asx query must read its a pisser imo

  1. 3,176 Posts.


    HOMEX - Sydney


    We refer to your letter dated 21 February 2005 regarding the recent
    change in the price of the Company's securities and increase in the
    volume of trading.

    Our responses to the questions raised are as follows:

    1. Gradipore has made two important announcements to the market
    within the last three week period. The first of these on 6 February
    2003, covered the results of our work in separating and concentrating
    infectious prion material. This attracted considerable media and
    industry attention both in Australia and overseas. The second
    announcement on 13 February detailed an agreement with Advantek
    Biologics of Hong Kong for use of Gradiflow technology to improve
    biosafety in certain blood fractionation applications.

    These announcements have caused a significant increase in interest in
    Gradipore's activities and have resulted in a substantial increase in
    the Company's share price over the past three weeks.

    In the Company's opinion, these two announcements provide the
    underlying reason for the recent change in the price of the Company's
    securities and increase in the volume of trading.

    Gradipore is aware of reports emerging last week indicating that the
    US Food and Drug Administration is seeking advice on whether the
    agency should consider labelling claims for the clearance of
    Transmissible Spongiform Encephalopathy (TSE) agents in plasma
    derivatives, based upon specific demonstration of TSE removal during
    manufacturing. This has direct relevance to Gradipore's work in
    removing and concentrating infectious prion material - seen to be the
    cause of TSE - which the Company announced on 6 February. We
    understand that the FDA's proposed draft labelling would include a
    statement to the effect that the manufacturer's manufacturing process
    provided substantial clearance of TSE agents.

    Gradipore is also aware of the Company being upgraded to a "long term
    buy" by an Australian stock broking firm during the last week.

    There are two other items of information which have not been
    announced, which if known, could be an explanation for recent

    * Gradipore is in the process of finalising its financial results for
    the half year ended 31 December which are required to be reported to
    the ASX by 14 March, 2003. In relation to these results, the Company
    flagged in an announcement made on 22 January, 2003 that revenue in
    the first half was somewhat behind budget targets and that
    initiatives were being taken to reduce expenditure accordingly.

    * Gradipore is also close to announcing a new agreement with a
    customer in its Commercial Separations business unit to undertake
    certain development work using Gradiflow technology.

    2. Gradipore is unable to make an any announcement immediately
    regarding either its first half results or the expected new

    In respect of Gradipore's results, final figures still need to be
    reviewed and approved by the Board prior to any release. The Board is
    expected to meet within the next week to consider the results.

    In respect of the expected new agreement, final approvals from
    Gradipore's customer still need to be received before any
    announcement can be made. The Company considers that at this point,
    this agreement falls within the exceptions to continuous disclosure
    outlined in 3.1A of the Listing Rules. These approvals are expected
    to be received within the next week.

    3. The Company intends to record an operating loss before abnormal
    items and income tax for the half year ended 31 December 2002 that
    will vary positively from the previous half year within the range of

    While an improved result will be reported, as indicated in our
    announcement of 22 January 2003, revenues in the six months to
    December fell short of internal targets, in part, due to the late
    release of new products. As a consequence, initiatives were taken in
    January, 2003 to reduce expenditure accordingly.

    4. The Company does not intend to record a material abnormal or
    extraordinary profit/loss for the half year ended 31 December 2002.

    5. The Company has no other explanation for the price change and
    increase in volume.

    6. We confirm that the Company is in compliance with the listing
    rules and, in particular, listing rule 3.1.

    If you require any further information, please do not hesitate to
    contact me.

    S Lockwood

    Direct Line (02) 8977 9077


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