EpiTan loss doesn't detract from solid year

Melbourne biotech company EpiTan (ASX:EPT) has posted a loss of AUD$4 million for the 2002-2003 financial year, primarily due to the expenses of running Phase II clinical trials on its lead drug candidate Melanotan.

But the company is in a strong financial position, particularly through capital raisings of about $9 million since the end of the financial year, bolstering EpiTan's cash position to more than $10 million.

CEO Wayne Millen said the company had made progress on a number of fronts during the year.

"Progress on the development of the melanin-producing drug Melanotan was excellent, as announced in May, and important collaborations were secured to develop more user-friendly formulations," he said in a statement. "Our major capital raising post-year end has put the company in a strong financial position to accelerate its clinical trials program."

This month, EpiTan expects to complete its Phase IIb clinical trial examine the use of Melanotan to increase skin melanin density and reduce sunburn injury, and preliminary results are likely to be announced in November. The company has reported that a number of the volunteers have developed a tan as a result of the treatment.

The next step for the company is to trial the treatment using a sustained release formulation delivered via human implants developed in collaboration with the Southern Research Institute in the USA. Approval from the QIMR to begin the trials has been obtained and the trials are expected to take six months to complete. A meeting with the FDA has also been scheduled to discuss trials of the implant in the USA.

In addition, the company has a number of collaborations in place to develop a topical formulation of the drug.