June 29, 2009 / 9:12 AM / 11 years ago

UPDATE 1-Alizyme says running out of funds; shares plunge

* Does not see sufficient funding after Aug

* May face going into administration or liquidation

* Shares plunge 62 pct to a lifetime low of 2 pence (Adds details, share price)

June 29 (Reuters) - British biopharmaceutial firm Alizyme Plc AZM.L said it did not foresee having funds to last beyond August, sending its shares down to a lifetime low.

The company is in talks with its advisers regarding the raising of additional funds, without which it may face going into administration or liquidation, Alizyme said in a statement on Monday.

Shares of the company were down 53 percent at 2.5 pence at 0815 GMT on the London Stock Exchange.

The development firm added it was carrying out a strategy review and expects significant job cuts and a possible delisting of its shares.

Alizyme depends on milestone income from COLAL-PRED, a steroid developed for the treatment of ulcerative colitis.

But as potential funding obligations have risen, there is now material uncertainty as to the receipt of milestone payments due, it said.

Reporting by Shivani Singh in Bangalore; Editing by Rosalba O'Brien

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