Herpes group for sale

29/01/2008 Robert Tyerman

Bombed-out anti-viral treatment developer Henderson Morley is talking to potential buyers of parts or all of its business.

The Birmingham-based company, which floated on AIM six years ago to develop its patented Ionic Contra Viral Therapy (ICVT) as a treatment for herpes, warts, verrucae and kindred ailments, lost £548,000 in the six months to last October after a £45,000 tax credit on negligible turnover of £686. Henderson Morley ended the period with £875,000 cash, down from £1.4 million a year earlier and £1.5 million at the end of its full-year last April.

Executive chairman Andrew Knight enthuses that Henderson Morley has ‘the strongest pipeline, with the greatest number of patents, both granted and under application, in the history of the company’, which was founded 12 years ago. But he discloses that a strategic review, started last year to enhance shareholder value, has led to talks with a shortlist of other companies in the UK and overseas, which ‘may or may not lead to an offer being made for some or all of the company’s businesses’.

Eight years ago Henderson Morley shares traded on Ofex (now PLUS) at more than 6p, but, after their 4p AIM float in 2001, they eventually plunged to 0.43p in 2005 before surging up to 5.78p in March 2006. Since then, however, they have slipped to 1.55p, up 0.08p today.

Their current prospects depend on whatever deal Knight can negotiate.

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