25th Sep 2019 11:51
(Alliance News) - Open Orphan PLC on Wednesday posted a considerably widened loss for the first half of 2019, weighed down by a reverse acquisition cost.
Shares in Open Orphan were down 6.3% a 6.00 pence in London in late morning trade.
Venn Life Sciences Holdings PLC announced the GBP5.7 million all-share deal for Open Orphan in May, with Venn Life Sciences Holdings PLC and Open Orphan DAC then combined into Open Orphan PLC.
Rare and orphan drug consulting services platform Open Orphan reported a EUR1.2 million pretax loss for the six months ended June 30, more than twice its EUR463,000 loss the year before.
This was primarily the result of a EUR796,000 reverse acquisition cost incurred in the period, with no such cost the year before. Adding to this was a rise in finance costs to EUR250,000 from EUR12,000.
These costs more than offset Open Orphan's reduction in administrative expenses to EUR179,000 from EUR451,000.
Open Orphan Chief Executive Cathal Friel said: "The combination of Venn and Open Orphan has given us a strong platform to build a full-service, high margin consultancy to offer services to the fast-growing orphan drug market right across Europe. We have a strong management team with a proven track record and an experienced board which will work closely alongside us.
"We are well positioned for future growth and there a number of reasons for the team and shareholders to be excited as we look into the future."
By Anna Farley; [email protected]
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