Intercytex mulls more job cuts

MEDICAL firm Intercytex is mulling further job cuts after failing to line up a sale of the business.

The Manchester-based company, which specialises in regenerative medicine for skin and hair, has been talking to potential suitors for several months after failing to stem losses.

But today the directors said they did not expect to receive an offer for the whole business.

The statement added: “Discussions for the acquisition of certain parts of the business of Intercytex are progressing, although the sum total of indicative offers received to date is significantly lower than the current market capitalisation of the company.”

Intercytex is now preparing to start a 30-day consultation preiod with employee representatives over a round of redundancies. The firm employs 40 staff, with 32 in Manchester, after axing half the workforce in January. The business has its head office in Cambridge and laboratories in Sheffield and the US city of Boston.

In March Intercytex posted an £11.5m loss and warned that trading losses would continue for the foreseeable future. It admitted that existing cash resources of £4.86m were unlikely to sustain the group for another 12 months.