NEIL WOODFORD has turned his back on a US drug developer that has already swallowed £125m of the star fund manager’s cash.
Northwest Biotherapeutics last week raised $10m (£7m) through a share placing with existing investors. The proceeds could rise to $27m if further warrants are exercised. It is understood that Woodford, one of Britain’s most prominent stock pickers, did not subscribe to the offering.
The pharmaceuticals company has come under intense pressure since Phase Five Research, a little-known investment firm, accused it of financial impropriety and misleading shareholders. Northwest denies the claims.
Its main product is DCVax, a treatment for brain cancer, which has been under development since 1998 . In August the company stopped taking new patients for the drug’s all-important phase 3 trial. Northwest, which is run by former Enron finance executive Linda Powers, has given no updates since then.
Despite the problems, the company has never had a problem attracting funding. Just before Phase Five published its report in October, Woodford ploughed in $30m — taking his total investment to about $180m.
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He attempted to place a former FBI agent on Northwest’s board, but the proposal was rejected. Sources close to the fund manager indicated that he would be willing to invest more in Northwest if progress was shown on DCVax.
Two years ago, Northwest bought a 37-acre plot in Cambridgeshire on which to develop a production plant.