A Bradford drug company is to invest £4 million on new manufacturing equipment.

The firm is also changing its name from BPD - Bradford Particle Design - to Nektar Therapeutics UK Ltd.

The investment in new commercial operating equipment will increase the business's current manufacturing facilities ten-fold.

The investment will also allow the company to be able to produce enough dry powder particles - used in the manufacture of medicines - for clinical trials, launch stocks and production.

The Listerhills Science Park business, which employs 50, was acquired by US firm Inhale in 2001 for US$200 million.

BPD is changing its name as its Californian parent company is set to become Nektar Therapeutics.

The firm, which began life as a University of Bradford commercial spin-off eight years ago, has established itself as a world-beater in its field.

The company has developed a unique production process which enhances manufacturing processes and delivery of active ingredients in medicines such as Asthma inhalers.

The process controls the size, shape and crystallinity of particles - improving the effectiveness of products from inhalants to water-insoluble drugs.

The firm, which recently pulled out of a deal to take over a former school site in Bradford, will spend the investment over the next two years on manufacturing equipment.

The company, which has seen its staff compliment grow by an extra 25 people since it was taken over by Inhale, pioneered the manufacturing of powder particles which are used in 80 per cent of drugs and other pharmaceutical applications.

Dr Gwyn Humphreys, managing director of Nektar Therapeutics UK Ltd, said: "The market for drug delivery technology is estimated to grow from $50 billion to $100 billion by 2005.

"Nektar's new growth strategy will help build our leadership in drug delivery technologies - accelerating our growth and helping to ensure that the medicines which patients need most have the greatest chance of getting to market and of being safe, effective and convenient.

"This new strategy combined with continued investment in the UK is very positive for Nektar Therapeutics UK."

The business is currently working with more than 25 companies, including Pfizer, Roche and Amgen, to improve drug performance and optimise the delivery of their products. Its research and development helps make drugs more effective and easier to administer.

Bradford Particle Design was established in 1995 to continue the pioneering work which began at the University's School Pharmacy.

The firm's Listerhills Science Park base houses a pharmaceutical manufacturing plant alongside research laboratories.

The business had planned to take over Nab Wood Middle School, demolishing the existing building to make way for a new manufacturing and research centre.

Dr Humphreys said the plans were changed because of a budget review. The business is now looking to remain at Listerhills Science Park.