Sadler's market itch

Terry Sadler, who presided over the growth and eventual collapse of FTSE 250 member Bioglan Pharma, is returning to the stock market. In league with colourful financier Geoffrey Simmonds, he is raising £1 million for York Pharma, which hopes to develop dermatological products for skin conditions.

Dermatology was the sector in which Sadler built up Bioglan from nothing in 1985 into a £900 million concern. The company, which turned over £66 million at its height, then fell into administration during 2001, following a funding crisis.

Sadler, one-time Entrepreneur of the Year, says several City investors encouraged him to try his luck again. York, sponsored by JM Finn, has identified its first product – a topical cream called Abasol, which Sadler says belongs to a new class of drugs, treating fungal infections such as athlete's foot.

Sadler aims to target other niches, too small for big drug groups. Simmonds, former leading light at controversial investment group UTC, chairs York, in which his poorly performing Westside Acquisitions vehicle holds 22 per cent.

York has enough money for 18 months, by which time Abasol should reach the market. Sadler, with a 23 per cent stake, is cautiously paying himself 'only' £50,000 a year.

York shares have raced up 60 per cent to 40p from their starting price of 25p. Westside enjoyed an identical spurt to 3.5p — still 85 per cent down on early 2001.