Phytopharm halves after-tax loss; assessing ‘strategic options’
Biotech Phytopharm plc said it revenues were £2.62m for the year ended 30 September, compared with £3.12m for 13 months end September 2007. It said its loss after tax was £2.28m, down from £5.81m.
The company said the recent departure of the CEO and CFO and the ongoing discussions with Unilever to terminate the agreements for the development and commercialisation of Hoodia extract "have been very challenging".
The Board is assessing the strategic options. The review will include an assessment of operating structure with an appropriate executive team in place.
The company's share price was unchanged on the news. Its market capitalisation is almost £6m.
The Board said the Cambridge-based company remains stable with a healthy cash balance. "In order to maintain our priority programmes, it is our intention to achieve substantial cost savings while continuing to pursue sources of non-dilutive revenue as we move forward into 2009", it said in a statement.
Chairman Alistair Taylor said: "Over the past four years we have generated a considerable body of pre-clinical and clinical data on Hoodia with Unilever. Whilst Hoodia has not been found to be suited for a Unilever branded food and beverage product, we have compiled a substantial dataset which will allow us to explore alternative product formats for the commercialisation of Hoodia.
"Once a satisfactory termination agreement has been agreed with Unilever, we expect to take further steps to build on this foundation and seek other partners to further develop Hoodia and bring this exciting opportunity to market.
"Our pharmaceutical products Cogane and Myogane, after a delay due to additional work on formulation, continue to make solid progress towards our goal of outlicensing or partnering the development of these products."
