Blis launches 2nd product

By NZPA

Tuesday 18th February 2003

Listed biotech Blis Technologies today released the second product in its "healthy bacteria" stable, Blis Bio Restore.

Launched less than a year after Blis' K12 Throat Guard, the new product works to rejuvenate the body's natural intestinal bacteria after a course of antibiotics.

"When antibiotics are prescribed the good bacteria necessary for everyday well-being are killed as well as undesirable bugs, upsetting the body's natural balance and making people prone to side-effects," Blis chief executive Kelvin Moffatt said.

Bio Restore has the potential to more than double Blis' sales, Mr Moffatt said, as it is a year-round product rather than just catering to winter ills.

Figures from the Government's drug-buying agency Pharmac show about 2.9 million antibiotic prescriptions are written in New Zealand each year.

Blis estimates that up to a quarter of people taking antibiotics may suffer may from side effects like diarrhoea or thrush.

"This provides a good indication of the size of the potential market for this product in New Zealand," Mr Moffatt said.

The new product also has international growth potential.

"We sold about $200,000 worth of K12 into New Zealand pharmacies over the winter period (last year). If we'd sold that in the United States on the same per head of population basis it would have been a $14 million product," he said.

Bio Restore will be marketed alongside K12. A combination three-day course containing three strains of Bio Restore bacteria in sachet form, along with the K12 lozenges, is expected to retail for about $19.95.

The first products will hit pharmacy shelves next month, accompanied by an intensive TV advertising campaign.

Mr Moffatt said Bio Restore was developed in response to growing demand from pharmacists for an intestinal product to complement the oral bacteria in K12.

The British Medical Journal recently published the results of a study into the benefits of using intestinal beneficial bacteria after antibiotics, raising interest within the healthcare profession.

Bio Restore was launched in collaboration with international food ingredient company Danisco.

The Copenhagen-based company is the world's largest supplier of food ingredients to dairy and other industries, recording annual revenues of over $US1.6 billion ($NZ2.93 billion) last year.

"As well as collaborating with Blis Technologies on the Bio Restore launch, Danisco will assist in facilitating registration of the Blis K12 Throat Guard product in Germany," Mr Moffatt said.

Blis plans to continue developing other "smart health" products.

Clinical trial are underway on a product to prevent tooth decay and Blis expects to launch it later this year.

Other products under development include an application for the prevention and treatment of ear infections, acne and skin infections and bovine mastitis.

Blis Technologies was formed in June 2000 to pursue the commercialisation of Blis (bacteriocin-like inhibitory substances).

It listed in 2001 and key shareholders include Otago University, with 20 percent; Southern Capital Ltd on 15.7 percent; and Dunedin entrepreneur Howard Paterson, who owns 11 percent.

Shares in Blis last traded yesterday at 35c, against a year low of 32c and a high of 66c.

"Obviously we'd like it to be higher but the (tech-laced) Nasdaq in the US is down 50 percent over the last year," Mr Moffatt said.

"High tech stocks around the world have followed that trend. That's market sentiment and there's not a lot you can do about it."

Blis debuted on the main board of the Stock Exchange at $1.05 in July 2001, but has languished as investors' love affair with the high-risk biotech sector waned.

The company posted a $1.28 million loss for the half year ending September 30, in line with prospectus forecasts.

"It will be the case for this year and next year that we will continue to make a loss because we are investing in research for future products," Mr Moffatt said.

"The clinical trial for the dental care product will be pretty expensive with 200 people in it. But again it is a huge potential market so we would be silly not to spend that money.

"We are about getting products to market quickly, not about trying to not spend money on research -- that wouldn't get us anywhere."

Comments from our readers

No comments yet