Hemosol Stock Boost On Clinical Trial OK

Canadian biotechnology company Hemosol Inc received a sharp boost to its stock price when it heard from Canada's Health Protection Branch that finally (after waiting for nearly a year), it could proceed with Phase I testing of its Hemolink, said to be the first red blood cell substitute. The stock jumped 16% to C$6.50 ($4.64) per share on the news earlier this month.

However, the delay may have jeopardized the company's hopes of being first on the market, as competitors in the USA, ie Somatogen, Baxter and Northfield Labs, are either preparing or conducting Phase II blood substitute trials for the US Food and Drug Administration. This will mean that Hemosol will end up with a smaller market, according to observers, but it is still in the race.

On the positive side, Hemosol is seen to be well financed, having C$23.4 million ($16.7 million) working capital at end- September 1994 to put towards R&D, and last month it received a grant of C$500,000 from the Department of National Defence for its work.