Computer-aided drug design software specialist Proteus International Plc is still turning in losses, but for the first time in its history the company looks to be heading in the right direction. At the half-way stage, the Macclesfield, UK-based firm faced a particularly sticky situation: its need for cash was so great that it openly offered itself up for takeover (CI No 2,839). And although it would be premature to say the second half had produced a reversal of fortunes, the company’s future is now guaranteed for the next three years. Pre-tax losses for the period fell to 5.4m British pounds from 7.9m pounds last time on revenue that reached 1.1m pounds from almost nothing the year before. Having threatened to stage another rights issue for some time, Proteus completed a two-for-three rights issue at the beginning of its this financial year, and raised 9.4m pounds. Milner Laboratories Ltd invested 1.5m pounds and took an option on the majority of Proteus’ shares held by Imseco, the majority shareholder in Proteus. Earlier this month the firm’s main trading subsidiary, Proteus Molecular Design Ltd, was awarded a grant by the Department of Trade & Industry under the Spur scheme. Proteus is only the second company in the biotechnology sector to have been awarded such a grant. It is worth up to 406,000 pounds over a two-year period, and the company now has independent funding to research a new class of gene-targeted DNA-binding drugs that it believes could have great potential in the treatment of cancer, viral infections and other diseases. The award will cover about 30% of Proteus’ project costs. The company licensed its Gonadotrophin Releasing Hormone immunocastration vaccine, a drug initially targeted for the treatment of prostate and breast cancer to ML Laboratories Plc during the fiscal. Milestone payments totaling 5.7m pounds plus royalties on sales will be paid. Proteus said trials have been given the go-ahead for testing on human patients, with the firs t patients anticipated in the last quarter of this year. But the year has not been without its share of setbacks and one of the majors, SmithKline Beecham Plc canceled a license agreement with the company for development of vaccines (CI No 2,931). While it admitted the news was clearly a disappointment, Proteus said the income would have been minimal compared to its lead development product, Gonadotrophin Releasing Hormone immunocastration vaccine. Since the end of the financial year two further license agreements have been completed, with Janssen Pharmaceutica NV to develop it Gonadotrophin Releasing Hormone immunocastration for animals and Enfer Scientific to market its diagnosis drug for bovine spongiform encephalopathy, or mad cow disease. Proteus has reorganized its board and a new executive management team is in place to drive the business forward.
