Michael Norris, who has served as finance director of Micap since June 2002, will take over as CEO. No replacements have been announced for his role or for Gowrie Smith.
The news comes as Micap reported widening operating losses for the year to end-March, up to £1.7 million (€2.5m) from around £660,000 in the prior year. Over the same period revenues also slumped from £900,000 to £320,000, although the previous year's results included a license £0.5m license fee from SkyePharma related to the use of Micap's microencapsulation technologies in 10 developmental products.
This deal has since fallen though, after SkyePharma decided to exit from the dermatologicals business and decided that there were not enough opportunities to supply Micap's technology amongst its remaining pipeline projects.
One of the main selling points of Micap's technology is that it can carry much higher concentrations of hydrophobic compounds - which are poorly soluble and so hard to formulate - than other encapsulation methods. The technology does away with the need for solubilising additives, and can also combine additional compounds alongside active drugs in the same microcapsule.
Chairman Ian McManus said a restructuring at the company would soon put the company back on track.
"We have cut our cost base very aggressively, and are focused on those business opportunities with short to medium term revenue streams." These come mainly from recently-acquired Applied Analysis, a provider of formulation, stability and analysis services to the pharmaceutical and nutraceuticals industries, as well as activities in the supply of flavours and services to the food industry.
McManus said the board is building a company with repeatable and sustainable revenues from direct sales whilst maintaining the technology upside from licensing opportunities.
Micap said it is also evaluating a number of possible agreements with potential partners in the pharmaceuticals, cosmetics and food sectors.