(Alliance News) - Sareum Holdings PLC on Monday said its annual loss widened and its cash reserves are substantially reduced, but that development and testing of its medicinal products is progressing well.
The Cambridge, England-based pharmaceutical company, focused on developing kinase inhibitors to treat autoimmune diseases and cancer, said its pretax loss for the year ended June 30 was GBP4.0 million compared with GBP2.6 million the year before.
Sareum generates no revenue. Its operating loss for fiscal 2023 was GBP4.1 million, widened from GBP2.6 million. Administrative expenses increased 57% to GBP4.0 million from GBP2.6 million.
The company's cash balance, meanwhile, decreased 77% to GBP994,000 at June 30 from GBP4.3 million at the same time in 2022. Net assets were down 73% to GBP1.2 million from GBP4.3 million.
However Sareum said it is making good progress with its lead candidate SDC-1801, which inhibits TYK2 and JAK1 to treat various autoimmune diseases, although it is currently focused on psoriasis. A Phase 1a clinical trial, commenced in Australia in May 2023, "is progressing well" with completion expected by the end of 2024.
Sareum said work continues on translational studies to define the optimal application of its cancer immunotherapy candidate SDC-1802. Its co-development partner the CRT Pioneer Fund LP is meanwhile "taking the lead in evaluating potential further development opportunities" for cancer treatment SRA737.
Sareum added that its new equity prepayment facility, agreed in early August with RiverFort Global Opportunities PCC Ltd, leaves it in a strong position to complete the current SDC-1801 study and support further developments. It has so far received a GBP2.0 million initial deposit through the up to GBP5.0 million facility.
"The funds raised...provide a clear runway allowing us to focus on advancing this promising asset through Phase 1 studies and we look forward to having full safety data in the first half of 2024, potentially allowing us to move towards an important Phase 1b study in psoriasis patients which will focus more on efficacy," commented Chief Executive Officer Tim Mitchell.
He continued: "This progress, alongside growing scientific and commercial validation in the TYK2/JAK1 space, supports our continued confidence in this asset. We're also optimistic about the opportunity for SDC-1802 in immuno-oncology and continue to believe that SRA737 has great potential for the treatment of cancer."
Shares in Sareum were down 4.5% at 76.38 pence in London on Monday.
By Emma Curzon, Alliance News reporter
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Sareum (SAR)