Borders pharmaceutical firm Syntropharma has raised £1.25m from investors as it attempts to bring its revamped depression drug to market.

The company, founded by former ProStrakan managers Andrew Gardiner and David McHoul three years ago, raised £1m from initial investors in 2006.

The second round of cash comes from new and existing backers including Scottish Enterprise, Highland Venture Capital and Borders-based business angel syndicate TRI Cap. Syntropharma reworks drugs to make them easier to take. Its most advanced product is a patch to deliver Parkinsons Disease drug Selegiline which can also be used to treat depression, working in a similar way to a nicotine patch for reforming smokers.

The new cash will be used to fund a final round of trials and gain approval from US drug regulators before Syntropharma seeks a marketing partner to bring the drug to market in 2010.

US company Somerset Pharmaceuticals has already launched its own patch Emsam. But Syntropharma commercial director David McHoul said his firm would market its product more heavily for use in treating depression and would also target the European market.

The company, which is based in Newtown St Boswells, originally stated it would seek flotation by 2008, but yesterday McHoul would only say "this remains an option going forward".

The cash will also be used to develop other patch-delivered drugs such as a version of Risperidone, which is used to treat delusional psychosis, including schizophrenia.