Unilever has abandoned plans to use a traditional slimming extract in a range of diet drinks, throwing Phytopharm, the British-based developer, into turmoil. The Anglo-Dutch group said Phytopharm’s drug – based on the Hoodia plant used by the San tribe in the Kalahari desert to suppress appetite – was “unsuitable” for further development with its SlimFast range, dashing hopes for any commercialisation of one of Phytopharm’s pivotal experimental products.

The decision has led to the resignation of Daryl Rees, Phytopharm’s chief executive, and Piers Morgan, the chief financial officer.

Shares in Phytopharm fell 3¾p, or 42.8%, to 5p.

It marks the latest in a series of efforts by Phytopharm to identify traditional medicines and develop them for use in western markets, following four years’ of work with Unilever.

It also signals the declining importance of SlimFast, which now accounts for less than 1 per cent of sales, as Unilever concentrates on fewer and bigger R&D projects with strong chances of success.

Unilever, has invested £17m, in Hoodia plantations in South Africa, also paid Phytopharm’s development costs, which at £2.6m in the year to September were all but £500,000 of total income.
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