Gradipore R&D, marketing push offset sales revenue increase

A 75 per cent boost in sales revenues at Sydney biological separations company Gradipore was offset by continued heavy commitments in R&D and international expansion in its half-year results, released today.

Overall, total revenue was up 4.3%, and the company reported a net loss of $8.095 million.

In a statement, managing director Tim Wawn said the result was expected and reflected Gradipore's marketing and development strategy for maximising overall returns to shareholders from its core technology, Gradiflow.

"R&D was up sharply in the period as were costs of marketing and the general international expansion of our business," Wawn said.

Wawn said that a gel distribution partnership with US company WWR International, established in September 2001, had helped to strengthen Gradipore's sales performance since December.

He said the launch of the company's Gradiflow research instrument in September 2002, as well as commercial licensing deals for specific Gradiflow applications, would lead to new revenue streams.

Wawn said Gradipore would continue to invest in R&D for Gradiflow technology, and also aimed to expand its global business operations.

"We're in a strong position," he said. "After investing $2 million in our US activities we held cash reserves of $33 million at 31 December, following the exercise of listed $2.50 options."

Last year Gradipore's activities included:

• An agreement with the Scottish National Blood Transfusion Service for the development of a prion (mad cow disease and vCJD) diagnostic.
• A proof of principle agreement with Aventis Behring covering the use of Gradiflow for the manufacture of blood products.
• An agreement with Biomira Inc for use of Gradiflow technology to separate a number of biological cancer drug candidates.