Alltracel shares up 6% on major deals

SHARES in Alltracel Pharmaceuticals rose by 6% yesterday after the fledgling Dublin-based first aid product developer announced two major deals with leading names in the industry.

The company said it had started shipping its new treatment for shaving cuts to British pharmacy heavyweight Boots. Under the terms of the agreement, Boots will begin selling Alltracel’s Blotters product this week.

Blotters are thin strips of film that contain an anti-bleeding agent developed by Alltracel. The strips form a gel-like layer over a cut when they come into contact with blood.

Alltracel chief operating officer Donal O’Brien said Boots was one of the most respected brand names in consumer healthcare and was also Alltracel’s first major retail partner in Britain. Mr O’Brien said the new product would revitalise the traditional first aid category and open up new opportunities for Alltracel’s anti-bleeding technology.

In a separate announcement, the company said it had signed two new manufacturing and product development agreements with Devro, a leading manufacturer of collagen products for the food industry, such as casings for sausage manufacturers.

Alltracel plans to use Devro’s expertise with thin films to manufacture the Blotters product on its behalf. The companies will also work together to develop wound care treatments that depend on thin film technology.

The companies have also agreed a joint research and development programme to use Alltracel ingredients to manage cholesterol in food and reduce the risk of heart disease.

Alltracel chief executive Gerry Brandon said he was excited at the prospect of using Alltracel’s technology “as a mass market, natural and cost-efficient food ingredient in the war on cholesterol”. Mr Brandon said Devro’s experience in developing innovative ways to deliver food products would be positive for the company.

Despite yesterday’s gains which brought Alltracel’s share price to 25p on London’s Alternative Investment Market, the share remains significantly below the 40p level at which it started the year. But investors who bought the stock 12 months ago are sitting on gains of almost 70%.