Biotechnology Firm successfully Refines Algae to produce Jet Fuel

New Zealand firm Aquaflow Bionomic Corporation announced that its wild algae has been successfully refined to produce the world’s first sample of synthetic paraffinic kerosene (SPK).  SPK, when blended with petroleum-based kerosene, can be used to power commercial and military aircraft.

Sample of Diesel and Jet Fraction derived from Wild Algae. Picture from UOP and Aquaflow.

Aquaflow Company Director, Nick Gerritsen says the sample meets Jet A-1 specifications and, when blended with petroleum-based Jet A-1, could be used by commercial aircraft.  According to press release, the algae was converted using technology from United States-based UOP LLC, a Honeywell company. UOP utilized its proprietary hydroprocessing technology to convert the sample to SPK and confirmed that the sample meets the critical specifications for SPK including density, flash point and freeze point.

Besides refining wild algae into jet fuel, the wild algae sample also yielded a sample of diesel fuel. Though the press release did not elaborate on the diesel fuel.

“This is a major breakthrough and confirms that wild and naturally occurring algae and its components can produce quality, sustainable aviation fuel,” says Gerritsen.

Aquaflow obtains its wild algae from the local oxidation ponds in Marlborough, essentially recycling a waste product. Wild algae grows in wastewater and is thus able to be continuously harvested. The other great benefit of it is that it doesn’t compete with food crops or agricultural land.

China Medical Technology sells HIFU unit to Major Shareholder

It was reported that China Medical Technologies is selling its High Intensity Focused Ultrasound (HIFU) tumor therapy system business to Chengxuan International, its major shareholder for $53.5 million in cash. Chengxuan is owned by Mr. Xiaodong Wu, the Chairman and Chief Executive Officer of the China Medical Technologies.

China Medical Technologies' HIFU System. Picture from China Medical Technologies.

According to China Medical, the HIFU business is said to differ from the company’s current focus in the development of advanced IVD businesses. The business unit, which primarily sells high-end HIFU equipment, is seasonal and volatile and required large capital infusions required to obtain US and EU regulatory approvals. In addition, China Medical has also cited the current conditions in the global financial markets for selling its HIFU business.

The proceeds from the sale will go towards research and development of China Medical’s existing advanced in-vitro diagnostics (IVD) businesses so as to generate recurring and increasing revenues. China Medical Technologies IVD offerings includes the Enhanced Chemiluminescence Immunoassay (ECLIA) System and the Fluorescent in situ Hybridization (FISH) Probes and FISH Imaging Analysis System.

Mr Sam Tsang, Director and CFO, China Medical Technologies said that the company will now be completely focused on expanding our leading position in the advanced IVD sector in China. He also mentioned that this transaction will strengthen China Medical’s financial position, further enhancing the company’s ability to capitalize on the opportunities within the molecular diagnostics industry in China.

On a side note, the company also reported reported revenues of RMB290.5 million (US$42.8 million) for 2Q FY2008, representing a 35.2% increase from the corresponding period of FY2007. Net income, meanwhile was RMB117.7 million (US$17.3 million) for 2Q FY2008, representing a 52.1% increase from the corresponding period of FY2007, as gross margin increased to 73.2% for 2Q FY2008 from 61.5% for the corresponding period of FY2007. China Medical Technologies attributed the increase in gross margin to the change in revenue mix where a substantial portion of revenues was generated from recurring sales of higher margin ECLIA reagent kits and FISH probes.

Scandinavian Healthcare (SHL) plans new Plant in Taiwan

The SHL Group, the world`s largest privately-owned designer, developer and manufacturer of advanced drug delivery devices, recently confirmed its plan to invest to build a new manufacturing plant in Taiwan’s Taoyuan County by the end of the year. SHL Group’s newest plant would be twice as large as the company’s existing facility in Taiwan.

Roger Samuelsson, chairman of SHL, said that the new factory will help to turn the island into the world`s largest production base of pen-injectors, with the facility expected to create more than 2,000 jobs. In addition, he added that all its pen-injector production lines are flooded with orders, and its production capacity is expected to reach 120 million units in 2009, turning the company the world`s largest supplier of such product by 2010.

About 70% of SHL Group’s revenue now comes from pen injectors, though the group has diversified into medical-bed and metal-processing medical materials. Industry analysts estimated that the company’s revenue would exceed NT$10 billion (US$303.03 million) in two years.

China Aoxing Pharmaceutical receives SFDA approval for injectable drug to treat Ischaemic Cerebrovascular Disease

China-based and US-listed China Aoxing Pharmaceutical Co. Inc. announced that its main subsidiary, Hebei Aoxing Pharmaceutical Group Company, Ltd. has received from China’s State Food and Drug Administration (SFDA) approval for production of Ligustrazine Phosphate Injection for use in the treatment of ischaemic cerebrovascular disease, or ischaemic stroke.

According to the press release, stroke is a silent killer ranked the third leading cause of death in the adult population within China. It also mentions that Ligustrazine Phosphate is an effective intravenous injection drug in hospitals to treat this public heath problem. In a statement made in its press release, Chairman and the CEO of China Aoxing, Juan Yue Han said, “We are very excited to have another injection drug approved for our patients in hospital. This approval further underscores China Aoxing’s long-term commitment to developing high quality hospital care therapies. We are looking forward to launching this product in early 2009.”

A search of the drug brought up several versions of the same drug manufactured by other pharmaceutical companies in China. A picture of a similar product can be seen below.

Ligustrazine Phosphate Injection manufactured by another Pharmaceutical Company in China

It is worth noting, however, that this announcement made by the company was the second after obtaining a production license for Paracetamol and Caffeine Tablets, a controlled substance regulated by the SFDA, a week ago. Paracetamol and Caffeine Tablets are used in China to treat mild to moderate pain, such as headache, migraine, toothache, sore throat, muscular and rheumatic pain, nerve pain (neuralgia), backache (lumbago) and menstrual cramps. The tablets are also effective in relieving aches, pains, sore throat and fever associated with colds and flu.

Stempeutics opens Stem Cell Research Facility in Malaysia

Stempeutics, which is a wholly owned subsidiary of India’s Manipal Education and Medical Group (MEMG), opened its RM20 Million groundbreaking stem cell research facility in Malaysia, leading the way for such research to be conducted in the South East Asian Nation.

Malaysia’s Biotechnology Corporation Sdn Bhd (BiotechCorp), the organization in charge for facilitating biotechology and life sciences investment into the country, and Manipal Group first formalised their partnership through a memorandum of understanding in May last year. The research facility was officially opened by Malaysia’s Deputy Science, Technology and Innovation Minister Fadillah Yusof.

In an address to the opening launch of the centre, Stempeutics President, B.N. Manohar said, “Stempeutics will conduct research and study on stem cells. Currently, we are working with local institutions like Universiti Kebangsaan Malaysia, Institute for Medical Research and Kumpulan Perbadanan Johor in the area of stem cell research.”

According to Fadillah, a total of RM13.7 billion have been allocated under the country’s Budget 2009 to enhance healthcare, which included increasing the supply of medicine, intensifying research and enforcement activities as well as further strengthening the growth of healthcare biotechnology. The minister also added that independent studies have identified Malaysia as a market with potential in stem cell research and therapy with an estimated value of US$157 million with year-on-year growth of 12 percent.