(MENAFN - ABN Newswire)
Benitec Limited (ASX:BLT)(PINK:BNIKF) Chairman Mr Peter Francis Address to Annual General Meeting - Welcome and thank you again for your ongoing support. The past financial year has been a demanding one for Benitec. However we look towards a more successful 2009/2010 year, particularly given the progress and success in the R&D program, the continued progress made in patent prosecution and maintenance and the future plans for further collaborations and licensing.
Financially, Benitec was able to reduce its net loss by 11% to A$2.47 million with all expense categories showing significant reductions following the major cost reduction programme implemented in late 2008.
As you know, the proposed rights issue in May 2008 was suspended after feedback from the market that the CSIRO Agreements needed adjustment before further significant investment could be transacted in the market. The global financial crisis hit hardest in late 2008. This resulted in further delays in the planned capital raising and the need to dramatically reduce costs including the closure of the Head office in Hawthorn East, the delay in the planned scientific programmes and termination of various staff contracts.
Benitec raised A$1 million in a share placement with our major shareholder in November 2008 and February 2009. The rights issue was reactivated in 2009 and successfully raised A$1.4 million in this financial year. This raising was completed at a lower price than previously planned due to the delays and the global economic crisis, although we recognise that many shareholders are concerned about dilution. Benitec however, like many in the Biotechnology sector, needed to raise capital to survive. Whilst the amount raised was less than the amount planned, the ongoing support of our shareholders is greatly appreciated. Due to the shortfall, a future capital raising will be required to support activities in 2010.
During the past year, even with limited resources, we have progressed our Research and Development programme. The City of Hope Stem Cell HIV Lymphoma study completed enrolment and the interim results of this study were very encouraging, with safety and feasibility being confirmed. We are looking forward to the publication of the results in a peer reviewed journal in the near future. Planning is also well advanced for the next study.
Benitec is also involved in a collaboration with the City of Hope for a T cell HIV/AIDS project. This program is a multi-project effort centred at City of Hope to investigate HIV-based vector delivery of anti-HIV RNA to CD4+ peripheral blood T-cells. We expect this programme to be in the clinic shortly.
Benitec has also entered into an agreement with China based company Biomics Biotechnology to develop an RNAi treatment for Hepatitis B. Initially the research plan will focus on lead-target identification and validation. It has been agreed that both companies will jointly share in any intellectual property developed through the project and will also jointly collaborate in any future product development and commercialisation.
In October we also announced a collaboration with the Uni of NSW and the Children's Cancer Institute Australia for Medical Research (CCIA) in the area of cancer. Benitec continues to review other potential joint collaborations with groups both in Australia and internationally. The model with the City of Hope, Biomics and CCIA has been successful to date and allows Benitec to better deploy its limited resource for maximum shareholder value.
Benitec has also made substantial progress with its fully owned portfolio over the last twelve months has grown to fifty three pending applications and granted patents. Benitec has been recorded as a co-owner of a pending US patent application with Stanford University. The CSIRO licensed portfolio (Graham and Waterhouse family of patents) has also seen allowance or grant of six applications.
One of the key issues for the Company remains the ongoing patent reexamination in the US. We understand the shareholders are concerned about the downward pressure this matter puts on the share price. However we would not be investing shareholders funds in this matter unless we thought there was the likelihood of a successful outcome.
Our CEO Sue MacLeman and her team have worked extremely hard this year under difficult circumstances and should be congratulated on their achievements to date. We were also pleased to appoint Dr Peter French to the position of Chief Scientific Officer in August 2009. I also note the ongoing contributions made by my fellow Directors.
Benitec's Board and Management team are committed to taking the Company forward and capitalising upon the exciting opportunities which lie ahead of us.