AGI has ended a licensing agreement with fellow pharmaceutical firm Axcan in relation to a treatment for gastro-esophageal reflux disorder. AGI said yesterday the agreement with Axcan, an expert in gastroenterology, had been ended by mutual agreement. AGI will now seek a new licensee.

The two companies established the relationship in September 2006 and have since worked to develop the product and conduct clinical testing. AGI announced last year that it had found a formulation of the drug that could be administered once daily and improve control of night-time acid in reflux sufferers. More recently, US drug regulators said it could be registered in the US.