Phytopharm falls 43% as Unilever drops Hoodia

Shares in the UK's Phytopharm plunged 42.9% to 5.0 pence on November 14, after Anglo-Dutch food and beverage giant Unilever dropped plans to use its weight-loss plant extract.

Data from a recent clinical study using a standardized preparation of the Hoodia gordonii cactus in a drink-based product led Unilever to conclude that it is "unsuitable to be taken forward."

The setback to this major potential revenue driver prompted the resignation of Phytopharm's chief executive, Daryl Rees, and chief financial officer, Piers Morgan. However, the firm said that the preclinical and clinical findings on the extract encourage its further study for obesity, as well as for pharmaceutical and veterinary applications.