Cortecs Plc has announced that it is to change its company name, its board of management, the location of its head office and its research strategy as it seeks to cut costs and focus its operations.
Cortecs said on October 27 that it was proposing to change its name to Provalis Plc. The company has closed its offices in London, New York and Australia, centralising all activities at a single location at Deeside, Wales. As a result, the number of employees has fallen from 209 to 130 at October 22. Further job losses are expected with the closure of its manufacturing site at Wrexham.
The company is to concentrate on three business areas: the sale and marketing of branded ethical pharmaceutical products, through its Thames Laboratories Ltd subsidiary; the development, manufacture and sale of medical "point-of-care" diagnostics; and the research and development of therapeutic technologies and products, principally vaccines for infectious diseases. Partners are being sought to help complete the development of Pseudostat (an oral mucosal vaccine for serious respiratory diseases) and Macrulin (an oral formulation of insulin).
Announcing its results for the year to June 30, 1999, the company said that its losses had increased from £17.9m to £22.1m, principally due to restructuring costs, redundancies and payments to its former chairman (Mr Glen Travers). The company had reserves of £5.8m and plans to raise a further £5m through a share offer.
Mr Frank Harding, a non-executive director, is to replace Lord Patten as chairman of Cortecs Plc with effect from November 30. Mr James Long is resigning as finance director due to the company's move to Wales.