Australian biotech tackles US

AUSTRALIAN biotechnology company Genesis Biomedical Ltd recently announced plans to form an alliance with US orthopaedic bracing company Bodyworks Inc.

The alliance would mean sales and distribution for Genesis Bio-medical in the UK, US, Mexico, Canada and Europe. The North American and European ortho-paedic and sports bracing markets are worth US$1.4 billion a year.

The announcement of the alliance caused Genesis’ shares to jump from 40 cents to 44 cents each.

Genesis Biomedical has developed smart card controlled therapies for the treatment and rehabilitation of muscular and skeletal disorders such as bone fractures and knee ligament injuries.

A recently signed techno-

logical collaboration agreement between the two companies spurred the moves towards an alliance.

The deal on product development aimed to integrate Genesis’ smart card controlled therapeutics with Bodyworks’ braces to produce a range of ‘Smart Braces’ that would assist in the management of rehabilitation by enhancing and monitoring treatment.

Genesis chairman Saliba Sassine said the company had signed an agreement to acquire 42 per cent of Bodyworks Inc in exchange for Genesis’ investment of US$1.5 million in Bodyworks Inc.

This investment comprises an equity injection of US$750,000 and a further US$750,000 via a secured convertible note.