Circassia Pharmaceuticals PLC (LON:CIR) saw its losses narrow significantly in the first half of the year thanks to its collaboration with AstraZeneca PLC (LON:AZN).
Last year, Circassia signed a deal with Astra which sees it promote the pharma giant’s chronic obstructive pulmonary disease (COPD) treatment Tudorza in return for a share of the profits.
WATCH: Circassia is a high growth speciality pharma, says CEO Steve Harris
It also has the commercial rights to another COPD drug made by AstraZeneca called Duaklir, which is awaiting approval from US regulators with a decision due in six months.
Tudorza is Circassia’s biggest earner, bringing in £14.4mln in the six months ended June 30 – a 4% year-on-year rise.
As for its own NIOX asthma management system, sales increased 12% to £14.0mln (H1 17: £12.5mln) in the first half following a spike in demand from pharma companies looking to use the product in clinical trials.
READ: FDA set to complete Duaklir review by March
Total sales jumped to £28.4mln in the period (H1 17: £18.3mln). Coupled with a sharp reduction in its cost base, this helped pre-tax losses narrow to £23.9mln from £34.1mln a year earlier.
Net cash outflow was £8.7mln (H1 17: £34.5mln), while the company had £50.8mln of cash in the bank (H1 17: £82.9mln).
2018 to be ‘transformational’
“During 2018 we have accelerated our transition into a commercially-focused organisation as part of our strategy to build a high growth, profitable speciality pharmaceutical business,” said chief executive Steve Harris.
“In the first six months of the year, we have made good financial progress, increasing our revenues from both NIOX and Tudorza, delivering R&D cost savings and significantly reducing our net loss and cash outflow.”
He added: “With the team making encouraging progress right across Circassia, we are working hard to make 2018 a transformational year for the Company, as we lay the foundations to transition to profitability.”