Intraject 'bombshell' shakes Weston

SHARES in drug delivery company Weston Medical collapsed after a delay in launching a new needle-free injection device. The setback is a massive blow for the company, headed by Mick Newmarch, the former boss of the Prudential.

The shares, which peaked at 275p last year, valuing the business at £350m, crashed from 50p to 6 1/2p after technical problems, which will delay the launch of its Intraject syringe from next year until mid-2005.

Weston, which has been burning £1m a month on development work, also warned that 'additional funding' would now be needed.

'It's a bombshell. There was no warning of this and it is very late in the day to start saying there are problems,' said Robin Campbell at broker WestLBPanmure.

Routine tests uncovered hitches, forcing changes to the design of Intraject - a less painful and more effective method of delivering drugs into the body.

Although the changes are minor, it means the company will be forced to return to health authorities for fresh approvals - usually a lengthy process.