Dealing in shares in Dublin-based biopharmaceuticals firm Alltracel got off to a bad start on London's Alternative Investment Market plummeting to 52.5 pence sterling from a launch price of 89 pence sterling, writes Carmel Linnane.

Alltracel, which raised #1.2 million through a private placing recently, has never made a profit and hoped to use its listing to help fund technology research to develop a platform for its products.

The share price dropped to 54 pence sterling almost immediately after its launch as two shareholders unexpectedly sold their shares.

Alltracel has more than 400 shareholders, with 18 per cent of the stock held by Dutch investors, 32 per cent with Irish individuals and the remainder currently with management.

Founded in 1996, Alltracel is developing a range of products including medical devices, drug delivery systems and treatments for cancer and cholesterol. It has research and development facilities in the Czech Republic.

Chief executive Mr Gerard Brandon said the flotation would provide funds to develop the business and give Alltracel a potential acquisition currency.

The company, which has headquarters in Dublin, made losses of #1.6 million on sales of just #186,232 in the 14 months to the end of last year.

This compared with a loss of #824,000 the previous year. Monthly expenses or the company "burn rate" is £100,000 sterling.

Mr Brandon, who has been talking of listing on AIM since 1997, said turnover was up in the first few months of this year and the company hoped to move into profitability by 2002.