Rockeby shares soar after bird flu test deal

Shares in Rockeby Biomed (ASX:RBY) quadrupled in value today after the company announced it has signed a deal with Thailand-based Pacific Biotech for the exclusive marketing and distribution rights in Europe, the Asia-Pacific and South Africa to two tests for avian flu.

The first test, known as the avian virus antigen test, is a veterinary diagnostic for the qualitative detection of avian influenza virus antigen (HSN1) in birds, while the second test, the influenza A antigen test, measures influenza A in humans from samples taken from the nose or throat. The second test can also be used for the quantitative detection of the avian influenza strain H5N1.

Both are immunological detection tests that use lateral flow to yield results in 10 minutes after a sample is applied to the testing device.

"It's a simple test in which a positive test will be two lines, and a negative will be one line -- a format as simple as the pregnancy test," said Rockeby managing director Dr Sze Wee Tan.

The avian virus antigen test can be used on site using bird faeces, as well as clinical screening of bird blood and serum specimens. The kit is stable for storage between 2 and 30 degrees Celsius and has a long shelf life.

Tan said that many of the current tests, such as a new test announced by German company AJ Robscreen in mid-October, rely on laboratory testing by polymerase chain reaction (PCR) to detect viral particles. PCR requires specialised equipment and transport of samples from site of collection to the laboratory and tests can take three days to complete. But the avian virus antigen test, Tan said, is "a field test that veterinarians are able to use as a surveillance tool."

While there are other tests available on the market, including ELISA tests, Tan said this is one of the "first few" lateral flow tests.

The tests will be manufactured by Pacific Biotech and the license fee is incorporated into the cost of the kits supplied to Rockeby.

Tan declined to say how much a kit will sell for. "It is not cheap," he said. But he said he expects it to sell for "probably half the cost of the Tamiflu dose treatment".

Tan was cautious not to "raise too many expectations" about the potential market size of the product. But "it will definitely have a positive impact on the financials for the rest of the year," he said. "The market has already given us a positive reaction to this."

Rockeby's shares were trading at $0.048 at the time of writing -- a 300 per cent increase on yesterday's close of $0.012.

"There is so much hysteria that's going around about bird flu," said Tan. "Currently the focus has been on Tamiflu stockpiling, and also on vaccines. But equally important is surveillance and prevention of the disease. Diagnosis and tests like this are important to locate and isolate the outbreak before it [occurs]."

Rockeby is planning to make the kit available to health authorities and professional channels. "At this point in time, it will not be made available OTC or for home use," he said.

Tan said that the avian virus antigen test had been evaluated at the Faculty of Veterinary Science at Chulalongkorn University in Bangkok Thailand and has shown 100 per cent sensitivity and specificity.

"Most authorities are watching diagnostic tests with caution and they will want to see a proper evaluation done," he said. "We are prepared for it to be properly evaluated," he said.

Tan said that the test was already available for sale and commercialised. "We want to work with local partners to get it out," he said. "We already have partners in Canada, the UK and South Africa who are already starting to send this for evaluation."

Some countries had cleared the test for use, he said. "Already we are getting very strong feedback from many authorities for samples."

The two tests will be branded and marketed under the Rockeby name.