The Oxford-based biotechnology company, Oxford GlycoSciences, which intends to raise about $216 million in a secondary listing at Nasdaq, is to enter into an alliance with global pharmaceutical major, Galxo Wellcome to identify proteins that are present in patients with a particular disease. The company is hoping that this alliance will help lift its share price and put its fundraising efforts back on track.

Despite that fact that biotechnology shares, especially in the US, have seen a downward trend, the sharp fall in the company's share prices, since it announced its Nasdaq listing, has led to concern among analysts that the fundraising might have to be scaled down or scrapped.

With the announcement of the new alliance, company officials are hopeful that existing investors are likely to subscribe to the offer.

The core competency of the company lies in the study of proteins, which undergo subtle changes as a patient declines from good health into illness. The alliance with Glaxo will bring in funds to conduct research into bio-markers - proteins associated with diseases.

It is believed that OGS will study disease areas in which Glaxo has a strong presence, presumably Aids, asthma and some central nervous system conditions, such as depression and migraine.

Coming at a time when Glaxo is facing a major crisis with three of its drugs having been recalled on safety grounds, the pharma major aims to use the alliance to monitor the progress of drugs through clinical trials. By using the bio-markers, Glaxo hopes to reduce the attrition rate of many drugs that drop out of the pipeline because of unforeseen side-effects or lack of efficacy.

Glaxo firmly believes that the ability to discover and develop new drugs and bio-markers will form an important strategy in accelerating the development of drugs and increasing efficiency.

OGS will retain rights to use any bio-markers discovered as diagnostic tests, though Glaxo will be given first refusal to negotiate a licence.