Drug developer Sareum Holdings PLC (LON:SAR) expects profit and cash at bank to be ahead of market expectations when it reports its results for the 12 months ended 30 June 2017 later this year.
The AIM-listed firm gave no more details in the brief pre-close trading statement but said it would provide a more in-depth update in mid-late October when the results are due to be published.
READ: An in-depth look at Sareum Holdings
Only recently, chief executive Tim Mitchell said he expected Sareum to turn a “modest” profit.
Much of the financial progress made during the past year or so is down to a licensing deal the company inked with Sierra Oncology Inc (NASDAQ:SRRA) back in September.
Sierra has licensed Sareum’s lead candidate – a checkpoint kinase 1 (Chk1) inhibitor cancer candidate, named SRA737 – and holds the exclusive worldwide licence for this development.
READ: Sareum rockets after licensing deal
The Sierra licence triggered an upfront payment of US$1.9mln to Sareum, and that was followed by another US$550,000 in January.
Should everything go swimmingly, Sareum potentially has another US$88mln or so coming its way in future milestone payments from Sierra.