Friday 13 has proved unlucky for pharmaceutical group BTG after a setback for one of its early stage products.
AstraZeneca has terminated a development and option agreement relating to BTG's CM-3 treatment for diabetes. The move is expected to lead to an £8m impairment charge in its accounts.
BTG was set to make a payment to shareholders in Biocompatibles after its takeover of the company, depending on the success of CM-3. But following AstraZeneca's decision, BTG said it was unlikely any payment would be made. It said:
The payment obligation would only now arise if BTG enters into another form of licence, sale or other disposal of the asset to AstraZeneca prior to 31 December 2012. In the light of AstraZeneca's decision... the BTG board does not believe there is any realistic possibility that this will occur.
The news has sent BTG's shares down 8.3p to 243p, a 3.3% decline.
BTG, perhaps best known for its varicose veins treatment, recently announced the failure of its OncoGel treatment for tumours in cancer patients.
