Robust clinical data will lead to rebound

Robust clinical data, rather than anecdotal pipeline potential, will be the yardstick against which US based biotechs are measured in the closing months of 2004, according to Enhance Biotech's ceo, Chris Every.

The specialist lifestyle company was commenting on the results of September's Burrill Review, which reports on a market showing signs of resurgence following a 2003-04 IPO window in which 20 of 33 IPO deals entered the market below range. High levels of venture capital investment in the sector during August 2004, helped point to scope for improved prospects in the months ahead.

'The market is certainly showing signs of greater buoyancy,' said Every. 'However, in the closing months of the year, those companies who can demonstrate the potential of their pipelines with actual clinical data, rather than simply "capacity" for future performance, will be the first to benefit from the improved conditions. Investors are reeling from a period of uncertainty over oil prices and an upcoming presidential election and need guarantees. The mature biotech sector, always one of the first areas of the market to pick up after a blip, needs to set out its stall carefully and clearly demonstrate what it has to offer.'

Enhance Biotech has commenced Phase IIa trials for its medicated mouthwash, Li401, with the University of Bristol Dental School in the United Kingdom. Wider products in the company's portfolio include Li301, an innovative product in development for male premature ejaculation, and Li303, a new cellulite treatment.