SHARES in a Durham-based company were being traded for the first time today after shareholders approved a name change and takeover.

Dermasalve Sciences, which produces skin products for dry skin sufferers, was floating on London's junior stock market, the Alternative Investment Market (AIM) today at a value of £6.57m.

Dermasalve was founded by County Durham GP Dr Mark Randle in July 2003 and backed by entrepreneurs Karl Watkin and Steven Katirai.

It has joined with investment company Meon Capital, which was floated on AIM for the purpose of investing money into a potentially successful company.

Shareholders approved the "reverse takeover" of Dermasalve by Meon Capital at an extraordinary general meeting yesterday, and shares start trading under Dermasalve's name today.

The company is based at Dr Randle's County Durham home, but directors are hoping for a move to offices in Newcastle soon.

It is hoped Dermasalve's products will capture a bigger slice of the UK's £440m over-the-counter and prescription medicated skincare market.

It is estimated that more than 15 per cent of the UK population and 60 million people in Europe suffer from some form of dry or sensitive skin condition or complaint and the global skincare market was estimated to be worth $28bn in 2002. The dermatology market is growing at more than ten per cent each year, due to increased skin sensitivities and allergies.

Dr Mark Randle, chief executive of Dermasalve, said: "Many consumers and patients with dry and sensitive skin are unsatisfied with existing products and treatments.

"As a result, Dermasalve is focusing its product development and future research activities on a range of products which do not include common irritants and skin sensitisers."

Dermasalve distributes its products through Sangers, the Northern Ireland based wholesaler, Lloyds chemists, which has more than 1,100 shops in the UK, and AAH Pharmaceuticals, a national wholesaler.

The company has recently signed a distribution agreement with Phoenix Group, one of the world's top five pharmaceutical wholesalers, which also owns Numark, which it acquired in October.

Karl Watkin, one of the founders and a non-executive director, said: "When Steven Katirai and I first met Mark Randle, we were impressed with the range of products he had developed and his plans for the future of the business.

"Between us we arranged for a group of local investors in the North-East to back Dermasalve."