We're out of start-up phase: Cryptome

Eighteen months after its AUD$6.6 million IPO in November 2003, Melbourne-based Cryptome Pharmaceuticals (ASX:CRP) has achieved all of the objectives listed in its IPO prospectus and claims that it is no longer in the start-up phase.

"We're entering into a phase of revenue generation and being a real presence internationally," acting CEO Mathew Vadas told Australian Biotechnology News.

Cryptome uses a high-throughput screening process to identify fragments (peptides) of natural proteins for potential therapeutic drugs and is currently in negotiations with a biopharmaceutical company to buy and develop a cryptein protein fragment. The deal could deliver an upfront payment of at least AUD$2 million and milestone payments in excess of $30 million over its lifetime. Cryptome expects these payments to start coming to the company by 2008.

The company also recently announced its first platform deal with German biotech Xantos, and plans to complete at least two more platform deals in the next 15 to 18 months which could bring a further $2 million to the company.

Vadas said that the anti-coagulant CR001 was Crytome's "most advanced" drug candidate. Cryptome was awarded a $1.95 million Commonwealth R&D Start grant to develop CR001 and the company plans to have completed non-clinical studies successfully and be ready for regulatory filing to permit clinical trials in patients by the end of the fourth quarter of 2006.

Cryptome has also acquired an option over a preclinical anti-inflammatory drug CRO14 which has demonstrated activity against vascular leak, a significant contributor to the morbidity and mortality associated with common serious conditions such as stroke, heart attacks and MS. By the end of the fourth quarter 2006, Cryptome aims to have CR014 showing in vivo efficacy and be well on the way towards filing.

Cryptome also plans to develop its cryptomics platform, permitting the patenting of at least five additional new drug candidates targeted at major disease markets.

"We're pleased to have set our previous targets and performed," said Vadas. "We're now setting our next commercial targets and we'll work incredibly hard to make sure that we meet them."