Blair Nimmo and Gary Fraser of KPMG have been appointed joint administrators of Scottish companies Angel Biotechnology Holdings plc and Angel Biomedical Ltd.

Headquartered in Edinburgh, the companies also have facilities in Glasgow and Northumberland for the manufacture and supply of clinically-based bio-materials for global biotechnology and pharmaceutical companies.

The administrators said the companies had incurred losses, most recently as a result of difficult trading conditions. This led to cash flow difficulties, with directors then becoming involved in negotiations with two potential joint venture partners. When these proved unsuccessful, the directors took the decision that they had no option but to place the companies into administration.

The joint administrators are now assessing the companies' financial situations with a view to finding a buyer. All 22 employees have been retained.

Blair Nimmo, head of restructuring for KPMG in Scotland, said: 'Angel Biotechnology and Angel Biomedical have worldwide reputations for the quality of their production facilities, understanding of global regulatory regimes, and being at the cutting edge of pharmaceutical and biotechnological manufacturing. We are hopeful that the companies, and their employees, will have a positive future given their unrivalled credentials and quality of service.'

Share-trading in the AIM-listed Angel Biotechnology Holdings has ceased.