NAL Norwoodabb Fpo

Norwood Abbey Ltd (ASX:NAL): Key points -- Update on strategy, quarterly achievements and plans -- Raises US$3 million (A$4 million approx) from US institution Norwood Abbey Ltd (ASX:NAL) advises that it has further progressed its commercialisation activities during the quarter. At the Annual General Meeting, Norwood confirmed its strategic direction as follows: -- identifying and/or creating innovative medical technologies -- protecting these technologies through intellectual property rights -- adding value through additional research and development -- laying off R&D costs by partnering the technologies with the best partners in the relevant markets -- crystallising value in these technologies through commercial partnering, licensing or spin-out of specific assets During the quarter, Norwood has aggressively pursued this strategy with several important accomplishments: Immunology -- Advancing intellectual property position through patent grants and continued prosecution of portfolio -- Commencement of transplantation tolerance study at Massachusetts General Hospital under the direction of Dr. David Sachs -- Commencement of vaccine trial to test immune response of melanoma cancer vaccine when coupled with Norwood technology at M D Anderson Cancer Centre under the direction of Dr. Patrick Hwu -- Commencement of US FDA-approved Phase II clinical trial in cancer patients undergoing autologous (self) bone marrow transplant. First patients enrolled and injected at Dana-Farber Cancer Institute, Harvard Medical School. Boston and M D Anderson Cancer Center. University of Minnesota study site expected to open in the near future -- Signing option agreement to acquire Virosome Biologicals group; platform technology for enhanced immune response in vaccines; current lead project targeting an influenza vaccine project in Phase 1 trial with European pharmaceutical group -- Entering into research partnership with Australian Stem Cell Centre and Monash University; world's first linkage of immunology and stem cell science -- Seeking to upsize through synergistic mergers and/or acquisitions to create critical mass designed to engender international market support -- Seeking to enhance the already crystallised value achieved by UK listing through plans for US listing; undertaking preliminary work for US listing during 2006 via IPO or merger Eyecare -- Completion of acquisition of Eyecare assets from Ciba Vision, with final payment -- Intellectual property position substantially strengthened through licensing agreements with Pallikaris and Perez interests -- IP position now dominant through control of key Epi-LASIK patent portfolios from Ciba Vision, Pallikaris and Perez -- Key Pallikaris patent granted in US with over 160 claims granted -- Epi-LASIK technology base and know-how expanded through research agreements with University of Crete and Tissue Engineering Refraction, Inc. -- Third generation Epi-LASIK product with advanced functionality and significantly reduced cost base developed by Norwood in Boston. -- Value crystallisation now underway through licensing discussions with global ophthalmology groups. Needle-free drug delivery -- Further progress with R&D program at the MIT BioInstrumentation Laboratory -- Commercial phase license agreement signed with MIT, allowing Norwood to progress licensing discussions -- Approaches from global pharmaceutical groups from USA and Europe for both human and veterinary applications of the needle-free technology -- Developed prototype of small re-usable handheld device similar in size to an electric screwdriver; drugs and vaccines delivered using a single-use disposable. -- Prototype is safe, almost silent in operation, incorporates controllability of force and, hence, is able to have control over depth of delivery -- Device will offer very low cost alternative to syringes and needles -- Successful laboratory testing on animal skin of a single-shot mass injection device for humans -- Successful laboratory testing of delivery of surrogate arthritis drug into animal skin -- Successful laboratory testing of delivery of surrogate drug for veterinary application -- Commencement of value crystallisation strategy through licensing rights to use needle-free device by application; each vaccine, biological or other substance requiring delivery offers the opportunity of an application license Laser ablative device -- Continued limited sales into US paediatric hospitals -- Commencement of discussions to license out the technology Corporate -- Continued streamlining and down-sizing of personnel complement, with further substantial reduction in long-term overheads but with significant one-off redundancy costs -- Relocation of key management to US, facilitating commercial negotiations, funding and investor relations -- Completion of payments re Eyecare assets acquisition -- Top 20 shareholders now hold over 65%, with US holders over 30% Funding -- Private placement of shares and options raised $400,000 at 40 cents per share -- New twelve-month convertible note funding of US$3 million (A$4 million approx) to US-based institution completed , secured by Norwood Immunology Ltd shares , interest payable 12% per annum; convertible at approximately 30.5 cents if not repaid earlier; 3,963,012 options granted exercisable at approximately 35 cents on or before April 21 2010 -- Company intends to repay note through cash generation through value crystallisation strategies and has committed to applying half of any such proceeds to this; company has also committed to certain cash generation targets by June 30 and September 30 2006 -- Potential crystallisation funding sources include, eyecare licensing, needle-free licensing, immunology equity holding as part of proposed US listing and share placements