Nuformix (LON:NFX) , in its FY20 results for the 12 month period to 31 March 2020, highlighted increased interest in its assets and their potential treatment for the treatment of coronavirus, as well as the resultant fibrosis.
Total revenue of £0.5m (FY19: £0.6m) was 12% down on last year, reflecting the unpredictable nature of the group’s early stage revenue streams and resulting in a loss on ordinary activities of £0.8m (FY19: loss of £1.6 m) and loss per share of 0.16p (2019: 0.36p).
Net assets at year-end stood at £4.7m from £3.8m in 2019, including £0.5m cash at bank (2019: £0.4m) while after-tax deficit was down to £0.7m from £1.6m in 2019 which the group said was driven primarily by product development costs related to clinical studies.
However, the group said it has focused its efforts on adopting a new business strategy following the recent changes to its board.
Nuformix will now rely on technology licensing agreements and ‘fee-for-service' work to third parties producing their proprietary products, to generate near-term revenue streams.
“Whilst we are optimistic, we remain conservative and focused on delivery for both our in-house and collaborative development programmes and with a determination to create and deliver shareholder value,” said Dr Chris Blackwell, Executive Chairman of Nuformix.
Shares in Nuformix were trading 13.92% lower at 3.4p following the release of results.
The group said it would also continue to pursue £2.5m of milestone payments it is owed by Newsummit Biopharma related to a dispute it had with Chinese firm, Zheiiang Yatai Pharmaceutical.
During the year, NFX said it prioritised development of its anti-fibrotic candidate, NXP002, while developing an inhaled formulation. Its preparations for first clinical exposure are now underway and is ‘looking at all options for deriving value from this product globally.’
It said a successful application of its proprietary cocrystal technology in humans using NXP001 has leg to the group believing the product could also be of interest to third parties.
‘Whilst it is too early to characterise this, we will be extending our business development efforts in this area over the coming 12 months,’ the company detailed in the statement.
The group also referred to two new revenue generating collaboration agreements, with Ebers Tech Inc. (Ebers) and VistaGen Therapeutics Inc. (VistaGen; post-period, May 2020).
Meanwhile, the group said it has also commenced pre-clinical pilot studies to investigate the potential of NXP004 with the highly acclaimed Newcastle Fibrosis Research Group.
It said ‘significant progress’ was made until the challenges of the COVID-19 outbreak contrived to slow progress, and that it is continues looking at all options to derive value.
NFX believes it has sufficient cash when combined with expected income to deliver on its objectives and following a recent review of the Group's cash flow needs and opportunities.
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