This page is dedicated to listing potential news flow from the many different Biotechs on the market. The FT have recently made it clear that after a bumper 2004, 2005 may also be an interesting year for the Biotech scene and should put them in the spotlight.

Click here for a complete list of Biotechs and their history. Individual Histories thanks to www.biotechanalytics.com (Currently down)

I currently have interests in ASM, AZM, CENS, OXB (via PDT) and VER (Last Updated 15/03/2005)

www.ukbiotechs.com

Please also see the IPO thread by clicking on the IPO's button.

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THE CONTENDERS
LATEST NEWS	Click Here for Company Website Click Here for ADVFN Discussion 2005 ACAM2000 - Plan to submit BLA in 2005 ARILVAXTM yellow fever vaccine in the US BLA to be submitted in H1 2005 ChimeriVax-JE Japanese encephalitis vaccine - Phase III trial scheduled for 2005 ChimeriVax-West Nile - Results in H1 2005 Company History	Click here for Product Pipeline:
LATEST NEWS	Click Here for Company Website Click Here for ADVFN Discussion Within the next 3 months: Regulatory agreement for COLAL-PREDTM registration Phase III UC trial in EU Quarter 1 2005 FDA approval for renzapride Phase III registration c-IBS trial in USA Quarter 1 2005 Partner renzapride and COLAL-PREDTM Quarter 1 2005 2005 Results from Phase IIa ATL-104 cancer patient trial 2005 Partner ATL-962 (pre Phase IIb results) 2005 Results from Phase IIb ATL-962 obese diabetic trial 2005 Completion of ATL-962 clinical trial in the U.S. Q4 2005 Company History	Click here for Product Pipeline:
LATEST NEWS	Click Here for Company Website Click Here for ADVFN Discussion 2005 Before March 2005 New drug application for Phase III trials of Polinex Quattro Vaccine for grasses allegies. Company History	Click here for Product Pipeline:
ANTISOMA LATEST NEWS	Click Here for Company Website Click Here for ADVFN Discussion 2005 2005 Results from at least one phase II combination study of AS1404 2005 Start of further phase II combination studies of AS1404 2005 Start of phase II study on AS1405 2005 Data from AS1405 phase I study 2005 Data from R1550 phase I study UPDATE 10-01-05 Since the acquisition of Aptamera the combined company has added: (Still subject to shareholer approval) 2005 - Data from Aptamera's phase I study on AGRO100 2005 - Start of a new study on AGRO100 Company History	Click here for Product Pipeline:
LATEST NEWS	Click Here for Company Website Click Here for ADVFN Discussion 2005 (All Expected within H2 2004 & H1 2005 - As of August 2004) CereproTM - Second safety and efficacy study published, possible filing for approval under exceptional circumstances in EU Commencement of corroborative study VitorTM-Phase III completes Trinam - EU Orphan Drug Status, Phase II study completes Kerraboot - Obtain US patent, US marketing commences EG005 -Phase II trial results EG010 -complete CE marking Company History	Click here for Product Pipeline:
CeNeS LATEST NEWS	Click Here for Company Website Click Here for ADVFN Discussion 2005 CNS 5161 for the treatment of neuropathic pain Phase II results due in H1 2005 The completion of Further Phase III testing of M6G suffering moderate and severe postoperative pain following surgical procedures (e.g. hysterectomy and gastrointestinal) 2005 Company History	Click here for Product Pipeline:
Evolutec LATEST NEWS	Click Here for Company Website Click Here for ADVFN Discussion 2005 rEV131 - Phase II (Allergic Rhinitis) commences Q1 2005 Phase II result end 2005 rEV131 - Phase II Post-Cataract Surgery commences Q2 2005 rEV598 - Complete preclinical studies end 2005 rEV576 - Complete preclinical studies end 2005	Click here for Product Pipeline:
LATEST NEWS	Click Here for Company Website Click Here for ADVFN Discussion 2005 Adept phase III US trials due to be submitted for US regulatory approval.Q1 2005 Alpharen (renal disease treatment - 50-50 venture with Ineos): currently in phase II and expected to enter phase III in H2 05. City Capital suggests massive potential with a licensing deal possibly in H2 05 of 9M to MLB on signing and 18M milestones on approval; with royalties of 10% to MLB. H2 2005 EU regulatory approval for clickhaler Clearance. Similar milestones to Formetoral are expected if clearance and launch is achieved; H1 2005 Meptin IB submitted Meptin for Japanese approval which is expected in H2 05 which will trigger a milestone plus royalties on sales; H2 2005 Company History	Click here for Product Pipeline:
NeuTec Pharma plc LATEST NEWS	ClickHere for Company Website ClickHere for ADVFN Discussion 2005 Mycograb - EU filing expected Q1 2005
Oncolytics LATEST NEWS	Click Here for Company Website Click Here for ADVFN Discussion 2005 (From report dated 19th August 2004, and the following events were expected in the next 12-18 months.) Clinical results from on-going UK systemic administration study. Initiation of US systemic administration clinical study Commencement of US NCI-sponsored clinical trials. Initation of combination therapy clinical studies. Results from ongoing Canadian phase 1/11 malignant glioma clinical study. Initiation of US glioblastoma clinical study.	Click here for Product Pipeline:
LATEST NEWS	Click Here for Company Website Click Here for ADVFN Discussion 2005 (Scheduled for 2004-2005. All targets completed have been removed as of November 2004) TroVax Initial results from Phase II trial in renal cancer Updated plans for registration trials in colorectal and/or renal cancer Commercial collaboration MetXia Safety data from pancreatic cancer trial Initial efficacy data from pancreatic cancer trial Updated plans for registration trials in pancreatic cancer TroVax-Vet Intervet collaboration Milestone payment from Intervet ProSavin Parkinsons disease GTAC and MHRA submissions for Phase I/II trial in late-stage Parkinsons disease Initial data from Phase I/II trial in late-stage Parkinsons disease RetinoStat vision loss Preclinical proof of principle data in two models of age-related macular degeneration and diabetic retinopathy IND submission and initiation of US Phase I/II trials in retinopathy SMN-1G spinal muscular atrophy Further preclinical proof of principle data in models of spinal muscular atrophy Company History	Click here for Oncology Product Pipeline: Click here for Neurotherapy Product Pipeline:
LATEST NEWS	ClickHere for Company Website ClickHere for ADVFN Discussion Development strategy: to achieve early-stage licensing and development partners for their therapeutic candidates. Discussions are underway for their four leading compounds.2005 R1 for irritable bowel syndrome: entered Phase I in January 2005 R4 for migraine: to enter Phase I R65 for women's health, glaucoma and immunology: to enter pre-clinical trials R99 for inflammatory/immune disorders: pre-clinical candidate to be selected Pharmagene also has a drug discovery services division that is generating revenues. The share price is currently (end of January 2005) trading around cash level. Company History	Click here for Product Pipeline:
LATEST NEWS	Click Here for Company Website Click Here for ADVFN Discussion 2005 PYM50028 - A report on Phase II proof of concept clinical study in Alzheimers disease Q1 2005 phase II clinical study of PYM50028, now known as Cogane, with results still anticipated in the fourth quarter of 2005. Q4 2005 Company History	Click here for Product Pipeline:
LATEST NEWS	Click Here for Company Website Click Here for ADVFN Discussion 2005 "Active discussions are ongoing with the major global diagnostic companies that dominate the high throughput stroke field and further collaboration and licence agreements are anticipated in the next six months." H1 2005 Company History	Click here for Product Pipeline:
LATEST NEWS	Click Here for Company Website ClickHere for ADVFN Discussion 2005 Crofab - Rattlesnake antivenom - FDA Approval of filling and freezing Q1 2005 Crofab - Rattlesnake antivenom - Update on manufacturing Q2 2005 Digifab - Digoxin - UK Approval H2 2005 Voraxaze - BLA and European Filing H1 2005 Cytofab - Sepsis - Partnering Update 2005 NQO2 - Cancer - Phase I results H2 2005 Angiotensin Vaccine - High Blood Pressure - Selection of Lead formulation Q1 2005 Company History	Click here for Product Pipeline:
Vernalis LATEST NEWS	Click Here for Company Website Click Here for ADVFN Discussion 2005- From Prelims 24//02/05 V10153: Initiate Phase II in stroke patients H1 05 V140: Initiate Phase II in post-operative pain H1 05 Frovatriptan: Interim analysis of MRM safety data H1 05 V2006: Initiate Phase II (Biogen Idec) H2 05 Hsp90: Milestone on election of clinical candidate H2 05 Frovatriptan: MRM safety data H2 05 Frovatriptan: MRM efficacy data H2 05 Company History	Click here for Product Pipeline:
LATEST NEWS	Click Here for Company Website Click Here for ADVFN Discussion 2005 Preliminary results of a second Phase I trial on its TA-NIC 2005 Results of the Phase I trials involving XR5944 and XR11576 are anticipated to be available during H1 2005. Company History	Click here for Product Pipeline:
XTLbio LATEST NEWS	Click Here for Company Website Click Here for ADVFN Discussion 2005 - Within next 12 months from 10/04 HepeX-B Phase IIb results (Liver) HepeX-C Phase IIa results (Liver) HepeX-C Phase I results (small molecule) Nasdaq listing Company History	Click here for Product Pipeline:
York Pharma LATEST NEWS	Click Here for Company Website Click Here for ADVFN Discussion 2005 Abaso - Regulatory filing in Europe could take place as early as mid 2005.	Click here for Product Pipeline:

Listed Companies

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General Industry News

Biotech cash flows to London By David Firn Published: January 6 2005 02:00| Last updated: January 6 2005 02:00

At least half a dozen biotechnology companies are limbering up to float in London this year after 2004 proved to be the best year for the sector since the bursting of the technology bubble in 2001. London saw 18 biotech and medtech flotations in 2004. Most listed on Aim but Inion became the first Finnish company to join the main list of the London Stock Exchange. Its 33m fund-raising highlighted the emergence of London as the dominant biotechnology market in Europe as companies from Canada and Australia joined Aim. Companies thought to be considering a flotation in 2005 include Ardana, the reproductive health company; ProStrakan, the bone and skin disorder specialist; Arrow, the anti-infectives company; Arakis, which develops treatments for cancer and inflammatory diseases; and CyGenics, an Australian stem cell company. Cyclacel and Microscience, which failed to float last year, after potential investors baulked at valuations, are understood to be planning to return to the market if conditions improve. Intercell, the Austrian vaccine company, and Arpida of Germany are considering flotations, although neither has decided where to list. Globally the biotechnology industry raised $21bn (11.2bn) in 2004, including $2.6bn through initial public offerings, according to Critical I, the consultants. Biotech and medtech IPOs in the UK raised 207m, the second-largest amount after the US, and far outstripping the rest of Europe. The German, Swiss, French and Austrian markets saw just one biotech flotation each. Ark Therapeutics, which raised 55m in the UK's biggest biotech flotation in March, has since seen its shares fall 36 per cent. Nevertheless, the TechMark mediscience index, which rose 32 per cent last year, outperforming the FTSE All-Share index by 22 per cent and beating pharmaceutical stocks by 52 per cent.Karl Keegan, analyst at Canaccord, the Canadian bank, says investors are increasingly interested in the potential rewards of biotechnology at a time when big pharma companies are struggling to maintain historic levels of double-digit earnings growth. The UK biotech sector is beginning to throw off its reputation for consuming cash and failing to deliver products. Last month, Cambridge Antibody Technology won a High Court victory that will more than double the royalties it earns on Humira, the blockbuster arthritis drug it developed with Abbott Laboratories of the US. At the same time, Elan, the London-listed Irish group, has recovered from near insolvency to become Europe's second-largest biotech company following approval of Tysabri. The multiple sclerosis treatment is said to be twice as good as existing treatments and forecast to have sales of more than 1.6bn a year. In another sign of London's leadership in European biotechnology, the City now has about 25 analysts focusing on the sector, spread between the biggest banks and specialists such as Code Securities. Meanwhile, Nomura, the Japanese bank behind several of last year's biotech IPOs and share placings, is expanding its healthcare team. David Rasouly, director of healthcare banking at Nomura, says Aim has thrown off its image as the home of micro-cap companies to become the listing-of-choice for most biotech companies in 2004. "I would say in the last 18 months Aim has really matured in terms of liquidity, size of companies and the attention of investors," he says. But in spite of the sense of optimism that 2005 will provide a flow of biotech deals for the corporate financiers, some analysts believe there could be job cuts on the broking side this year.T he volume and value of biotech trading has fallen significantly since the three biggest companies - Amersham, Celltech and PowderJect - were acquired by foreign groups. According to one leading broker, the commission on trading the average sub-100m biotechnology company is "not enough to sustain an analyst" at approximately 200 a day.

CeNeS reports successful painkiller trials - January 2005 Citywire, Algernon Craig Hall

CeNeS Pharmaceuticals announces encouraging results from European phase III trials of its M6G painkiller for post-operative pain. Chief executive Neil Clark said: 'M6G is very close to being a product now and the upside is very big.' It is estimated that peak sales could be in the region of 200 million, which compares with CeNeS's current market capitalisation of 36.9 million.

This is excellent news for the UK Biotech industry.

A recent source I read stated that up until recently there had only been 2 biotech analysts on Wall Street, so god knows how many work for out investment banks. This will be a welcomed boost to many of the shares that have Nomura as an underwriter, as many thought after they lost their biotech team they would shy away from the sector and maybe even sell their holdings. This should ease those fears.

Nomura eyes UK life sciences boutique Code -sources
Wed Sep 7, 2005 10:26 AM ET

LONDON, Sept 7 (Reuters) - Japanese investment bank Nomura (8604.T: Quote, Profile, Research) is close to sealing an agreement to buy British biotechnology and pharmaceuticals boutique Code Securities, sources familiar with the situation said on Wednesday.
The sources said the deal, estimated to be worth around 30 to 32 million pounds, would give Nomura a team of about 24 biotech/life sciences specialists spanning corporate finance, research and sales.

The acquisition, set to be signed as early as next week, would help Nomura recover its standing in biotech and life sciences after the Japanese investment bank lost its biotech team to rival U.S. investment bank Piper Jaffray (PJC.N: Quote, Profile, Research) in July.

A Nomura spokeswoman confirmed the bank was looking to rebuild its position in life sciences.

"We are considering a number of options, including Code," the spokeswoman said.

Code Securities could not immediately be reached for comment.

Code has been involved in more than 100 life sciences transactions, including 26 initial public offerings.

The decision by the FDA on a inhaled version of insulin has meant great things for British based Nektar Therapeutics, however this could have implications for two of the UK's other respiratory Biotechs..

Vectura (VEC: http://www.ukbiotechs.com/Vectura.htm)

"Aspirair is Vecturas high performance proprietary inhaler technology, designed to allow delivery with high lung penetration and low variability, essential for drugs that are intended for systemic delivery. The device is conveniently sized, simple to use, and economical compared to other active inhalers."

Innovata Plc (formerly MLB:http://www.ukbiotechs.com/Mllabs.htm)

"Innovatas formulation expertise is being applied as part of a joint venture with MicroDose Technologies, Inc. (MicroDose) to combine formulation and particle engineering technologies with MicroDoses dry powder inhaler and filling capabilities, in a rapid acting inhaled insulin product. This product is being developed under a collaboration and development agreement with Bristol-Myers Squibb Company."

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FDA Advisers Recommend Inhaled Insulin
Friday September 9, 2:47 am ET
By John J. Lumpkin, Associated Press Writer
FDA Advisers Recommend Government Approval of the First Inhaled Form of Insulin


WASHINGTON (AP) -- Millions of people with diabetes may have an alternative to some or all of their daily needles if the government adopts an advisory panel's recommendation to approve the first insulin that can be inhaled.

Federal health advisers on Thursday scrutinized the drug and inhaler device, questioning developers about the long-term effects of distributing insulin to the body through the lungs, rather than directly into the blood stream.

Proponents of the drug, Exubera, and the associated inhaler say many diabetics who refuse to take all their injections will be more inclined to use an inhaler.

Full article: http://biz.yahoo.com/ap/050909/inhaled_insulin.html?.v=1

Leading Biotech Companies Are Interested In Acquisition Of Smaller Companies

Leading biotech companies like Pfizer are increasingly interested in acquisition of smaller biotech companies whose products are in the early phase 2 clinical trials. Smaller companies are more willing to consider acquisition then they used to be, notes Roger Longman, Managing Partner at Healthcare business information specialist for Windhover information. The possibilities of going public after acquisition is very high for these small companies and is one of these reasons these companies are considering a big pharma buy out.

More: http://www.ukbiotechs.com/phpbb/viewtopic.php?p=498#498

Few of our contenders presenting here:

BioPartnering Europe-- BPE -- Programme Highlights the Hottest Topics in the Biotech Industry Today
9/13/2005 7:45:00 AM EST

http://www.ukbiotechs.com/phpbb/viewtopic.php?p=508#508

Market Scan
Vioxx Liability Could Force Biotechs To Merge
Matthew Herper, 09.14.05, 8:49 AM ET

With Merck (nyse: MRK - news - people ) on trial for Vioxx and with a new lawsuit against Johnson & Johnson related to its Ortho-Evra contraceptive patch, Big Pharma is facing a flood of litigation. Should investors in biotechs with promising drugs be concerned as well?

Merck's liability could be as high as $50 billion, according to Al Rauch, an analyst at A.G. Edwards. Even a much smaller award could wipe out a tiny biotech like a tidal wave.

"I don't see how they could insulate themselves," says Carl Tobias, a professor of law at the University of Richmond. "Whatever they have to do to insulate themselves could impair their ability to profit."

The average publicly traded biotech has a market value of only $1 billion, according to the Biotechnology Industry Organization. Moreover, there are only some 314 biotechs, according to BIO. A $50 billion liability is worth about a sixth of the entire biotech industry.

But it is not beyond the realm of possibility that a biotech company could have to deal with an attack by the trial lawyers all by itself. The drug industry's last big legal settlement was the $21 billion set aside by Wyeth (nyse: WYE - news - people ) to pay for litigation related to its diet drugs, Redux and Pondimin. Redux was actually licensed to Wyeth by a biotech called Interneuron. The firm survived, changing its name to Indevus Pharmaceuticals (nasdaq: IDEV - news - people ) because Wyeth has paid the trial costs.

Increasingly, biotechs are trying to hold onto the rights to their drugs, even in cases where they once would have turned to big pharmaceutical firms such as Pfizer (nyse: PFE - news - people ) for extra marketing heft. For instance, Sepracor (nasdaq: SEPR - news - people ) has chosen to sell Lunesta, a sleeping pill, on its own. Robert Hazlett, an analyst at SunTrust Robinson Humphrey, puts peak sales of the drug at $1 billion.

But with those big sales, biotech firms also shoulder all the responsibility if something were to go wrong. Even smaller settlements, could be big problems for smaller firms. For instance, Eli Lilly (nyse: LLY - news - people ) recently set aside $690 million to settle liability related to Zyprexa, its $4 billion-a-year schizophrenia drug. The agreement involved some 8,000 people who said they developed diabetes-related conditions from their use of the drug.

Tobias, the University of Richmond professor, says that the threat of liability might even lead biotech firms to merge in order to avoid having to shoulder all the risk themselves. "That's one of the concerns about product liability across the board," he says.

Mark Monane, an analyst at Needham & Co. who keeps track of cutting edge biotechs, says he doesn't see fear of product liability legislation causing a flood of mergers. But he does see Vioxx having a dampening effect on new experimental medicines as companies and the Food and Drug Administration both look to make sure there is more safety information on new medicines.

"Each drug will be judged more fastidiously," Monane says, "and the cost of developing new drugs could go higher."

Many of the above feature in Shares Mag this week.

ACM, AZM, OXB, PTI, PYM and Vectura.

AZM, OXB are shares features.

PYM and VEC are mention in regards to shares that could benefit from the Aging population.

There is a SWOT on ACM

And there is an interview with Andrew Heath of PTI, a biography of him.

All good exposure.

High-tech firms lose ground in patent debate
By Associated Press | September 16, 2005

WASHINGTON -- Opposition from drug and biotech companies has forced lawmakers to weaken a bill cracking down on the so-called patent trolls who are bedeviling the high-tech industry.

Those are people who get patents for products they never plan to make, just so they can sue for infringement if a company does turn out something similar.

But the resulting draft legislation drew criticism from a top Democrat at a hearing yesterday. ''We have a bill which to my way of thinking has stripped out very significant reforms," Representative Howard Berman, Democrat of California, said at a hearing of the House Judiciary Committee's subcommittee on intellectual property.

Representative Lamar Smith, Republican of Texas, in June introduced the Patent Reform Act of 2005, which proposed a series of changes to how patents are issued and how they can be challenged. Among the changes was one long sought by high-tech firms: a provision that would make it harder for patent holders to get court orders to stop the sale of products that potentially infringe on their patents.

The provision was opposed by the Pharmaceutical Research and Manufacturers of America and the Biotechnology Industry Organization, the powerful lobbying groups for the nation's drug and biotech companies.

The provision, along with several others, would have ''severely weakened the ability to innovate," Nektar Therapeutics chairman Robert B. Chess told Smith's panel. ''Investors will only invest in ideas if they are adequately protected by strong patents," he said.

The provision was dropped from versions of Smith's bill considered at yesterday's hearing, and so were other measures BIO and PhRMA didn't like, including one to give companies accused of infringing a patent the chance to challenge the basis for that patent.

The Sunday Times October 02, 2005

Focus: Merlin's sticky spell
Sir Chris Evans, founder of Merlin Biosciences, finds his business at the centre of a Serious Fraud Office inquiry. On top of all this, the old question remains: how does the prime ministers favourite bioscientist fund such a lavish lifestyle? Report by Paul Durman

It was a typical show of bravado. As questions mounted last weekend about a Serious Fraud Office investigation into his firm, Sir Chris Evans, Britains leading biotechnology entrepreneur, went shooting ducks.

Evans is an avid sportsman and shooting is his latest enthusiasm. Having been introduced to the sport at Skibo Castle in Scotland, Evans has spent many hours turning himself into something of a marksman.

Now it is Evans and his Merlin Biosciences venture-capital firm that are in the cross-hairs.

The story of the SFO inquiry, confirmed in the first edition of last weeks Sunday Times, has leaked out despite Merlins desperate attempts to keep a lid on it. For two weeks, the firms advisers professed ignorance.

Merlin protests that it has done nothing wrong, and expects to be cleared of any fraud. But it is hard to imagine a more damaging allegation against a firm that earns its living by investing money on behalf of institutional investors.

Even if nothing comes of it, the SFOs interest will put a serious dent in the reputation of Britains best-known and best- connected biotech entrepreneur.

SFO inquiries tend to be long, drawn-out affairs. While this continues, rival private- equity firms say it will make it impossible for Merlin to raise further investment funds. Evans has privately conceded that the inquiry will drag on for months.

At the very least, the investigation has revealed the depth of tensions at Merlin during a troubled 2003. Evanss accuser is Andrew Greene, a former Merrill Lynch banker who spent 18 months at Merlin before he was sacked in late 2003.

Greene, a conservative American, was brought in to run the firm, taking over from co-founder Peter Keen, Evanss right-hand man for many years. According to Merlin, Greene found it hard to adjust to the environment of the small, fast-moving company that he had joined. In particular, he clashed with Mark Clement, another co-founder who has since become the firms chief executive.

It is partly this that has led to Merlins difficulties. According to information passed to The Sunday Times, Greene was asked to support a deal that involved paying 2.5m into a shell company, the ownership of which was unclear. Fees from this transaction were allegedly to be paid directly into Clements Luxembourg bank account.

Greene was unhappy and took his concerns to Mark Docherty, another co-founder and the firms compliance officer. This quickly provoked a confrontation with Clement. Shortly afterwards, in December 2003, Greene was fired.

Clement refused to discuss the episode this weekend. He had no comment whatsoever.

Merlin said there was nothing untoward with the transaction. On the advice of lawyers, Evans feels unable to respond to the accusations against him. Instead he has to endure his reputation being tarnished in the biotech rumour mill.




FOR those who know him, it is difficult to imagine anything more hurtful. Evans, the son of a Port Talbot steelworker, is immensely proud of his achievements. His enormous ego has always found it hard to acknowledge any setbacks, however minor. From humble beginnings, the boy who messed around with chemistry sets to make explosions turned himself into the leading British figure in one of the most exciting industries of the 21st century.

He studied microbiology at Imperial College London, took his doctorate from Hull University and became a research fellow at Ann Arbor in Michigan before switching to industry. Swapping his $14,000 academics pay for a $90,000 salary with a Canadian biotech company was the turning point of my life, he said.

If you have grown up without money, when you taste it for the first time its like drinking a fantastic wine. I thought the more money Ive got the more freedom I will have.

So he set out to make it. Over the past 20 years, Evans has set up 40 or so biotechnology companies, including Chiroscience, one of the few big investment successes to emerge from Britains biotech sector. His charisma and energy attracted Tony Blair. He served on a number of government advisory committees, including the Prime Ministers Council for Science and Technology, and was rewarded with a knighthood.

Along the way, he has accumulated wealth that the Sunday Times Rich List has estimated at 158m. While most of the super-rich are reluctant to discuss their money, Evans is happy to confirm the Rich List estimates. Its surprising just how accurate it gets it, he said.

He owns an estate in the Cotswolds and, until earlier this year, had a 15m home in Holland Park, west London.

For most of his career, he has enjoyed the publicity and the wealth, and the doors that they open. Fit and powerfully built at 47, he enjoys the company of sports stars, and is good friends with Jonathan Davies, the former Welsh rugby international. He is always full of blokeish stories of marathon match-day drinking sessions.

From the outside, it has often looked the perfect life. Now that illusion has been shattered.

The whiff of suspicion is the last thing Merlin needs. Evans and his team are battling to find profitable exits from investments they made in 2000, at the top of the technology bubble.

While he has been able to float or sell eight companies in the past 18 months, few of these companies have yielded much in the way of cash, something he needs to return to investors when Merlins fund 2 reaches the end of its life. Biotech companies are mostly loss-making while they try to develop medicines. Evans is fond of talking big, and not slow to disparage the efforts of his rivals. But his critics suggest Evans has had few big successes since the mid-1990s, when he floated Chiroscience, a company that was eventually bought by Celltech in a deal that valued it at 325m. He set up Merlin in 1996 but, despite several strategy changes, Evans has yet to demonstrate he can generate handsome returns for investors.

Those who know his business best also struggle to understand how he could be worth 150m. One biotech veteran said: I cant make it add up to anything like that. How much did he have in Chiroscience? 15m, maybe more depending when he sold. And theres what hes taken out of Celsis and what hes taken out of Toad (two much smaller companies floated in the 1990s). And his wife has made some very, very astute (art) purchases.

But most of Evanss wealth appears to be tied up in illiquid biotech firms a sector that has been in the doldrums for almost all of the past nine years.

Those who deal with Evans wonder how he can afford his expensive lifestyle the big homes in London and the Cotswolds, the mini-fleet of flash cars, the art and the vintage wine collection as well as a dressage horse apparently bought for about 250,000. Its a great life but one that requires constant infusions of cash.


BY 2003 Evans and Merlin were under considerable pressure. Merlin was struggling with a portfolio of 30 biotech companies, many fast running out of cash. Dire stock-market conditions and the hostile sentiment among investors made it all but impossible to float them.

In this environment it was not surprising that Merlin, with a patchy track record, was finding it difficult to raise a new 250m (170m) investment fund from European investors.

Those who dealt with Evans at this time say he had lost some of his natural ebullience. Instead of building businesses for the long term, he gave one associate the impression that it was important to Chris to take out whatever he could take out in the short term.

Early on in 2003 Evans put his Holland Park home up for sale for 15m. In familiar style, he was quick to say this was not a retreat or belt-tightening. He insisted he was going to buy an even bigger house closer to his St Jamess office.

This was not the only change he planned. Through a company called Bricktown, he borrowed 5.6m to buy Merlin Biosciences, allowing him to cash in his Merlin stake for about 5m. The balance went to his co-founders, Clement, Keen and Docherty.

Evans was able to bolster his cashflow in other ways. The consultancy fees he charged to Merlin and Bricktown rose steeply, to 2.2m in the year to March 2004, up from 1.26m the previous year. This was a huge sum for a small firm, representing more than a quarter of the total revenues Merlin received in advisory fees from its funds.

From the available public records, it appears Evans drew at least 7m from his firm during this time. Whereas Evans got more money, Merlin Biosciences accounts show Clement was paid consultancy fees of 390,000 in 2003-4, down from 502,000 the previous year. Clement was at this time going through an acrimonious divorce from his wife, Lillian, who was recovering from cancer.




EVANS is said to be furious furious with Greene, and furious with the press.

It is particularly irritating that the controversy comes at a time when Merlin believes it is making good progress on realising its investments. It recently floated ReNeuron, an early-stage stem-cell company, for 23.4m, more than six times the 3.6m it paid to take the business private in spring 2003.

Another success came in August when Arakis, where Keen has been working as chief financial officer, was sold to Sosei of Japan for 106.5m, delivering a good return on Merlins 30% stake. In the past 18 months other Merlin companies, including Ark Therapeutics, Ardana and Vectura have also been floated, opening up the possibility of further exits.

Evans still has his defenders in the City. One leading stockbroker said: I think its a shame because without him a lot of good things would not have happened. For the health of the biotech sector, I hope people focus on the bigger picture.

Evans remains undaunted, and aims to press on with further flotations, just as if the SFO had never come calling. Biotechs Welsh wizard has seemingly limitless supplies of self- confidence. He may need them.

Against the odds

BRITAINs biotechnology industry has limitless promise. What it lacks, unfortunately, are products and the profits that flow from them.

In nearly 15 years since loss-making biopharmaceutical companies began appearing on the London stock market, investors have been promised potential treatments and vaccines for every medical condition under the sun cancer (British Biotech, Scotia), osteoporosis (Cortecs), obesity (Scotia, Phytopharm), HIV (ML Laboratories, PowderJect), cystic fibrosis (PPL) . . . You name it, investors have been offered the cure.

Yet, despite the depth of pharmaceutical research talent in Britain, most of these ventures have failed. With few exceptions notably Humira, a rheumatoid arthritis treatment from Cambridge Antibody Technology (CAT) British biotech firms have struggled to steer product candidates along the rocky path of clinical trials to regulatory approval.

The biggest profits have come from selling companies rather than medicines. As one of the first investors in the sector, Sir Chris Evans made millions in the mid-1990s as institutions were excited by the possibilities of the biological sciences.

That has become more difficult in recent years as investors have become sceptical, and more knowledgeable. The odds against biotech success are enormous. Small firms, often with dwindling cash and fewer than 200 employees, are pitted against deep-pocketed pharmaceutical giants with long experience of trial design and the regulatory approval process.

Licensing drugs to big pharma is an unequal partnership that can be fraught with difficulty. Ask CAT, which is disputing royalty payments with its much larger marketing partner, Abbott Laboratories.

In response, Evans and his Merlin Biosciences are switching their attention to less risky propositions, including medical- technology firms that offer better prospects of early revenue generation.