Illawarra Health and Medical Research Institute researchers Dr Justin Yerbury and Dr Lezanne Ooi will also use the federal funds to investigate the genetic link between a common type of dementia and motor neurone disease (MND).

The National Health and Medical Research Council grant was one of just six dementia grants - worth a total of $6.37 million - awarded nationally by Health Minister Sussan Ley last Friday.

For Dr Yerbury the research is personal - he has lost his mother, sister and other relatives to MND, a devastating neurological disease. He said by uncovering the molecular origins of dementia, researchers might also be able to unlock the genetic key to MND.

"Frontotemporal dementia [FTD] is the second most common form of dementia after Alzheimer's," Dr Yerbury said.

"What's interesting to us is there's an overlap between FTD and MND, which is my main area of interest.

"We will use this funding to investigate why some genetic mutations will cause FTD and some will cause MND.

"By understanding these subtle differences we might understand both of these diseases a little more."

Dr Yerbury said the Dementia Team grants brought together Australian researchers from different disciplines, allowing for a multidisciplinary approach.

"The grant aims to bring new teams into dementia research, so we have a combination of geneticists, biochemists and other clinicians working to understand the origins of dementia," he said.

"This allows us to apply new techniques and technologies and make breakthrough discoveries that wouldn't be possible otherwise."

Dr Yerbury said the IHMRI team, based at the University of Wollongong, would now start work on the project which would run for five years. "Ultimately, in the understanding of the molecular origins of both diseases we might be able to identify molecular targets," he said.

"Potentially, we can then start to look at developing drugs, because at the moment there's no effective therapies for either of these diseases."

IHMRI executive director Professor Alan Pettigrew said the grant was a big win for the region.

"This grant shows that IHMRI is competing with the best of the best and we very much look forward to delivering results that will make a real and meaningful difference to the lives of those suffering from these devastating diseases," Prof Pettigrew said.

lwachsmuth@fairfaxmedia.com.au