Syntopix says FY revenues up 34.8% as losses narrow, plans equity issue to explore market opportunities

Speciality antimicrobial research group Syntopix (AIM: SYN) said revenues have jumped 34.8% in the financial year to end-July 2009 after new commercial agreements were reached to help slash operating losses, with the company planning to undertake an equity issue to capitalise on further opportunities in the market.

Turnover for the year to 31 July increased to £190,000 compared to £141,000 a year earlier, while operating losses fell to £1.29 million from £ 1.58 million and cash balance stood at £894,000. The key developments included the signing of the second 12 month exclusive evaluation agreement with a major consumer healthcare company and continued collaboration with Procter & Gamble (NYSE: PG) under a joint development agreement. The group has also reported positive results for its lead dermatological compound in a Phase II cosmetic study of acneic skin.

“The group has now established links with two of the world's largest consumer healthcare companies from which we envisage generating revenue streams in the near future. The successful Phase II cosmetic study completed after the year end is a significant milestone for the group and will contribute to Syntopix entering into further commercial agreements,” said chief executive of Syntopix, Stephen Jones.

The group said it plans an equity issue during the current financial year to “fully progress commercial opportunities,” which are principally in the areas of acne, oral hygiene and hair care, targeting both the medicine and consumer healthcare markets. The prescription market for dermatological disease treatments is currently in excess of US$11 billion, with the market for acne representing over US$2.5 billion of these sales. The medicated skin care market is worth an additional US$10 billion with sales for acne treatments in excess of another US$1 billion.

Syntopic also intends to continue to invest in its development programmes to progress the most promising compounds into product candidates, saying this would attract potential partners, convincing them that these compounds have a commercial future. The group has also said it was in talks with other potential licensees.