1st May 2019 08:38
LONDON (Alliance News) - Circassia Pharmaceuticals PLC on Wednesday said its loss narrowed in 2018 as it transitions into a commercial pharmaceutical business, resulting in lower research & development expenses.
The company, which is focused on respiratory disease, reported pretax loss of GBP55.8 million for 2018 compared to GBP74.2 million loss a year earlier, as revenue from contracts with customers grew to GBP48.3 million from GBP46.3 million.
In addition, research & development costs dropped to GBP10.8 million from GBP58.4 million in 2017 as a result of "significantly" lower headcount, while sales & marketing expenses increased to GBP57.3 million from GBP49.5 million.
These costs were higher mainly due to a full year of investment in the promotion of Tudorza in the US versus nine months in 2017, as well as significant expansion of commercial operations in China during the second half of the year, the company said.
"We made good progress in 2018 completing our strategic transition into a commercially-focused specialty pharmaceutical business focused on respiratory disease," said Chief Executive Steven Harris. "As a result, we dramatically reduced our net cash outflow and decreased the loss in our underlying business."
Looking forward, Circassia anticipates significant sales growth with a number of factors expected to contribute to the increase.
The company also plans to continue its cost control and commercial investment strategy and said it looks forward to continuing its trajectory towards profitability.
Circassia shares were trading 0.5% higher on Wednesday at 31.80 pence each.
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