SYDNEY, Australia - BioProspect Limited announced a new agreement with Bio-Gene Technology governing the intellectual property (IP) rights for natural pesticide Qcide, which is being developed as a new treatment for household and human pests.

Under the agreement, BioProspect and the University of Western Sydney (UWS) have assigned Qcide’s IP rights to biotechnology company Bio-Gene, in exchange for fees and royalties split between BioProspect and UWS.

BioProspect Managing Director Charles Pellegrino, said the agreement replaced the previous licensing deal announced in June 2008, and would facilitate rapid development of products derived from the essential oil, Tasmanone, found in the leaves of Australian tree Eucalyptus cloeziana.

“Qcide is an exciting Australian discovery and part of our expanding portfolio of natural products. We have been greatly encouraged by the progress made by Bio-Gene, and the new agreement provides the commercial certainty to ensure the successful development of a range of natural, nontoxic insecticides,” Mr Pellegrino said.

He said the new agreement could prove highly valuable to the parties involved. It comprised $200,000 of fees paid to BioProspect and UWS on four one-year anniversary dates, with royalties payable as 4 per cent of the first $1 million in commercialisation income, plus 2 per cent of any additional income over this amount.

Bio-Gene Chairman, Max Kay AM CitW.A., said the new agreement demonstrated his company’s confidence in Qcide, which has been shown to be effective against a broad range of pests including houseflies, mosquitoes, ants and animal parasites.