ARDANA, the Edinburgh-based pharmaceutical company, saw shares plunge yesterday after revealing it was in talks with shareholders over bridging finance as it seeks a sale or cash-raising deal.
The London-listed company, which focuses on treatments relating to reproductive health, also revealed its cash pile at the end of March had fallen to £4 million, after it used £13.1m on operating expenses during the year.
Ardana raised the "for sa
le" sign in February, admitting the best way forward was through a sale or merger to develop its portfolio. While the company has developed several promising early stage treatments, it requires significant cash to bring them to commercialisation.
The current credit crunch and a lack of appetite for high-risk investments means pharmaceutical companies are facing difficulty raising cash, forcing several UK companies to seek mergers.
Yesterday Ardana said it was "in discussions with a limited number of companies which may or may not lead to an offer".
Interest is high in Ardana's testosterone cream, a treatment for hypogonadal men, the company said, both as part o f a licensing deal and as a rationale for a takeover.
Shares in Ardana fell 17.5 per cent to 13p as investors feared a fire sale or the expense of bridging finance.
The full article contains 220 words and appears in The Scotsman newspaper.
