Prana aims for Nasdaq

Prana Biotechnology is following up recent successful Phase II clinical trials of its therapy for age-related diseases such as Alzheimer's with a bid to list on the US Nasdaq.

The move will help create a wider range of future funding options for the Melbourne biotech, which has been listed on the Australian Stock Exchange since 2000.

If its Nasdaq initiative is approved, Prana will move to a Level II listing in which its shares will become publicly visible for trading on the exchange in the form of American Depositary Receipts. One ADR is equivalent to 10 Australian shares which will create an ADR price of about $US10 based on Prana's current ASX share values.

At the moment, Prana's shares are not publicly tradable on Nasdaq. Their greater visibility will create more public awareness of the company, said chairman Geoffrey Kempler.

The company will be conducting interim trials prepartory to entering Phase III clinical trials but Kempler would not divulge a timetable.

The proposed Nasdaq listing is not associated with any public fund raising. The company has about $4 million in cash reserves and expects to generate another $13 million with exercisable options.

The funding for Phase III trials may flow from a future share issue or partnerships with large pharmas and biotechs or a combination of the two, Kempler said.

The success of initial trials has already prompted increasing levels of interest in Prana from large overseas biotechs and pharmaceuticals, he said.