Bioprospect buys into US diabetes company

Queensland company Bioprospect (ASX: BPO) has dipped deep into its pockets, paying US$530,000 for a third of private Seattle-based biotech Astrum Therapeutics, which is investigating compounds that arrest the destruction of insulin-secreting cells associated with type 1 diabetes.

"We like the diabetes market sector," said chief executive Selwyn Snell.

He said Astrum would screen compounds in Bioprospect's natural library for activity against diabetes and other conditions. "These guys are quite experienced in other sectors of pharmaceuticals and we would like them to have a look at some of our more interesting compounds in other areas which we're going to discuss with them."

At December 31, Bioprospect had cash at hand of AUD$554,572. Snell said the balance of funds for the acquisition had come from "services and products supplied plus R&D rebate money."