Cutbacks at Cortecs

By DAILY MAIL REPORTER
Updated:

 

A year ago, shareholders attending the agm of drugs company Cortecs enjoyed a dinner at the Institute of Directors club in Pall Mall.

The whole event, including a gift spoon, cost £22,500. This from a company which had yet to make a profit but operated its own helicopter.

There was not even a wooden spoon on offer at yesterday's meeting.

Investors, whose shares crashed from 418p two years ago to 13 1 /2 p, got only coffee and biscuits.

After Tuesday's shock warning about two of its major drugs and the resignation of chief executive Dr Michael Flynn, Lord (John) Patten, chairman since June, got a rough ride.

'I've put a lot of my family and friends into this company and I'll probably get lynched,' said one investor.

Were there more unwanted surprises to come? 'If we knew of any further problems we would have announced them on Tuesday,' replied Patten.

The good news is that the helicopter has been sold for £1m and the company's Helisal diagnostics kit for ulcers has won US clearance to be used by any qualified doctor.

An independent review of Cortecs' scientific programmes starts next week and a 'stringent cost containment' pro-gramme is promised.

Former chairman Glen Tra-vers, who is claiming £1.5m for wrongful dismissal in June, did not attend. His legal representative said his main concern was that Cortecs prospered.

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