Phytopharm shares leap 350% on new Cogane data

UK-based Phytopharm saw its share price rocket almost 350% to 26.75 pence, after the company announced encouraging results from two studies of its Cogane (PYM50028), a novel non-peptide, orally bioavailable neurotrophic factor inducer treatment for Parkinson's disease.

A non-clinical efficacy study showed oral administration of Cogane over 18 weeks significantly reduced parkinsonian disability by 43% in non-human primates. In a Phase Ib clinical study, Cogane was shown to be safe and generally well tolerated in both healthy volunteers and PD patients. Phytopharm says the results strongly support its position that Cogane is a highly encouraging novel potential treatment for PD.

The trial results represent a significant improvement in the fortunes of Phytopharm. In October last year, hopes over its leading product crumbled after Unilever scrapped plans to use Hoodia, a naturally-occurring appetite suppressant, in its SlimFast diet drinks. Phytopharm had spent several years
developing Hoodia for use in the drinks.

"The plan was always to use the cash from Hoodia sales to develop the pharmaceutical side of the business," said Phytopharm's chief executive, Sandy Morrison. "When that failed we had to reassess what we had and decided that Cogane was the jewel in the crown. After the initial trial results, it will come as no surprise that we will be looking at multiple millions of funding in the not too distant future," he added.

A KPC Peel Hunt analyst, quoted by the Financial Times, said that, although Cogane remains a long way from reaching the market, it has the potential to be the first 'disease modifying' agent for the treatment of Parkinson's, and will enter a sector valued at some $11 billion a year. He added that, if the drug can demonstrate proof-of-concept, Phytopharm 'will become extremely attractive to pharmaceutical partners.'