Planning firm backs biotech raising

financial planning groups business development manager

2 October 2001
| By John Wilkinson |

A Brisbane biotechnology company, CBio, is hoping to raise $5 million through financial planning groups as part of the first step towards commercialising a major research discovery.

Scientists at CBio are developing a drug based on a protein produced by pregnant women called Early Pregnancy Factor (EPF). The protein appears to modify the woman’s immune system to prevent it rejecting an unborn child.

EPF may be able to treat diseases such as multiple sclerosis and cancer as well as aid wound healing. The company is planning to raise $5 million through the issue of $1 shares.

CBio business development manager Fred Dickman says the money raised will be used to fund the first stage of the clinical trials. Research on isolating EPF has been undertaken over 30 years by the University of Queensland which is now a shareholder in CBio.

The idea of a capital raising through financial planners came from Brisbane dealer group Retirewell Financial Planning.

Managing director Tony Gillett says one of his clients, Dr Wolf Hanish, suggested the group investigate the investment opportunities of another biotechnology company, Vaportronics.

“We helped Vaportronics with its capital raising and subsequent move to California,” Gillett says. “That involvement with Dr Hanish lead to us making the decision to assist with the capital raising for CBio, although the company is now handling the fund-raising itself.”

Investorweb has rated the investment a buy for risk-tolerant investors. The lack of liquidity in the shares, they will be unlisted, and risks involved with the clinical trials increase the risk to investors.

“The potential of the EPF project to deliver substantial improvements in the treatment for significant auto-immune diseases positions the return potential in the top tier of the biotechnology spectrum,” the report says.

CBio is planning to have a dealer briefing seminar on September 7 in Brisbane although Dickman says further briefings can be held in other capital cities if there is sufficient interest.

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

This verdict highlights something deeply wrong and rotten at the heart of the FSCP. We are witnessing a heavy-handed, op...

13 hours ago

Interesting. Would be good to know the details of the StrategyOne deal....

4 days 18 hours ago

It’s astonishing to see the FAAA now pushing for more advisers by courting "career changers" and international recruits,...

3 weeks 2 days ago

Insignia Financial has made four appointments, including three who have joined from TAL, to lead strategy and innovation in its retirement solutions for the MLC brand....

2 weeks 4 days ago

A former Brisbane financial adviser has been charged with 26 counts of dishonest conduct regarding a failure to disclose he would receive substantial commission payments ...

3 days 16 hours ago

Pinnacle Investment Management has announced it will acquire strategic interests in two international fund managers for $142 million....

2 days 19 hours ago