This week: Ark Therapeutics rebuilds, Earthport wobbles and Gulfsands Petroleum soars.
Ark Therapeutics Group (AKT 14.75p / £30.27m)
Last week, biotech company Ark, which had bad news in mid-December about its Cerepro programme being delayed, announced that it has implemented a series of restructuring measures to extend its cash runway. The Company has begun consultations with employee representatives on headcount reductions in manufacturing, R&D and support staff, as well as reducing investment in non-core early stage research programmes. In addition, after first pilot trial results show a change in its trial design is required, Ark has decided to put the development of Vitor on hold.
The current review has focused on the need to continue the development of the Company's key strategic assets Cerepro and Trinam- principally, the gene-based medicine business with its fully developed adenoviral platform, the recognized biologics manufacturing capability and licensed facility in Kuopio, IP and stroke patents - and its rapidly growing wound care business.
The Company's operational focus will be on completing Cerepro and Trinam programmes and ensuring the key pre-clinical programmes in refractory angina (EG011), peripheral vascular disease (EG016) and fetal growth retardation (EG013) progress in Phase I/IIa development. The measures currently being implemented should mean that the Company's current cash will fund its operations into the second half of 2011.
On the same day as this cost cutting news was announced, Ark separately announced some good news that the first patient has been enrolled and treated in the Phase I/IIa trial of adenoviral short-form Vascular Endothelial Growth Factor-D ("VEGF-D") in patients with refractory angina.Dr David Eckland, R&D Director of Ark, commented:
“Today’s news of the product being successfully and uneventfully administered by NOGA catheter, directly to the ischemic heart muscle where increased blood flow is needed, is a major step forward both technically and in advanced biomedicine."
The company has over the past three months fallen from the mid 40 pence to mid teens per share. We like this Company, and it still has plenty to focus on, but we believe it may continue to languish at these levels for a while yet. The brave wouldn’t be seen as foolish however in assessing the number of assets it has and the dedicated management team and scientific advisors that are on board the Ark as sufficient to take advantage of these low levels.
Bright…
