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By Jason Douglas Of DOW JONES NEWSWIRES LONDON -(Dow Jones)- Pharmaceuticals company Phytopharm PLC (PYM.LN) Friday said Unilever NV (UNA.AE) has scrapped plans to develop a new SlimFast diet drink using one of its drugs.
Phytopharm signed a commercialization deal with Unilever in 2004 for its Hoodia extract, an appetite suppressant derived from plants used by tribes in the Kalahari desert.
Unilever intended to incorporate Hoodia into its SlimFast drinks range, analysts believed. But Phytopharm said Friday Hoodia didn't do well enough in a trial.
"Data from a recent clinical study using Hoodia extract in a drink-based product has led Unilever to conclude it unsuitable to be taken forward by Unilever," Phytopharm said Friday.
A spokesman for Phytopharm said the decision to end development was mutual. The two firms are in talks over terms for the termination of their agreement.
He said there were no safety issues with Hoodia. The problem was that it wasn't suitable to be used in a liquid, he said.
"The product was not found to work in the chosen drink-based format because it metabolized too quickly. However, the company is confident in the overall efficacy of Hoodia," he said.
Phytopharm now has the option to seek a fresh deal for Hoodia with another partner in some other form, the spokesman said.
"We have compiled a substantial dataset which will allow us to explore alternative product formats for the commercialization of Hoodia," said Chairman Alistair Taylor in a statement.
Phytopharm Thursday said Chief Executive Daryl Rees and Chief Financial Officer Piers Morgan have left the business.
At 1317 GMT, shares in the company were flat at 8.75 pence, in a broadly higher overall market. Its shares have lost 75% over the past 12 months.
Company Web site: www.phytopharm.co.uk
-By Jason Douglas, Dow Jones Newswires; 44-20-7842-9272; jason.douglas@dowjones.com
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(END) Dow Jones Newswires
November 14, 2008 09:04 ET (14:04 GMT)

Publié le 14 novembre 2008 Copyright © 2008 Dowjones