Phytopharm plunges as Yamanouchi looks set to drop Cogane development

UK-based Phytopharm says that it has been informed by Japan's Yamanouchi Pharmaceutical that, as a result of a portfolio review ahead of the merger with Fujisawa Pharmaceutical, it is likely it will terminate the licensing agreement, covering Japan and some other Asian countries, in connection with PYM50028 (Cogane), Phytopharm's candidate product for the treatment of Alzheimer's disease. The decision has not yet been finally ratified and Phytopharm has not yet received formal notice of termination, it said.

Yamanouchi has acknowledged that safety data in relation to 60 patients treated with PYM50028 has fulfiled the criteria set out in the licensing agreement. Furthermore, the Japanese firm has stated that it will make a milestone payment of L4.0 million ($7.6 million) to Phytopharm.

In the light of this change, the board of Phytopharm and its sponsors, stock brokers and underwriter have mutually agreed to terminate a proposed, L24.0 million fund raising.