LONDON (Alliance News) - Faron Pharmaceuticals Ltd on Tuesday reported a slightly narrowed annual loss as the drug developer's research & development costs fell.
Faron is a clinical stage biopharmaceutical company focused on pancreatic cancer and acute respiratory distress syndrome.
In 2018, Faron reported a pretax loss of EUR20.1 million, improving slightly from a EUR21.1 million loss reported in 2017.
The Finnish biotech company's research & development costs decreased 14% in 2018 to EUR16.5 million from EUR19.1 million the year before. The drop was attributed to a decrease in outsourced clinical trial services, which Faron said was due to "rapid cost reduction" following "disappointing" trial results from its Traumakine treatment.
Faron did not generate any revenue in 2018 or 2017.
Faron is currently developing two treatments: Traumakine, which treats organ failure, and Clevegen, a cancer immunotherapy.
The company said 2018 was "challenging" but it was able to make "significant progress".
"We have made a number of important discoveries whilst analysing the Traumakine Interest data during 2018 which have allowed us to not only believe that there is definitely a future for Traumakine in the treatment of acute respiratory distress syndrome, but also determine the next steps in its development, including the design of the phase III Caliber study. We were also pleased to start dosing the first patients with Clevegen in the Matins trial, on schedule, and I am greatly encouraged by the promising early observations and data we have seen. I remain very optimistic about the future of Clevegen and the potential clinical benefit it may provide to late stage cancer patients," said Chief Executive Markku Jalkanen.
Jalkanen added: "I believe 2019 will be a pivotal year for Faron during which we will continue to expedite Clevegen's development through clinical trials; seek approval from the US Food & Drug Administration and the European Medicines Agency on the Caliber trial design for Traumakine whilst also advancing partnering discussions for both product candidates."
Shares in Faron Pharmaceuticals were down 6.9% Tuesday at 65.65 pence each.
Faron Pharma (FARN)