Drug development firm expects to exceed target

Jul 28 2009 by Chris Knox, The Journal

A DRUG development company that is working to combat MRSA and cancer has said its products are almost ready to go to market and that it expects to exceed its previous target of becoming a £100m business.

Newcastle firm e-Therapeutics is poised for expansion, despite yesterday posting a small drop in its losses from £2.2m to £1.9m, as it gears up for the launch of its three main drugs, an anti-depressant, an oral asthma drug and an antibiotic for the Indian market, which are to be launched in 2011.

It is developing the drugs working with Mumbai-based company Khandelwal Laboratories, and is now poised to begin clinical trials.

e-Therapeutics now believes the new work will see it far exceed its previous £100m turnover target in the coming years and is now in talks with other international pharmacy groups to help it develop five other drugs, including the treatment of melanoma and MRSA.

It also said that it was looking at the possibility of acquiring a number of other drug companies working at the discovery and developmental stage and that the recession was providing it with a number of opportunities to expand.

And it plans to set up offices in Vancouver to help expand in the US and Canada, after already launching successful offices in China and India.

The company, which also increased its revenues to £67,000 from £64,000 the previous year, has enjoyed a succession of funding rounds since its £1.33m flotation on the Alternative Investment Market (AIM) in 2007 and established a market cap of £20m after joining forces with its Indian partner.