F&P Healthcare gets research backing

By ELLEN READ

A new research centre will help Fisher & Paykel Healthcare expand its presence in the US$400 million ($818 million) global respiratory technology market.

The company said yesterday that it had secured up to $3.6 million over four years to establish a research centre in conjunction with South Auckland Health.

Funded by the Foundation for Research, Science and Technology, the centre will target breakthrough treatments for chronic obstructive pulmonary disease (COPD).

F&P Healthcare chief executive Mike Daniell said the company had seen the potential in COPD for a couple of years and had been thinking about how to increase its efforts in the area.

COPD includes two closely related diseases of the respiratory system: chronic bronchitis and emphysema. It is projected to be the fifth main cause of death worldwide by 2020.

F&P Healthcare R&D senior vice-president Lewis Gradon, said the COPD project was in line with F&P's own research policies to develop new products in its core areas including respiratory humidification and obstructive sleep apnoea.

The grant could also lead to spin-off respiratory support technologies to treat other diseases such as cystic fibrosis, acute respiratory distress syndrome and asthma, he said.

The company invested $10.3 million last year in research and development and holds 29 United States patents.

F&P Healthcare will fund 40 per cent of the research costs and will commercialise any viable products that emerge.

Shares in Healthcare closed yesterday at $8.25 against a year high of $16.90 and a low of $8.00.