Revenue up, costs down as Trellus Health nears end of cash runway

(Sharecast News) - Trellus Health reported interim results showing revenue growth and further cost reductions on Monday, but warned it would need to raise new funds to extend its cash runway beyond early November.

For the six months ended 30 June, the AIM-traded healthcare group generated revenue of $379,000, up from $50,000 a year earlier, reflecting initial traction across its commercial verticals in pharmaceutical patient support, clinical trial services and US health plans.

Its adjusted EBITDA loss narrowed slightly to $3.5m from $3.6m, while average monthly cash burn fell by around 10% to $440,000 since August.

Cash resources stood at $1.6m at the end of June, down from $4.3m at the start of the year.

The company said its current position provided funding into early November, and the board is now considering a fundraising to support its commercial strategy.

Operationally, Trellus secured several milestones, including a deal with Johnson & Johnson Health Care Systems in January, preferred vendor status with a leading global contract research organisation in June, and a renewed licensing agreement with Pfizer in May for digital patient support content for inflammatory bowel disease.

"We are very proud of what we have achieved year-to-date, further reducing our cost base, while successfully building a new clinical trial vertical and advancing our broader strategic evolution," said chief executive Dr Marla Dubinsky.

"By aligning closely with our partners' immediate needs and financial priorities, we have strengthened our position as a valuable partner."

She added the company expects to announce at least one new collaboration by November and confirmed the board intends to "explore a possible fundraise over the coming weeks to scale our commercial strategy".

The firm said its directors were in talks with advisers over the structure and size of any equity or debt raise.

While they remained optimistic additional funding could be secured, they cautioned there was no guarantee it will be available in the required timeframe.

At 1258 BST, shares in Trellus Health were down 33.14% at 0.54p.

Reporting by Josh White for Sharecast.com.

Trellus Health.