Shares digital

The shares of Melbourne-based biotech group Phosphagenics (PSG:AIM) rose 3% to 9p after an independent panel of food safety experts unanimously concluded that its patented Phospha E is Generally Recognised As Safe (GRAS).

The result follows the critical evaluation of data relating to the use of Phospha E in breakfast cereals, juice beverages and table fats. Phospha E is a derivative of vitamin E and provides greater absorption and activity. Studies have shown that when given orally it can lower blood cholesterol, inhibit the formation of arterial plaques and suppress the main inflammatory pathways involved in metabolic syndrome – a condition that increases the risk of heart attacks, strokes and diabetes.

The group is now preparing to inform the FDA that Phospha E is GRAS. This has the potential to provide Phosphagenics with a huge commercial opportunity because, if the FDA has no further comment, the GRAS designation will enable manufacturers to produce and sell foods that include Phospha E in the US food industry.

Shares says: A significant achievement in the key US market.