Ex-British Biotech Chief in Comeback

By Lauren Mills, The Business, London

Mar. 19–Keith McCullagh, who retired from British Biotech in a blitz of controversy in 1998, is planning a return to the drugs sector after eight years.

The Business has learned McCullagh is preparing a Danish cancer company for flotation. He has steered Santaris Pharma through a E40m (£27m, $48.3m) private funderaising and hopes it will be ready for a stock market flotation in the second half of next year.

The latest investment round was supported by ABN Amro Capital Life Sciences of the Netherlands, Global Life Science Ventures of Germany and Switzerland, and SPEF Venture of France. They join existing shareholders including BankeInvest and Novo Ventures of Denmark, as well as Teknoinvest of Norway.

The cash will be used to fund the company’s revolutionary leukaemia treatment, SPC 2996, through to Phase II trials. eMcCullagh said the company had enough money to fund its activities to mid-2008.

McCullagh stepped down as chief executive of British Biotech in September 1998 after Andy Millar, former head of clinical research, claimed McCullagh and others had over-puffed test results for the company’s drugs, including marimastat, once hailed as a miracle cancer cure.

McCullagh denies he or the company did anything wrong. He says British Biotech was brought down by a string of allegations that were untrue.

McCullagh is determined to carry on working in the sector, helping to develop cancer therapies. He said: “I am an entrepreneur. I feel very passionate about bringing innovations in science to the benefit of society. I have always had an interest in cancer and Santaris is a company with early stage drugs for cancer and unique technology.”

Even if SPC 2996 proves successful in trials, it is unlikely to be launched until 2011.

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