Companies: CEN    CUC    FPL    FPO    GWP    IVS    PRM    REG    URM   

A flat week for AIM, soon approaching its tenth birthday, saw it shed 6.5 points to 962.60. The FTSE 100 fared only slight better, finishing the week 46 points better off at 5044.5.

Shares in GW Pharmaceuticals (GWP) lost a third of their value to 80.5p after it was again disappointed by UK medical regulators. GW had appealed for its cannabis-derived product Sativex to be given a UK licence for the treatment of Multiple Sclerosis spasticity without further clinical study. However, in a blow for the company, the Medicines Commission yesterday claimed the evidence of Sativex’s efficacy is not yet sufficiently compelling.

Further studies have now commenced and results are due in the spring of 2006. ‘It is clear from our discussions with the regulatory authority that they recognise the promising results,’ claims executive chairman Dr Geoffrey Guy, ‘and they have expressed a desire to provide constructive advice to GW as to how the regulatory requirements may best be met.’

Some happier news arrived from CeNeS Pharmaceuticals (CEN). It announced successful results from Phase IIa trials of its treatment for neuropathic pain, with the drug showing ‘a clear trend to improvements in pain levels’ compared to a placebo. Investors chased the shares down 15 per cent to 7.88p during the week.

Talk boosts Proteome

Receiving more positive favour was biotech services outfit Proteome Sciences (PRM). Talk in the market that Proteome could soon announce a major deal for its reagent technology helped send the shares up 17.7 per cent to 96.5p. And more support arrived from rumours that a US flotation is planned for Intronn, in which Proteome has a stake of around 40 per cent. Intronn has a drug to treat cholesterol levels.

Elsewhere, paper products specialist Inveresk (IVS) firmed up 25 per cent to 17.5p on an actual deal. The company is selling its Gemini paperboard brand for £15 million to fellow Scottish paper maker Tullis Russell. Inveresk says it will use the proceeds to eliminate bank borrowings, which stood at £15.7 million at the end of December.

Algerian-focused gas prospector First Calgary Petroleums (FPL), which has now lost almost a third of its value this year, updated the market this morning on its joint-venture negotiations with Repsol, advising that talks continue but ‘no assurance can be provided that an agreement will be reached’. The shares fell a further 10.3 per cent today to 392.5p.

Bar stall

Late-night bar operator Urbium (URM) soberly informed on Wednesday that it had received and rejected an unsolicited share-based proposal from Regent Inns (REG), saying the offer 'significantly undervalued' Urbium and that there was 'little strategic fit between the two businesses'.

Ambitious Regent, on the other hand, believes there is ‘a compelling strategic rationale’ for the union, and confirmed the proposed offer was made at 820p per share, a 29 per cent premium over Urbium's Tuesday's closing price of 635p. Urbium's shares now sit at 785p, a 24 per cent rise for the week, while Regent's have gained a penny and half to 78.5p.

Mixed results

Shares in First Property (FPO), the ‘merchant bank for commercial property’, advanced 18.4 per cent to 14.5p on strong annual figures to 31 March, with profits lifted 63 per cent to £955,000, net assets more than doubled to almost £6.4 million, as well as a 25 per cent hike in the dividend to 0.125p.

Interims to March from the in-car audiovisual entertainment group Centurion Electronics (CUC) reflected supply-side issues and weakness in the retail market. Profits of £956,000 swung to hefty losses of £4.3m after £3.9m of exceptionals (largely redundancies and stock write-downs). At 23p the shares are down 25 per cent since Monday.