Oxford Glyco fallsafter letter to 'Lancet'

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The Independent Online

Oxford glycosciences saw almost £100m wiped from its valuation yesterday, after a broker repeated criticisms of its lead drug published in The Lancet. On Friday the medical journal published a letter questioning the viability of the genomics company's treatment for Gaucher's disease. Yesterday's share price fall came after UBS Warburg circulated a research note advising clients to sell OGS in the wake of the letter. OGS shares fell 11 per cent, or 222.5p, to 1,735p, cutting its valuation by £90m to £702m.

Oxford glycosciences saw almost £100m wiped from its valuation yesterday, after a broker repeated criticisms of its lead drug published in The Lancet. On Friday the medical journal published a letter questioning the viability of the genomics company's treatment for Gaucher's disease. Yesterday's share price fall came after UBS Warburg circulated a research note advising clients to sell OGS in the wake of the letter. OGS shares fell 11 per cent, or 222.5p, to 1,735p, cutting its valuation by £90m to £702m.

The Lancet letter was written by Dr P Mistry, who manages the register of Gaucher's disease patients on behalf of Genzyme Corporation, the US pharmaceuticals group with the only Gaucher's treatment on the market.

Michael Kranda, OGS's chief executive, said: "[The press release detailing the drug's prowess] was factually correct, complete and balanced."

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