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Admedus - DNA vaccine Blue Sky, plus a growing core business

20/10/2016

Here's this morning's Livewire Markets posting - visit www.livewiremarkets.com. Livewire is Australia’s source of financial intelligence.

Ian Frazer, of the University of Queensland, was Australian of the Year in 2006 because his research created Gardasil, the cervical cancer vaccine. Like all good Professors, Frazer hasn't stopped generating Next Big Thing ideas, and one of them is DNA vaccines to prompt a patient's own immune system to fight disease. I've argued for a while now that the first approved DNA vaccine is coming soon, and Frazer's approach, being developed by Admedus, may be a contender. Admedus's first vaccine candidate works against HSV-2, the virus that causes genital herpes, which is a billion dollar opportunity. Yesterday Admedus announced an interim analysis from 20 patients in a Phase IIa of the HSV-2 vaccine - it cut the viral shedding rate in the treated patients by 58%. Early days, but very encouraging. Meantime Admedus is steadily growing sales of an approved cardiovascular tissue patch called CardioCel, created using the company’s ADAPT technology, which allows animal tissue to be prepared for use in humans without the usual calcification issues. So there's a real business in Admedus, and some exciting Blue Sky.

Note - the usual disclaimers apply - click here.

LBT Innovations - Great new biotech productivity tool, potential company maker

20/10/2016

Here's yesterday's Livewire Markets posting - visit www.livewiremarkets.com. Livewire is Australia’s source of financial intelligence.

It was the kind of response ASX-listed Life Sciences companies wish they could have more often. The Adelaide-based LBT Innovations announced on Monday 10 October that it had gained FDA approval for APAS, short for 'Automated Plate Assessment System'. When the market heard the news it bid the stock up from 19 cents the previous Friday to a closing high of 87 cents a week later. There's a lot to be excited about. APAS is a genuine breakthrough for pathology laboratories everywhere because up until now reporting of cultures from agar plates, in order to see what pathogen is in the sample being cultured, has been a labour-intensive exercise. APAS, an artificial intelligence technology, automates the imaging and interpretation of the plates. It's a productivity tool that around 27,000 labs around the world have long been crying out for, and LBT and its partner, the Swiss company Hettich AG, will be marketing it from next year. There's more where APAS came from - LBT is now working on Woundvue, a handheld device to assess chronic wounds to facilitate better treatment.

Note - the usual disclaimers apply - click here.

Dimerix (ASX: DXB) - Favourable interim data with DMX-200

19/10/2016

Back in late August we initiated on Dimerix (ASX: DXB), a Melbourne and Perth-based drug discovery company being built around new ways to identify G Protein-Coupled Receptors. Today we're updating our coverage of Dimerix with a research note on some recent data, which we think are very encouraging, from the company's first clinical study of DMX-200, its lead candidate.

DMX-200 is a combination of two existing drugs, irbesartan and propagermanium. The product is now in a Phase II study in patients with proteinuria, which is symptomatic of a range of kidney problems. Following recent guidance for the FDA, Dimerix is now making plans to take DMX-200 into a pivotal study in Focal Segmental Glomerulosclerosis, an Orphan kidney disease. Dimerix reported on 4 October that 21 out of 30 patients have now been dosed in this study. Of 11 patients who have reached or passed the mid-point of the study, three have shown a ~ 50% reduction or greater in proteinuria over and above standard of care, which is very encouraging. Final data from Part A of the Phase 2 study is expected in the second half of next year. We value Dimerix at 2.4 cents per share base case and 5.8 cents per share optimistic case. Our target price of 4.0 cents per share sits at the midpoint of our DCF range.

You can download a copy of NDF Research's first report on Dimerix by clicking here or visiting ndfresearch.com

One new US patent this week

19/10/2016

176 Life Science patents (classification A61K) were issued by the US Patent and Trademark Office on Tuesday 18 October 2016 (click here). None went to Australian but one was granted to a New Zealand assignee.

ManukaMed, a company based at Masterton in the Wellington region, has been granted US Patent 9,469,675 for Anti-inflammatory proteins and methods of preparation and use thereof, which covers a modified version of the honey glycoprotein apalbumin with greater anti-inflammatory properties than an unmodified apalbumin. The protein comes from Manuka honey, that is, honey from the Manuka tree (Leptospermum scoparium) native to New Zealand.

Manuka honey is one of the reasons that we argue New Zealand is on the cusp of a biotech and medical devices boom. To undestand what we mean check out out recent article headlined '100% Bullish on the New Zealand Life Science sector'.

Over the last twelve months the Australian Life Science sector has been granted 114 US patents, versus 134 in the previous corresponding period. In New Zealand over the last twelve months the Life Science sector has been granted 16 US patents, versus 12 in the previous corresponding period.

To look at US Life Science patent issuance since the beginning of 2014 to Australian assignees, click here. For US Life Science patent issuance to New Zealand assignees click here.

Osprey gets ready to take off again

14/10/2016

Here's today's Livewire Markets posting - visit www.livewiremarkets.com. Livewire is Australia’s source of financial intelligence.

A year ago it looked like disaster had struck Osprey Medical (ASX: OSP). In June 2014 the company had gained FDA approval for AVERT, a system that reduces the amount of contrast dye interventional cardiologists use during heart procedures. Contrast dye lets cardiologists see what's going on under X-Ray, but can be nephrotoxic (ie damaging to the patient's kidneys) so any system that reduces its use is valuable. Post FDA approval, Osprey ran a randomized, controlled study of AVERT to strengthening its marketing claims. When the data came in, in October 2015, it showed that AVERT had reduced the average amount of dye used, but hadn't generated a statistically significant difference in Contrast-Induced Nephropathy. Osprey stock crashed. However a 'post-hoc' analysis of the data showed that the reduction in kidney injury was real for patients with pre-existing stage 3 kidney disease, where 'standard criteria' was used to measure the reduction. Meantime Osprey had gained FDA approval for a more automated version of AVERT called Dyevert. That product is now selling well. Disaster effectively avoided, although Osprey Medical stock has yet to recover.

Note - the usual disclaimers apply - click here.

New PCT patent applications published

14/10/2016

Two new PCT patent applications relevant to the Australian and New Zealand Life Sciences sector published this week:

WO/2016/161477, from Prince Henry's Institute of Medical Research in Melbourne, has been published for A method of treating neoplasias. This application covers the combination of antagonists to GDF-11, a myostatin-homologous protein, and activin A, a member of the transforming growth factor-beta superfamily, in sensitising tumours to chemotherapy.
WO/2016/163894, from the Christchurch-based Cropmark Seeds, has been published for Control of parasitic infection in animals. This application covers grasses that have been infected with endophytes where the grass contains loline alkaloids, useful in treating internal infection by parasites in sheep.

To look at Life Science PCT patent applications by Australian and New Zealand applicants since the beginning of 2014 click here.

No new US Patents for the Australian Life Science sector this week

12/10/2016

199 Life Science patents (classification A61K) were issued by the US Patent and Trademark Office on Tuesday 11 October 2016 (click here). None, however, went to either Australian or New Zealand assignees.

Over the last twelve months the Australian Life Science sector has been granted 120 US patents, versus 129 in the previous corresponding period. In New Zealand over the last twelve months the Life Science sector has been granted 15 US patents, versus 12 in the previous corresponding period.

To look at US Life Science patent issuance since the beginning of 2014 to Australian assignees, click here. For US Life Science patent issuance to New Zealand assignees click here.

100% Bullish on the New Zealand Life Sciences sector

7/10/2016

For a while now I have been telling anyone who'll listen that New Zealand is on the cusp of a biotech and medtech boom. As a matter of fact, I am so bullish about New Zealand as a Life Sciences investment destination that I have thought seriously about moving there for a while. This morning I've published an essay in which I share what's great about New Zealand before explaining why investors stand to make a lot of money over the next few years backing New Zealand's bio-entrepreneurs.

This is the country that created Fisher & Paykel Healthcare as well as the A2 Milk Company, and, as Xero has shown us, is pretty good at technology. New Zealand has tended to lag Australia and other leading Life Science powers such as the US, the UK and Germany in terms of capitalising on its inherent Life Science potential, but I argue that that is about to change, because the pool of venture capital is getting bigger. In the meantime there are a number of interesting Life Science companies from New Zealand traded on ASX worth looking at. Both Innate Immunotherapeutics and Living Cell Technologies will read out important Phase II data probably in the next 12-18 months. Meanwhile AFT Pharmaceuticals has big growth plans for the next two years. And Volpara Health Technologies is rapidly growing its user base.

For my analysis of New Zealand and the Life Sciences, click here.

Three new US Patents for the Australian Life Science sector

5/10/2016

280 Life Science patents (classification A61K) were issued by the US Patent and Trademark Office on Tuesday 4 October 2016 (click here). Three went to Australian assignees.

US Patent 9,458,093 went to Vectus Biosystems (ASX: VBS) for Compositions for the treatment of hypertension and/or fibrosis. This patent covers the use of vasoactive intestinal peptide (VIP) fragment in these two conditions.

US Patent 9,457,107 went to the University of Melbourne for Cage amine ligands for metallo-radiopharmaceuticals. This patent covers metal-binding organic compounds that could be useful in radiotherapy.

US Patent 9,457,062 went to Invion (ASX: IVX) for Chaperonin 10-induced immunomodulation. This patent covers chaperonin 10 polypeptides, useful for activating Toll-Like Receptors.

Over the last twelve months the Australian Life Science sector has been granted 123 US patents, versus 129 in the previous corresponding period.

To look at US Life Science patent issuance since the beginning of 2014 to Australian assignees, click here. For US Life Science patent issuance to New Zealand assignees click here.

SomnoMed - An innovator's dillemma

3/10/2016

Here's a Livewire Markets posting from 29 October - visit www.livewiremarkets.com. Livewire is Australia’s source of financial intelligence.

In 2009 ResMed, the pioneer of CPAP therapy for Obstructive Sleep Apnea, recorded US$921m in revenue and US$146m in NPAT. Business was booming, and it still is. FY16's revenue and NPAT were US$1.8bn and US$352m respectively. However seven years ago someone influential at ResMed must have read Clayton Christensen's masterpiece The Innovator's Dilemma, and suggested buying a tiny French outfit called Laboratoires Narval. The reason was Narval's mouthguard-like 'mandibular repositioning device' which, by pushing the tongue and jaw forward, can also treat sleep apnea. In his book Christensen preaches the importance of established companies investing in smaller companies who may one day severely disrupt their old business. Narval was a potential disruptor because mandibular repositioning is low cost compared to CPAP and highly effective through greater patient compliance. The Sydney-based SomnoMed is another company in this space and it's now growing very strongly, with revenue up 29% in FY16 to A$44m. 10-15% of the population may suffer sleep-disordered breathing, much of it yet to be diagnosed, so there's plenty of growth to come, some of it potentially at ResMed's expense.

Note - the usual disclaimers apply - click here.