Big grants in Santa's sack for Solbec, BioDiem, Mesoblast

Australian biotech firms are celebrating Christmas early, unwrapping multi-million dollar AusIndustry Commercial Ready grants from the federal government in the lead-up to the holiday season.

Solbec Pharmaceuticals' (ASX:SBP) grant of AUD$2.26 million will fund a phase II clinical development program for its lead anti-cancer compound Coramsine. The grant funding will be directed, on a dollar-for-dollar basis, towards the Australian arm of Coramsine's phase II cancer clinical trials, which are forecast to cost $4.5 million.

In October Solbec was granted 'orphan drug' status from the FDA for malignant melanoma and metastatic renal cell carcinoma, which will be the first two tumour types selected for multiple target activity in phase II trials. These trials are set to commence in Q2 of 2006.

"This Commercial Ready funding is a real shot in the arm for Solbec," said CEO Stephen Carter. "We are also pleased by the strong vote of confidence shown by the federal government through their significant investment."

BioDiem (ASX:BDM) landed a $2.146 million grant, to be matched by the company, to accelerate development of its non-antibiotic antimicrobial BDM-1 as a growth promoter for chickens. The first studies of BDM-1 will be large-scale field trials in Australia and Europe, the company said.

"This grant will speed up the development of a product that could fill a vital gap in feedstock supplements with the banning of antibiotics," said BioDiem CEO Tom Williams in a statement. Europe will ban routine prophylactic use of antibiotics in animal feed from January 1.

Mesoblast (ASX:MSB) has netted a $2.7 million grant to develop its proprietary adult stem cells for treatment of arthritic and other cartilage diseases.

In a statement, Mesoblast founder and chief scientist, Prof Silviu Itescu, said the grant would enable the company to expand its commercial market opportunities from its current program in bone regeneration, to osteoarthritis of large joints, and degenerative intervertebral disc disease.

LCT nets NZ govt grant

Meanwhile, Living Cell Technologies (ASX:LCT) has been granted $480,000 by New Zealand Trade and Enterprise to help progress the development of the company's cell-based therapies.

NZTE director Chris Boalch said LCT's research was "making significant inroads into the replacement of damaged cell tissue without rejection by the body".

"Over the next four years the NZ economy is expected to benefit by around NZ$300 million as a result of LCT's advancements," Boalch said.

LCT managing director Paul Tan said the company's operations were shifting from supplying cells for R&D to developing a supply for use in human clinical trials and eventual product development.