Alltracel shares rise after fundraising

SHARES in Alltracel Pharmaceuticals rose more than 2% yesterday after the fledgling Dublin-based first aid product developer completed a €6.8 million fundraising round.

The company also said yesterday it had recorded losses of €2.2m for the six months to June.

Revenues surged from €500,000 to €2m during the period as the company broadened the sales base of its core anti-bleeding products, but the bottom line took a hit from increased selling, distribution and administrative costs associated with entering new markets.

Selling and distribution expenses jumped by €1m to almost €1.3m, while administrative overheads were €400,000 higher and also just shy of €1.3m. The company suffered a once-off €400,000 write-off as it reclassified certain assets under an accounting change.

Chief executive Tony Richardson, who took over from founder Gerry Brandon in July, was upbeat about the company's outlook and said it was in its strongest position.

Mr Richardson said the company was on course to meet market expectations during the rest of the year and full-year revenues would be in the region of €4.2m.

The company gave details of a €6.8m private placing of shares with institutional investors. Following the placing, Jubilee Investment Trust exited its 5% stake in the company, while New Opportunities Investment Trust reduced its shareholding from 8.8% to 4.4%.

Mr Richardson said the funds raised would be used to increase commercial uptake of Seal-On and Blotters products among international customers.

Seal-On is used in sprays and dressings that are applied to wounds to help them stop bleeding more quickly, while Blotters are thin gel-like strips used to treat shaving cuts.

Alltracel is also working on a number of new products based on m-doc, anti-bleeding technology.

It has started early stage tests on an alternative use for m-doc that would involve adding it to foodstuffs to reduce cholesterol levels and make them healthier.

The company is valued at over €25m.