LONDON (Alliance News) - Plethora Solutions Holdings PLC Tuesday posted a widened pretax loss, hit by the cessation of its business The Urology Co and higher costs, as it ramps up development of its premature ejaculation treatment PSD502.
The speciality pharmaceutical company posted a pretax loss of GBP8.8 million, widened from GBP2.8 million, hit by higher research and development, general and administrative costs, and a GBP6.1 million charge relating to fair value adjustments of warrant instruments.
Higher costs were primarily related to regulatory approval work for PSD502, termination payments to its previous Chief Executive Officer, costs relating to the repatriation of PSD502's global rights from Shionogi & Co Ltd, and the restructuring of its debt.
Plethora expects to see development costs continue to increase during 2014 as it plans to submit PSD502 to the US Food and Drug administration, however, it expects this to be offset by payments from securing strategic marketing partners for PSD502.
PSD502 was granted marketing authorisation by the European Commission in November. Plethora has begun negotiations with potential partners to commercialise the products in the EU, it said.
The Urology Co earned revenue of GBP91,000 in 2013, down from GBP582,000 in 2012, as it went into administration February 25, 2013. The subsidiary was formed in 2009 by Plethora and earned is first revenues in 2011. However, it was a loss making business, and following a strategic review Plethora decided it was unlikely to achieve profitability within an acceptable time frame.
As a result of this company shutting down Plethora was able to reduce its operating cost base, it said, and focus on developing its treatment for premature ejaculation PSD502.
As a result, The Urology Co's revenues were reported as discontinued operations in its full-year results.
Plethora entered into an agreement with Pharmaserve North West Ltd in March to develop a new six dose canister for PSD502 and establish a production line for the product.
Shares in Plethora were trading down 3.2% at 10.52 pence Tuesday morning.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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