Aza Research Pty Ltd

  Overview

Aza Research Pty Ltd is a drug development company offering customers solutions: new lead drugs, innovative tools and specialised screening services. Aza is growing from an academic spin-off into a sustainable independent biotechnology company.

Aza has built a strong foundation on its joint venture with Eli Lilly and the functional genetics expertise of some of Australia’s best scientists. The company is entering its third phase of commercial development and is focused on the validation and commercialisation of its technology for the diabetes, obesity and osteoporosis markets.

Biotechnology has entered a ‘post-genomic’ era that has changed the business environment dramatically. Uniform access to sequence information and bio-informatics has allowed scientists to describe thousands of disease ‘candidate’ genes. As a result the intellectual property and investment value for genomics and proteomics alone is low. Competitive companies are focused on the next steps; functional genetics, validated targets and improved systems for drug development.

Aza is positioned to compete in this marketplace with a powerful new system for drug discovery combined with unique tools and intellectual property. Aza has an exceptional portfolio of human and technology assets that creates a timely and cost-effective opportunity to profitably translate functional genetics into advanced healthcare solutions.

  Competitive Advantages/Technology

In type II diabetes Insulin stimulation of glucose transport in muscle and adipose tissue is disrupted. Manipulating this glucose transport alone may override at least in part the insulin resistant state. This establishes glucose transport control as one of the most important targets for therapeutic intervention. In a major breakthrough, Aza has developed of an in vitro assay faithfully reconstituting the fundamental elements of insulin-activated glucose transport.

Insulin stimulates glucose transport in muscle and adipose tissue by a process that resembles regulated exocytosis. In the absence of insulin, GLUT4 (the major glucose transporter) resides in an intracellular storage compartment known as GSVs. GSVs are analogous to synaptic vesicles in neurons in that both appear to be generated from endosomes and have a specialised exocytic function.

The Aza assay (HG4) is based on a tagged reporter GLUT4 gene which recapitulates the behaviour of the wild-type GLUT4 gene. The HG4 assay has been proven in the laboratory and is being validated as an automated high throughput system. Aza is leveraging its funds through a Commonwealth Biotechnology Innovation Fund grant and seeks further investment from a strategic/angel investor(s).

The HG4 assay is a powerful platform. The use of a uniform and genetically-modifiable fibroblast system means that virtually any other interacting gene can be used as a drug target in the same assay. Further, fibroblasts with specific gene knockouts or cells from patients with specific diseases can be used in the assay and offer the same validated physiological readout of GLUT4 translocation.

Aza’s pipeline includes exploiting recent discoveries related to cell signalling and the insulin receptor involving adapter molecules and proto-oncogenes. Aza will design and develop advanced drug development systems that will create the portfolio of assets required to attract professional venture capital investment.

Drug Development Tools: Aza possess additional drug development products for diabetes and osteoporosis. Aza has developed a unique mouse ‘model’ of osteoporosis through its partnership agreement with Eli Lilly. These mice show hormone, sex and age-dependant changes in their bone structure making it a more sensitive ‘barometer’ of the impact of drugs, diet and heredity. The mouse has attracted interest from commercial as well as academic groups because of its utility is characterising potential osteoporosis drugs and for its use in detecting undesirable bone-loss side effects in a wide variety of developmental drugs.

Cell signalling through protein kinases is a central feature of lipid-induced insulin resistance in type II diabetes and in the failure of beta cells in type I diabetes. Aza has a portfolio of intellectual property in this area including the core patents on a unique gene, PKC-iota, as well as assays and proprietary databases on the role of lipids in cell signalling and diabetes.

These competitive drug development tools form an excellent licensing program that complements Aza’s drug discovery system investment opportunity. Aza’s business plan is to use such licenses to generate shorter-term income, marketplace validation and strategic partnerships to contribute the sustainable growth of the company.

Management: Aza’s management strategy reflects its position at the nexus between discovery research and commercial pharmaceutical development. It has exceptionally well qualified scientists and physicians leading the technical research program and the Scientific Advisory Committee. More importantly Aza utilises commercial managers to direct the corporate, financial and intellectual property aspects of the company’s operation.

  Corporate Alliances/Partnerships

Aza Research was formed in 1994 as a ground-breaking joint venture between Eli Lilly Australia and the Garvan Institute. Aza received international attention for its innovative business model in 1997 when it won an Arthur Andersen Enterprise Award for the best Strategic Alliance over several hundred applicants from the US, Europe and Asia. In 1999 the joint venture partners decided to restructure the company to allow continued growth of the endocrine business and to take advantage of changes in the Australian research and investment markets. Aza Research became an R&D biotechnology company owned by the Garvan Institute and the marketing operations were sold to Eli Lilly Australia

Partnering/Investment Needs and Opportunities

Aza is seeking commercial partners and strategic investors. Aza’s business model is focused on rapidly taking technology to a point of maximum return using unique R&D assets and then partnering with experts. Aza will focus on its core competencies which is developing genetic research into validated products for drug development and take full advantage of the chemistry, manufacturing and clinical trial capabilities of its partners.

Aza will establish licensing agreements with strategic biotechnology and pharmaceutical companies to both screen their compound libraries and to permit the licensees to establish the assay in house. These commercialisation efforts will include further exclusive and non-exclusive licenses to Aza drug development tool IP.

Aza is also positioned to compete in the identification of new drugs with its HG4 and related assays rather than simply allowing others to exploit the opportunity. This is the basis for the Aza’s investment opportunity. Aza plans to partner with one or two small combinatorial chemistry companies to screen their libraries in return for a share of the ownership rights to the ‘active’ compounds. Given the size of the diabetes market, the return from a successful drug development program is large.

Contact Person	Jonathan Izant PhD	Aza Research Pty Ltd
Job Title	Chief Executive Officer
Address	384 Victoria Street
City/Suburb	Sydney NSW 2010 Australia
Email	j.izant@garvan.org.au
Phone	+61 2 9295 8118
Fax	+61 2 9295 8101
Website Address	www.garvan.org.au