Haemocell shares up after 6m pounds rights issue

SHARES in Haemocell, the medical technology company, shot up 25p to 249p after the company announced a rights issue to fund further development of its principal product, which has just been licensed in the US.

The product - named S350 - allows surgeons to collect blood lost during or after surgery for immediate reinfusion into the patient. This removes the need for donor blood and eliminates the risk of infection from viruses such as HIV and hepatitis.

There are similar systems available, but they are relatively expensive and are designed for large quantities of blood while S350 is aimed at situations where there is less blood loss.

Haemocell is raising pounds 6.1m net of expenses from the one-for-four rights issue at 150p a share. A director, Trevor Wilson, is also having 400,000 shares placed at the same price.

Having got US approval for S350, the company now wants to develop other applications for it. These potentially include using it for quality control in the personal care products, food and beverages industries.

The chairman, Andrew Priestley, said the company would report losses of pounds 1.69m for the year to 31 August.

'However, now that S350 has gone on sale in the huge US health care market, the board will be disappointed if the losses are not reversed next year,' he added.