e-therapeutics PLC (LON:ETX) said in its interim results statement that it remains in active discussions with large pharmaceutical and biotechnology companies about future collaborations.
Meanwhile, its recently announced collaboration with Galapagos is on schedule, with compound testing slated to take place early next year, while it has extended its collaboration with Novo Nordisk until March 2021 to evaluate results that have been generated so far and to decide if further compounds need to be tested to explore the findings to date.
The company, which has a computer-based platform to assist in drug discovery, also announced that executive chairman Ali Mortazavi will take on chief executive duties as well.
In a statement, Mortazavi said the company has made “material strides since the capital raise in July”.
Cash as at the end of July 2020 stood at GBP15.1mln, up from GBP3.8mln at the end of January.
The company said cash burn is expected to be higher in the second half of the financial year than it was in the first half as a result of research & development activities and the need to put administrative infrastructure capable of supporting the scaling of the business.
On the other side of the coin, the company will start to receive cash receipts from its deal with Belgian life sciences giant Galapagos.
The deal will give a welcome boost to the top-line; in the six months to the end of July revenue was just GBP37,000, down from GBP188,000 in the same period of 2019.
In common with a lot of life sciences firm at this stage of development, e-therapeutics is loss-making; the half-year loss before tax this time around was GBP2.74mln, versus a loss the year before of GBP1.55mln.
Referring to Mortazavi’s appointment as chief executive officer, non-executive director Professor Trevor Jones said: “Ali has re-energised the company”.
Mortazavi, formerly the boss of Silence Therapeutics, took over the helm at e-therapeutics after doing extensive due diligence on the company’s drug discovery platform.
“I believe that e-therapeutics has established a key position among the small vanguard of companies across the globe applying computational biology to drug discovery. Our ambition is to take advantage of our momentum to become a major force at this intersection of technology and life sciences,” Mortazavi said.