Ardana, a former white hope of the Scottish biotechnology sector, moved yesterday to stem the collapse in its share price by announcing it had received a number of takeover approaches.

The company's shares, quoted at 108p a year ago, had crashed to 41p by the start of the year, and to 28p before Ardana announced on February 19 that it was looking for a sale or merger. It had lost another two-thirds of its market value by Wednesday, collapsing to 9.5p or little more than its likely cash pile. The price almost doubled to 18.25p on yesterday's update, valuing Ardana at £11.9m.

"Since the announcement, the company has held discussions with a significant number of interested parties," Ardana said.

"Even at this early stage, the company can confirm that it has received a number of approaches which may or may not lead to an offer."

The board intended to ensure that all interested parties were "brought rapidly to the same point in the process" so that offers could be equitably compared.

"In addition, the process has generated significant interest in potential licensing opportunities for one or more of the company's products."

The board was progressing the licensing discussions in parallel, to ensure a maximising of shareholder value at the appropriate time.

"However, the board will only pursue a licensing transaction if it does not negatively affect the value of the company in the view of potential acquirers."

Jacob Plieth at Edison Research commented: "It is encouraging that they have had multiple discussions, if they can get parties bidding against each other it is obviously positive - but there will only be a certain level up to which they will be interested."

Plieth added: "When they say they are looking both at the option of licensing out something as well as having the company taken over, and one shouldn't affect the other, I can't realistically see a way of them doing that.

"It is unrealistic that they would be able to license out a key asset and also get a bidder on good terms for the rest of the company."

He said investors might expect "something more than cash" but the premium would depend on the deal that could be hammered out.

Ardana concluded: "Given the level of interest in the company and its products generated by the process to date, the board sees no reason for the significant fall in share price since the announcement on 19 February."

Plieth, however, said the comment was "slightly strange", adding: "Against the backdrop of the overall market, highly speculative investments in biotechs, especially ones in trouble, are going to take a double whammy - so I think there is an obvious reason."

Ardana first warned last October that it did not have enough cash to fund its ambitions for the year ahead, soon after Dr Maureen Lindsay stepped down as its chief executive.

Last month, the company revealed it had burned through £10.4m during 2007, and its remaining cash pile was only £6.1m, described by chief executive Huw Jones as "enough cash to pursue an orderly merger".

In December, after a strategic review, it said some of its clinical development programmes had been put on hold to focus on projects closest to generating commercial returns.

Jones said then it was "way too early" to talk about Ardana's future in Scotland.