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Canadian Biotech Receives Regulatory Approval

Written By Brian Hicks

Posted November 29, 2012

Canadian biotech company Kane Biotech (CVE: KNE), based in Winnipeg, has received regulatory approval for its first two products, which are expected to be available on the market in early 2013.

Kane develops and commercializes products that prevent and remove microbial biofilms, which can cause quite serious problems like chronic infections and infections from medical devices.

Such biofilms can develop on the surfaces of catheters, prosthetics, teeth, and so on; they are very widespread and feature in almost 80 percent of all human bacterial infections. Chronic wound care costs almost $20 billion in America alone.

The approvals were issued by the Therapeutic Products Directorate of Health Canada and apply to the KBI Antibacterial Hard Surface Disinfectant, which can be used across commercial and industrial settings.

The second product involved (for which approval was issued last week) is an oral pet care product.

Kane has an agreement with Avmor Ltd. of Laval, Quebec, to develop and distribute the hard surface cleaner, the Winnepeg Free Press reports. KBI should be available starting January.

The oral pet care product, called StrixNB, has yet to receive a manufacturing and distributing confirmation, but discussions are underway.

From MarketWatch:

“The Health Canada approval for the additional sites of use opens the doors for KBI applications in Hospitals, Hotels, Restaurants, and Food manufacturing industries” stated Gord Froehlich, President and CEO of Kane Biotech. “Our broad-spectrum disinfectant could be very useful in containing the bacterial contaminations in food manufacturing facilities resulting in food-borne disease outbreaks.”

Kane Biotech also renewed an R&D agreement earlier this month with the U.S. Army Institute of Surgical Research in Texas.

The company initiated a private placement offering earlier in November in an attempt to raise some $1.5 million.

Kane was up 13.33% on Thursday morning.