07:00 Thu 29 Apr 2021
C4X Discovery - Interim Results
This announcement contains inside information
C4X Discovery Holdings plc
("C4XD", "C4X Discovery" or the "Company")
Half-year results for the six months ended
Up to
Drug discovery programmes advance across high value portfolio
Dr
Operational highlights (including post-period events):
· Indivior's Phase 1 with C4X_3256 progressing. Single ascending dose study in healthy volunteers successfully completed in
· One of C4XD's NRF-2 lead activators C4X-6746 shown to significantly inhibit disease score in a pre-clinical model of inflammatory bowel disease ("IBD"). Candidate nomination and preliminary safety studies continue
· α4β7 integrin inhibitor programme for the treatment of IBD demonstrated significant selectivity vs α4β1 in vitro and oral bioavailability in PK studies. Discussions with potential partners under CDA continue
· C4XD and LifeArc risk-share collaboration to progress a small molecule MALT-1 inhibitor programme has made progress, with three novel series identified
· Post-period
§ Exclusive worldwide licensing agreement with Sanofi for C4XD's IL-17A oral inhibitor programme worth up to
§
§
§ Potential for single-digit royalties
§ Following scientific progress over the last year, C4XD is now taking on the leadership of the MALT-1 programme from LifeArc to drive it towards the later stages of drug discovery and deliver a commercial deal
§ Appointment of
Financial highlights:
· Successful fundraise of
· R&D investment was
· Cash, cash equivalents, short-term investments and deposits at
• Cash events post-period:
- Imminent
- Received
· Strong cash position and manageable fixed cost base means the Company has sufficient funding for the foreseeable future
· Net assets at
Analyst conference call today
Dr
For further information, please contact:
C4X Discovery Holdings plc |
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+44 (0) 787 6444977 |
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Panmure Gordon (UK) Limited (NOMAD and Broker) |
+44 (0) 20 7886 2500 |
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Consilium Strategic Communications |
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+44 (0) 20 3709 5700 |
Notes to Editors:
About C4X Discovery
C4X Discovery ("C4XD") is a pioneering Drug Discovery company combining scientific expertise with cutting-edge Drug Discovery technologies to efficiently deliver world‑leading medicines, which are developed by our partners for the benefit of patients. We have a highly valuable and differentiated approach to Drug Discovery through our enhanced DNA-based target identification and candidate molecule design capabilities, generating small molecule drug candidates across multiple disease areas including inflammation, neurodegeneration, oncology and addictive disorders. Our commercially attractive portfolio ranges from early stage novel target opportunities to late stage Drug Discovery programmes ready for a commercial deal and to date we have successfully out-licensed two programmes with one candidate in clinical development.
We collaborate with leading pharmaceutical and life sciences companies to enrich our expertise and take our assets through pre-clinical and clinical development. Through early-stage revenue-generating licensing deals, we realise returns from our high value pre-clinical assets which are reinvested to maximise the value of our Drug Discovery portfolio. For more information visit us at www.c4xdiscovery.com or follow us on twitter @C4XDiscovery .
This announcement contains inside information for the purposes of Article 7 of Regulation (EU) 596/2014 (MAR).
Corporate Overview
C4XD saw progress across its drug discovery portfolio, with a number of programmes making significant advances, particularly in inflammation with the announcement post period of a
The Company has a strong cash position and manageable fixed cost base that means the Company has sufficient funding for the foreseeable future. In
R&D investment remained stable and was
Post period, in
Drug Discovery Pipeline
Oral Orexin-1 Antagonist (C4X_3256/INDV-2000) - Partnered with Indivior
The
Oral IL-17A Inhibitor Programme - Partnered with Sanofi
C4XD has identified small molecules in its oral IL-17 inhibitor programme that can selectively block IL-17 activity whilst maintaining molecular size of the molecule in the traditional "drug-like" range. A novel, potent oral series of IL-17 inhibitors that significantly reduce IL-17 induced inflammation in vivo is being optimised towards candidate shortlist. In
Oral NRF-2 Activator Programme
The Company has identified a series of keap-1 inhibitors in its oral NRF-1 activator programme, which have been found to significantly activate NRF-2 following oral dosing, providing anti-inflammatory and anti-oxidant activity. In C4XD studies, multiple lead compounds show greater than 12-hour duration of action following low oral dosing on activation of NRF-2 in key tissues such as the lung, the liver and in blood. More recently, one of C4XD's lead NRF-2 activator molecules has also been shown to significantly inhibit the disease score in a pre-clinical model of IBD in a dose-dependent manner. Candidate nomination studies and preliminary safety studies are underway ahead of progressing to IND enabling studies, which are considered to be required in order to increase value and further differentiate from competitor molecules.
Oral α4β7 integrin inhibitor Programme
C4XD's oral α4β7 integrin inhibitor programme has identified novel, potent and selective α4β7 integrin inhibitors for the treatment of Inflammatory Bowel Disease ("IBD"). In
Both series have recently demonstrated oral bioavailability in PK studies with the current focus on improving PK properties to demonstrate functional inhibition of α4β7 integrin in vivo following oral dosing. The Company is currently generating improved molecules to move to in vivo studies and, despite being early stage, the Company is in confidential discussions with several potential partners.
Oral MALT-1 Inhibitor Programme
In
Outlook
C4X Discovery has continued to advance its high value portfolio of commercially attractive drug candidates for future partners and, post-period end, a
Interim consolidated statement of comprehensive income
For the six months ended
|
|
Six months |
Six months |
Year |
|
|
to |
to |
to |
|
|
|
|
31 July 2020 |
|
|
(Unaudited) |
(Unaudited) |
(Audited) |
|
|
|
|
|
|
Notes |
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|
|
|
|
|
Revenue |
|
- |
- |
- |
|
|
|
|
|
Cost of sales |
|
- |
- |
- |
|
|
|
|
|
|
|
|
|
|
Gross profit |
|
- |
- |
- |
|
|
|
|
|
Research and development expenses |
|
(3,304) |
(3,567) |
(6,858) |
Administrative expenses |
|
(1,217) |
(1,322) |
(2,708) |
|
|
|
|
|
|
|
|
|
|
Operating loss |
|
(4,521) |
(4,889) |
(9,566) |
|
|
|
|
|
Finance income |
|
- |
- |
5 |
Finance costs |
|
(7) |
(10) |
(18) |
|
|
|
|
|
Loss before taxation |
|
(4,528) |
(4,899) |
(9,579) |
|
|
|
|
|
Taxation |
3 |
888 |
910 |
1,790 |
|
|
|
|
|
Loss for the period and total comprehensive loss for the period |
|
(3,640) |
(3,989) |
(7,789) |
|
|
|
|
|
Loss per share : |
|
|
|
|
Basic and diluted loss for the period |
4 |
(2.19)p |
(5.02)p |
(8.10)p |
Interim consolidated statement of changes in equity
For the six months ended
|
Issued equity |
Share |
Share based payment |
Merger |
Capital contribution |
Revenue |
|
|
capital |
premium |
reserve |
reserve |
reserve |
reserve |
Total |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At |
2,602 |
32,256 |
736 |
920 |
195 |
(29,724) |
7,013 |
Impact of change in accounting policy
|
- |
- |
- |
- |
- |
(28) |
(28) |
At |
2,602 |
32,256 |
736 |
920 |
195 |
(29,724) |
6,985 |
|
|
|
|
|
|
|
|
Loss for the six months to |
- |
- |
- |
- |
- |
(3,989) |
(3,989) |
Issue of share capital |
507 |
7,079 |
- |
- |
- |
- |
7,586 |
Expenses of placing, open offer and subscription by directors |
- |
(443) |
- |
- |
- |
- |
(443) |
Share-based payments |
- |
- |
107 |
- |
- |
- |
107 |
|
|
|
|
|
|
|
|
At |
3,109 |
38,892 |
843 |
920 |
195 |
(33,713) |
10,246 |
|
|
|
|
|
|
|
|
Loss for the six months to |
- |
- |
- |
- |
- |
(3,800) |
(3,800) |
Issue of share capital |
107 |
1,519 |
- |
- |
- |
- |
1,626 |
Expenses of placing and open offer |
- |
(104) |
- |
- |
- |
- |
(104) |
Share-based payments |
- |
- |
99 |
- |
- |
- |
99 |
|
|
|
|
|
|
|
|
At |
3,216 |
40,306 |
942 |
920 |
195 |
(37,513) |
8,066 |
|
|
|
|
|
|
|
|
Loss for the six months to |
- |
- |
- |
- |
- |
(3,640) |
(3,640) |
Issue of share capital |
1,072 |
13,928 |
- |
- |
- |
- |
15,000 |
Expenses of placing, open offer and subscription by directors |
- |
(551) |
- |
- |
- |
- |
(551) |
Share-based payments |
- |
- |
117 |
- |
- |
- |
117 |
|
|
|
|
|
|
|
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At |
4,288 |
53,683 |
1,059 |
920 |
195 |
(41,153) |
18,992 |
Interim consolidated statement of financial position
As at
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31 July 2020 |
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(Unaudited) |
(Unaudited) |
(Audited) |
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Notes |
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Assets |
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Non-current assets |
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Property, plant and equipment |
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41 |
58 |
47 |
Intangible assets |
|
88 |
228 |
157 |
Goodwill |
|
1,192 |
1,192 |
1,192 |
Right-of-use assets |
|
492 |
562 |
377 |
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1,813 |
2,040 |
1,773 |
Current assets |
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Trade and other receivables |
|
616 |
580 |
438 |
Income tax asset |
|
2,668 |
3,610 |
1,780 |
Cash and cash equivalents |
|
15,396 |
5,503 |
5,648 |
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18,680 |
9,693 |
7,866 |
Total assets |
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20,493 |
11,733 |
9,639 |
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Liabilities |
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Current liabilities |
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Trade and other payables |
|
(985) |
(897) |
(1,166) |
Lease liabilities |
|
(219) |
(316) |
(189) |
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|
(1,204) |
(1,213) |
(1,355) |
Non-current liabilities |
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|
|
Lease liabilities |
|
(297) |
(246) |
(218) |
|
|
(297) |
(246) |
(218) |
|
|
|
|
|
Total liabilities |
|
(1,501) |
(1,459) |
(1,573) |
Net assets |
|
18,992 |
10,274 |
8,066 |
|
|
|
|
|
Capital and reserves |
|
|
|
|
Issued equity capital |
5 |
4,288 |
3,109 |
3,216 |
Share premium |
5 |
53,683 |
38,892 |
40,306 |
Share-based payment reserve |
|
1,059 |
843 |
942 |
Merger reserve |
|
920 |
920 |
920 |
Capital contribution reserve |
|
195 |
195 |
195 |
Revenue reserve |
|
(41,153) |
(33,685) |
(37,513) |
Total equity |
|
18,992 |
10,274 |
8,066 |
|
|
|
|
|
Approved by the Board and authorised for issue on
Chief Financial Officer
Interim consolidated cash flow statement
For the six months ended
|
Six months |
Six months |
Year |
|
to |
to |
to |
|
31 January |
31 January |
31 July |
|
2021 |
2020 |
2020 |
|
(Unaudited) |
(Unaudited) |
(Audited) |
|
|
|
|
|
|
|
|
Loss after tax and interest |
(3,640) |
(3,989) |
(7,789) |
Adjustments for: |
|
|
|
Depreciation of property, plant and equipment |
16 |
25 |
45 |
Depreciation of right-of-use assets |
139 |
131 |
302 |
Amortisation of intangible assets |
69 |
67 |
138 |
Share-based payments |
117 |
107 |
206 |
Finance income |
- |
- |
(5) |
Finance costs |
7 |
10 |
18 |
Taxation |
(888) |
(910) |
(1,790) |
Changes in working capital: |
|
|
|
Decrease/(increase) in trade and other receivables |
(178) |
61 |
203 |
(Decrease)/increase in trade and other payables |
(181) |
(755) |
(486) |
Cash outflow from operating activities |
(4,539) |
(5,253) |
(9,158) |
Research and development tax credit received |
- |
1,376 |
4,086 |
Net cash outflow from operating activities |
(4,539) |
(3,877) |
(5,072) |
|
|
|
|
Cash flows from investing activities: |
|
|
|
Purchases of property, plant and equipment |
(11) |
(5) |
(14) |
Finance income |
- |
- |
5 |
Net cash outflow from investing activities |
(1) |
(1) |
(9) |
|
|
|
|
Cash flows from financing activities: |
|
|
|
Payment of lease liabilities |
(151) |
(141) |
(319) |
Proceeds from the issue of ordinary share capital |
15,000 |
7,586 |
9,212 |
Expenses of placing, open offer and subscription by directors |
(551) |
(443) |
(547) |
Net cash inflow from financing activities |
14,298 |
6,998 |
8,346 |
|
|
|
|
Increase/(decrease) in cash and cash equivalents |
9,748 |
3,120 |
3,265 |
Cash and cash equivalents at the start of the period |
5,648 |
2,383 |
2,383 |
Cash, cash equivalents and deposits at the end of the period |
15,396 |
5,503 |
5,648 |
Notes to the interim financial report
For the six months ended
1. Corporate information
The principal activity of the C4X Discovery Holdings plc is research and development, a review of which is included in the Chairman's and CEO's Statement.
C4XD is incorporated and domiciled in the
The interim financial information was approved for issue on
2. Accounting policies
Basis of preparation
The accounting policies adopted in this interim financial report are consistent with those followed in the preparation of the Group's annual report and accounts for the year to
The interim financial information for the six months ended
These interim financial statements have been prepared in accordance with IAS34 Interim Financial Reporting. They do not include all the information required for a complete set of IFRS financial statements. However, selected explanatory notes are included to explain events and transactions that are significant to an understanding of the changes in the Group's financial position and performance since the last annual consolidated financial statements as at and for the year ended
Basis of consolidation
This interim financial report consolidates the financial statements of C4X Discovery Holdings plc and the entities it controls (its subsidiaries).
3. Taxation
|
Six months to |
Six months to |
Year to |
|
31 January |
31 January |
31 July |
|
2021 |
2020 |
2020 |
|
|
|
|
|
|
|
|
|
- |
- |
- |
Research and development income tax credit receivable |
(888) |
(900) |
(1,780) |
Adjustment in respect of prior periods |
- |
(10) |
(10) |
|
|
|
|
|
(888) |
(910) |
(1,790) |
4. Loss per share
|
|
|
|
31 January |
31 January |
31 July |
|
2021 |
2020 |
2020 |
|
|
|
|
|
|
|
|
|
Loss for the financial period attributable to equity shareholders |
(3,640) |
(3,989) |
(7,789) |
|
|
|
|
Weighted average number of shares: |
No. |
No. |
No. |
Ordinary shares in issue |
166,412,628 |
79,385,238 |
96,123,309 |
Basic loss per share (pence) |
(2.19)p |
(5.02)p |
(8.10)p |
Diluted loss per share has not been presented above as the effect of share options issued is anti-dilutive.
5. Issued share capital and share premium
|
Deferred shares |
Ordinary shares |
Share capital |
Deferred shares |
Share premium |
Total |
|
Number |
Number |
|
|
|
|
Ordinary and deferred shares as at |
2,025,000 |
108,366,444 |
1,084 |
2,025 |
38,892 |
42,001 |
Issue of share capital on placing |
- |
10,836,700 |
108 |
- |
1,518 |
1,626 |
Expenses of placing |
- |
- |
- |
- |
(104) |
(105) |
Ordinary and deferred shares as at |
2,025,000 |
119,203,144 |
1,191 |
2,025 |
40,306 |
43,522 |
Issue of share capital on placing |
- |
99,169,286 |
992 |
- |
12,892 |
13,884 |
Issue of share capital on open offer |
- |
7,973,572 |
80 |
|
1,036 |
1,116 |
Expenses of placing and open offer |
- |
- |
- |
- |
(551) |
(551) |
Ordinary and deferred shares as at |
2,025,000 |
226,346,002 |
2,263 |
2,025 |
53,683 |
57,971 |
6. Interim financial report
A copy of this interim condensed financial report is available on C4XD's website at www.c4xdiscovery.com.
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