PPL Therapeutics, the biotechnology firm formed by the creators of Dolly the cloned sheep, faces liquidation this week, unless its shareholders back a last-minute survival plan. Chief executive Geoff Cook is holding a series of emergency meetings with investors, following news that the firm is to halt development of a new treatment for cystic fibrosis and emphysema. Last week its partner, German pharmaceutical company Bayer, withdrew from the project, which aimed to harvest large quantities of the blood protein alpha-1 antitrypsin (AAT) from the milk of genetically modified sheep. PPL said that despite 'significant advances' in clinical trials of the drug, which is produced by a flock of sheep in New Zealand, it had agreed with Bayer to put the project on hold because of the amount of resources it needed.
Since it was floated on the stock market in 1996, PPL's value has dropped from £100 million to just £7 million. One market analyst commented that 'new technological breakthroughs like Dolly take about 30 years to turn into commercially viable products', adding that it was 'a very difficult path for a small company'. PPL is now reported to be making most of its staff redundant, and is focussing on just one product, a wound sealing treatment called Fibrin 1. 'The company is taking immediate action to reduce its cash burn and is reviewing additional options to maximise value for shareholders' said Cook.
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