Shares in Neuropharm rallied after the speciality pharmaceutical company said it may propose a members' voluntary liquidation amid continuing uncertainty as to whether an offer will be made for the group.

Neuropharm has been in discussions with a number of parties since it entered an offer period on 3 November and announced that it was pursuing a proposed sale or merger.

The group said it is continuing talks with a potentially interested party, which is in the advanced stages of due diligence, but has not received an indicative offer yet.

'In light of continued uncertainty as to whether an offer will be made for Neuropharm and the costs associated with maintaining the quotation of the company's securities on AIM and the continued operation of the business, the board has resolved to explore a return of cash to shareholders,' it said.

'This could be achieved by way of a proposal to shareholders for a members' voluntary liquidation of the AIM quoted company, Neuropharm Group plc, within the next two months and the potential realisation of value from the sale of Neuropharm Limited, the operating company, or the programmes in its portfolio.'

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