LONDON (Alliance News) - Respiratory drug development firm Synairgen PLC swung to a full year profit Thursday after a lump sum payment from a collaboration partner offset continued research and development costs.
In 2017, the company swung to a pretax profit of GBP1.6 million from a loss of GBP3.4 million the year prior.
This was after it generated revenue of GBP5.0 million from nothing the year before. The revenue was generated by GBP5.0 million provided by Pharmaxis after a change in an agreement with a smaller amount added by sales of materials to AstraZeneca PLC.
In December 2017, Pharmaxis agreed to pay a GBP5.0 million lump sum and 17% of partnering proceeds after the completion of preclinical studies and the start of phase one of the clinical trial of the Lysyl Oxidase type two programme.
Overall, total costs for the year - the main cause of the loss in 2016 - remained broadly flat at GBP3.4 million.
"Synairgen ended 2017 in a strong position," Synarigen Chairman Simon Shaw said. "The developments with our inhaled interferon beta asset and Pharmaxis agreement demonstrate Synairgen's commitment to innovative development programmes and the value we can bring to collaborative projects. We are well set to pursue interferon beta in COPD and add to our pipeline in the coming period."
Shares in Synairgen were 1.8% lower at 13.50 pence on Thursday.
Synairgen (SNG)