30th Sep 2021 11:05
(Alliance News) - 4D Pharma PLC on Thursday reported a widened loss in the first half as it looks to further development of its microbiome-based therapies.
Shares in 4D Pharma were trading down 2.1% at 59.33 pence each in London on Thursday morning.
The Leeds-based company said its pretax loss widened to GBP57.0 million in the six months ended June 30 from GBP15.7 million a year prior and GBP14.1 million two years ago.
Interim revenue dropped 16% to GBP231,000 from GBP275,000 last year. During the first half of 2019 the company reported no revenue.
Research and development spending was cut to GBP9.9 million, down 20% year-on-year from GBP12.4 million.
The company's widened loss was primarily due non-recurring costs of GBP44.1 million, compared to GBP565,000 last year. 4D Pharma said the costs were associated with warrants and share options, mainly those associated with its acquisition of Nasdaq-listed special purpose acquisition company Longevity Acquisition Corp. The merger was designed to allow 4D Pharma access to US capital markets.
"The first half of 2021 has been a significant period for 4D pharma. Our dual listing on Nasdaq raised our international profile and, using this as a platform along with new funds at our disposal, we look ahead to a period rich in clinical catalysts across our pipeline of Live Biotherapeutic Products taking the microbiome beyond the gut, including clinical readouts and the commencement of new studies across multiple programs," said Non-Executive Chair Axel Glasmacher.
The company's pipeline includes at least ten programmes - at various stages of development - from its irritable bowel syndrome drug Blautiz, which has completed Phase 2 trials, to its pre-clinical neurodegeneration treatments, MRx0005 and MRx0029.
4D Pharma identified the MRx0005 and MRx0029 bio-therapeutic candidates through screening a panel of gut bacteria using its MicroRx platform. The company said the pair appear to have "potent effects" on neuroinflammation and intrinsic antioxidant capacity.
The company said it plans to develop the field of microbiome-related treatments with these candidates, noting "accumulating evidence" of the microbiome's role in the central nervous system.
Trials of MRx0005 and MRx0029 in patients with Parkinson's disease are expected to begin in 2022, the company said.
According to the National Human Genome Research Institute: "The microbiome is defined as the collective genomes of the microbes (composed of bacteria, bacteriophage, fungi, protozoa and viruses) that live inside and on the human body."
"Highs and lows in the broader microbiome space have created mixed feelings towards microbiome therapeutic approaches - we are confident 4D pharma's differentiated, mechanism-driven approach is poised to deliver," Chair Glasmacher added.
The company said it has sufficient cash to fund its operations until the fourth quarter of 2022. Its cash balance was GBP20.7 million on June 30, more than double the GBP10.0 million held at the same point in 2020.
Throughout the next 18 months, 4D Pharma said it will need GBP23.2 million for research and development, GBP10.2 million for administration costs, and GBP6.1 million for R&D tax credit refunds.
By Scarlett Butler; [email protected]
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