27th Sep 2016 07:29
LONDON (Alliance News) - Circassia Pharmaceuticals PLC on Tuesday said the poor results from its cat allergy study in June caused it to book a big impairment in the first half of 2016 and resulted in its loss widening significantly.
The company, which dropped out of the FTSE 250 last week, saw its shares lose two-thirds of their value in June after it said a late-stage study of its key cat allergy treatment failed to achieve its primary endpoint. The treatment and a placebo used in the study proved equally effective, it had said.
Following those disappointing results, Circassia booked a GBP76.4 million one-off impairment against its allergy portfolio. This meant its pretax loss for the half-year to June 30 was GBP107.6 million, compared to a GBP26.0 million loss a year prior.
Revenue for the group was GBP11.1 million, much higher than the GBP600,000 it reported for the first half of 2015, driven by sales of its NIOX asthma franchise. Circassia said its respiratory portfolio is progressing well, with a filing for its Seriveo drug on track for the second half of 2017.
Circassia said it was taking a "prudent" approach to its allergy portfolio, meanwhile, with investment in the segment curtailed following the poor results in June. A review of the portfolio will follow results from its house dust mite allergy study, due in spring 2017.
"While the first half of 2016 was dominated by June's unexpected and disappointing phase III cat allergy results, we have made good progress in our wider business and are capitalising on a number of strategic opportunities," said Chief Executive Steve Harris.
"Our ambition to build a world-class specialty biopharmaceutical business remains undimmed and we believe the combination of our marketed products, broad pipeline and robust commercial platform gives us the foundation we need to achieve this goal," Harris added.
Shares in Circassia were down 3.6% at 93.75 pence on Tuesday morning.
By Sam Unsted; [email protected]; @SamUAtAlliance
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