London, U.K.-based Unilever has abandoned plans to develop a hoodia-based weight management product for the functional food market.

Unilever and Phytopharm plc, Cambridgeshire, U.K., originally signed a license and joint development agreement in December 2004. Data from a recent clinical study using hoodia extract in a drink-based product led Unilever to conclude that it is unsuitable to move forward with the product concept, according to a press release issued by Phytopharm.

As a result, the parties have been discussing the terms of termination. According to Phytopharm, the company believes pre-clinical and clinical data of hoodia extract encourage further study for obesity, as well as for pharmaceutical and veterinary applications. The announcement came one day after Phytopharm announced CEO Daryl Rees and CFO Piers Morgan were leaving the company.

“Over the past four years we have generated a considerable body of pre-clinical and clinical data on hoodia with Unilever,” said Alistair Taylor, chairman of Phytopharm. “Whilst hoodia has not been found to be suited for a Unilever branded product, we have compiled a substantial dataset which will allow us to explore alternative product formats for the commercialization of hoodia. We will now take further steps to build on this foundation and seek other partners to further develop hoodia and bring this exciting opportunity to market.”