Diabetes research offensive launched

A research and development agreement with the aim of finding an effective treatment for type II diabetes has been signed in Melbourne.

Cardia Technologies (ASX: CNN) has agreed to spend up to $1.3 million to develop a compound found to reduce insulin resistance and increase blood glucose levels.

The research project, formed between Cardia, the International Diabetes Institute (IDI) and Monash University, will concentrate on a compound, known as ISF402, or insulin sensitising factor.

Prof Paul Zimmet, who first identified the compound in human urine 30 years ago, said that at the time, the instrumentation did not exist to purify and chemically characterise his discovery.

He said it had also taken a long time to find a commercial partner interested in developing a synthetic drug derived from a compound in urine, which is patented to the IDI.

Zimmet, who heads the research team developing ISF402, said Cardia's initial injection of $500,000 was already helping his Monash group make inroads.

"We have synthesised a large amount of the material, which we can now test in the lab to understand how it works and examine the actual mechanism in the body," he said.

"If all that goes well, then we will put it into animals to ensure it's not toxic, which it shouldn't be because it is a natural body product."

Speaking at the launch of the agreement, Zimmet said type II diabetes was " the biggest epidemic the world has ever faced" with an estimated 300 million sufferers by 2025.

He said the disease accounted for 90 per cent of all diabetes cases and occurred when the body developed a resistance to the insulin it produced.

"That's the basis of this insulin sensitising factor as a potential drug therapy," he said. "Early results have confirmed our belief ISF may be a possible drug for diabetes and, although there's more animal work to be done, it does look very promising,"

Cardia executive chairman Pat Volpe said the deal gave his company exclusive marketing, distribution and manufacturing rights over the resulting drug.

Volpe said the cash was intended to fund research to the end of animal model testing, which was expected to be complete within 12 months.

"We have been going already for six months and in that time the researchers have identified amino acids and from that formed an analogue and synthetically reproduced a compound from the analogue that can be mass-produced," he said.

He said tests in rat tissue had shown decreased blood glucose levels, with the team now ready to feed the compound to diabetic rat models.

Volpe said that at the end of the animal trials, the company would look for a large pharmaceutical partner to assist with human trials.

Cardia is a Melbourne-based development company focused on investing in early stage research and development projects, and has interests in medical biotechnology, pest control, natural pharmaceuticals and water technology.

At the launch, Victorian Innovation Minister John Brumby applauded the research arrangement, saying that it was particularly important given the increasing prevalence of diabetes around the world.

"This research partnership will play a key role in developing a new type of drug therapy aimed at improving the lives of many diabetics and providing additional benefits to the broader community through decreased health costs," Brumby said.