(Alliance News) - C4X Discovery Holdings PLC said on Tuesday that it remains confident in its business strategy, as it reported a widened annual pretax loss.
The drug discovery firm said its pretax loss for the year ended July 31, 2019, widened to GBP13.6 million from GBP2.5 million in 2018 due to higher expenses as well as lack of any revenue. In 2018, the company generated GBP7.1 million in revenue entirely due to gains from a licensing agreement with Indivior PLC.
Research and development costs jumped to GBP10.6 million in financial 2019 from GBP7.0 million the previous year. Administrative expenses increased to GBP3.1 million from GBP2.6 million, reflecting the company's increase in drug discovery investment and its continued development of lead drug candidates and products towards commercialisation.
The company said that financial 2019 was a year of building the portfolio and advancing its drug discovery programmes to create a sustainable pipeline of potential revenue-generating assets.
It said that it remained confident in its business strategy as partner discussions confirmed commercial interest for its NRF-2 activator programme. It also said that its out-licensed Orexin-1 programme was progressing to clinical studies with Invidor.
Looking forward, C4X Discovery said it will focus on advancing the next wave of out-licensing candidates and driving forward partnering deals.
"Activities continue across the remainder of C4XD's discovery portfolio to build a sustainable pipeline of potential future out-licensing opportunities. We expect to see further commercial traction and the advancement of our existing portfolio, as well as new and exciting developments coming through," said Chief Executive Clive Dix.
"With the business in a strong position to deliver on our strategy, we are excited by our future prospects as we build a sustainable drug discovery company," Dix added.
C4X Discovery shares were trading 6.5% lower at 14.50 pence per share on Tuesday morning in London.
By Ife Taiwo; ifetaiwo@alliancenews.com
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