KEITH McCullagh, the chief executive of beleaguered Oxford drug development company British Biotech, is to resign, it was announced today.

After 12 years in charge, Dr McCullagh will step down at the company's annual meeting on September 23.

His move comes in the wake of a huge row surrounding the Oxford-based company, including allegations that it had been over-optimistic about the progress of some of its trial drugs.

But, in a statement to the Stock Exchange, the company said: "The board is fully satisfied that Dr McCullagh has acted honourably throughout his leadership of British Biotech, while providing inspiration and leadership over many years."

It said Dr McCullagh felt it was time for new leadership to take the company forward into its next phase of development.

And it added the timing of his departure would allow "an orderly succession process" in which both internal and external candidates would be considered.

Converted for the new archive on 30 June 2000. Some images and formatting may have been lost in the conversion.