28th Jul 2015 08:16
LONDON (Alliance News) - Speciality biopharmaceutical business Circassia Pharmaceuticals PLC on Tuesday posted a wider pretax loss for its first half, mostly as a result of two large acquisitions.
For the half year to end-June, Circassia posted a pretax loss of GBP26.0 million, widened from a pretax loss of GBP19.6 million a year before, mostly as a result of higher operating costs related to its acquisitions of Aerocrine AB and Prosonix Ltd. It recorded revenue of GBP574,000, compared to no revenue in the previous year.
The company increased marketing and sales spend ahead of the launch of its first allergy treatment, and also its spending on research and development activities as it continued to progress its pipeline.
Circassia raised GBP275 million in a placing and open offer to fund the acquisitions of Aerocrine and Prosonix, which it said have significantly accelerated its strategy.
In the second half, the company said it will work towards the commercialisation of its cat allergy treatment. It is on track for delivering phase III results from trials of the treatment in the first half of 2016. Circassia said it was fully funded to bring this product to market, and to deliver its wider portfolio and complete its goal of reaching profitability.
"In the coming year, we intend to expand our commercial presence in preparation for the launch of our cat allergy treatment, which we also expect to boost sales of our current asthma products. As a result, we are ideally positioned to achieve our ambition of becoming a self-sustaining specialty biopharmaceutical business," said Chief Executive Steve Harris in a statement.
Shares in Circassia were trading up 0.5% at 298.69 pence Tuesday morning, having declined at the open.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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