Circadian to invest in memory, brain research

Circadian Technologies (ASX: CIR) will invest almost $450,000 over the next 18 months in two new projects, the development company announced today.

The company said the money would be put towards a memory project at the University of Sydney, and Howard Florey Institute of Experimental Physiology and Medicine research into drug delivery to the brain.

While the company has already had a financial involvement in these projects, executive director Graeme Kaufman said the latest round of funds represented the next round of research.

Kaufman said the company habitually funded projects in small bursts before reassessing its progress and commercial potential then deciding whether or not to move forward with them.

"Circadian is a real risk-taker and the way we manage that is by putting in small licks of funds," he said.

"We invest in very early-stage research because we're prepared to take good science with good potential commercial outcomes."

Under the first arrangement, Circadian has lodged a joint provisional patent with the University of Sydney covering its research work on GABA-C receptors.

The company has provided $980,000 to the project over the past eight years, with the latest injection of $180,000 intended to help the work through to the end of the year.

The memory enhancement project is based around designing antagonists to GABA-C receptors in the brain.

"We have identified a number of compounds in animal models that have enhanced memory and now we're focusing on a lead compound, which is looking very good," Kaufman said.

"We're also looking at derivatives of that compound to expand our patent position."

The second project, looking at way to get drugs into the brain, will be funded through Syngene, which is 42 per cent owned by Circadian and 20 per cent owned by Australian Consolidated Press.

The genomics company holds exclusive worldwide licenses to patents over in situ hybridisation and antisense cell therapy derived from its projects at the Howard Florey, which is a 19 per cent stakeholder in Syngene.

Kaufman said the Howard Florey would receive $250,000 over 18 months to examine modifications to oligonucleotides to enable the compounds to enter in the brain.

He said the application would be beneficial in the treatment of neurological diseases, and could be expanded into other treatment areas.

At the time of writing Circadian shares had slipped 4 cents, or 1.8 per cent, to $2.12.

Bid to calm Amrad shareholders

In a separate announcement, Circadian issued a letter to shareholders in a bid to quell any anxieties that it wanted to seize control of Amrad Corporation's board.

Kaufman said the company wanted to put to rest discussions of whether the company wanted to wrest control by replacing three directors, including the chairman, with three of its own choosing.

"If we're going to move forward, we need to focus on the how the board plans to address the issues it is facing," Kaufman said.

"At the moment the responses from Amrad have been that there's nothing wrong, but I think the market is really trying to tell them something."

He urged Amrad to put forward an alternative solution to its proposal to replace the directors.