Administrators called in as biotech makes a hash of things

A treatment using cannabis extract to treat cancer, and a novel way to ease period pain, are up for sale after the biotechnology company developing the drugs went bust.

Oxford Natural Resources (ONR), based in the university town, called in administrators last month after it failed to raise further funding. The administrators, Jonathan Scha-pira and Neil Bennett from Leonard Curtis, said there had been a lot of interest in the four drugs under development. GW Pharmaceuticals, a listed company preparing a treatment for multiple sclerosis using cannabis, could be a bidder.

ONR's cannabis-based treatment, ONP-O4, is being tested for its effectiveness in reducing the nausea associated with cancer chemotherapy. It has completed phase I trials successfully. The drug is given as a suppository, and ONR had planned to start phase II trials this year.It did not produce a "high" for the patients in the initial trial.

The period pain treatment, ONP-21, is a capsule using Chinese herbs that are used regularly in Asia. The company says that the condition is the major cause of absenteeism from school and work.

Its Hepatitis C treatment, ONP-17, uses extracts of traditional Chinese and Western herbs to reduce inflammation of the liver. It was being developed in collaboration with the Liver Unit of the Imperial College School of Medicine. ONR is also developing a treatment for dementia in the elderly.

The company had originally planned to float in 2002 with a valuation of up to £100m, but funding could not be secured. Impatient investors and falling interest in biotechnology stocks mean many companies are struggling to complete their research. Only four staff remain at ONR out of a total workforce of 20, as the administrators prepare to sell the intellectual property in the company. ONR had debts of nearly £1m and was burning around £3m a year.

Shareholders include Novartis and the Netherlands investment fund Rabobank.