Q-Vis calls in administrators

Perth biotech Q-Vis Ltd is in the hands of administrators Ferrier Hodgson after coming up empty-handed from a six-month search for a strategic partner with deep pockets.

With cash reserves of $1.3 million left from its $10 million public float in mid-2001, trading in Q-Vis has been suspended on the Australian Stock Exchange with its share price down around five cents from a peak of $2.

A commercial spin-off from Perth's prestigious Lions Eye Institute, Q-Vis raised an additional $5 million in April 2001 through a private placement but this year was unable to find fresh capital to underwrite further development of its laser technology.

At a gloomy November annual general meeting, chairman Sandy Murdoch said approaches to trade players about a possible sale of the company had been rebuffed. Potential partners told Q-Vis that it needed to be further down the development path with its technology before they would be interested in forming alliances, he said.

Its lead product, a solid state laser which embraces new generation technology for correcting refractive vision disorders, requires more development after the suspension of FDA clinical trials in the US.

The company had been gearing up to re-commence trials at the Lions Eye Institute this month with further device modifications and field trials planned for 2003.

However, Ferrier Hodgson director Ian Hobson said Q-Vis' cash reserves were insufficient to keep the 16-person company operating for much longer than another month, much less complete the work needed to wheel its laser vision product into production.

Ferrier Hodgson is now canvassing options open to the company, including the possibility of continuing to search for new equity participants or arranging a trade sale, he said.