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Hatchtech $2.5m new funding for Phase II head lice trials. Hatchtech to attain proof of clinical concept in affected patients

08 / 12 / 2008

Hatchtech Pty Ltd has secured $2.5 million in further funding from the University of Melbourne Endowment Trust (advised by GBS Venture Partners) and from Uniseed. The investment will be used to progress its unique head lice treatment into Phase II safety/efficacy studies in humans. The new trials for the DeOvoT product are multi-centre in Australia and India and follow successful Phase I studies in Australia in 2007.

DeOvoT is the lead product of Hatchtech, an Australian company developing novel technology to control a variety of insect, arachnid and nematode pests. An Investigation New Drug application for the product was accepted by the US FDA earlier this year.

"We are very pleased with this successful funding round considering the difficult external economic environment and believe that this reflects the quality of management and technology at Hatchtech. We look forward to the DeOvo product progressing through phase II head lice trials," GBS's Dr Andrew Baker said.

"Continuing to support our investee companies through periods such as we are currently experiencing is important to Uniseed as we seek to maximise returns from our investments," said Dr Peter Devine, CEO of Uniseed.

DeOvoT is designed to give healthcare professionals and parents a breakthrough treatment for head lice infestations through its ability to kill lice eggs or nits. Existing products suffer treatment failure in large part due to an inability to kill these nits. The product has already been shown to be safe in adult volunteers. DeOvo'sT unique capability should potentially enable a cure at a single time and treatment point making redundant the current routines of multiple labour-intensive treatments.

"Securing this funding allows Hatchtech to progress DeOvoT to proof of clinical concept in affected patients. This is an important and valuable milestone," said Dr Paul MacLeman, Hatchtech's chief executive officer."

"The imminent Phase II trials will strongly demonstrate DeOvoT's potential as the one time definitive head lice cure. This will replicate effects already proved in laboratory tests on lice. A product enabling treatment at a single time will greatly alleviate the frustration, embarrassment and adverse effects on schooling and families associated with recurrent head lice infestations," he added.

Approximately 12 million children are affected by head lice each year in the United States. Often, affected children are dismissed from school and cannot return until they are declared "lice free", impacting schooling, carers and children.

The global annual market for head lice control products is estimated to be in excess of US$450 million.