Canaccord Capital has bowed to the pressure of animal rights extremists by resigning as broker to drugs group Phytopharm after a firebomb attack on the company’s finance director last month.

A group linked to the Animal Liberation Front claimed responsibility for the attack saying it had placed an incendiary device under the car of Michael Kendall.

A spokesman for Canaccord said the device exploded and set light to the car, which was in the garage attached to Mr Kendall’s house. The explosion set off the car alarm, which woke Mr Kendall, who was able to extinguish the fire. The spokesman added that Mr Kendall’s children were asleep in the house at the time.

The terrorist organisation justified the attack by saying that Phytopharm, which is one of Britain’s best known biotech companies, has links with Huntingdon Life Sciences (HLS), a long-time target of animal rights protestors.

"Canaccord are HLS customer Phytopharm’s biggest shareholders and have raised £10 million for them. Bad mistake. If you support or raise funds for any company associated with HLS, we will track you down, come for you and destroy your property by fire," the group's website said.

The ALF has also warned Phytopharm to "get out of Huntingdon Life Sciences or see your share price crash and your supporters’ property go up in flames."

A spokesman for Phytopharm, which develops pharmaceuticals from plants, said protestors had targeted the company because of its links with Japanese pharmaceutical company Yamanouchi, which was a client of Huntingdon Life Sciences.

Phytopharm is expected to make an announcement shortly about replacing Canaccord as broker.

In April, Canaccord underwrote a £10 million share placing for Phytopharm to raise funds for drug development.

The targeting of Canaccord follows a series of attacks on businesses supplying or working with companies using animals to develop life-saving drugs.

In September last year, Huntingdon Life Sciences lost three suppliers after animal rights terrorists threatened the companies with attack. In a separate incident the building of a laboratory for Oxford University was delayed after extremists hounded contractors off the site.

The Government has intensified efforts to combat the terrorists by establishing a National Co-ordinator for Domestic Extremism, but critics argue that today’s move by Canaccord shows there is still much to be done.

By mid-afternoon shares in Phytopharm had slumped by more than 10 per cent as investors fled the company fearing attack.

Shares in Canaccord, which only listed on AIM in May, were flat at 432.5p.

Explore Health

• Expert Advice

• Health Features

• Mental Health

• Alternative Medicine

• Child Health

• Health Club