Metabolic cheered by patent indication

Metabolic Pharmaceuticals (ASX:MBP) has received indication from the US Patent Office that a key patent covering the company's AOD904 obesity drug will be granted, giving the company a patent monopoly until September 2018.

CEO Chris Belyea said it was a big step forward for the company. Previous patents issued to the company have covered the technology in a less specific manner, he said, while this new patent covered AOD9604 and similar compounds for a broad range of uses, including obesity.

Similar patents have been granted in Australia, New Zealand and Russia and are pending in Europe, Japan, Canada, Brazil and China.

In November the company began enrolling patients for its three-month daily dosing Phase IIb study of the drug, which will assess its effectiveness in weight loss. Results from the double-blinded trial are expected in the third quarter of this year.

Belyea also noted that the manufacturing development being jointly undertaken by Metabolic and troubled company BresaGen (ASX:BGN) would not be adversely affected by the latter company's recent slide into voluntary administration. BresaGen's protein pharmaceuticals division has lately completed a scale-up study for Metabolic, and work is ongoing while the Adelaide company's situation is resolved, he said.

Belyea said it was "no secret" that Metabolic was an interested party in the divestment of BresaGen's protein pharmaceuticals assets, along with a number of other parties. "Their expertise is better than world class," he said.

At the time of writing, Metabolic's shares were trading nearly seven per cent higher at AUD$0.95.