American regulators have decided to reconsider a drug produced by Oxford GlycoSciences after initially rejecting it.

Scientists at the firm, based at Milton Park, near Abingdon, can now resubmit an application for approval of its Zavesca product -- designed to treat the rare genetic condition Gaucher disease -- to the US Food and Drug Administration after supplying more information.

The breakthrough is good news for shareholders who suffered when the share price crashed after Zavesca was not given the green light in July.

However, the drug was given approval in Europe, and OGS directors used that to help gain the breakthrough in the US.

Chief executive Dr David Ebsworth said: "We presented a summary of arguments used to gain European approval, and the FDA is now prepared to look at it again. It is very good news."

The firm intends to amend its application to the US authorities for Zavesca early next year.

"We have to demonstrate the group of patients who need this drug," Dr Ebsworth said.