Biotechnology company, Perth residential tower collapse into administration

A biotechnology company that focuses on the area of digestive diseases and Perth’s tallest residential tower are the latest victims of the savage post-GFC hangover which is buffeting Australia’s SMEs.

The assets of biotechnology company Giaconda Limited are being advertised for sale by insolvency firm Crouch Amirbeaggi after the company was placed into administration on February 25.

The listed company lost $406,117 in the six months to December 31, and reported just $3,683 in revenue.

The company’s biggest problem appears to have been time.

While the business has sold three of its patents to RedHill Biopharma in August 2010, the company said the patents were “still early stage treatments which have yet to be commercialised”.

Giaconda had tried to get funding to pay for the development of two other patents which are in the development phase, but could not convince an investor to come on board.

“Difficult market conditions and an inability to obtain sufficient funding have impeded the company’s progress in commercialising those patents,” the company said.

Administrator Nicholas Crouch was unavailable to comment prior to publication.

In Perth, receivers have moved in on the city’s tallest residential development, the Elevation tower.

Major creditors – led by the Royal Bank of Scotland – are owed about $35 million on the project.

The 28-floor residential tower in East Perth has fallen victim to the glut of apartments on the Perth market, which has been one of Australia’s weaker residential markets in recent months.

According to data from Australian Property Monitors, unit prices in Perth fell 3.9% in the December quarter of 2010 and were down 5.3% to a median of $365,079 across 2010.