25 Sep 2008 07:00
SILENCE THERAPEUTICS plc ("Silence Therapeutics" or "the Group") INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2008
London, UK, 25 September 2008 - Silence Therapeutics plc today announces its unaudited interim financial results for the six months ended 30 June 2008.
Operational highlights
* In March 2008 Silence announced a collaboration with AstraZeneca to develop
novel approaches for the delivery of short interfering RNA (siRNA)
molecules. This builds on Silence's delivery expertise and its proprietary
AtuPLEX technology. Delivery is increasingly seen as an important
differentiator in siRNA development.
* In June 2008 Silence announced that the U.S. Food and Drug Administration
(FDA) had approved a Quark Pharmaceuticals Inc ('Quark') Investigational
New Drug application (IND) for a siRNA therapeutic product based on
Silence's unique proprietary chemistry. The product, DGFi, was discovered
and is being developed by Quark for use in kidney transplantation. Rights
to the AtuRNAi structure of DGFi were licensed to Quark by Silence
Therapeutics.
Post-period highlights
* Iain Ross appointed as full time Chairman and Group CEO.
* Board strengthened with the appointment of Annette Clancy and Jerry Randall
as non-executive directors. Jeremy Curnock Cook named as Senior Independent
Non-Executive Director.
* Silence received a Notice of Allowance from the United States Patent and
Trademark Office for the Company's core RNAi patent application. The
Company has also received a Notice of Acceptance from the Australian Patent
Office. The European equivalent of the US and Australian patent applications was granted by the European Patent Office in January 2007. * Silence received a Notice of Intent to Grant from the European Patent Office for its patent application covering the use of siRNA, including Silence's lead internal product candidate, Atu027, to target PKN3. This
patent provides Silence broad exclusivity not only for Atu027, but for any
siRNA targeting protein kinase N beta (PKN3).
* Silence announced that its partner, Quark Pharmaceuticals Inc ('Quark'),
together with Pfizer, has commenced a Phase II clinical trial with
RTP-801i-14 (PF-4523655), a siRNA therapeutic product based on Silence's
AtuRNAi technology. Its initiation triggers a $1.9 million milestone
payment to Silence from Quark.
Year-End Guidance
* The Company anticipates achieving year-end revenues similar to those
achieved last year, thereby ensuring a healthy year-end cash balance.
* The Company anticipates making a regulatory submission in Europe for its
lead systemically delivered AtuRNAi molecule (Atu027) before the year-end.
Depending upon the receipt of the relevant approvals, the Company
anticipates commencing phase I clinical studies in cancer patients in early
2009.
* The Company anticipates concluding further Biotech/Pharma target specific
and delivery collaborations in the next few months.
Iain Ross, Chairman and CEO, commenting on today's results announcement said:
"Over the past few months, Silence Therapeutics has substantially enhanced itsintellectual property position in the RNAi space; it has entered an importantcollaboration with AstraZeneca to develop further Silence's AtuPLEX deliverytechnology; and it has advanced the development of Atu027, the company's leadsiRNA programme, towards clinical trials. In each case, we have surpassed thegoals that we set ourselves.In addition, I am pleased to report significant progress with the technical andcommercial development of our core AtuRNAi technology in collaboration with ourpartners and licensees in the AstraZeneca and Quark/Pfizer relationships.Following the resignation of Jeffery Vick as CEO in mid-July, I was delightedto step in as Chairman and CEO on a full time basis. My priority is to re-focusour efforts to deliver on the technical, financial and commercial goals set forthe business at the start of the year - by broadening our technology base,strengthening our proprietary position and, when appropriate, securing furthervalidating collaborations and licenses. As the RNAi space becomes morecompetitive it is essential that the Silence Therapeutics Board and Managementdelivers on the promise of this exciting technology. I believe we now have theright team in place to secure our future and realize our potential."
Enquiries:
For further information, please contact the following:
Silence Therapeutics plc Powerscourt +44(0)20 7307 1620 +44(0)20 7250 1446 Iain Ross, Chairman & CEO Paul Durman Melvyn Davies, Finance Director Kay Larsen Nominated Advisers Nomura Code Securities Limited +44(0)20 7776 1200 Chris Collins
About Silence Therapeutics plc (www.silence-therapeutics.com)
Silence Therapeutics plc (AIM: SLN) is a leading European RNAi-focused biotechnology company.
RNA interference (RNAi), is a Nobel Prize winning technology and one of themost exciting areas of drug discovery today. It represents a completely newapproach to selectively 'silence' or inactivate disease relevant genes and assuch it has the potential to create a new class of therapeutic products. RNAicould therefore offer a therapeutic approach to a broad range of diseases(cancer, infectious diseases, inherited diseases), many of which have beenregarded as incurable and are not addressed by current therapeutics, thereforeproviding a large market opportunity.Silence Therapeutics has developed a platform of novel short interfering RNA('siRNA') molecules, AtuRNAi, which provide a number of advantages overconventional siRNA molecules, including increased stability against nucleasedegradation. In addition, the Company has developed a proprietary systemicdelivery system, AtuPLEX. This system enables the functional delivery of siRNAmolecules to targeted diseased tissues and cells, while increasing theirbioavailability and intracellular uptake.Following the granting of its patents in Europe, the USA and Australia, SilenceTherapeutics is one of only two companies worldwide with a proprietary positionon composition of matter for siRNA therapeutics.Silence's lead internal product, Atu027, is a proprietary AtuRNAi molecule inpreclinical development for systemic cancer indications. Atu027 hassuccessfully completed single and repeat dose toxicology and geno-toxicologystudies, as well as a 28-day toxicology study using multiple dosing regimens.Silence plans a regulatory filing in 2008 to commence clinical trials forAtu027.In March 2008 Silence Therapeutics announced a collaboration with AstraZeneca focused on the development of a range of novel delivery approachesfor siRNA molecules. Under the terms of the agreement both Silence Therapeuticsand AstraZeneca will be allowed to commercialize the truly novel deliverysystems that the two partners develop together.Silence Therapeutics has granted a licence to AstraZeneca to develop novelAtuRNAi therapeutics against five specific targets. This collaboration was thefirst industry validation of the potential application of Silence Therapeutics'proprietary AtuRNAi molecules and solidified the Company's leadership positionin field of RNAi therapeutics.The Company's AtuRNAi technology also has been sublicensed to Pfizer viaQuark's license to them of the compound RTP-801i-14 for the treatment ofage-related macular degeneration (AMD) and a number of other indications. Thiscompound entered a phase II clinical study in July 2008. Silence Therapeuticsalso has licensed to Quark rights to the AtuRNAi structure for Quark'sproprietary compound, AKIi-5, which is in a Phase I human clinical study fortreatment of acute kidney injury.
Forward-Looking Statements
This press release includes forward-looking statements that are subject to risks, uncertainties and other factors. These risks and uncertainties could cause actual results to differ materially from those referred to in the forward-looking statements. All forward--looking statements are based on information currently available to Silence Therapeutics and Silence Therapeutics assumes no obligation to update any such forward-looking statements.
Silence Therapeutics is based in London, UK, and Berlin, Germany, and is listed on AIM.
"SILENCE IS ONE OF THE HARDEST ARGUMENTS TO REFUTE"
(Josh Billings, American journalist and writer - 1818-1885)
In three years, Silence Therapeutics plc has established a proprietary technology platform that our scientists and partners are using to develop a pipeline of novel products in the Nobel Prize winning field of RNA interference.
What makes Silence Therapeutics stand out is:
Our chemistry
* When modified by Silence's proprietary chemistry, short interfering RNA (siRNA) molecules are more stable, less likely to degrade in vivo, and better suited to be therapeutics * siRNA molecules modified by our proprietary chemistry do not cause an immune response and have a good safety profile
Our delivery technology
* Our lipid-based system enables us to use the cell's own mechanisms to
deliver drug to the interior surfaces of blood vessels and other
endothelial cells
Our intellectual property
* In the US and Europe, we have been allowed or granted patents that protect
our core technology, our delivery system, specific siRNA sequences in drugs
and certain druggable targets
* Our intellectual property strategy is delivering multiple layers of patent
protection for each of our products * We believe that we have established both our freedom to operate and a strong position of exclusivity in RNAi
Our progress
* Two of the six siRNA products currently in clinical trials worldwide are
based upon our proprietary chemistry * a regulatory submission for our lead product (Atu027) for cancer indications will be made before the end of 2008 SILENCE THERAPEUTICS plc INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2008
Chairman & CHief Executive's Statement
Despite the turbulent financial markets and the negative sentiment towards small biotech companies in the UK, Silence Therapeutics plc has continued to make considerable progress during the first half of the year.
The primary focus during this period was to secure and enhance the Company'sintellectual property position in the RNAi space and to progress thedevelopment of Atu027, the company's lead siRNA programme, towards the clinic.I can confirm that we have surpassed our goals in both respects, as evidencedby the series of announcements made over the summer. I am also pleased toreport significant progress with both the AstraZeneca and Quark/Pfizerrelationships in terms of the technical and commercial development of our coreAtuRNAi technology.Following the resignation of Jeffery Vick as CEO in mid-July, I was delightedto step in as Chairman and CEO on a full time basis. My priority is to re-focusour efforts to deliver on the technical, financial and commercial goals set forthe business at the start of the year - by broadening our technology base,strengthening our proprietary position and, when appropriate, securing furthervalidating collaborations and licenses. As the RNAi space becomes morecompetitive it is essential that the Silence Therapeutics Board and Managementteam delivers on the promise of this exciting technology. I believe we now havethe right team in place to secure our future and realize our potential.
Show me the products¢â‚¬¦¢â‚¬¦¢â‚¬¦..
We have always made it clear that for innovative technology platforms tosucceed they have to be translated into real therapeutic products. It has longbeen our view that exciting technology alone is insufficient. The ultimatechallenge is to make the products to the required standards and specificationsand to deliver those products effectively to the target tissues in patients.Over the past three years, Silence Therapeutics has not only addressed theissue of manufacture and scale-up, but has also developed a proprietarydelivery technology, AtuPLEX, to enable systemic delivery of its AtuRNAiproducts. Silence is continuing to develop and broaden the applicability of itsdelivery technology through a number of delivery collaborations with thirdparties, Furthermore, we have shown in our pre-clinical programmes on Atu027that by combining our novel AtuRNAi chemical modification chemistry with ourunique AtuPLEX delivery technology we can achieve an effective functionaldelivery in the target tissues.Silence has also addressed a number of the independently identified challengesby utilising our unique combination of a systemic delivery technology andproprietary chemical modifications of the siRNA sugar residues. During theperiod we have continued our pre-clinical studies on prostate and livercancers. In particular we have developed formulations for systemic applicationsto eradicate metastases, the spread of cancer cells to distant organs. Atu027has been designed to silence the function of a novel kinase protein involved intumour growth and metastases. We believe that the move into the clinic willmark a significant step forward for the Company. We have also commenceddiscussions with third parties to look at ways to broaden our research anddevelopment portfolio over the next 12 months.As a result of our efforts and those of our collaborative partners I am pleasedto confirm that Silence's proprietary AtuRNAi chemistry provides the basis fortwo siRNA products in either phase I or II clinical trials, out of a total ofsix worldwide. In the latter part of this year Silence will make its ownregulatory submission in Europe and early next year will commence clinicalevaluation of its lead development molecule Atu027 in cancer indications. Thismilestone for the first lipoplex-based systemically delivered siRNA productwill confirm that Silence is at the forefront of developing siRNA products forunmet medical needs.
Protecting our assets¢â‚¬¦¢â‚¬¦¢â‚¬¦¢â‚¬¦..
With the recent allowance of Silence's AtuRNAi patent in the US and itsprevious patent grant in Europe, Silence believes it has established thebroadest RNAi composition of matter patent position in the US and Europe, thetwo largest pharmaceutical markets. Silence is the only company that hasestablished exclusivity over a broad range of siRNA, through allowed or grantedpatents which are not limited to a molecule's nucleotide sequence or enddesign. Following the granting of its patents in Europe, the US and Australia,Silence Therapeutics is one of only two companies worldwide with an establishedproprietary position on composition of matter for siRNA therapeutics.Broad intellectual property in itself is meaningless unless it covers highvalue products. Importantly, Silence's AtuRNAi patent portfolio providesexclusivity over what we feel is the best siRNA. Early in the history of siRNA,our scientific team recognised that the use of siRNA as a therapeutic drugproduct could be realized only if a siRNA molecule could be designed such thatit was protected from degradation, would not stimulate a cytokine response andwas non-immunogenic. The technology also had to be robust, being suitable forany siRNA molecule against any target. The result of their efforts is AtuRNAi,the gold standard in chemically modified siRNA.Silence's robust intellectual property estate extends well beyond its AtuRNAipatent portfolio. The Company further protects its proprietary drug productcandidates through target and sequence specific patents. Silence is protectingits Atu027 program through a patent portfolio that covers not only the actualAtuRNAi siRNA molecule but the use of any siRNA to target PKN3, the gene targetfor Atu027. Silence's patent family covering the entire PKN3 gene means Silencewill have total gene target exclusivity.The Silence scientific team also knew that even having the best performingsiRNA was not enough without an effective means of functionally delivering thesiRNA drug product to a target cell in vivo. Rather than relying onin-licensing technology not developed for the field of RNAi, Silence developedits own proprietary AtuFECT and AtuPLEX delivery technologies with the solepurpose of delivering siRNA. The importance of functional delivery meansSilence's AtuFECT and AtuPLEX patent estates will provide another strong layerof patent protection for the Company's products and the products of ourpartners. Silence is further continuing to build on this estate by developingthe next generation in functional delivery technology, both alone and with itspartners, for multiple indications and applications.Silence's IP strategy thus includes at least four layers of patent protection,including its AtuRNAi, target specific, drug specific and drug delivery patentestates.
Building value¢â‚¬¦¢â‚¬¦¢â‚¬¦¢â‚¬¦¢â‚¬¦¢â‚¬¦¢â‚¬¦¢â‚¬¦..
To validate and fund the development of our technology and product base it is essential that we continue to work with leading biotech and pharmaceutical companies. To this end we anticipate signing further deals over the coming months.
These deals could take a variety of forms including target-specific alliances,geographical licences to our technology or delivery collaborations. Each willbe designed to add value and enhance our technology platform, our productpipeline and, as appropriate, our unique proprietary position.
Recognising the costs of late-stage clinical development, the Company will continue to balance the risk and reward of partnering and/or licensing product development programmes at specific stages of pre-clinical and clinical development.
Finally the Company does not exclude the possibility of participating in mergers and acquisitions. It remains alert to ways in which the Company's critical mass and product pipeline can be enhanced whilst protecting and shareholder value.
Financial Performance
During the first half of 2008, the Group continued to increase its investmentin Research and Development. This rose to just over ‚£3 million in the periodcompared to approximately ‚£2.4 million in each half of 2007. The charge foradministrative expenses (including option costs) has fallen slightly from ‚£2.4million in each half of 2007 to ‚£2.3 million for the first half of 2008.The Group's primary focus during this period, on securing, protecting andenhancing its technology and intellectual property, is reflected in thereduction of in-licensing revenue for the period. This has fallen from ‚£1.3million in the first half of 2007 to ‚£124,000 in the first half of 2008,although this largely reflects a timing difference between the two periods.During 2007, the majority of revenues came from the deals with Quark/Pfizer,which arose in the first half of the year, and AstraZeneca, which occurred inthe second half of 2007. In 2008, the next milestone from Quark/Pfizer (whichis a similar sum to that received from them in 2007) will occur in the secondhalf of the year.
The net loss for the half-year was ‚£4.9 million before taxation (six months to 30 June 2007: ‚£3.4 million; full year 2007: ‚£ 5.2 million).
Cash usage in the half year amounted to ‚£4.5 million, including a significantreduction of our liabilities from the December 2007 level, which left the Groupwith bank balances of ‚£5.6 million at the period end. With revenues eithercommitted or expected from a number of sources in the second half of the year,the Group continues to be adequately funded to take forward its technology.
Conclusion
Silence Therapeutics plc remains in good shape and well positioned to enhancesignificantly its technology value over the next 12-18 months. As always I amconscious of the support provided by our shareholders and look forward toworking with you to create significant long term value.Iain G RossChairman & CEOSilence Therapeutics plc24 September 2008RESEARCH UPDATER&D Programmes
During the last eighteen months, significant progress has been made in thedevelopment of siRNA molecules utilising our proprietary chemistry (AtuRNAi)and, as appropriate, our proprietary delivery technologies. This has beenachieved both in partnership with our collaborators and through our owninternal programmes. The success is reflected in the fact that two out of thesix siRNA products in the clinic globally are based on Silence Therapeutics'innovative and proprietary siRNA chemistry. RTP801i-14, which is beingdeveloped by Pfizer and Quark Pharmaceuticals for the treatment of Age-relatedMacular Degeneration (AMD), moved into human clinical phase II trials whereasAKIi-5 developed by Quark Pharmaceuticals for the treatment of Acute KidneyInjury is continuing phase I trials.Our internal programs have advanced considerably in 2008 with Atu027, which isdesigned to silence the function of a novel kinase protein involved in tumourgrowth and metastases, finishing preclinical development. Atu027 utilizes ourproprietary drug delivery system AtuPLEX to deliver active drug into theappropriate cells following systemic administration. We have successfullycompleted single and repeat dose toxicology and geno-toxicology studies as wellas 28-day toxicology studies using multiple dosing schedules. Additionalstudies have established the MABEL (minimum anticipated biological effectlevel) which is recommended by the European Medicines Agency (EMEA) incalculating starting doses for clinical studies and provided further importantdata through a separate safety pharmacology study aiming at lung and heartfunction. In parallel to these studies Silence has selected in Germany theclinical study site and a contract research organization (CRO) for its plannedphase Ib clinical study.
Currently the data from these pre-clinical studies are being finalized for regulatory submission in order to progress Atu027 into the clinic to treat different solid cancers.
Drug Delivery
In 2008 Silence continued to lead in delivery of siRNA by expanding on itsAtuPLEX delivery technology through collaborations with corporate partners andacademic laboratories. We are pursuing this strategy as we see the successfulfunctional delivery of siRNA molecules as one of the key factors in realisingthe clear potential of this novel therapeutic approach.The key challenge in delivering siRNA molecules, whether our own AtuRNAimolecules or those of other companies, is that they do not readily cross cellmembranes into the cell when given systemically. Without entering the cell,siRNA molecules cannot exert their potential therapeutic benefits.Historically, drug delivery systems, including liposomes and polymers, whichare capable of delivering siRNA molecules or other drugs into cells, have hadunacceptable toxicity levels associated with them, precluding them from humanuse.In March 2008, we were very excited to announce that, based on our significantexpertise in siRNA delivery, AstraZeneca chose to collaborate with us in thefirst deal specifically focused on developing novel approaches for the deliveryof siRNA molecules. We have already improved some aspects of our AtuPLEXtechnology through substitution of individual components or changing theirratios in the final formulation.We also anticipate the potential to sign drug delivery collaborations over thecourse of the next twelve to eighteen months with other large pharmaceutical orbiotech companies who have an interest in siRNA therapeutics.
Summary
During 2007 and 2008 we have achieved a number of important milestones in strengthening our intellectual property position, progressing our own product pipeline and further validating our AtuRNAi platform by signing additional collaboration deals.
During 2008 Silence has -
* Generated extensive repeated dose data in a pre-clinical model with eight
doses being administered by intravenous infusion over 28 days;
* Observed no evidence of cytokine release at a pharmacological active dose
* Confirmed in pre-clinical trials that its proprietary lipoplex delivery system enables functional delivery in vivo; and * Completed an extensive pre-clinical development programme (covering repeated dosing, cardiovascular safety pharmacology, pharmacokinetics,
genotoxicity and immunotoxicity) on its lead molecule, Atu027, to enable a
European regulatory submission.
SILENCE THERAPEUTICS PLCCONSOLIDATED INCOME STATEMENTSIX MONTHS ENDED 30 JUNE 2008 Six months Six months Year ended ended ended 31 December 30 June 2008 30 June 2007 2007 ‚£ ‚£ ‚£ Revenue 124,338 1,268,837 4,046,974 Research and development (3,071,040) (2,378,618) (4,842,529) direct costs Gross Loss (2,946,702) (1,109,781) (795,555) Administrative expenses (2,301,875) (2,429,415) (4,992,159) Operating Loss (5,248,577) (3,539,196) (5,787,714) Finance income 326,498 180,955 543,817 Loss for the period (4,922,079) (3,358,241) (5,243,897) before tax Taxation credit for the 20,000 50,000 136,019 period Retained loss for the period after taxation attributable to Equity Holders (4,902,079) (3,308,241) (5,107,878) transferred from reserves Loss per Ordinary Equity (4.09)p (2.92)p (4.39)p Share ==== ==== =====
All transactions arose from continuing activities.
SILENCE THERAPEUTICS PLCCONSOLIDATED BALANCE SHEETAT 30 JUNE 2008 30 June 31 December 30 June 2008 2007 2007 ‚£ ‚£ ‚£ Non-current assets Property, plant and 448,230 398,764 274,636 equipment Goodwill 7,175,906 6,653,990 6,240,181 Other intangible assets 738,953 779,703 756,385 8,363,089 7,832,457 7,271,202 Current assets Trade and other 996,292 1,470,860 1,047,481 receivables Cash and cash equivalents 5,661,213 10,174,389 6,405,044 6,657,505 11,645,249 7,452,525 Current liabilities Trade and other payables 786,393 1,801,946 1,929,566 786,393 1,801,946 1,929,566 Net assets 14,234,201 17,675,760 12,794,161 Capital and Reserves attributable to the Company's Equity Holders Share capital 1,198,835 1,198,835 1,132,234 Share premium account 37,964,447 37,964,447 32,204,134 Merger reserve 6,140,874 6,140,874 6,140,874 Share-based payment 3,285,862 2,359,844 2,257,228 reserve Translation reserve 1,171,096 636,594 (51,031) Profit and loss account (35,526,913) (30,624,834) (28,889,278) Equity Holders' funds 14,234,201 17,675,760 12,794,161 SILENCE THERAPEUTICS PLC
CONSOLIDATED STATEMENT OF CHANGES IN NET EQUITY
FOR THE SIX MONTHS ENDED 30 JUNE 2008
Shares Share Merger Share-based Translation Profit and Shareholder Premium Reserve Payment Reserve Loss Account Funds Reserve ‚£ ‚£ ‚£ ‚£ ‚£ ‚£ ‚£ at 1 January 2008 1,198,835 37,964,447 6,140,874 2,359,844 636,594 (30,624,834) 17,675,760 Loss for 6 months to (4,902,079) (4,902,079)30 June 2008 Charge based on - - - 926,018 - - 926,018options issued Translation - - - - 534,502 - 534,502adjustment
at 30 June 2008 1,198,835 37,964,447 6,140,874 3,285,862 1.171,096 (35,526,913) 14,234,201
SILENCE THERAPEUTICS PLC
CONSOLIDATED CASH FLOW STATEMENT
FOR THE SIX MONTHS ENDED 30 JUNE 2008
Six months Six months Year ended to to 30 June 30 June 31 December 2008 2007 2007 Cash flows from operating ‚£ ‚£ ‚£ activities Loss before taxation (4,922,079) (3,358,241) (5,243,897) Adjustments for: Depreciation charges 52,816 38,934 78,069 Amortisation charges 137,877 110,597 240,021 Impairment of goodwill - - 153,915 Loss on sale of fixed assets - - 39 Charge for the period in respect 926,016 379,150 1,221,952 of share-based payments Foreign exchange movement (76,182) (4,142) 25,856 Recovery of loan provided for in (18,000) (18,000) (36,000) previous years Finance income (308,498) (180,955) (507,817) (4,208,050) (3,032,657) (4,067,862) Decrease/(increase) in trade and 494,568 (185,028) (608,407) other receivables (Decrease)/increase in trade (1,015,553) 884,617 756,997 payables Cash absorbed by operations (4,729,035) (2,333,068) (3,919,272) Income taxes received - - 86,019 Net cash outflow from operating (4,729,035) (2,333,068) (3,833,253)activities Cash flows from investing activities
Recovery of loan made in previous 18,000 18,000 36,000
years Interest received 308,498 180,955 507,817 Additions to property, plant and (70,822) (166,658) (306,463) equipment
Additions to intangible assets (39,817) (138,433) (224,769)
Cash generated from/(absorbed in) 215,859 (106,136) 12,585
investing activities Cash flows from financing activities Proceeds from issue of share - 20,204 5,171,013 capital and options Net (decrease)/increase in cash (4,513,176) (2,419,000) 1,350,345 and cash equivalents Cash and cash equivalents at 10,174,389 8,824,044 8,824,044 beginning of period Net (decrease)/increase in cash (4,513,176) (2,419,000) 1,350,345 and cash equivalents Cash and cash equivalents at end 5,661,213 6,405,044 10,174,389 of period SILENCE THERAPEUTICS PLCNOTES1. Basis of preparationThe financial information has been prepared in accordance with InternationalFinancial Reporting Standards (IFRS) and using the same accounting policies asin the preparation of the audited accounts for the year ended 31 December 2007.
The accounts are drawn up in compliance with IAS 34, Interim Financial Reporting.
The above financial information does not constitute statutory accounts withinthe meaning of Section 240, Companies Act 1985. The information relating to thesix months ended 30 June 2008 is neither audited nor reviewed. Informationrelating to the year ended 31 December 2007 has been extracted from thestatutory accounts of the Group which have been audited by the Group's auditorsGrant Thornton UK LLP and whose report thereon is unqualified.2. Segment ReportingSix months ended 30 June 2008 Business Segments RNAi Immunotherapy Unallocated Consolidated Therapeutics Group items ‚£ ‚£ ‚£ ‚£ Revenue 98,338 26,000 - 124,338 Operating results (3,569,350) (180,804) (1,498,423) (5,248,577) Net finance income 165,662 17,371 143,465 326,498 Net result for the (3,403,688) (163,433) (1,354,958) (4,922,079) period Segment assets 9,924,389 1,981,913 3,114,292 15,020,594 Segment liabilities (567,048) (148,956) (70,389) (786,393) Costs to acquire 70,423 399 - 70,822 property, plant and equipment Costs to acquire 39,817 - - 39,817 intangible Assets Depreciation and 189,193 1,500 - 190,693 amortisation Charge for non-cash 249,308 343 676,365 926,016 expenses Six months ended 30 June 2007 Business Segments RNAi Immunotherapy Unallocated Consolidated Therapeutics Group items ‚£ ‚£ ‚£ ‚£ Revenue 1,224,837 44,000 - 1,268,837 Operating results (1,555,117) (872,630) (1,111,449) (3,539,196) Net finance income 12,068 17,956 150,931 180,955 Net result for the (1,543,049) (854,674) (960,518) (3,358,241) period Segment assets 8,286,198 883,771 5,553,758 14,723,727 Segment liabilities (461,304) (601,622) (866,640) (1,929,566) Costs to acquire 162,467 4,191 - 166,658 property, plant and equipment Costs to acquire 138,443 - - 138,443 intangible Assets Depreciation and 146,393 3,138 - 149,531 amortisation Charge for non-cash 85,340 41,785 252,025 379,150 expenses 3. Earnings per shareThe loss per share is based on the loss for the period after taxationattributable to Equity Holders of ‚£4,902,079 (year ended 31 December 2007 -loss ‚£5,107,878; six months ended 30 June 2007 - loss ‚£3,308,241) and on theweighted average of 119,883,536 ordinary shares in issue during the period(year ended 31 December 2007 - 116,296,656; six months ended 30 June 2007 -113,117,428). The options outstanding at 30 June 2008, 31 December 2007 and 30June 2007 are considered to be non-dilutive in that their conversion intoordinary shares would decrease the net loss per share. Consequently, there isno diluted earnings per share to report for either year.
4. Taxation
The credit for UK Corporation Tax arises from the Group taking advantage of thelegislation regarding the treatment and surrender of tax losses arising fromcertain qualifying research and development expenditure.
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