14th Oct 2014 08:56
LONDON (Alliance News) - Sareum Holdings PLC Tuesday posted a widened pretax loss in the year to end-June, as it continued to focus on commercialising its drug development programme.
The specialist cancer drug development company posted a pretax loss of GBP837,125, widened from a loss of GBP602,802 in the previous year due to higher administrative expenses. The company is not yet revenue producing. The company said the rise in costs was due to professional fees resulting from co-development agreements signed in 2013, and its programmes progressing to more advanced stages of development.
Sareum said it has reached a "critical stage" where late preclinical research is relatively expensive, but funding is challenging to source. It has addressed this by increasing its research capacity, and reducing costs though co-development agreements, it said.
In June, Sareum raised further funds via a placing and equity swap agreement. It expects to receive up to GBP550,000, but this is subject to the performance of its shares. These funds will be used for working capital and research funding, particularly for its TYK2 autoimmune disease programme.
The company is looking for a licensing and funding agreement for one of its research programmes, saying a licence deal would "transform the company and would allow it to deliver on its goal of delivering clinical-stage research programmes."
Shares in Sareum are trading down 1.1% at 0.470 pence Tuesday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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