Investors overdose on Bioprogress

THERE'S never a dull moment in the biotech sector these days. The name on everyone's lips yesterday was

Buyers overdosed on the stock, which closed 28p higher at a record 106p on healthy turnover of almost 16m. The Cambridge-based company was listed on Aim last June at 16p.

Bioprogress produces non-gelatin or animal-free coatings for pills, which allow the contents to be absorbed into the body at regular intervals.

It has signed an exclusive worldwide licence for the group's NROBE dosage form, process, equipment and enabling technology and says the contracts are likely to generate a 'minimum' of £87m of revenue over the first six years. That's huge for a company of its size.

Bullish chief executive Graham Hind said the agreement marks a significant step in the company's development and added that its NROBE technology can capture a significant share of the capsules and tablets market.

With the circulation of after-hours rumours of at least two other licencing deals in the pipeline, dealers expect the shares to be hyperactive in the short term.

Speculative buying amid vague whispers of a bid approach left Proteome Sciences 11p better at 227 1/2p. Aventis Research & Technologies sits on 15.1% of Proteome, which is best known for developing tests for mad cow disease and variant CJD.

Ahead of an expected 0.25% hike to 4% in UK interest rates today, the Footsie retrieved a 21-point deficit to close 7.9 points better at 4398.5.

Bear Stearns' chief European economist David Brown says all the ingredients are there for higher rates. UK growth is looking quite robust, retail sales are booming and the Bank of England will be less worried about the effect of dearer money on UK business.

Sterling eased to $1.8354, while the euro edged up to 68.4p and $1.2551.

Still reflecting a Charles Stanley recommendation and recovery hopes, financial information group Reuters gained 10 1/4p to 338p.

Current takeover favourite Scottish & Newcastle retrieved a profit-taking induced fall of 15 3/4p to froth higher again just before the close to finish 1 3/4p better at 414 1/4p. Trevor Hemmings, the multi-millionaire owner of Blackpool Tower and Pontins and former S&N director, owns almost 36m shares, or 4%, of Britain's last independent brewer.

IT services company Xansa advanced 4 1/2p to 91 3/4p after announcing an offshore outsourcing partnership with Lawson Software of the US.

Amid speculation that Icelandic retailer Baugur was about to add to its 22% stake, The Big Food Group jumped 8p to 180 1/2p. Somerfield, where Baugur sits on 3.6%, improved 3p more to 167p.

Certainly not helped by news of chairman Robin Saxby's sale of 1m shares at an average price of 125 1/8p, semiconductor firm ARM Holdings fell 4 1/2p to 120 3/4p.

Deutsche Bank's sale of 6.2m shares unsettled Lastminute.com, 6p down at 212p.

Car dealer European Motor accelerated 15p initially on vague bid talk before reversing sharply on news of director share sales to end only 2p dearer at 189p. Chief executive Richard Palmer sold 100,000 at 199p and finance director Ann Wilson unloaded 50,000 at the same price.

Placed on Aim at 50p, shares of Supercart, which sells and distributes a range of plastic supermarket trolleys, touched 56p before closing at 54p for a premium of 4p.

Mining equipment group Charter jumped 18 1/2p more to 151 1/2p after agreeing to sell its 50% stake in GCE Gas Control Equipment to Triton for £14m.

African Diamonds sparkled with a gain of 8 1/4p to 56p after recovering two diamonds from its Orapa AK9 Kimberlite site in Botswana. Speculative buying lifted Oxus Gold 2 1/2p to 67 1/2p.

Rumours of a Merrill Lynch buy note helped Edinburgh Oil & Gas spurt 4 1/2p to 134p.

THE POST-Christmas rush by the overweight and unfit to get lean helped January membership levels at health club LA Fitness rise to 190,000-plus, up 15% on last year. Two clubs were opened last month with a couple more planned for the second half of the year. Some lossmaking clubs have been closed. Broker Altium Securities has a short-term target price of 200p. The close was 184 1/2p, up 2p.