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GroPep to pursue promising asthma drug following preclinical study results

ing Officer, Dr. Chris Goddard said that although the preclinical work aimed at psoriasis was disappointing, the results of the asthma studies were promising.

"Much of the data underpinning the psoriasis indication will be applicable to developing the drug for asthma. The reason for lack of effect in psoriasis appears to be due to an inability of the drug to penetrate the skin. We do not have that problem in developing the drug to treat asthma," he said.

GroPep will undertake a full feasibility assessment prior to committing to a development program for asthma.

The Company was awarded an AusIndustry R&D Start Grant towards the psoriasis application in December 2004. Given the decision to cease work on this indication, the Company will seek a mutual termination of the grant but expects to apply for support for the asthma indication under the Commercial Ready Program, if the feasibility assessment is positive.

As a result of the termination of the grant, GroPep will reduce its planned R&D expenditure for the balance of 2005-06 to ensure that net Drug Development expenditure for the year is within the range of 15-20% of revenue, in line with previous guidance.


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Contact: Tony Mitchell
61-883-547-700
Research Australia
14-Dec-2005


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