Cholesterol research sparks Alltracel rise

ALLTRACEL shares surged 14% yesterday after the pharmaceutical company announced a major new product breakthrough.

The Sallynoggin-based company said trials of its m-doc technology, which until now had been used as an anti-bleeding agent in first aid products, showed it also worked to clear blockages in arteries and helped to prevent heart disease.

Previous research by the company had signalled m-doc had additional qualities that lowered cholesterol in the bloodstream.

Alltracel chief executive Tony Richardson said he was “particularly pleased” that the results of the trials had shown m-doc’s extra heart-related healthcare benefits. Future research and product development work would focus on twin strategies of using m-doc in both pharmaceutical and healthy food and drink products, he added.

The research results announced yesterday related to animal trials that lasted over 15 months. The company will announce further details next month on human trials that are currently underway.

M-doc has been the cornerstone of Alltracel’s success since the company was set up nine years ago. It has been used in a range of first aid products that aim to make cuts heal more quickly. These include plasters and bandages, sprays, nasal plugs and a revolutionary new gel-based product that is applied to shaving cuts.

The company has already signed deals with high-profile distributors in Europe, America and Asia and counts well-known names such as Boots among its partners.

Goodbody Stockbrokers analyst Ian Hunter said the news was good for the company and a further step in diversifying the use of m-doc into the “potentially much larger and lucrative” market for cholesterol management.

Davy analyst Jack Gorman said the announcement meant Alltracel had the potential to deliver further revenues that were not part of its original forecasts. The findings were “very positive”, he said.