BioProgress slumps on trading statement

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BioProgress has seen its share price slump nearly 40 per cent this
morning on concerns that it would miss its financial targets,
reports Phil Taylor.

The UK-headquartered developer of novel tabletting and encapsulation technologies issued a statement earlier today indicating that sales at its US subsidiary BioTec Films were not as strong as previously anticipated and are unlikely to reach levels indicated in previous announcements. Meanwhile, BioProgress said its consolidated overheads are also expected to be higher than previously indicated.

Last month, BioProgress assured investors it was in sound financial health, despite posting a pretax loss of £7.1 million in 2004, made worse by the need to spend around £1.5m on legal costs in a patent dispute with Stanelco on the use of radiofrequency welding to make polymer capsules.

The company had a fruitful year in terms of licensing out its various cellulose-based coating technologies, but is still waiting for the pay-off from commercial sales of products based on its technologies.

BioProgress said this morning that it intended to undertake a 'thorough strategic and financial review' of the business, while still maintaining that it is sitting on technologies that could have significant commercial value.

Last month, the UK firm said that that the commercial version of its TABWRAP tablet-coating machine should be launched at this year's Conference on Pharmaceutical Ingredients (CPhI) meeting in November.

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