Milestone payments from partner Nobilon led to Melbourne's BioDiem (ASX:BDM) posting strong results for the half year ending December 31, 2005 with revenue up 88 per cent to $2.9 million and a loss of only $96,000 compared with the previous corresponding half.

Melbourne-based Biota Holdings (ASX:BTA) has commenced a phase I clinical trial of its human rhinovirus (HRV) drug, BTA-798, for the prevention and treatment of one of the major causes of the common cold.

Adelaide-based GroPep (ASX:GRO) has increased its profit more than 80 per cent after tax to AUD$1.55 million in the half-year to December 31 2005, compared with $850,000 in the previous corresponding period.

Prima Biomed's (ASX:PRR) results from a phase I clinical trial of its CancerVac MFP technology for advanced adenocarcinoma have been accepted and published in the journal Clinical Cancer Research.

A phase Ib clinical trial of Melbourne-based Phosphagenics' (ASX:POH, AIM:PSG) TPM-01 transdermal delivery system has demonstrated that therapeutic levels of morphine in plasma were achieved and maintained for more than 48 hours using the technology.

Australian biotech firms are celebrating Christmas early, unwrapping multi-million dollar AusIndustry Commercial Ready grants from the federal government in the lead-up to the holiday season.

Following poor efficacy in preclinical testing of its T-cell peptide drug candidate in psoriasis models, Adelaide biopharma GroPep (ASX:GRO) will undertake a market feasibility assessment for use of the drug in asthma.

Unlisted Melbourne biotech Hatchtech has been awarded a AUD$2.4 million AusIndustry Commercial Ready grant to support its head lice treatment R&D program.

Probiomics (ASX:PCC), formerly VRI BioMedical, has received an AusIndustry Commercial Ready grant for the next stage of its molecular discovery program.

Drug developer Phylogica (ASX:PYC) and artificial heart company Sunshine Heart (ASX:SHC) have been awarded a Commercial Ready grants from AusIndustry, worth $2.27 million and $2.223 million respectively.

Privately-held vaccine developer Vaxine and Flinders University have been awarded a grant of US$2.5 million over three years by the US National Institutes of Health (NIH) to develop vaccines that protect against bioterrorist attacks.