Perth, Dec 19, 2007 AEST (ABN Newswire) - Eastland Medical Systems (ASX EMS) is looking to significantly increase revenues in 2008 as a result of its decision to concentrate on the development of its Pharmaceutical Division - with fast-track low-risk pharmaceutical development and early market entry of pharmaceutical product.
The decision to focus on the pharmaceutical development division of the company was made following the positive results of its single dose human clinical trials for its anti-malaria treatment ArTiMist, and is in line with comments made by Eastland Chairman Peter Jooste at the 2007 Annual General Meeting.
At the AGM Mr Jooste explained that internationally the company was expanding rapidly - with its recent acquisition of control of Star Medical (Botswana) Limited and its significant investment in HC Berlin Pharma AG.
The Eastland Group is comprised of four divisions - pharmaceutical, safe medical devices, distribution and manufacturing. The opportunity to develop the 'sublingual' anti-malaria treatment, ArTiMist - which is primarily aimed at the treatment of children - is the premise for Eastland's change of focus from medical products to pharmaceutical development.
Eastland CEO Dermot Patterson said the advancement of the anti-malaria treatment and the establishment of key manufacturing facilities by HC Berlin Pharma AG in Germany will result in significant revenues for Eastland and HC Berlin Pharma AG - in which Eastland has a significant investment.
"The shift in focus to pharmaceutical development will not only enhance revenue streams but shareholder value," he said.
In addition, Eastland is moving to mass production of its launch product Clip-On, which targets the safety of clinical workers and the safe taking of blood samples for assessment of malaria parasite infestation.
Eastland is in the process of fast-tracking commercialisation of ArTiMist. By using tablet form approved drugs and moving them into new formulae and delivery method Eastland has avoided the requirements of long and expensive toxicity trials. The sublingual delivery method of the anti-malaria treatment provides many advantages over outdated gut treatments and avoids the adversities of taking large or continual tablet absorption techniques.
"Moving forward, Eastland intends to support its subsidiaries revenue growth in its present business model. However, non-performing sectors are being carefully scrutinized," Mr Patterson said.
"We will update the market on changes in the near future.
"Eastland's revenue projections for 2008 are on track and the company is confident that it can exceed those projections".
Eastland's U.K scientist Mr Calvin Ross - in conjunction with Eastland's project manager ProtoPharma UK - has also advised that the substantial human clinical trial data will be available to present to sophisticated pharmaceutical analysts in London in February 2008. A similar presentation is expected to be conducted by Calvin Ross in Australia around April/May 2008.
About the Anti- Malaria Treatment
Eastland secured the rights to distribute and manufacture the new patented anti-malaria treatment ArTiMist.
This unique treatment uses a proven formula that is presently available in tablet form but which offers a number of significant advantages over current medications due to the method in which it is administered.
It attacks the malaria parasite at far greater speed than the conventional tablets, reducing the need for continued hospitalisation and resulting in significant cost savings to Governments and relief organisations.
The treatment is particularly effective in children suffering from malaria-related symptoms such as malnutrition and diarrhea.
ArTiMist is specifically designed for young infants and children under the age two years. The drug is administered as a "sublingual treatment" - that is it is sprayed under the tongue.
The Malaria Crisis
Up to 500 million cases of malaria are documented each year worldwide.
More than 41% of the world's population is at risk of contracting malaria One million children die every year worldwide Malaria is a major problem in South East Asia 1.2 billion or 85% of the total population of the South - East Asian region is at risk from malaria.
With the effects of global warming, the incidence of malaria is expected to increase in many countries of the world including those presently exempt from the parasite.
Eastland Medical Systems Ltd
Australian based Eastland Medical Systems (Eastland) is the parent company of a number of medical manufacturing and distribution companies in Australia, Africa and Europe.
Australia
Eastland's Australian manufacturing operations are conducted through 100% owned subsidiaries Portland Surgical Products (Vic) and 50% owned associate Ampack Medical (WA).
Eastland's Australian distribution operations are conducted through 100% owned subsidiaries West Coast Surgical & Medical Supplies (WA) and Medical Industries Australia (NSW).
Africa
Eastland has established a strong presence in the South African medical product distribution market through its 65% held subsidiary Eastland Medical Systems South Africa (Pty) Ltd and its 45% held associate Health in Form. EMS also holds a controlling stake (more than 55%) in Star Medical (Botswana) Limited.
Europe
In Europe Eastland holds a significant stake in German based medical manufacture and distribution company HC Berlin Pharma AG and 41% of UK based Eastland Medical Ltd.
For further information visit http://www.eastlandmedical.com.au
Contact
Dermot Patterson
Chief Executive Officer
t: +61 (0) 8 9436 9500
f: +61 (0) 8 9436 9505
m: +61 (0) 417 915 511
www.eastlandmedical.com.au
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