(Alliance News) - Drug developer Evgen Pharma PLC on Monday posted a slightly widened annual loss due to slight increases in operating expenses and share-based compensation.
Shares in Evgen were down 15% at 9.20 pence in London in morning trading.
The Liverpool-headquartered firm reported a GBP3.2 million pretax loss for its year ended March 31, widened from GBP3.1 million the year before.
This increase in loss resulted from a small rise in operating expenses to GBP3.00 million from GBP2.99 million as well as an increase in share based compensation to GBP168,000 from GBP135,000.
Evgen is currently developing drug SFX-01 and has seen positive results from its Stem trial of SFX-01 in metastatic breast cancer, with five patients who participated in the trial treated with the drug for over one year experiencing no tumour progression.
Less positively, the After Subarachnoid Haemorrhage trial of SFX-01 did not meet either its primary or secondary endpoints but the drug was well tolerated.
Memorandums of understanding have been reached to support trials of SFX-01 in chronic kidney disease, autism, and non-alcoholic steatohepatitis - a type of advanced fatty liver disease.
Executive Chair Barry Clare said: "We move forward with the confidence that the value of SFX-01 as a potential drug that is active against the two key pathways of Nrf2 and STAT3 will become increasingly clear. These pathways are of significance in a range of diseases including cancer, autism and those where oxidative stress is a factor. We therefore believe that the fundamentals are in place to underpin sustainable share price growth and deliver the undoubted potential of SFX-01."
In terms of Covid-19 impact, Clare said this has been limited so far, but the pandemic might hurt the company's "ability to raise further finance as a consequence of a depressed funding environment" as well as to conclude any partnering talks or conduct clinical trials. The virus might also impact "completion of the current toxicology and product formulation programmes to agreed timelines".
Evgen's cash balance on March 31 was GBP4.1 million, up from GBP2.0 million the year prior after a May 2019 placing that raised GBP5.0 million.
By Anna Farley; annafarley@alliancenews.com
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