BioWorld International Correspondent

LONDON - The roster of biotechnology companies on London's main market is shrinking further with the announcement by CeNeS Pharmaceuticals plc that it is moving its listing to the junior Alternative Investment Market.

The company, based in Cambridge, believes that with its current low market capitalization (£7.2 million), AIM is a more appropriate market. Chief Operating Officer Neil Clark said the AIM listing will give CeNeS increased access to interested investors.

"AIM is an appropriate environment for the directors to effect the next stage of CeNeS' corporate development," he said.

Other names that are disappearing from London's main market as a result of the ongoing restructuring and consolidation of the sector are Oxford GlycoSciences plc, taken over by Celltech Group plc; PowderJect Pharmaceuticals plc, acquired by Chiron Corp.; and British Biotech, which will change its name to Vernalis if the agreed-to all-paper merger with Vernalis announced last week goes through.

CeNeS attained its listing in September 1999 through the reverse takeover of Core Group plc, a drug delivery company. Both were formed by the entrepreneur Alan Goodman, who is chairman of CeNeS.

Apart from the greater likelihood of attracting longer-term investor support, the move to AIM will reduce reporting requirements. CeNeS expects admission to be completed by the end of July.

At the same time, CeNeS said it has commenced Phase III trials of its lead product, M6G, in the treatment of postoperative pain. The trial, to be completed in mid-2004, will recruit 168 patients in three European hospitals. A second trial is then planned, with initial European filing expected in late 2005. However, CeNeS does not have sufficient funding to complete the second M6G Phase III trial, and is looking for a partner.