Biocompatibles confident that suspension of Merz’s dermal treatment will be short

Shares in drug development and delivery specialist Biocompatibles (LON:BII) pulled back from their all time high after reporting that’s its marketing partner and licencee Merz Pharmaceuticals had temporarily suspended shipments of its Novabel injectable filler. 

The filler is a dermal treatment to shape contours of the face, but in a letter to customers, Merz stated that since its launch five months ago in seven European countries, a small number of patients had reported adverse reactions. Biocompatibles Cellmed division developed Novabel.  Both Merz and Cellmed are currently working on an effective treatment for the adverse reaction reported by patients.

 “I am confident that our CellMed team will have a safe and effective technique for sensitive areas ready for evaluation in the next few weeks,” Crispin Simon, the chief executive of Biocompatibles, said.

The drug delivery specialist also confirmed that it was maintaining its 2010 guidance, which was increased in June to revenues of £31-34 million and a 2010 closing cash position of £26 million.

Biocompatibles is currently in the process of ramping up its manufacturing capacity for Novabel with a €4m programme that is being part funded by Merz.

"We remain very positive and excited about the many, unique benefits Novabel offers doctors and patients,” Steve Basta, Chief Executive of Merz Aesthetics, added.