Companies: ATD   

Tissue sample specialist Asterand foresees ‘sustained profitability’ after cutting its first-half deficit from £970,000 to £53,000.

The fully listed company, which supplies human tissue samples and drug discovery services to the pharmaceutical industry, increased turnover 43 per cent to £5.1 million in the six months to June.

Asterand, which is now also to receive a $6.25 (£3.9 million) upfront payment under a £30 million licencing deal with US group Allergan, has increased its market share and appointed an agent to aid penetration of the Japanese market.

The latest deal with California-based Allergan gives the US company the rights to develop and commercialise a series of compounds discovered by Asterand to treat conditions and illnesses of the eye, such as glaucoma.

Asterand is to receive milestone payments and royalties which it suggests could eventually reach £30 million in what chief executive officer Martyn Coombs calls ‘a very significant financial deal’.

The company, which appointed Daniel Stewart as broker in April, is now ‘well on the way to achieving its objective of sustained profitability’, says chairman Jack Davis.

Asterand shares, which had fallen from 24p in 2005 to a mere 3.25p in March last year, have rallied to 8.75p, up 1.5p this morning, where they value the company at £9.6 million and could make further progress, relative to the sector.             

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Asterand	LSE	£12.66m	11.50p	-0.25p
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Asterand slashes interim loss			27/08/2008
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