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LONDON (Alliance News) - Synairgen PLC Thursday said it swung to a pretax profit in the first half of the year, as it booked revenue from a "transformative" global exclusive licence agreement with AstraZeneca PLC.
The company posted a pretax profit of GBP1.9 million for the six months to June 30, compared with a loss of GBP1.2 million a year earlier, as its first revenue of GBP4.5 million more than offset a rise in operating costs.
It got an upfront payment from AstraZeneca under the licence agreement for Synairgen's SNG001 treatment for asthma and chronic obstructive pulmonary disease. This deal has potential development, regulatory and commercial milestones of up to USD225 million, and up to mid-teen tiered royalties on future potential sales.
AstraZeneca is now responsible for all future development activities and costs, and in 2015 will begin a phase II trial in asthma.
Synairgen also began screening more than 30 new programmes, with an objective of bringing a number of these programmes in to its pipeline, and accumulated a 'biobank' of samples. It can use this biobank of clinical samples to ensure a drug target is relevant to a disease.
After the period end, the company raised GBP5.3 million, as it focuses on undisclosed candidate programmes that "have the potential to play to the strengths of our unique capabilities and deliver substantial future value."
Shares in Synairgen were trading flat at 49.00 pence Thursday morning.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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