Companies: SPH   

Drug development backer Sinclair Pharma has licensed its Decapinol Rinse gum inflammation product with US giant Johnson & Johnson.

AIM-quoted Sinclair, which lost £2 million in the six months to December, is to supply Johnson & Johnson subsidiary OraPharma with Decapinol Rinse mouthwash on an exclusive basis. Decapinol counters gingivitis, which is associated with bleeding gums, rotting teeth and bad breath, and periodontitis, a gum disease causing tooth loss.

According to Sinclair, Decapinol, which won marketing approval last year from the US Food & Drugs Administration, is the first new product class to enter the gingivitis market for several decades. With 80 per cent of US adults estimated to suffer from gum inflammation, the company puts potential market there at £330 million and growing.

The company has several other products, countering sore throats, dermatitis and flaky skin, for which it has various marketing deals. At 11.5p, up 0.5p today but below 2004's 157.5p high, Sinclair Pharma's shares value the company at £104 million. They might repay a brave long-term punt.