Test cheer for ReGen

23/08/2007 Robert Tyerman

Bombed-out biotech venture ReGen Therapeutics has received encouraging clinical trial results for its Zolpidem insomnia drug.

Since Zolpidem was first unexpectedly found to have ‘anti-dormancy’ effects on some brain damage victims, there has been speculation about whether and how AIM-quoted ReGen could capitalise on this. Now the company says exploratory Phase 1a clinical trials show that low doses of 2.5 milligrammes of Zolpidem, administered by spray under the tongue to brain-damaged patients, had no more sedative effects than a placebo, as well as being more effective than tablets.

Percy Lomax, ReGen’s indefatigably cheerful chairman and chief executive, says ‘based on these results, we now have the confidence to continue the development of novel Zolpidem formulations for the treatment of brain dormancy’. He adds that the company is ‘reviewing options to achieve this’.

That will be an interesting exercise. Since ReGen was first floated at 28p seven years ago on the strength of Alzheimer’s treatment Colostrinin, its shares have performed disastrously, falling to 0.72p earlier this month, as neither Colostrinin nor various ‘nutraceutical’ ploys impressed the market.

The company did manage to raise £1.1 million last year at a lowly 0.75p. The shares have perked up 0.17p this morning to 0.95p, valuing the company at £9.75 million, and, if Zolpidem really does bear out present hopes, some further revival could be on the cards.