A new hand cream to tackle bird flu could be worth millions to Newcastle company Dermasalve Sciences.

The team from Dermasalve have been working with partner Drug Delivery Solutions to launch the product on to the market - and have now seen the cream pass tests carried out by an independent company to prove its bug-killing properties.

Leading European contract virology company Retroscreen Virology has provided confirmatory test documentation to show that the cream does kill the H5N1 bird flu virus.

The tests confirmed 99.99% kill activity within 30 seconds of a single application of the cream, and that remains active for at least 30 minutes after a single application of the gel.

Dermasalve Sciences manufactures and distributes a range of skin healthcare products specifically for people who suffer from dry and sensitive skin.

The company floated on the AIM in January this year and has targeted sales of up to £3m within two years.

Dermasalve first started working with Drug Delivery Solutions in March this year to develop a cream to tackle hospital superbug MRSA. But the work has developed since then to tackle bird flu.

Dr Mark Randle, chief executive of Dermasalve, said: "They have carried on with that product and improved it dramatically.

"This particular type of gel is a world first and it's covered by international patents. It's the only gel active against bird flu. It could be huge.

"We are in commercial discussions now and distribution is growing all the time. There are huge potential revenues for this, and it also raises the profile of the other parts of the business."

Manufacturing will begin in the UK in October with the product intended to be available later in the year.

Dr Randle said: "We need to make sure the manufacturing process is in place when we get orders coming in, and we want it available before Christmas.

"We will initially manufacture here in the UK, then there will be manufacturing overseas.

"There's a market out there in certain parts of the world, and there is the possibility that there could be a much larger potential flu outbreak.

"We have identified a number of marketplaces beyond the potential consumer market - agriculture, healthcare and food handling."