Perth, June 16, 2008 AEST (ABN Newswire) - Stirling Products (ASX:STI) advises shareholders it has signed an agreement in principle with the private Western Australian company Cocky Smart Pty Ltd for the Australian and international rights to its novel parasiticide for the prevention of flies and ticks primarily with applications in livestock.
Under the terms of the agreement, Stirling has an unrestricted license for any geographical jurisdiction and acquires 25% of the company's net profits. Stirling will codevelop the product applications with Cocky Smart from jointly raised funds.
Managing Director of Cocky Smart, Mr John Chamberlain, said "We know the product works extremely well in preventing flystrike in sheep and provides a very effective alternative to the current practice of dipping sheep. Our treatment is environmentally friendly and has already been approved by the Biological Farmers of Australia, userfriendly and provides up to three months protection from a single midline application.
We have a registration file that has been submitted with the Australian Pesticide and Veterinary Medicine Authority, but due to the delay in funding from areas such as Commercial Ready Grants, we have had to suspend the file. We are confident that we will be able to work with Stirling to close the registration quickly and get the product onto the market and in more countries than we had anticipated in a shorter period of time."
The product was first derived from the tail feather of a yellow crested cockatoo that was a farm pet residing in a shearing shed. Observations were made during shearing that there were no flies around the cockatoo in a shed otherwise full of sheep blowfly. Trials have now confirmed the efficacy and an international patent application has been filed.
"We think that this product could have a significant impact on the current practices to provide a safe and effective product for controlling sheep flystrike in the Australian and New Zealand sheep industry," commented CEO and Managing Director of Stirling Products, Dr Calvin London. We also believe that the product has application in the treatment of livestock for ticks and lice," he added.
The term sheet, which will be finalized over the next ninety days, allows the two companies to jointly develop all applications for global markets. The initial round of funding to complete the first application (sheep blowfly in Australia) is expected to close soon through channels already in place with Cocky Smart.
"Through Stirling's partnerships already in place in South Africa, Europe and North America the product could provide a significant revenue stream while we continue to develop the other applications for R-salbutamol that have higher regulatory hurdles," indicated Dr London. "Like all of our technology platforms, it has multiple applications; blowfly strike is only the first," he added.
Blowfly strike in Australia is primarily due to three particular species of fly and farmers typically have used three forms of prevention/treatment - the much publicized and now controversial mulesing operation (the surgical removal of strips of wool-bearing, wrinkled skin from around the breech of a sheep), crutching of the sheep and/or the treatment of sheep with organophosphates, to which there is also a growing resistance. Flystrike costs the industry A$160 million a year.
"This is the third tier of products to be added to Stirling's original portfolio of products, focused on R-salbutamol. As we have indicated, Stirling needs to develop a stronger range of products that have a shorter time-to-market and that can generate revenue to help fund the development of the R-salbutamol products in a market that is not favourable to capital funding of biotechs," added Dr London. "We have now staked out a strong potential in non-medicated feed additives, companion animals and with this product, the area of animal health medication. They have all had low entry costs, progressive payment structures and significant revenue returns."
Contact
Stirling Products Limited:
Calvin London
TEL: +61-400-204-616
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