Syntopix aims to extend market reach through share issue

The company, which was spun out of the University of Leeds and is based in Bradford, reported narrower annual operating losses for the year to the end of July 2009.

The group, which is trying to commercialise its technology for the treatment of dermatological and consumer healthcare conditions, said the equity issue will help fund development of its compounds, allowing it to further tap into the multi-billion pound acne market.

Over the year the group signed a second 12-month evaluation agreement with a major consumer healthcare company, and also saw positive clinical results for a key dermatological compound.

Syntopix said turnover rose by 35 per cent to 190,000 thanks to further commercial agreements and operating losses reduced by 17.5 per cent to 1.29m.

Chief executive Dr Stephen Jones said: "I am delighted to report on a year of continued progress for Syntopix Group. The group has now established links with two of the world's largest consumer healthcare companies from which we envisage generating revenue streams in the near future.

"The successful Phase II cosmetic study completed after the year end is a significant milestone for the group and will contribute to Syntopix entering into further commercial agreements. The group is now focussing strategically on the commercial development of its three leading products which each have multiple potential applications in skincare, hair care and oral care."

Syntopix added it started the year with 894,000 cash and is "extremely optimistic" further commercial opportunities will arise over the next 12 months.