Citrofresh quashes HIV orange cure talk

Geelong-based disinfectant maker Citrofresh International (ASX:CTF), which caused a stock frenzy with news of a cure-all ingredient found in oranges, has dashed investors' hopes it had a vaccine against HIV, SARS, flu and the common cold.

Shares in Citrofresh had more than tripled to AUD$0.70 on Tuesday after it released an announcement headlined 'Test results confirm Citrofresh is effective against four major virus types including HIV and avian'.

The company called a trading halt on Tuesday when its shares were at $0.535. After releasing some details on Wednesday about the lab tests, Citrofresh shares sank 31 per cent to 37 cents, valuing the group based outside Melbourne at $14 million.

"We do not inject Citrofresh into the blood. We're not claiming to be a vaccine and never have," said managing director Ravi Narain.

Two healthcare analysts who had never heard of Citrofresh before said the original release failed to give enough information to understand exactly what tests had been run with Citrofresh's orange compound.

Citrofresh makes organic disinfectants from bioflavonoids taken from orange pith and pulp that can kill bacteria and viruses and can extend the shelf life of fruit and vegetables and other food. It is also used as a non-toxic household cleaner and has been approved as a hospital grade disinfectant.

The company wants to expand the use of Citrofresh to sanitise surfaces and areas that have been infected by the bird flu virus and is trying to convince governments to use Citrofresh to help retard or prevent the spread of bird flu.

"Because it doesn't have any toxicity, it's safe for humans and the environment and for animals," said Narain, who is a food technologist.

The company is also running trials to see if Citrofresh can be used in feed for ostriches to prevent bird flu infection.

It is also looking to develop a gel for men to use after sex to kill any HIV virus that might have been transmitted, and Narain says the company expects to be able to announce in a month that it has lined up a major partner for the project. He said the company was "still a couple of years away" from human trials for a vaginal gel.

There are many chemical disinfectants, such as chlorine, that can kill bacteria and viruses, but they are toxic. The key for Citrofresh is to prove that its gel would not harm people and is effective against the HIV virus.

Igor Gonda, chief executive of Australian pharmaceutical group Acrux (ASX:ACL), which is developing a contraceptive spray and a spray for women with low sex drive, said Citrofresh had an interesting idea but was up against tough competition.

"If they've got something that's economically effective and it's safe and efficacious, then it could be a great product," Gonda said. "If you don't have to worry about it being toxic when it gets through your skin, then it could have a good competitive advantage."