Natural selection

Written on the 17 June 2009

Natural product developer BioProspect has negotiated a call option to buy Melbourne-based company Re-Gen within a three-month period. CEO Peter May says the deal could bring in tens of millions of dollars a year from the Chinese market.

PETER May says there are great export opportunities for Australian natural products and if BioProspect decides to go ahead with buying Re-Gen there is the added advantage that the company’s emu oil products have already been approved by the Chinese Ministry of Health.

“The Chinese market, apart from looking for products with an international flavour, also is amenable to natural products and if they’re from Australia then it’s a plus - if you build the right relations, or ‘guanxi’ as they call it, then clearly the opportunity is great for anything relating to consumers,” says May.

He says Re-Gen’s product range would be an excellent fit with the company’s focus on natural products, which include the Bioeffectives animal health products and Termilone termite solution.
“We are very pleased to have secured this opportunity, which has the potential to generate long-term benefits for shareholders as well as Australian producers and the environment,” he says.

“We’re not actually selling any products yet, but we have licensing deals. What we need is product approvals and that’s what Re-Gen has — so if we buy we just have to tie up distribution and negotiate pricing deals.”
The company is also taking a global approach with its existing products as it has made agreements with US companies to sell Termilone and has global distribution arrangements with the Bioeffectives product range.
While the small Brisbane-based company is being cautious with cash flow, May says the purchase would still keep BioProspect in a positive financial position.

“We don’t want to raise money on the market but we want to generate funds internally and we see it as a positive to stay in the black – it’s our strategy to avoid additional heavy investment.”
BioProspect has four staff and between 20 to 30 consultant scientists and support staff.


Latest News

WOOLWORTHS CLAIMS LEGAL VICTORY IN STOUSH WITH LOWE'S

SUPERMARKET giant Woolworths (ASX: WOW) has been given the go-ahead to sell its Masters property assets after winn...

DOMINO'S PIZZA EMPLOYEES OFFERED A SLICE OF THE PIE

DOMINO'S Pizza (ASX: DMP) has launched an employee share acquisition plan which will give its 26,000 staff the...

PRICELINE STORE ROLLOUT BOOSTS API'S FULL YEAR PROFIT FORECAST

Australian Pharmaceutical Industries (ASX: API) has booked a rise in half year net profit of $29.1 million on the bac...

CITY DWELLERS SETTING EYES ON REDCLIFFE AS PROPERTY SEACHANGE BECKONS

IT MAY be cool by the sea at Redcliffe, however strong sales at Kyko Group's Mon Komo development prove that t...

Related News

FURNITURE DISRUPTOR SET TO SHARE HIS ONE OF A KIND BUSINESS MODEL

IT'S no secret that Australians love homemaking. Their ceaseless quest to create the perfect place to call hom...

WEEDING OUT THE ASX'S BURGEONING CANNABIS TREND: 8 COMPANIES TO WATCH

A NICHE is budding on the ASX in the form of medical cannabis, an industry which has been on the country's rad...

FRESH CLASS ACTION TO REVEAL ANOTHER SIDE OF SLATER AND GORDON DOWNFALL

ACA LAWYERS has issued a formal letter of demand to Andrew Grech (pictured), managing director of Slater and Gordo...

STARSHIPS WERE MEANT TO DELIVER DOMINO'S PIZZA

NICKI Minaj may have been off the mark when she declared 'starships were meant to fly'. However, she m...

EVENTS COMING UP

 

Contact us

Email News Update Sign Up Contact Details
Subscriptions

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter