Celltech in spin over drug delay

BRITAIN'S biggest biotechnology company Celltech suffered a major setback after warning that its most promising drug will take up to a year longer than expected to develop.

The shares collapsed by almost one-fifth - down 88p to 364 1/2p - after Celltech admitted that its partnership with US giant Pfizer, in the development of the treatment, might break down.

Pfizer, which makes Viagra, is postponing late-stage trials of Celltech's CDP 870 drug for rheumatoid arthritis and wants to renegotiate the financial terms of the collaboration.

The UK biotech firm is also developing the treatment to combat Crohn's disease with a large late-stage trial due in the next fortnight.

Celltech is a rarity in that it makes money - £17.8m in the last half year.

Broker Evolution Beeson Gregory says the delay highlights the dangers of having 'one egg in a basket'.