$696 Million Wiped Off Biocompatibles Share Value

Biocompatibles International, the UK health care company, has suffereda heavy fall in market value, with L440 million ($696 million) being wiped off its share value in the space of just two days on the London Stock Exchange (September 9-10).

The collapse of the company's stock was sparked by the announcement that US drugs group Johnson & Johnson's cardiovascular subsidiary, Cordis, had decided not to license Biocompatibles' lead product, phosphorychline-coated stents.

Successful Run Ends The plunge in price follows a period in which Biocompatibles has been one of the most successful biotechnology stocks. Its shares had risen from L1.50 two years ago to L14 in May, according to the Financial Times, due to high expectations for the PC coating, an innovative chemical which prevents adverse reactions with the body, as well as its wide range of applications on medical implants, contact lenses and cosmetics.