Australian Anti-Bacterial Technology Company Enters License Agreement

30 Apr 08

An Australian biotechnology company is to form a $US7.5 million ($A8.1 million) partnership with a United States entrepreneur to commercialise its seaweed-based anti-bacterial treatments.

Biosignal Ltd has agreed to license the worldwide rights to its anti-bacterial technology to two companies being led by American environmental author Paul Hawken.

Hawken's best-known work, Natural Capitalism, co-authored with fellow environmentalist Amory Lovins, has been described by former US president Bill Clinton as one of the five most important books in the world.

Biosignal's technology is based on an eastern Australian seaweed which produces natural furanones that disable bacteria's ability to colonise.

Biosignal produces synthetic compounds for both inanimate surfaces such as pipes and membranes and also living organisms, such as lungs, skin and teeth. Industrial applications include a marine anti-fouling paint, water treatment plant applications, anti-termite treatments and applied as a film on surfaces requiring ani-bacterial properties.

Hawken's two companies will commercialise the technology for industrial purposes and wound and hospital hygiene applications.

Consideration for the industrial licence would include a $US1 million ($A1.1 million) fee and 50 per cent revenue share, Biosignal said.

The agreement specifies the new entity must raise $US4 million ($A4.3 million) within 12 months.

An upfront licence fee of $US500,000 ($A540,000) and a 50 per cent revenue share will be provided for the wound and hospital applications licence, along with a commitment to raise $US2 million ($A2.2 million).

Biosignal managing director Peter Steinberg said the new companies would "fast track" applications Biosignal could not otherwise develop.

"Shareholders get a major share of the cash and upside without any dilution," Prof Steinberg said in a statement.

Hawken will be executive chair of both new companies and chief executive of the wound and hospital entity, Biosignal announced recently.