Phytopharm had cut loss before Hoodia blow

UK drugmaker Phytopharm's loss was reduced for the 12 months ending September 30, 2008, compared to a 13-month period ending the same date of 2007, yet faces a challenging future now its key product Hoodia has been dropped by Anglo-Dutch food and beverage giant Unilever (Marketletter November 24).

The firm's net loss improved by 60% to L2.3 million ($3.5 million), or 3 pence loss per share, versus a loss of L5.8 million, or 10.9 pence loss per share. Sales decreased by 16% to L2.6 million, but this was balanced by R&D costs, which were cut by 44% to L4.2 million. At the end of the period, the company increased its cash and cash equivalents to L7.1 million vs L2.2 million.

The termination of the deal with Unilever and the departure of the chief executive and chief financial officer from the firm have led to the board assessing strategic options. Chairman Alistair Taylor said: "once a satisfactory termination agreement has been agreed with Unilever, we expect to...seek other partners to further develop Hoodia." He went on to say that: "our pharmaceutical products Cogane (PYM50028) and Myogane, after a delay due to additional work on formulation, continue to make solid progress towards our goal of out-licensing or partnering the development of these products."