Genesis Biomedical granted option to purchase NZ company
Tuesday, 19 July, 2005
Genesis Biomedical (ASX:GBL) has been granted an option to purchase 100 per cent of the issued capital of privately owned New Zealand based Manawatu Biotech Investments (MBI).
Genesis will provide MBI with a loan facility of up to AUD$250,000 and has the right to purchase the entire issued capital of MBI for AUD$450,000 within a 12-month period, comprising $200,000 in cash and $250,000 equity in Genesis.
"We have loaned the business some money, in order to get it to the point where it needs to be, to be a commercial venture. And we have an option to buy the company... so we've locked in what we're going to pay for it," said Genesis chairman Robert Gilmour.
MBI is currently involved in the development of fertility testing devices for use in human healthcare and veterinary markets based on the measurement of urinary glucuronides E1G and PDG -- metabolites of oestrogen and progesterone found in female urine.
In conjunction with US-based MagnaBioSciences, MBI is developing a test strip using magnetic particles bound to an analyte which is read by a high definition magnetic field reader. A proprietary algorithm is used to determine the fertility period in the menstrual cycle.
"The technology is to put magnetic nanoparticles, into the antibody complex, and so when you go to read it you get a very precise quantitative output," said Gilmour.
The technology has potential applications in humans for monitoring menstrual cycles, determining fertility periods and monitoring the response to gonadotropin treatment. The first veterinary application is planned to monitor oestrus in dairy cows.
"We will have a product on the market within 12 months," said Gilmour.
Gilmour sees Genesis as an investment company that uses its skill base to add value to marketable science and said that the transaction with MBI is a good illustration of Genesis's strategy.
"We're in the path to market business in a serious way," he said. "We recognise the science, build the IP framework around it... a freedom to operate before we spend a cent, and then a complete project management plan."
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