Viagra duo seek funds for sex performance drug

A biotechnology company which is developing a spray to combat premature ejaculation plans to float on the Alternative Investment Market.

Medpharma is run by two of the men who helped launch Pfizer's iconic impotence pill Viagra. If successful, the flotation will be the biggest of the year so far, even though it plans to raise just £8m.

The biotech group is focusing on urology, and has developed drugs it hopes will be able to treat premature ejaculation and incontinence, and diagnose prostate cancer. It is also working on products to treat female sexual disfunction and to strengthen orgasms.

Medpharma's chief executive, Murray Maytom, is newly hired from Pfizer, where he was global director of the men's health group responsible for Viagra. Mike Wyllie, chief technical officer, also helped launch Viagra at the US pharmaceuticals giant.

Medpharma was founded in 1999 and is chaired by Neil Stafford, former global business director at the genetically-modified crops group Monsanto.

Mr Maytom said: "Because we are focused on urology, and because of our expertise in this area, we should have a higher probability of success with the products we are bringing to proof-of-concept."

Unlike most biotech groups, Medpharma works only on the middle stage of human trials of new drugs, licensing in exciting early-stage products or partnering with bigger pharmaceuticals companies. It hopes to make money from licensing its products to major drugs firms with the cash to carry out expensive final trials and to launch the products.

The company hopes to float via a placing of new shares, and is targeting a market capitalisation of around £33m. The group lost £1.4m last year.

It says urology is one of the fastest growing sectors of the pharmaceutical industry, worth £5bn a year. The launch of Viagra and, this year, two rival products has increased awareness of sexual problems, and an ageing population is expected to grow demand for sexual health and urological drugs.