19th Mar 2014 13:39
LONDON (Alliance News) - Shares in Silence Therapeutics PLC dropped Wednesday after the biotechnology company said it narrowed its losses in 2013, but is considering a potential equity fundraising for further working capital.
The group said it currently holds net cash of GBP18.9 million, allowing its to meet present requirements and begin new clinical and pre-clinical programmes, including its current Phase 1b/2a study in pancreatic cancer and the Phase 1b element of the planned head and neck study, but said it is considering an equity fundraising to strengthen its balance sheet.
"The use of proceeds would be intended to support existing clinical projects and to expand pre-clinical capabilities and capacities," the company said in a statement.
It said it has received an encouraging indicative level of interest and support, but there is no guarantee that the financing will go ahead.
Silence Therapeutics shares were down 5.8% Wednesday, trading at 292.00 pence per share.
The group said it narrowed its losses to GBP9.1 million in 2013, compared with a loss of GBP26.3 million a year earlier.
It posted a drop in revenues for the year to GBP117,000 compared with GBP163,000 the prior year, while administrative, research and development costs rose, largely due to increasing spend in its clinical and pre-clinical programmes.
The group said that during the year it took its lead product into Phase 2 and took other programmes into advanced pre-clinical development.
Silence Therapeutics said it aims to select a further clinical target from its pre-clinical engine in the second half of this year, and in mid-2015 intends to begin a further programme with Atu027 in oncology.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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