Promising opening for Giaconda

Sydney-based gastrointestinal drug development company Giaconda (ASX:GIA) has listed today on the Australian Stock Exchange at AUD$0.585, eight cents above its issue price of $0.50.

"Australia needs winners in the biotech sector and Giaconda has the promise," said Giaconda CEO Patrick McLean. "It shows how close we are to market and having results in."

Giaconda raised $6 million through the issue of 12 million shares and closed the issue last week oversubscribed with 728 shareholders.

"We had to do an allotment last week and it created tension within the market. I think that's why we opened over the listed price," said McLean.

Giaconda has five products in advanced development which are derived from the therapies of Prof Tom Borody, an internationally recognised authority on the diagnosis and treatment of gastrointestinal disorders and founder of the Centre for Digestive Diseases (CDD) in Sydney.

Borody believes that many gastrointestinal disorders are conditions caused by infection which has led him to develop and patent therapies which focus on treating underlying causes of disease in contrast with existing drug treatment strategies which are directed at achieving management of symptoms.

Giaconda's most advanced product, Myoconda for Crohn's disease, has finished its first phase III trial and will complete one more phase III trial before applying for US FDA approval. Its product Heliconda for bacterial stomach infection causing peptic ulcer disease has finished its first phase II trial - with results expected before the end of 2005. Commencing phase II trials directly after the IPO is Hepaconda for hepatitis C and other liver diseases. Giaconda's other products are Picoconda for bowel preparation for colonoscopy and Iboconda for irritable bowel syndrome.

Although Giaconda will initially focus on the five most advanced products it has secured a pipeline of Borody's work.

Scientific advisory board

Giaconda has also appointed a scientific advisory board of international clinicians, researchers and teachers in the field of digestive diseases comprising Prof Zamir Halpern from Tel Aviv, Israel; Richard Hunt from Toronto, Canada; Francis Megraud from Bordeaux, France and Sidney Phillips from the Mayo Clinic in Minnesota.

At the time of writing, Giaconda shares had dropped back to the issue price of $0.50.