Aion Diagnostics - new spin out company for pSivida

Global nanotechnology company pSivida has created a wholly owned spin off diagnostics company, Aion Diagnostics which will be based in Australia.

pSivida has seed funded Aion Diagnostics through an investment of AU$1,200,000 and has licensed diagnostic and sensor applications of the BioSilicon platform technology to Aion.

Development of diagnostics within pSivida has demonstrated significant potential for diagnostic products utilising the biodegradable, optical, semi-conductor and micro machining properties of BioSilicon.

By adopting the biocompatible and biodegradable properties of BioSilicon, Aion Diagnostics will be commercialising diagnostic products that will provide real time continuous measurement of important diagnostic markers.

The move to spin out diagnostics will enable a separate team to focus on leveraging the technological opportunities in BioSilicon to develop and commercialise a diagnostics product portfolio, while pSivida and its staff remain focused on the core areas of slow release drug delivery and brachytherapy.

During the past four years, pSivida has validated and positioned, product concepts based on BioSilicon's unique reporting properties and biocompatibility. Building on this research, Aion Diagnostics will have the funding, skills and product potential to create a strong market presence in the diagnostics sector.

At an early stage, Aion will develop products through strategic collaborations with Universities and research institutions in Australia and with overseas industry partners. The company will seek grant funding in Australia and the US as part of this collaborative research structure. It is expected that second round funding will be provided by industry partners and or venture capitalists prior to an initial public offering (IPO) in Australia. At the time of an IPO, pSivida shareholders will receive a free distribution in specie of Aion

Diagnostics' shares. The timing of an IPO will be subsequent to pSivida listing in the US and after additional value has been built in Aion through additional intellectual property and products.

To spearhead the new company, pSivida has appointed Dr Anna Kluczewska as

managing director. Dr Kluczewska is currently pSivida's head of diagnostics and formally managed a global product portfolio for Baxter Healthcare's BioSurgery division where she gained considerable experience in product development and management. Dr Kluczewska has played an integral part in pSivida initially involved in marketing and product development to latterly, business development, creation of intellectual property and general management.

Dr Roger Aston, director strategy in pSivida will undertake a similar role in Aion as an executive director and will be based in Australia. Dr Aston will continue to build the product portfolio and facilitate the establishment of key strategic alliances within this rapidly growing sector. He will remain a director of pSivida.

pSivida managing director, Gavin Rezos said: 'This is an important milestone in the development of the BioSilicon platform and one which may be repeated in the future with spin outs in other areas such as food and nutraceuticals. Aion is starting with a valuable intellectual property portfolio and the ability to leverage off pSivida's technical knowledge in BioSilicon together with that of our partners including QinetiQ, one of the largest research institutions in Europe and Forschungszentrum, Neuss, one of the largest research institutions in Germany.'