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Phytopharm's bleak future

DRUG WATCH: The future looks bleak for Phytopharm as it joins a long line of drug failures in the UK biotech industry
February 21, 2013

What's new...?

â–  Failure of Cogane in Parkinson's treatment

â–  Management waits on strategic review

â–  Running as a cash shell

IC TIP: Sell at 1.83p

Long-time observers of the biotech industry will sympathise with the predicament of Cambridgeshire-based company Phytopharm (PYM) after the firm's lead drug candidate, Cogane, failed to show any benefit for sufferers of Parkinson's disease in a phase II trial. The reaction of the market was immediate, and brutal, with the shares losing 80 per cent of their value in a few hours earlier this week. The question now is what happens to Phytopharm, a company that has been on the UK scene since 1996, while it still has £5.5m cash in the bank, the equivalent of 75 per cent of its market value.

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