Biotech takes on superbugs

BRITISH Biotech's push to develop a new generation of antibiotics while not running out of cash has led it to strike a research joint venture with US counterpart GeneSoft.

The deal will see GeneSoft use its drug development skills to test antibiotics which British Biotech believes will counter the sorts of superbugs contracted in hospitals.

Finance director Tony Weir said British Biotech, which had £50m in the kitty at the end of April, would cut its annual cash burn rate from £18m to £15m by splitting the development costs equally with GeneSoft. But he said British Biotech, which will get $5m (£3.3m) and a 3.45% stake in GeneSoft as an initial payment, would retain the commercial rights to the drugs.

The first of the antibiotics will undergo clinical trials in October, though the extensive tests and need to win regulatory approval means they would not be for sale for five years.