C4X Discovery Holdings PLC (AIM:C4XD) said the evolution of its focus towards immuno-inflammatory diseases during the past year, along with its robust balance sheet and streamlined product portfolio, puts it in a strong position for the future.
The company, which exists to discover and develop small-molecule therapeutics via its Conformetrix and PatientSeek technology platforms, increased its focus on immuno-inflammation following the sale of licensing for its NRF-2 programme to AstraZeneca for up to US$402 million just over a year ago and an out-licensing agreement with Sanofi for up to €414 million, which was also last year.
Cash of £4.2 million was on the balance sheet at the 31 July year-end, down from £5.1 million over the year, but was topped up by the receipt of £15.95 million from the sale to Indivior of the Orexin 1 programme just post-year-end.
Revenue of £1.7 million was recognised in the current year, including deferred revenues relating to the ongoing research work plan with Sanofi and an up-front payment of US$2 million by AstraZeneca.
The agreement with Indivior was executed on 31 July but was subject to certain performance obligations, which were met on 4 August 2023, resulting in this revenue being recognised shortly after the year's end.
A loss after tax of £11.1 million was reported, compared with an £8.2 million deficit the year before.
"This year has seen C4XD evolve significantly to build on its proven strengths and expertise and focus on immuno-inflammation,” said Dr Clive Dix, currently interim executive chairman and chief executive.
“The licensing of our NRF-2 programme to AstraZeneca reinforced our confidence in our ability to discover high value new small molecule drugs in the space and the strategic divestment of our Orexin-1 programme further streamlined our portfolio and provided further resources to pursue this more defined path to value.
“The market potential in immuno-inflammation is large and growing, reflecting the need for better treatments. With a robust balance sheet, focused strategy and streamlined portfolio, we believe we are strongly positioned in immuno-inflammation and excited about the future."
On the out-licensed programme, the company noted that Sanofi is making progress on the IL-17A inhibitor programme for inflammatory diseases towards the next milestone.
Of its portfolio of early-stage discovery immuno-inflammatory molecules, the board still anticipates moving two projects into lead optimisation by the end of 2024, following the project initiation process assessment involving C4X’s proprietary platforms, Conformetrix and PatientSeek, together with a thorough analysis of the commercial viability.
PatientSeek was launched in February to optimise patient selection, with the potential to match the most effective treatments with groups of patients who are most likely to benefit thereby ensuring the right drug is given to the right patient, based on their genetics.