Biome to Invest $550K Matched by $50M FaBA Funding for BMB18 Development

Strategic Partnership with FaBA

Biome Australia Limited (ASX: BIO), a leader in microbiome health innovation, has formalised a co-investment partnership with the Australian Food and Beverage Accelerator (FaBA) to advance the development of its proprietary probiotic strain, Lactobacillus plantarum BMB18. This collaboration is underpinned by a substantial $50 million funding allocation from the Australian Government’s Department of Education Trailblazer Program, channelled through FaBA.

FaBA, a $160 million initiative, is designed to catalyse innovation by bridging industry and academic research, providing access to cutting-edge facilities and expertise from universities including the University of Queensland (UQ), Queensland University of Technology (QUT), University of Southern Queensland (UniSQ), and UniQuest. Biome’s engagement with these institutions signals a robust commitment to scientific rigor and commercialisation potential.

Financial and Intellectual Property Framework

Under the terms of the agreement, Biome will retain full ownership of all intellectual property related to BMB18, including any developments arising from the joint research efforts, without incurring royalty obligations. The partnership structure ensures that any project budget will be matched by FaBA and its government grant, effectively doubling the investment in Biome’s R&D pipeline.

Biome has committed discretionary funding of up to $550,000 over the next two years, earmarked exclusively for clinical research activities. Importantly, no financial contributions are required from Biome until project approval, preserving the company’s control over project scope and budget.

Advancing BMB18’s Clinical Promise

Biome recently disclosed encouraging in vitro data demonstrating BMB18’s capacity to modulate immune responses, reduce inflammation, mitigate oxidative stress, and maintain intestinal barrier integrity. These findings position BMB18 as a compelling candidate in Biome’s Vision 27 clinical development pipeline.

The FaBA partnership is poised to accelerate the transition from laboratory research to clinical validation, potentially lowering Biome’s future financial exposure while enhancing the scientific foundation for new product development. Once initial projects are finalised, Biome intends to share further details on clinical milestones and downstream commercial targets.

Implications for Biome’s Growth Trajectory

This collaboration exemplifies a strategic approach to innovation funding, leveraging government-backed resources to amplify Biome’s R&D capabilities. By maintaining IP ownership and securing matched funding, Biome strengthens its competitive position in the burgeoning probiotic market, which increasingly values evidence-based, clinically supported products.

In addition, the partnership with FaBA and leading Queensland universities enhances Biome’s access to multidisciplinary expertise and state-of-the-art infrastructure, critical factors for successful product development and commercialisation.