Eiffel cashed-up for 2003

Eiffel Technologies has increased its cash reserves to $6.2 million following receipt of partial payment from the sale of their manufacturing operation to Cottee International and a recent share placement.

Eiffel sold its manufacturing operation, formerly known as PharmAction, to Cottee in 2001 for $4.12 million, with an upfront payment of $1 million. The payment of $2.7 million by Cottee International leaves a final payment of $300,000 plus interest to be made to Eiffel, which is expected to take place in August 2003.

The company also raised another $3.7 million in late November through a placement to sophisticated and professional investors, arranged by Burdett Buckeridge Young Corporate Finance.

Eiffel CEO Christine Cussen said that the successful share placement was a tremendous result given the difficult market.

"It's a very exciting time for Eiffel, we're moving to the next phase of our commercial development," she said. "The plan is really to use the funds to assist us with accelerating our research and commercialisation growth plans."

Cussen explained that the company planned to use the funds for several purposes over the next year. The company plans to establish a semi-commercial and GMP-accredited facility external to the University of NSW to make quantities of re-engineered drug for use in clinical trials, which they expect will be up and running by the first quarter of 2004.

In addition, Eiffel is appointing Prof Neil Foster and Hubert Regtop as full-time employees of the company, and adding to the research team at UNSW.

Cussen also said that following the successful pre-clinical trials of re-engineered insulin earlier this year, the company plans to repeat and expand on the pre-clinical studies, and expects to commence clinical trials for priority drugs in the first half of 2003.

Finally the company expects to move forward with pursuing further agreements with pharmaceutical companies.

"We are experiencing very strong interest in Eiffel's re-engineering technology from pharmaceutical companies and these funds will allow us to exploit the company's potential," Cussen said.

Eiffel also announced that due to the financial difficulties being experienced by one of its customers, US-based Sheffield Pharmaceuticals, it has a potential exposure to the company of around $US 75,000.

"In the context of what Eiffel is doing, and the money raised... it won't have a material impact on the company," Cussen said.