Phytopharm’s losses widen; major programmes on track
Plant extract pharma Phytopharm plc (PYM.L) reported today that its loss had widened to £5.64m in the year ended 31 August from £3.33m a year previously.
Revenue for the period was much lower at £1.88m, down from £7.38m, most of which came from its partner Unilever plc for the development of the Hoodia gordonii anti-obesity plant extract programme.
The Cambridge-based group said losses were “slightly greater and revenue lower than anticipated due to timing variations” on income arising from contracts. Revenue for 2005 included a one-off milestone payment of £3.6m by Yamanouchi Pharmaceutical.
The company said the development programme with Unilever remained on target as did the launch programme for its canine treatment with partner Schering-Plough.
CEO Richard Dixey (pictured) said: "The highlights of the year were the successful progression of our functional food products with our partners Unilever and Schering-Plough. The market launch of Phytopica is a real milestone for us.
“Our business strategy of combining the development of functional foods with speciality pharmaceuticals is consolidating rapidly, and we look forward to positive developments in both sides of the business over the coming period."
The company had cash on hand of £6.0m at the end of August, enough to sustain it for over 12 months.
After the release of the results to the London Stock Exchange, Phytopharm’s share price slipped 7.7%, or 4.0p, to 48p, valuing the company at around £25m.
Pipeline
The company has various compounds in its pipeline that may treat Alzheimer's and Parkinson's diseases (Cogane), Motor neurone disease (Myogane), Parkinson's disease, niche and orphan neurodegenerative diseases (PYM50028) and is identifying novel synthetic molecules that may treat asthma and other inflammatory disorders.
Two of its functional food products also made progress.
The Hoodia gordonii anti-obesity product, which contains a novel appetite suppressant that reduces caloric intake in overweight subjects, has progressed to the
second stage of the five-stage programme with partner Unilever.
Phytopica, its natural three plant product that provides a novel 3 in 1 approach to help maintain a normal healthy immune system, support normal white cell function and provide anti-oxidant benefits in dogs, has been launched by partner Schering-Plough in the UK.
Schering-Plough will market and distribute Phytopica in Europe during 2007 and plans to market the product in the US during 2008.
8th November 2006
