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Pharma & Biotech

Drug developer Faron Pharmaceuticals' annual results statement charts a year of major landmarks

Traumakine, used to treat acute respiratory distress syndrome, is undergoing a phase III clinical trial with results expected in the second half.

The annual results statement from Faron Pharmaceuticals Ltd (LON:FARN) charted a period of progress and success with its main drug candidate.

Traumakine, used to treat acute respiratory distress syndrome, is undergoing a phase III clinical trial with results expected in the second half.

A phase II study carried out by Faron’s Japanese licensing partner underscored the drug’s safety profile as well as showing a reduction in deaths.

WATCH: Faron boss upbeat on year ahead ...

Traumakine is now being developed for a second indication, a condition called rupture of abdominal aorta aneurysm.

Clevegen, its potential immunotherapy, could move into the clinic this year, Faron said.

During the year ended December 31 the company successfully raised €9.3mln at 250p and followed this by bringing in a further €5.8mln earlier this month.

Without the most recent cash call the company was still in a very sound financial position with €11.5mln at the period end.

Faron generated revenues of €1.2mln last year. In common with most companies at this formative stage of its development it was lossmaking. The shortfall was €9.3mln.

"Faron's mission is to develop new treatments in genuine areas of unmet medical need,” said chief executive, Dr Markku Jalkanen.

“[Last year] was an important year of progress for Faron, during which we sucessfully achieved all of the major goals set out at the time of our IPO in 2015, with a lower cash burn than anticipated.”

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