Bionomics sets up US subsidiary

Bionomics (ASX: BNO) has set up a US subsidiary to hold intellectual property coming out of its US collaborations.

CEO Deborah Rathjen said the formation of Bionomics Inc would serve several purposes, including circumvention of the Bayh-Dole Act which makes it difficult for non-US companies to secure IP held by US universities, and to provide better access to US government grant funding.

The US subsidiary will initially hold IP coming from a new research collaboration with Emory University geneticist Assoc Prof Andrew Escayg, which will focus on genetic variations associated with Severe Myclonic Epilepsy of Infancy (SMEI). Emory University and Bionomics Inc will jointly hold the rights to IP developed as a result of the research, and Bionomics Inc will hold exclusive rights relating to commercialisation.

In addition, the company has appointed Boston-based Carl Foster as the US-based business development representative. Foster, who has worked in both the pharmaceutical and the biotech industries, will initially work on a part-time basis for Bionomics.

"It's clear that the majority of both our research and commercial partners are likely to be United States-based organisations. Whilst these latest developments are in line with Bionomics' strategy, the limited nature of operations of Bionomics, Inc. to be conducted at this point will not materially affect Bionomics' cash position," said Rathjen.