Cure-all news sparks trading frenzy

MELBOURNE - A tiny Australian disinfectant maker that caused a stock frenzy with news of a cure-all ingredient found in oranges has dashed investors' hopes that it had a vaccine against HIV, Sars, flu and the common cold.

Shares in Citrofresh International more than tripled to 70Ac on Tuesday after it released an announcement headlined "Test Results Confirm Citrofresh is Effective Against Four Major Virus Types Including HIV and Avian".

The company called a trading halt on Tuesday when its shares were at 53.5Ac. After releasing some details yesterday about lab tests, Citrofresh shares sank 31 per cent to 37Ac, valuing the group at A$14 million.

"We do not inject Citrofresh into the blood. We're not claiming to be a vaccine and never have," said managing director Ravi Narain.

Two healthcare analysts who had never heard of Citrofresh before said the original release failed to give enough information to understand exactly what tests had been run with Citrofresh's orange compound.

Citrofresh makes organic disinfectants from bioflavonoids taken from orange pith and pulp that can kill bacteria and viruses and can extend the shelf life of fruit and vegetables and other food.

Igor Gonda, chief executive of pharmaceutical group Acrux, which is developing a contraceptive spray and a spray for women with low sex drive, said Citrofresh was up against tough competition.

"If they've got something that's ... safe and efficacious, then it could be a great product."

- REUTERS