Nexia starts research on development of a biocavenger to prevent toxic effects of nerve agents in milk of transgenic goats.

On April the 4th Nexia Biotechnologies Inc. (TSX:NXB) announced  that it was awarded a CND $3.94 million (US $2.67 million) research contract from the US Army Medical Research Materiel Command (USAMRMC) to develop, Protexia(TM). The contract is sponsored by the US Army Medical Research Institute of Chemical Defense (USAMRICD) under the Broad Agency Announcement 02-1 (BAA 02-1).

Blood-derived BChE is currently being developed by the USAMRICD for use by military personnel to prevent the toxic effects of nerve agents. BChE is naturally found in small quantities in the blood; however this source is inadequate for producing large volumes of BChE. Furthermore, attempts over the past decade to produce commercial amounts of BChE in recombinant systems have failed, making current supplies extremely limited. Using its transgenic goat technology, Nexia plans to produce bioactive Protexia(TM) protein in significant quantities, thus making it practical for the first time, to use as a drug to protect large numbers of people.

"Protexia(TM) is an ideal fit for Nexia. It is a biopharmaceutical protein where transgenics may provide a significant supply advantage, it fits with our other military initiatives, and its development will likely be rapid and significantly accretive to shareholder value," commented Jeffrey D.

Turner, Ph.D., President and CEO of Nexia. "Our partnership with USAMRICD will allow Nexia to learn from USAMRICD's experience and knowledge in the area of medical countermeasures and will guide us through both the research and development aspects of the Protexia(TM) program."

With the BAA contract administer by USMARICD and the recently executed Memo of Understanding with DRDC-Suffield, Nexia is now working jointly with the two leading organizations in nerve agent countermeasures. Nexia has evaluated the production of Protexia(TM) in transgenic mice and is currently producing small quantities of Protexia(TM) in the milk of its transgenic goats. Nexia anticipates having data on the scalability of its transgenic goat genetics by year-end.