Latest news From TheAge.com.auLESS talk and more action is what...

Latest news From TheAge.com.au

LESS talk and more action is what champions for consolidation in the biotechnology sector have been campaigning for, and signs are emerging that their wish might just come true this year.

Metabolic, the Melbourne-based drug developer working on a weight-loss pill, wants to take its business relationship with Neuren Pharmaceuticals to the next level.

It is believed that the company's board, chaired by Arthur Emmett, has been contemplating proposing a merger to Neuren, a small biotech in which it already has a small stake. The issue was discussed by directors at the most recent board meeting.

Many industry watchers believe that the two companies would be a suitable fit. Neuren has been carrying out research on behalf of Metabolic, including trying to find out the mechanism of action behind its obesity drug, and the two have been jointly developing Neuren's compounds for motor neuron disease.