PPL scraps expansion

Scottish biotechnology company PPL Therapeutics has failed to raise cash for the expansion of its New Zealand flock of genetically engineered sheep, which produce milk containing a human protein.

PPL, which cloned Dolly the sheep, has dropped plans for a £45 million ($158 million) share issue on the London Stock Exchange, blaming a fall in technology markets.

"It is very disappointing that, despite positive indications, we have been unable to obtain sufficient support from the equity markets," said the company's managing director Ron James.

PPL has up to 1000 transgenic ewes among 4000 sheep on its farm at Whakamaru, near Tokoroa.

It had wanted to use some of the money to buy its second New Zealand farm to produce the sheep milk containing its flagship product, recombinant alpha-1-antitrypsin.

- NZPA