Psivida subsidiary signs US development deal

PsiMedica, the UK-based subsidiary of Australian nanotechnology company Psivida (ASX:PSD), has signed a materials transfer agreement with US nanotech company NanoHorizons.

The two companies plan to work together on opportunities to utilise NanoHorizons' nanostructured silicon film technology in tissue engineering and diagnostics. The company's manufacturing methods allows silicon films to be produced on a variety of substrates including glass, metals, ceramics and flexible polymer surfaces.

NanoHorizons has used the technology to develop sensor applications for respiratory devices and diagnostics. The company has also developed applications for mass spectroscopy.

According to Psivida CEO Gavin Rezos, the program potentially provides additional manufacturing and coating solutions to a number of pSivida's products in development, including diagnostics.

Under the terms of the agreement, the two companies will share any new IP developed through the collaboration, with PsiMedica retaining control of its BioSilicon patents, which cover in and on the body applications of porous silicon.

Psivida also released its half-year figures last week, reporting a net operating loss of AUD$3.3 million, of which $1.9 million was attributable to Psivida, and the rest to its subsidiaries. The increased expenditure compared with last year's figures reflects increased R&D activity as the company moves to develop its own diagnostic platforms using BioSilicon, in addition to costs associated with the recent listing on three German exchanges in Berlin, Stuttgart and Munich.

Following a placement in October, the company has $7.8 million in the bank.

Psivida's share price has essentially doubled since the company listed in Germany. At the close of trading yesterday the share price was $1.06.