Genetraks invests $1m to fast-track development

Cashed-up young biotech Genetraks Pty Ltd is investing more than $1 million to dramatically accelerate the time to market of its gene-based diagnostic and monitoring tools.

The Brisbane company is poised to contract US listed company Gene Logic to build a massive database of information derived from processing tissue samples and analysing gene expression chips.

When completed early next year, the database will hold an estimated 20 million datapoints, according to Genetraks CEO Rosalyn Brandon.

The database will then be used to help develop the diagnostic and monitoring tools on which Genetraks’ commercial offerings will be based.

Genetraks’ technology relates to the diagnostic capacity of gene expression “signatures” in white blood cells in immune-mediated diseases.

Its commercial focus lies with developing the technology to provide a novel new means of assessing the health and performance of race horses.

The concept has caught the attention of the investor community and Genetraks raised about $6 million in its most recent fund raising earlier this year.

By involving Gene Logic, a US listed company widely regarded as a leader in gene expression analysis, Genetraks believes it can cut the time it needs to generate a crucial database and improve the quality of information in the database.

“Gene Logic can do (this type of work) 200 times faster than we can do it internally,” said Brandon.“Secondly, the quality assurance programs they have built up for the use of Affymetrix gene expression chips will give us the quality we need for animal-to-animal and sample-to-sample comparisons.”

Under the contract, Gene Logic will process tissue samples in conjunction with gene expression chips to build up a database of 20 million data points that will underpin development of Genetraks diagnoisc tools and monitoring tools.

Development of the tools will start in January 2004 and run in parallel with completion of the database.

Genetraks’ technology relates to the diagnostic potential of gene expression “signatures” in white blood cells in immune-mediated diseases.

Its first commercial focus will be on assessing the health and performance of race horses.

Brandon says the Gene Logic contract should bring forward by two months an investor milestone originally set for the end of September.

The milestone involves proof of the concept that gene expression technology can be deployed to highlight differences in the diagnostic signature of one disease compared with another.

The contract is due to be signed in about two weeks.