Entelos Inc has signed an agreement to supply services to GlaxoSmithKline.
Shares in Entelos jumped 50% to 4.5p each, which values the company at £2.72m.
California-based Entelos develops predictive biosimulation models, which can be used instead of animals to test drugs. GSK will carry out in silico research using the Entelos Hematopoeisis PhysioLab platform. This platform simulates the biology of anaemic patients in order to predict responses to drugs.
This is the third in a series of projects with GSK.
House broker KBC Peel Hunt estimates that Entelos lost $1.9m in 2008.
Imperium Master Fund increased its stake in Entelos to 6.1% during December 2008 and this was reported to the market on 28 January 2009.
Entelos is due to repay $1.7m to Imperium in April 2009. There is concern about whether Entelos will be able to repay the loan at that time but Imperium’s stake suggests that it believes in Entelos and its potential. Imperium may be willing to negotiate about the repayment.
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