Nuformix PLC (LSE:NFX) shares fell 20% to 0.1p after the drug development company reported interim results revealed it had just under £100,000 of cash in the bank at the half-year stage, though is optimistic about licensing talks for its main drug candidate.
Cash and cash equivalents at 31 March were just shy of £98,000, down from £183,523 a year ago, as the company made a loss of £376,668 for the period, up from £242,529 a year ago.
Nuformix raised a gross £300,000 via a share subscription last November, and another subscription raised £168,750 this February.
Last month, the warrants were exercised for a total consideration to the company of £13,200.
The results were prepared based on the directors' reasonable expectation that the group has adequate resources to continue to operate as a going concern for at least twelve months, with cashflow forecasts taking into account the likely cost run rate and planned research spending, as well as the "expectations of a further fundraise" in the second half of 2025.
The company remains in licensing talks for its lead asset NXP002, a potential treatment for progressive fibrosing interstitial lung diseases, including idiopathic pulmonary fibrosis (IPF) and progressive pulmonary fibrosis.
Executive director Dan Gooding said: "Our research efforts and external discussions to date demonstrate that inhaled treatment of IPF and related fibrotic lung diseases via NXP002 is a viable and attractive concept."
Since the end of March, he noted that the positive opinion from the European Medicines Agency's Committee for Orphan Medicinal Products regarding NXP002's eligibility for Orphan Drug designation in IPF.
"The EMA's procedure for awarding ODD status involves considerable scientific scrutiny. Therefore, the opinion serves as powerful independent third-party validation of NXP002's underlying scientific rationale and existing data supporting its potential efficacy in treating fibrotic lung diseases such as IPF," he said.