Eiffel hired to reformulate asthma drug

Sydney drug re-engineering company Eiffel Technologies (ASX:EIF) been signed by a US-based specialty pharmaceutical company to experimentally reformulate a popular asthma drug to improve its activity.

The name of the company and the drug remain confidential, according to Eiffel MD Christine Cussen.

But Cussen said the deal involves an imminent, up-front payment of US$150,000 to Eiffel, followed by a series of further cash payments for meeting six-monthly development milestones.

Eiffel will use its patented supercritical fluid solvent technology to reformulate the drug, producing much smaller particles of more uniform size and texture than can be achieved with conventional drug-milling technology.

"By combining our smaller particle with the client's new puffer-inhaler technology, which already has FDA approval, we're hoping to get optimal delivery - something like a 1 + 1= 3 result," Cussen said.

"The asthma drug market is already large, and getting larger. I've seen predictions that the markets for asthma and chronic obstructive pulmonary disorder (COPD) drugs could exceed $25 billion by 2010."

Nanomised drug particles were ideal for delivery directly into the lungs, via inhalers - "This is only one product opportunity in the area, so it's a very attractive space," Cussen said.

Cussen said if the project met its targets, there would be further milestone payments for Eiffel Technologies, and a lucrative royalty stream when the reformulated drug enters the market.