Phytopharm in Talks with Unilever to End Hoodia Extract Pact

Data from a recent clinical study using Hoodia extract in a drink-based product have led Unilever to conclude that it is unsuitable to be taken forward by Unilever. As a consequence, the parties are discussing the terms of termination.

14/11/08 The Company is in discussions with Unilever, its partner for the development of Hoodia extract as a functional food targeting weight management, with a view to mutually terminating their agreements. Unilever and Phytopharm originally signed a licence and joint development agreement of the development and commercialisation of Hoodia extract in December 2004. Hoodia extract is a novel appetite suppressant that has been shown to reduce caloric intake in overweight subjects, as previously announced by Phytopharm.

Data from a recent clinical study using Hoodia extract in a drink-based product have led Unilever to conclude that it is unsuitable to be taken forward by Unilever. As a consequence, the parties are discussing the terms of termination. Phytopharm believes, however, that the pre-clinical and clinical data of Hoodia extract encourage further study of Hoodia for obesity, as well as for pharmaceutical and veterinary applications.

Alistair Taylor, Chairman of Phytopharm, commented: “Over the past four years we have generated a considerable body of pre-clinical and clinical data on Hoodia with Unilever. Whilst Hoodia has not been found to be suited for a Unilever branded product, we have compiled a substantial dataset which will allow us to explore alternative product formats for the commercialisation of Hoodia. We will now take further steps to build on this foundation and seek other partners to further develop Hoodia and bring this exciting opportunity to market.”