more than 400 people with respiratory ailments, over age groups ranging from 12 months to 89 years of age, and has results showing that 70 per cent of adults and 90 per cent of children achieve a clear distinct benefit to total relief of their respiratory complaints.

However, randomised double-blind clinical trials are due to start in the next two month at three hospitals in three separate states, said Parry, with the Princess Margaret Hospital being named as the Western Australia site.

"It's validating it in accordance with what the medical profession requires," said Parry. "We see [the trials] as a way of getting doctors to recommend them."

The company initiated a commercialisation program in October 2003 until fire severely damaged the premises of Astop's Perth-based, TGA-licensed contract manufacturing laboratory, Ramprie Laboratories, which has subsequently been purchased by PharmAust (ASX:PAA).

"In the three weeks before we had to cancel the orders, or stop taking orders, we went from 10 chemists in Perth to 100 chemists nationwide, in three weeks," said Parry.

In November 2004, West Australian Metals (ASX:WME) agreed to invest $1 million in Astop and assist with the establishment of the company's own Perth-based TGA-licensed laboratory and to fund the initial production and distribution program and further clinical trials, with total investment entitling WA Metals to approximately 20 per cent of the issued capital of Astop. Astop received licence approval from the TGA for its facility last week.

"[ASTOP] will be back on the market within a matter of six to eight weeks at the most, I would say," said Parry.

The product will cost $39.50 for 60 capsules.

"A chronic asthmatic would start off at four capsules a day, and as it takes effect over the first three or four weeks, start to break down, after the first 10 days for most people, start to break down to three a day, two a day, one a day," said Parry.

"I know of at least one fellow, it took three months for it to kick in. Once it kicked in, God you should see him. Bouncing around like a two-year-old."

Astop also agreed to grant WA Metals a priority to subscribe for up to 50 per cent of shares in its initial public offer (IPO).

Astop will be looking to raise a minimum of $3 million, and while Parry said the IPO will be underwritten he declined to name who the underwriters were.

"We're one of the very few [biotech companies] that will be in positive cash flow when we go to the public," said Parry.

When asked if there are other products in the pipeline, Parry said: "We're a natural health company and we'll be looking to stay within that region. But we're bound to look after our shareholders' interests."