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Phytopharm upbeat about Kalahari weight loss products

This article is more than 18 years old

An appetite suppressant extracted from a plant found in the Kalahari desert may be less than two years away from commercial production, foods group Unilever said yesterday. Unilever is collaborating with biotech firm Phytopharm on a £21m research and development programme for the plant, Hoodia gordonii, which has long been used by tribesmen of the Kalahari in southern Africa to stem hunger pangs.

Clinical trials of prototype products, such as drinks and food bars containing the plant extract, are getting under way as it moves into the second phase of the programme. The first phase, to which Unilever committed £6.5m, successfully established that the active ingredient can be extracted from the plant. A further £3.5m will be spent on the latest development stage. Once that is complete, the economic viability of the product will be tested, followed by consumer trials and, in the fifth and final stage, marketing approvals will be sought.

Early research by Phytopharm found the extract suppressed hunger so well that those taking it cut their consumption by as much as 1,000 calories a day. With obesity reaching epidemic proportions worldwide, the potential of the product is huge. Reflecting that, shares in Phytopharm jumped 3.25p to 42.25p yesterday.

The biotech company licensed the global patent rights for the extract of the Hoodia gordonii plant for incorporation into weight-loss products in 1997. It will receive royalties from Unilever on sales of all products containing the extract.

For Unilever, successful development of the product would bring a boost to its diet division, where its SlimFast brand has been hard hit in recent years by the growth of the Atkins and other diet fads.

Dr Richard Dixey, chief executive of Phytopharm, said yesterday: "We are delighted with our collaboration with one of the world's leading food companies. Our partnership with Unilever provides a fully funded programme and we look forward to generating royalty income from our partner's globally recognised brands."

He would not be drawn on when the product might reach the market, but a Unilever spokesman said if all goes well, it could be launched by 2008: "Potentially, it's very exciting. It may not work or may not be attractive to produce but all the indications at the moment are that it's a good bet."

With a market capitalisation of less than £22m, Phytopharm is a fraction of the size of Unilever. The £21m committed to the project represents a tiny proportion of Unilever's annual R&D budget but the spokesman said: "We are always looking for innovative products. We operate in 150 countries and for a significant number of them, over-nutrition is a significant issue."

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