Adding depth to biotech work

WHEN Perth-based biotech company VRI Biomedical was established three years ago, there was no shortage of Australian projects backed by good research and capable of obtaining the necessary intellectual property.

And although a long way from the large target markets of Europe, the US and Japan, founders Robert Clancy, Leon Ivory and Kim Slatyer believed the reputation of Australian medical research and the local appetite for people prepared to take risks would boost the company’s chances.

Maybe, however, they did not anticipate the volatility of the biotech market when the company listed on the Australian Stock Exchange last year. With an IPO price of 75 cents, the stock has traded in its first year between 30 and 90 cents.

But like other Australian biotech stocks in the past two months, VRI stock has recovered comparatively well in an unsteady global scene, to trade at around 70 cents.

VRI chairman Mr Ivory said the company had met its goals – and more – in its first year of trading, developing a new major project, yet remaining within budget and also attracting the interest of a number of national and international pharmaceutical companies.

VRI now boasts 14 projects and three main streams of endeavour – in biotherapeutics, vaccines and diagnostic tools – with applications to allergy and gastro-intestinal defence, the prevention of cardiovascular, respiratory and oral disease and athlete and racehorse fatigue.

Company operations are widespread, with a combination of research and clinical trials now conducted at three New South Wales universities and five teaching hospitals.

More clinical trials are planned at Princess Margaret Hospital and in Germany and the company has received a request from the British Allergy Council to conduct a five-year study.

VRI has also secured an agreement and agreed on a project plan with Netherlands life sciences company DSM for the collaborative research, development and commercial-isation of bio-therapeutic pro-ducts for both humans and animals.

Mr Ivory says significant market demand and VRI’s access to 50 scientists and eight professors have underpinned the company’s move from an opportunity focus to one of integration and depth.

The company expects revenue from probiotic products in the coming year.