WA's BioPharmica readies for float

Perth-based investment company Grandbridge (ASX:GBA) is preparing to list its biotechnology business BioPharmica on the ASX.

The float will be accompanied by a public offering intended to raise up to AUD$4.5 million through the issue of shares at $0.20 per share. Grandbridge shareholders will also receive a free BioPharmica share for every Grandbridge share they hold.

BioPharmica, which was set up two years ago, is working to develop therapeutics targeting the HLS5 tumour suppressor gene, which was discovered by Prof Peter Klinken and his team at the Western Australian Institute for Medical Research (WAIMR). The gene is thought to have potential as a target for detection and treatment of breast, colorectal and prostate cancer, and patents are pending in Australia, the US and Europe.

"We are very happy to be working with someone like Prof Klinken on a project like this," said Grandbridge chairman David Breeze.

The company is also working on products to diagnose bacterial infectious diseases such as pneumonia and gastroenteritis. Breeze said other opportunities were also being evaluated.

BioPharmica plans to form relationships including collaborations and joint ventures with other companies in order to commercialise its products, he said.

Grandbridge has received approval from the ASX for the demerger and listing of BioPharmica, and is awaiting clearance from ASIC before releasing details to shareholders. The prospectus for the listing is expected to be released shortly after a shareholders meeting to approve the process.