ONCE-troubled British Biotech has given further evidence that it is turning itself around with a sharp improvement in its losses.

The Cowley-based company, dogged last year by controversy over prospects for its development drugs, said it was seeing the benefits of its cost-cutting programme.

Since October last year it has axed 200 jobs in an attempt to streamline its operations.

Pre-tax losses in the six months ending October 31 narrowed to £11.4m against £16.2m at the same stage last year. Turnover was £2.6m, compared with £3.7m last time.

Dr Elliot Goldstein, brought in as chief executive to restore the company's reputation, said: "We have made ourselves a fit, lean organisation."

The workforce will eventually fall to 235.

In August the company reported a better-than-expected second trial of its key marimastat treatment for inoperable gastric cancer.

However, an advanced trial into the use of marimastat to treat advanced pancreatic cancer was running a few weeks late, Dr Goldstein said.

The study was planned to be completed by the end of the year but would now be published in the New Year.

Marimastat is being compared with an established existing treatment, gemcitabine, in tests at more than 30 centres. He said the tests had been completed but the data was still being compiled and collated.

A number of other development drugs were now making progress, Dr Goldstein said.

Research and development expenditure fell from £18.6m to £12.7m during the half-year as the group attempted to cut back on its "cash burn."

US giant Schering-Plough is buying exclusive rights to develop marimastat. If work on the drug goes according to plan, British Biotech will earn £37.5m in up-front and milestone payments.

Story date: Friday 19 November

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