BioProspect to acquire mental illness test

BioProspect (ASX:BPO) will pull the trigger on its planned acquisition of a heart rate-based diagnostics tool for mental illness, after successful due diligence efforts.

The company has exercised its options to acquire both a 35% stake in Invatec and a global licence to its heart rate variability (HRV) technology by funding its future development.

Once development is complete, BioProspect will also have the option to acquire the entire patent portfolio owned by Heartlink, which relate to the HRV technology, and to increase its stake in Invatec to 80%.

BioProspect decided to proceed with the two-stage acquisition after completing due diligence on the deal. Two independent groups of industry experts concluded that there is evidence supporting the use of heart rate variability as a biomarker for major depression and other mental health disorders.

During a blinded test of 98 patients conducted as part of the due diligence process, HRV demonstrated a successful diagnosis rate in excess of 80% compared to clinician diagnoses.

An independent consultant psychiatrist also confirmed that Invatec has undertaken systematic clinical investigations and that the studies have met acceptable standards for sample size and trial design.

BioProspect announced that the reviews have given it confidence that the HRV technology has the potential to be the first objective and quantitative tool for diagnosing a range of mental health disorders.

The due diligence process has also confirmed that the HRV technology is sufficiently patent protected and that there is currently no competing single evidence-based diagnostic test for a wide range of disorders.

BioProspect (ASX:BPO) shares were trading unchanged at $0.004 as of around 3 pm on Monday