27th Mar 2008 07:00
SILENCE THERAPEUTICS PLC ("Silence Therapeutics", "Silence", "the Group" or "the Company") PRELIMINARY UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2007
London, UK, 27 March 2008 - Silence Therapeutics plc (AIM: SLN) today announces its preliminary unaudited consolidated results for the year ended 31 December 2007.
HIGHLIGHTS
* Collaboration signed with AstraZeneca to develop novel AtuRNAi molecules against five specific, principally respiratory, targets. Silence Therapeutics received an initial access fee payment of ‚£2.5m (~US$5m) plus an equity investment of ‚£5m (~US$10m) and will receive milestone payments of up to ‚£200m (~US$400m) as well as royalties on product sales. * Two AtuRNAi products commence human clinical trials: * RTP801i-14 which is being developed by Pfizer and Quark Pharmaceuticals for the treatment of Age-Related Macular Degeneration (AMD), and * AKIi-5 which is being developed by Quark Pharmaceuticals for the treatment of Acute Kidney Injury. * Silence's lead internal product Atu027 successfully completed single and repeat dose toxicology and geno-toxicology studies as well as 28-day toxicology studies using multiple dosing schedules. This product is scheduled to enter clinical trials in 2008. * Core patent covering AtuRNAi granted in Europe, providing commercial protection to Silence Therapeutics and its partners. * Management team strengthened with appointments of Jeff Vick as Group CEO and Dr. John Lucas as General Counsel and Vice President, Intellectual Property. * Expansion of collaboration with Quark Pharmaceuticals granting Quark non-exclusive license options against three specific targets.
FINANCIAL HIGHLIGHTS
* Revenue increased to ‚£4.05m in 2007 from ‚£1.95m in 2006, reflecting milestone and licence fee revenues from agreements with AstraZeneca, Pfizer and Quark. * Research and Development expenditures rose to ‚£4.8m in 2007 from ‚£3.2m in 2006 due to investment in our pipeline of novel RNAi molecules targeting cancer indications and our world leading delivery expertise. * Cash position at year-end is ‚£10.17m, an increase of ‚£1.35m from the end of 2006 as a result of increased payments from our collaboration partners.
POST PERIOD HIGHLIGHTS ¢â‚¬¦¢â‚¬¦¢â‚¬¦¢â‚¬¦
* Collaboration signed with AstraZeneca for the development of novel
approaches for the delivery of siRNA molecules.
Iain Ross, Chairman of Silence Therapeutics, commented:
"Reviewing the exciting progress that Silence Therapeutics made over the last fifteen months, it is clear that the company is building value as its siRNA technologies and intellectual property portfolio continue to develop. Our collaborations with AstraZeneca, one of the world's largest pharmaceutical companies, clearly validate the potential of our siRNA therapeutic and delivery technologies as does the AtuRNAi products which are already in clinical development with Pfizer and Quark Pharmaceuticals. We expect the exciting evolution of Silence Therapeutics to continue into 2008, with further significant milestones such as the entry of Atu-027 into the clinic, allowance of our AtuRNAi patent in the US, and the announcement of new partnerships. The capital markets notwithstanding, the Board and strengthened management team would anticipate reflection of this in share price appreciation, aided by our moves to expand our shareholder base in Europe and the US."
- Ends -
Enquiries:
For further information, please contact the following:
Silence Therapeutics plc Citigate Dewe Rogerson +44(0)20 7307 1620 +44(0)20 7638 9571 Iain Ross, Chairman David Dible Jeff Vick, Chief Executive Officer Emma Palmer Melvyn Davies, Finance Director Nominated Advisers U.S. Contacts: Nomura Code Securities Limited LaVoie Group +44(0)20 7776 1200 +1 - 978.745.4200 Chris Collins Bryan Murphy ext 105 Gerard Harper Tim Allison ext 102 Notes to Editors
Silence Therapeutics plc (www.silence-therapeutics.com)
Silence Therapeutics plc is a leading RNAi company. RNA interference (RNAi) can selectively 'silence' genes linked to the onset of disease.
Silence Therapeutics has developed novel, proprietary short interfering RNA ('siRNA') molecules, AtuRNAi, which provide a number of advantages over conventional siRNA molecules as they show increased stability against nuclease degradation. In addition, the Company has developed a proprietary systemic delivery system, AtuPLEX. This enables the delivery of siRNA molecules to targeted diseased tissues and cells, whilst increasing their bioavailability and intracellular uptake.
In July 2007, Silence Therapeutics formed a research and development collaboration with AstraZeneca to develop AtuRNAi against five specific targets including those in respiratory indications. In March 2008, the Company entered into a second collaboration with AstraZeneca to develop novel solutions to the delivery of siRNA molecules. The Company's AtuRNAi technology also has been sublicensed to Pfizer through Quark's license to Pfizer of the compound RTP-801i-14 for the treatment of Age-related Macular Degeneration (AMD) and a number of other indications. This compound entered the clinic in early 2007. Silence Therapeutics also has licensed to Quark rights to the AtuRNAi structure for its proprietary compound AKIi-5. This compound is in a Phase I human clinical study for treatment of acute kidney injury. In addition, Silence Therapeutics expects to begin the clinical development of its own proprietary AtuRNAi therapeutic molecules for systemic cancer indications in 2008.
Silence Therapeutics is based in London, UK, and Berlin, Germany, and is listed on AIM.
About RNAi
RNA interference (RNAi), a Nobel Prize winning technology, is one of the most exciting areas of drug discovery today. It represents a completely new approach to selectively 'silence' or inactivate disease relevant genes and as such it has the potential to create a new class of therapeutic products. RNAi could therefore offer a therapeutic approach to a broad range of diseases (cancer, infectious diseases, inherited diseases), many of which have been regarded as incurable and are not addressed by current therapeutics, therefore providing a large market opportunity.
Forward-Looking Statements
This press release includes forward-looking statements that are subject to risks, uncertainties and other factors. These risks and uncertainties could cause actual results to differ materially from those referred to in the forward-looking statements. All forward--looking statements are based on information currently available to Silence Therapeutics and Silence Therapeutics assumes no obligation to update any such forward-looking statements.
SILENCE THERAPEUTICS PLC ("Silence Therapeutics", "Silence", "the Group" or "the Company") PRELIMINARY UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2007
CHAIRMAN'S STATEMENT
Dear Shareholder,
Silence Therapeutics has made tremendous progress in 2007 as we work towards our goal of global leadership in the field of RNAi therapeutics. During the course of the year we have achieved a number of significant milestones; signing a major collaborative deal with AstraZeneca to generate new RNAi therapeutics, developing our product pipeline and strengthening our intellectual property position.
In parallel with these achievements we have also been investing in our organisation so that we have the skills necessary to ensure we continue to be a driving force in the field of RNAi therapeutics. A key step in the development of your Company was the appointment of Jeff Vick as CEO. Jeff has come on board with a first class, international background in the biotech industry and has the appropriate scientific, technical, commercial and financial experience to lead the Company going forward.
The decision to change your Company's name to Silence Therapeutics in 2007 reflects our ambitions for the future. We believe our clear focus on RNAi technologies and the significant potential we see in this area will create substantial value for you, our shareholders, moving forward.
World Leading RNAi Technology
Silence Therapeutics decision to focus on its proprietary AtuRNAi technology is based on its potential not only to significantly shorten the time taken to screen and identify drug candidates but also to develop treatments for conditions which, up until now, have not been treatable using conventional approaches to drug therapies. The potential of our AtuRNAi technology was clearly validated with our collaborative deal with AstraZeneca to develop new therapeutics, principally in the respiratory field, which was signed in July 2007.
In conjunction with our unique RNAi chemistry, we are also developing "state-of-the-art" delivery systems for administering siRNA systemically. We already have nine years experience in developing solutions for functional delivery of oligonucleotides (RNAi molecules) and are increasingly being approached by pharmaceutical companies partnered with other RNAi technology companies enquiring about access to our innovative delivery technology and capabilities.
Our recent deal with AstraZeneca, announced in March 2008, to develop novel delivery solutions is the first of a number of agreements in this area which we expect to sign in the next several years. Based on our progress to-date I am confident that we can generate significant additional value for our shareholders from both our AtuPLEX delivery system and our world leading expertise in RNAi delivery.
Strong Financial Performance
For the third consecutive year we have achieved a strong financial performance in line with analyst expectations. Our revenues have increased to ‚£4.05m (2006: ‚£1.95m) and we ended the year with a cash balance of ‚£10.17m (2006: ‚£8.82m). With continued, prudent financial management we aim to surpass this performance in 2008.
In my role as Chairman of Silence Therapeutics the performance of the Company's shares is obviously something on which I am focused. In the first half of 2007 your Company's share price rose dramatically reflecting some of the key milestones which I have outlined above and investors' interest in the siRNA area in general. However since the announcement of our ground breaking deal with AstraZeneca at the end of July 2007 the price has declined significantly and I share the disappointment of many shareholders. Having said this, the business is fundamentally stronger than it was 12 months ago, our internal and external development programmes have progressed, and we are confident that further significant technology and commercial milestones will be achieved in 2008.
The recent volatility in the financial markets, coupled with the high liquidity in our stock has resulted in the Company's share price fluctuating dramatically on a daily basis and declining to a level which, in my opinion, is unwarranted and reflects neither the progress that we have made over the last 15 months nor the underlying value of the business.
As a result, in 2008 we are placing even greater efforts behind our overall investor relations activities. A key goal in the coming twelve months is to attract the interest of larger European and US institutions with a specific interest in, and knowledge of, the pharma/biotechnology sector. Our view is that they will take a longer term view and provide some stability going forward. In addition, in view of the competitive landscape, we are looking to strengthen our efforts, specifically in the US, in terms of collaborative agreements, investor, and public relations initiatives.
Finally on a personal basis, I remain extremely committed and confident that in 2007 we have created a platform from which we can move ahead rapidly towards our goal of becoming a leader in RNAi therapeutics, an objective, which I believe will create significant shareholder value. I would like not only to thank the Board, management and staff for their efforts during the year but also the shareholders for their continued support.
Iain G RossChairmanCHIEF EXECUTIVE'S REVIEWDear Shareholders,
2007 has seen Silence Therapeutics progress across all facets of our business and also has seen an increased interest in RNA interference technologies - technologies which are now being recognised as having the potential to improve existing therapies and fundamentally change the way in which new pharmaceutical treatments are identified and developed.
R&D Programmes
During the year significant progress was made in the development of siRNA molecules utilising our proprietary chemistry (AtuRNAi) and, as appropriate, our proprietary delivery technologies. This has been achieved both in partnership with our collaborators and through our own internal programmes. This success is reflected in the fact that two out of the five siRNA products in the clinic globally are based on Silence Therapeutics' innovative and proprietary siRNA chemistry. RTP801i-14, which is being developed by Pfizer and Quark Pharmaceuticals for the treatment of Age-related Macular Degeneration (AMD), moved into human clinical trials as did AKIi-5 which is being developed by Quark Pharmaceuticals for the treatment of Acute Kidney Injury.
Our internal programs have advanced considerably in 2007 with Atu027, which is designed to silence the function of a novel kinase protein involved in tumour growth and metastases, moving through preclinical development. Atu027 furthermore utilizes our proprietary drug delivery system AtuPLEX to deliver active drug into the appropriate cells following systemic administration. We have successfully completed single and repeat dose toxicology and geno-toxicology studies as well as 28-day toxicology studies using multiple dosing schedules. Additional studies are underway currently to establish the MABEL (minimum anticipated biological effect level) which is recommended by the European Medicines Agency (EMEA) in calculating starting doses for clinical studies.
In 2008 we hope to finalise these pre-clinical studies and progress Atu027 into the clinic. What also is very exciting about Atu027 is that, in the hands of our investigators, we are not only seeing unprecedented activity against pancreatic cancer, particularly in respect of halting metastasis, but the activity in the lung indicates that this product potentially could also be developed as a systemic treatment for lung cancer.
Third Party Collaborations and Licences
In July 2007, we signed a major R&D collaboration with AstraZeneca which primarily covers the respiratory field but also includes an option to allow for targets that extend into other disease areas of interest to AstraZeneca. Silence Therapeutics will receive milestone payments of up to ‚£200m (~US$400m) as well as royalties on product sales and we have already received an initial access fee payment of ‚£2.5m (~US$5m) plus an equity investment of ‚£5m (~US$10m). The collaboration has progressed well since signature, the working relationship between AstraZeneca and us is strong and we are on schedule for the development of products under this agreement.
Also in July we expanded our strategic licensing agreement with Quark Pharmaceuticals, Inc.
I would like to emphasise that in both of these agreements we have maintained our strategy of signing target-specific agreements with our partners. This is important as it allows us not only to enter multiple collaborations but also to continue to develop our own programmes while maintaining our corporate flexibility. We believe this approach will allow us to generate significantly more shareholder value than a much broader collaboration with one single pharma partner and we anticipate signing additional target-specific collaborations over the next 12 months.
Drug Delivery
In 2007 we continued to explore a wide range of delivery approaches with partners and academic collaborators. We are pursuing this strategy as we see the successful functional delivery of siRNA molecules as one of the key factors in realising the clear potential of this novel therapeutic approach.
The key challenge in delivering siRNA molecules, whether our own AtuRNAi molecules or those of our competitors, is that they do not readily cross cell membranes into the cell when given systemically. Without entering the cell, siRNA molecules cannot exert their potential therapeutic benefits. Historically, drug delivery systems, including liposomes and polymers, which are capable of delivering siRNA molecules or other drugs into cells have had unacceptable toxicity levels associated with them, precluding them from human use.
We have however shown that our AtuPLEX delivery technology is able to deliver one of our AtuRNAi molecules effectively and safely. This has been achieved in repeat-dose toxicology experiments using systemic administration. These experiments have allowed us to identify a dose range for one of our AtuRNAi molecules that achieves biologic effect with minimal toxicity.
In March 2008, we were very excited to announce that, based on our significant expertise in siRNA delivery, AstraZeneca chose to collaborate with us in the first deal specifically focused on developing novel approaches for the delivery of siRNA molecules. The financial details of this, our second collaboration with AstraZeneca, in which both parties will contribute expertise, intellectual property and know-how, have not been disclosed.
The collaboration signed with AstraZeneca is important strategically for a number of reasons. This is the first collaboration in the industry signed by a large pharmaceutical company focused on the delivery of siRNA molecules highlighting its importance to the successful and broad utilization of RNAi therapeutics. It also underscores Silence Therapeutics' world leading expertise in the delivery area and demonstrates the confidence that AstraZeneca has in the Company, based on the strong, successful working relationship we have built via our earlier AtuRNAi therapeutics collaboration.
Importantly in this collaboration with AstraZeneca, Silence Therapeutics retains all rights to its AtuPLEX drug delivery system as well as any improvements to it. In addition, Silence Therapeutics has the right to use and partner any of the technologies that we jointly develop under this collaboration.
We are looking forward to working closely with AstraZeneca to expand the capabilities of AtuPLEX and develop additional novel "state-of-the-art" delivery systems for administering siRNA therapeutics which we believe will help secure the future success of this exciting technology.
We also anticipate the potential to sign drug delivery collaborations over the course of the next twelve to eighteen months with other large pharmaceutical companies who have an interest in siRNA therapeutics.
Intellectual Property
A strong intellectual property position is key to our future success. In 2007, the company's commercial protection, as well as that of our partners, was confirmed when the European Patent Office granted our core patent (EP1527176 B1). This patent not only covers Silence's novel, stabilised, small interfering RNA molecules - AtuRNAi - which have blunt ends and positional modifications but also covers structures with "overhangs" and positional modifications.
As anticipated, our competitors filed oppositions, the procedure for which will commence sometime in 2008. These oppositions are expected to take 18 - 36 months to resolve and we, our advisers and R&D partners, remain confident that any potential changes to the scope of our core patent will not impact our business opportunity.
In September 2007 we began a dialogue with the US Patent and Trademark Office (PTO) with regard to gaining a similar patent position in the US. In these discussions we are focused on the elements of this patent application required to differentiate and protect our technology and via this approach we are confident that this US patent will be allowed. At present our management team and external advisers, who are well versed in this process, remain confident that we will receive a US patent allowance in 2008.
Continuing to Build a Strong Team
In November 2007 we appointed Dr. John Lucas as Vice President of Intellectual Property and General Counsel. We were very happy to recruit John to the team given his wealth of experience in the biotech sector, including a period as an Examiner for the US PTO. Having John on board has already begun to benefit the Company in terms of progressing our IP strategy and ongoing business development discussions. We envisage further significant appointments being made in 2008 as we seek to establish a world-class management team.
In addition, in late 2007 we appointed new financial advisors and a new broker and nominated advisor to provide us with the world-class level of support we need to successfully execute our ambitious corporate strategy.
As our deals with AstraZeneca illustrate, Silence Therapeutics operates in one of the most exciting areas of the pharmaceutical industry and with the advice and support of Lazard and Nomura Code, we will continue to build on the progress we have made to become one of the global leaders in the RNAi space. In 2008, to reflect this ambition we are looking to attract additional institutional shareholders and to broaden the geographic spread of our investor base. To this end we have an ongoing programme of investor road shows planned through 2008, both in Europe and the USA.
Summary
At the beginning of 2007 we set out to achieve a number of important milestones including progressing our own product pipeline, further validating our AtuRNAi platform by signing additional collaborations and strengthening our IP position. We have achieved these goals while at the same time continuing to build the Silence organisation and to invest in our RNAi delivery expertise.
We have made a good start to 2008 with the signing of our drug delivery collaboration with AstraZeneca and I fully expect to make further significant progress during the next 12 months towards our goal of being recognised as one of the leading RNAi companies globally.
Over the next 12 months we expect to:
* Start clinical trials with our most advanced product, Atu027, in patients
with systemic cancer indications,
* Sign a number of additional collaborations based on our AtuRNAi and AtuPLEX
technologies,
* Achieve allowance of our core AtuRNAi patent application in the US, and
* Further strengthen our organisation so that we can support our value
creating collaborations appropriately, while advancing our own internal
pipeline.
I have great confidence in our future prospects and I look forward to keeping you updated on the development of our business, as the Silence team continues to work to create significant value for our shareholders.
Jeffery S VickChief Executive OfficerFINANCIAL REVIEW
The group is able to report another positive set of financial figures for 2007. Increased revenue allowed the group to raise its investment in Research and Development as well as continue to build its infrastructure. Despite these additional cash demands, the group closed the year with bank balances increased by over ‚£1m from the end of 2006 to ‚£10.2m.
Operating Results
Revenue for the year rose from ‚£1.95m to ‚£4.05m. This reflects principally the milestone and licence fee revenues from Silence's agreements with AstraZeneca and with Pfizer and Quark Pharmaceuticals. The agreement with AstraZeneca, covering the development of AtuRNAi therapeutics, signed in July 2007 resulted in Silence receiving an upfront access fee of ‚£2.5m. Due to the nature of the agreement, this entire sum has been recorded as revenue in 2007. In addition, the group received milestone payments from its arrangements with Quark and Pfizer during the year and, again, all such receipts are treated as revenue in the year.
The Group continues to invest in its research and development activities in order to expand and develop its own pipeline of RNAi molecules targeting oncology indications. As predicted last year, the rate of expansion increased during 2007 compared to 2006. This is in line with our plan to maintain and capitalise on the lead we have established with our unique RNAi molecules and our world leading delivery technology. With significant expenditure on both toxicology trials and manufacturing development of our molecules and delivery systems, Research and Development costs rose from ‚£3.2m in 2006 to ‚£4.8m in 2007. We plan to continue to expand our investment in R&D over the coming years.
The charge for Administration expenses is heavily influenced by the amount calculated as the impact of the granting of stock options. For 2006 the total charge relating to options was ‚£0.7m, but this non-cash item has risen to ‚£1.4m in 2007. This is likely to rise again in future years as the group seeks to attract and reward the high calibre staff essential to the successful execution of our growth strategy. Aside from the increase of this element of costs, other administration expenses rose from ‚£2.3m in 2006 to ‚£3.6m in 2007, which reflects both the expansion of the management capabilities and rewarding the achievements during the year.
Cash Flow
As noted above, the operating loss continues to contain a number of large non-cash items, such as option charges but also depreciation and amortisation, which significantly impact on the Group's profitability. After adjusting for these items the cash absorbed in the Group's operating activities for the year was just ‚£3.8m (2006: ‚£4.0). With the benefit of the equity investment by AstraZeneca during the year and cash realised from the exercise of options and warrants, amounting in aggregate to almost ‚£5.2m (2006: ‚£3.5m), the Group's net cash position increased by ‚£1.35m in the year (2006: decrease ‚£0.27m).
Future
The Group will continue to add value to its portfolio of RNAi based assets by expanding and developing its technology, either alone or with selected development partners. The mix and speed of this expansion will be dependent upon the availability of resources to the Group. The Group continues to look for licensing and collaboration opportunities that will generate either revenues or other financing or resource opportunities to aid in this development drive. Further expansion of the Group's management and administrative capabilities are likely to enable it to adequately support and exploit its research and development activities.
The Board continues its commitment to maintaining a strong cash balance relative to current cash usage, enabling a secure basis for the planning of future activities and giving the Group a sound financial platform from which to progress the Group's various licensing discussions.
Melvyn DaviesFinance DirectorSILENCE THERAPEUTICS PLC
UNAUDITED CONSOLIDATED INCOME STATEMENT
YEAR ENDED 31 DECEMBER 2007 2007 2006 ‚£ ‚£ Revenue 4,046,974 1,947,301 Research and development costs (4,842,529) (3,185,886) Gross loss (795,555) (1,238,585) Administrative expenses (4,992,159) (3,029,764) Operating loss (5,787,714) (4,268,349) Finance income 543,817 347,676 Finance costs - (19,905) Loss for the year before taxation (5,243,897) (3,940,578) Taxation credit for the year 136,019 114,094 Loss for the year after taxation transferred from reserves (5,107,878) (3,826,484) Loss per share (basic and diluted) 4.39p 4.02p
SILENCE THERAPEUTICS PLC
UNAUDITED CONSOLIDATED BALANCE SHEET
AT 31 DECEMBER 2007 2007 2006 ‚£ ‚£ Non-current assets Property, plant and equipment 398,764 146,897 Goodwill 6,653,990 6,239,679 Other intangible assets 779,703 728,489 7,832,457 7,115,065 Current assets Trade and other receivables 1,340,860 732,453 Tax recoverable 130,000 80,000 Cash and cash equivalents 10,174,389 8,824,044 11,645,249 9,636,497 Liabilities - current Trade and other payables 1,801,946 929,607 Provisions - current - 115,342 1,801,946 1,044,949 Net assets 17,675,760 15,706,613 Equity Share capital 1,198,835 1,130,650 Capital reserves 46,465,165 40,212,619 Retained loss (29,988,240) (25,636,656) Total equity 17,675,760 15,706,613 SILENCE THERAPEUTICS PLC
UNAUDITED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
AT 31 DECEMBER 2007 Share Capital Retained capital reserves Loss Total (note 3) ‚£ ‚£ ‚£ ‚£ At 1 January 2006 903,116 36,405,031 (21,621,016) 15,687,131 Loss for the year ended 31 December 2006 - - (3,826,484) (3,826,484) Recognition of share-based - 491,489 - 491,489 Payments Transfer upon exercise of options in year - (1,113) 1,113 - Shares issued in the year 227,534 3,317,212 - 3,544,746 Exchange differences arising on consolidation of foreign - - (190,269) (190,269) operations Movement in the year 227,534 3,807,588 (4,015,640) 19,482 At 31 December 2006 1,130,650 40,212,619 (25,636,656) 15,706,613 Loss for the year ended 31 December 2007 - - (5,107,878) (5,107,878) Recognition of share-based - 1,221,952 - 1,221,952 Payments Transfer upon exercise of options in year - (72,234) 72,234 - Shares issued in the year 68,185 5,102,828 - 5,171,013 Exchange differences arising on consolidation of foreign - - 684,060 684,060 operations Movement in the year 68,185 6,252,546 (4,351,584) 1,969,147 At 31 December 2007 1,198,835 46,465,165 (29,988,240) 17,675,760 SILENCE THERAPEUTICS PLC
UNAUDITED CONSOLIDATED CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2007
2007 2006 Cash flow from operating activities ‚£ ‚£ Loss before taxation (5,243,897) (3,940,578) Adjustments for: Depreciation charges 78,069 142,053 Amortisation charges 240,021 211,416 Impairment of goodwill 153,915 - Loss/(Profit) on disposal of property, plant and equipment 39 2,255
Charge for the year in respect of share based 1,221,952 491,489 payments
Foreign exchange movement 25,856 (27,712)
Recovery of loan provided for in previous years (36,000) (33,000)
Finance income (507,817) (314,676) Finance expense - 1,360 (4,067,862) (3,467,393) (Increase) in trade and other receivables (608,407) (287,101) Decrease in inventories - 81,852
Increase/(decrease) in trade and other payables 756,997 (440,692)
Cash (absorbed) by operations (3,919,272) (4,113,334) Interest paid - (1,360) Taxation received 86,019 84,466 Net cash outflow from operating activities (3,833,253) (4,030,228) Cash flows from investing activities Recovery of loan made previous years 36,000 33,000 Interest received 507,817 314,676 Additions to property, plant and equipment (306,463) (48,434) Additions to intangible assets (224,769) (80,917)
Net cash generated from investing activities 12,585 218,325
Cash flows from financing activities Proceeds from issue of share capital and 5,171,013 3,544,746 options
Increase/(decrease) in cash & cash equivalents 1,350,345 (267,157)
Cash and cash equivalents at start of year 8,824,044 9,091,201 Net increase/(decrease) in the year 1,350,345 (267,157) Cash and cash equivalents at end of year 10,174,389 8,824,044
SILENCE THERAPEUTICS PLC
NOTES TO THE UNAUDITED FINANCIAL STATEMENTS
YEAR ENDED 31ST DECEMBER 20071 GENERAL INFORMATION1.1 Group Information
Silence Therapeutics ("Silence" or "the Company") and its subsidiaries (together "the Group") are primarily involved in the research and development of novel pharmaceutical products. Silence Therapeutics plc, a limited liability corporation incorporated and domiciled in England, is the Group's ultimate parent company. The address of the Company's registered office is: 22 Melton Street, London NW1 2EP and the principal place of business is Centre Point, 103 New Oxford Street, London WC1A 1DD.
1.2 The financial information set out above does not constitute the Company's statutory accounts within the meaning of section 240 of the Companies Act 1985. The 2007 figures are based on unaudited accounts for the year ended 31 December 2007.
The unaudited financial statements have been prepared on the basis of the accounting policies set out in the Group's statutory accounts for 2006.
The 2006 comparatives are derived from the statutory accounts for 2006 which have been delivered to the Registrar of Companies and received an unqualified audit report and did not contain a statement under the Companies Act 1985, s237 (2) or (3).
2. LOSS PER SHARE
The calculation of the loss per share is based on the loss for the financial year after taxation of ‚£5,107,878 (2006: loss ‚£3,826,484) and on the weighted average of 116,296,656 (2006: 95,138,708) ordinary shares in issue during the year.
The options outstanding at 31 December 2006 and 31 December 2007 are considered to be non-dilutive in that their conversion into ordinary shares would not increase the net loss per share. Consequently, there is no diluted earnings per share to report for either year.
3. CAPITAL RESERVES Share Merger Share- Premium Reserve Based Total Account Payment Reserve ‚£ ‚£ ‚£ ‚£ At 31 December 2005 28,192,197 6,140,874 2,071,960 36,405,031 On shares issued in the year: - in respect of fundraising 3,600,000 - - 3,600,000 - less costs of fundraising (285,355) - - (285,355) On options exercised during 2,567 - (1,113) 1,454 the year On warrants converted during 676,105 - (676,105) - the year On options issued during the - - 491,489 491,489 year Movement in the year 3,993,317 - (185,729) 3,807,588 At 31 December 2006 32,185,514 6,140,874 1,886,231 40,212,619 On shares issued in the year: - in respect of fundraising 4,965,754 - - 4,965,754 On options exercised during 137,057 - (72,234) 64,823 the year On warrants converted during 676,105 - (676,105) - the year On options issued during the 17 - 1,221,952 1,221,969 year Movement in the year 5,778,933 - 473,613 6,252,546 At 31 December 2007 37,964,447 6,140,874 2,359,844 46,465,165
SILENCE THERAPEUTICS PLCRelated Shares:
SLN.L