28th Mar 2018 12:55
For the six months ended December 31, pretax loss widened to
Profit performance was hurt by a sharp rise in exceptional costs to
Despite this, adjusted pretax loss - excluding exceptional items - still widened to
"The board deeply regret having to implement the wide-reaching restructuring recently announced but given the Tuzistra XR performance and slower than hoped for progress with the cough cold pipeline, it is no longer viable to sustain our US commercial operations or continue to pursue our current strategy", Vernalis Chief Executive Officer Ian Garland said.
"The decision to close the US commercial business will significantly reduce the ongoing cash burn of the group, after the closure costs have been incurred,"Garland added. "Whilst there is a need to exit or renegotiate contracts on reasonable terms, the directors have a reasonable expectation that the group will have adequate financial resources to continue in operation for the foreseeable future."
At the end of the period, Vernalis held
"Alongside the closure of the US commercial operations," Garland continued, "our focus in the next few months will be on exploring alternative ways in which to realise value for shareholders, including potentially the sale of the company as a whole. The Board has set a target date for concluding this activity of 30 September 2018 and we will provide updates to the market where possible."
Earlier in March, Vernalis reported it will close its US operations by the end of September whilst also initiating a formal sale process for the firm as a whole. The company also reported Chief Executive Officer Ian Garland and Chief Financial Officer David Mackney will leave the firm in September.
Shares in Vernalis were 2.2% higher at
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Vernalis PLC