Surprise as drugs company chief steps down

ALLTRACEL Pharmaceuticals founder and chief executive Gerry Brandon is to step down, the first aid product developer said yesterday.

Mr Brandon will be replaced by Tony Richardson, who moves from his current position of chief financial officer.

The surprise announcement came as Alltracel reported strong second quarter revenues of €1.1 million, more than four times revenues in the same quarter last year. Revenues for the first six months of 2004 were €2 million, up from €498,000 in 2003. Shares in Alltracel, which are traded on London's Alternative Investment Market (AIM), rose 9% to 24.5p yesterday.

The company said Mr Brandon had discussed plans to step down with the board over the past year. “Given the progress made over the past six months, we have agreed to bring forward the management re-organisation to ensure the business continues to perform strongly under commercial leadership,” said chairman Pádraic O'Connor.

Mr Brandon, who is Alltracel's single biggest shareholder with a 17.5% stake, will remain on the company's board as a non-executive director. He will vacate the chief executive's position after Alltracel's annual general meeting, which is scheduled for next month.

Mr Richardson has been with Alltracel since it was set up in 1996 and was chief financial officer when the company floated in London in July 2001. Mr Richardson will be replaced as chief financial officer by John Kelly, the current head of alliances and acquisitions. Mr Kelly previously held senior positions with communications software giant LogicaCMG and fruit importer Fyffes.

The company said it was comfortable with analysts’ forecasts that it would generate full year sales of €4.2 million. Mr Richardson said the company had secured distribution agreements that gave its brands a strong presence in Britain and America. “Consumer marketing programmes began in both these markets this quarter and we expect to see the benefits of consumer off-take and trade re-orders later this year,” he said.

Alltracel recently launched Blotters, a thin film-based product used to stop shaving cuts, in Britain after signing a deal with pharmacy giant Boots. The company plans to launch the product in America early next year.