AorTech dives on higher costs

16th Jun 2014 13:52

Shares in medical device maker AorTech dived after the group revealed the costs associated with one of its most recent licensees, Biomerics. The firm is responsible for the manufacture and supply of AorTech's polymers to all of its customers and potential customers. Biomerics's validation process is expected to be completed by the end of July this year.The group also said that several of its others licensees are experiencing delays through the development and regulatory requirement phases and have yet to achieve commercialisation of their products.A statement from the group read: "The board continues to carefully monitor all cash expenditure and has made further savings since the interim stage. The company has been much simplified with the closure of the US operating base and all operations have now been transferred to the UK. The benefit of the majority of these savings will be seen during the current year."It also said it had instigated legal proceedings against its former Chief Executive relating to certain alleged activities during his time as an employee of the company. The litigation is also expected to result in some exceptional charges for the year ended March 31st 2014.As such, the group has predicted its full-year pre-tax losses before interest, loan note premium adjustment and amortisation at approximately $1m on revenue of $0.6m. Shares had plunged 21.88% to 37.50p by 10.50p.NR