Proteomics International (ASX: PIQ) has topped up its coffers with a $2.16 million cash boost from Australia’s research and development (R&D) tax incentive program that will help the company kick-off the commercial launch of its simple, innovative, precision diagnostic blood tests for diabetic kidney disease, endometriosis and oesophageal cancer.
The rebate, for the 2023-2024 financial year, has come as a direct result of the company’s $4.95m investment spend in R&D for its Promarker technology platform.
The Federal R&D tax incentive provides a 43.5 per cent cash rebate for qualifying research activities and is aimed at encouraging Australian companies to innovate locally through high-value research.
The R&D work is based on the emerging field of proteomics – which studies the structure, function and interactions of proteins in cells and tissues to understand how they work and to identify new therapeutic targets to treat diseases such as cancer.
Proteomics International says it plans to channel the R&D rebate into several key initiatives, including setting up its new Proteomics International USA Inc laboratory.
The company will then seek the necessary quality accreditation from the United States’ Food and Drug administration to allow the US-based lab to conduct laboratory developed tests on the new diagnostics.
Proteomics will use some of the rebate cash to grow its Australian certification credentials by applying for clinical certification (ISO 15189) for its Perth laboratory, which will allow it to test clinical samples locally.
The company will also funnel cash towards commercialising its three novel diagnostic tools, which could be potential game-changers in diagnosing diabetic kidney disease, endometriosis and oesophageal cancer.
PromarkerD, the predictive blood test for diabetic kidney disease, has so far been rolled out in France and has recently shown excellent predictive qualities in detecting the likely onset of chronic kidney disease in patients without existing diabetic kidney disease in both type 1 and type 2 diabetes.
PromarkerEndo is a simple blood test developed to detect the debilitating condition, endometriosis, and is nearing commercialisation.
In March, Proteomics joined forces with Oxford University in the United Kingdom to follow up on the PromarkerEndo prototype, which has correctly identified up to 90 per cent of patients with endometriosis from a study of more than 900 patients.
Endometriosis is a painful inflammatory condition that affects about one in nine women and girls. It often interrupts their school, work and social life and can cause fertility issues.
The current range of diagnostic tests for endometriosis are limited and, on average, it takes about 7.5 years for a woman to be diagnosed.
The current standard diagnostic test is a laparoscopy, a keyhole surgery in which a microscopic camera is inserted through a patient’s abdominal wall to view their abdominal cavity, uterus and other internal organs.
PromarkerEso is a third blood test on Proteomic’s product list that is getting close to a roll out.
It aims to detect a particularly nasty form of cancer, oesophageal adenocarcinoma. PromarkerEso has been shown to have a 94 per cent accuracy for identifying the disease, the company says.
With the injection of additional funding from the R&D rebate, Proteomics hopes to kick-off the Australian launch of PromarkerD and PromarkerEso in the first quarter of next year, followed by PromarkerEndo in the second quarter.
No doubt, the company is hoping these developments fire the starting gun on the growth of a sustainable, substantial revenue stream.
Proteomics appears well-positioned at the forefront of proteomics and analytical services in the biomedical sector, and on the cusp of changing from a research company into one with a strong future revenue runway from Europe and Australia.
With funding also likely to be directed at setting up a US laboratory that can then attain all-important FDA accreditation for its laboratory developed tests, the company may not have long to wait to open the gate on some of the world’s biggest medical markets.
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