Peptech reaffirms acquisition strategy

Peptech (ASX:PTD) CEO Mel Bridges used today's annual general meeting to reveal that the company is keen to use its AUD$65 million war chest to fund acquisitions.

"We have looked seriously at several possibilities and will continue to scan for opportunities that strategically fit with our business and complement our growth plans," said Bridges. "Our current robust position is thanks in large part to the consolidation of the licensing revenues we were due for our anti-TNF patents from two US pharmaceutical companies, Abbott and Centocor."

Peptech is also considering whether a listing and capital raising on the London Stock Exchange is worthwhile. "Costs approach A$1 million for a professionally positioned listing," said Bridges.

Peptech confirmed its profit forecast of AUD$18-21 million for the 2004/05 financial year, following the resolution of its patent dispute with Centocor, a subsidiary of Johnson & Johnson, and will pay shareholders a fully franked dividend of 8 cents per share on February 28.

Peptech's merger with Brisbane's Agenix (ASX:AGX) fell through last year because of uncertainty surrounding the patent dispute. It was also rumoured that Peptech was interested in taking over Melbourne-based Genera Biosystems, a small unlisted company which is commercialising a platform genomics technology to detect genetic mutations developed at the Walter and Eliza Hall Institute and the Australian Genome Research Facility.

Bridges also flagged that a search for a CEO was underway, as his term as executive chairman nears its end.

Biosceptre

Peptech's joint venture partner Biosceptre has hired US-based DPT Laboratories to manufacture topical formulations of its antibody-based skin cancer product for clinical trials. The University of Sydney spin-off is developing diagnostic and therapeutic products based on a specific cancer marker expressed in a broad range of human cancers including skin, prostate, breast, bowel and uterine cancers.

The companies plan to conduct trials of the diagnostic in Europe, Japan, Australia and the US this year.