Drug developer Nuformix PLC (LON:NFX) has said it is considering its options over how to get a payment of £2.5mln owed by Chinese group Newsummit Biopharma.
The two companies have partnered on a chemotherapy side effect treatment developed by Nuformix, which is currently going through clinical trials in China.
In spite of an assurance the money would be paid in November, it has not been forthcoming, with the latest delay blamed on an audit of Newsummit by its parent company.
Nuformix also noted that its primary contact at Newsummit was dismissed in January.
In its statement, the AIM-listed group said legal advice had confirmed it was owed the money and added that it is contact with the new management at Newsummit to arrange a date for payment.
Dr Dan Gooding, Nuformix chief executive, said: "We look forward to working with the new management team at Newsummit Biopharma to secure the payments due such that our long-term relationship and contractual agreements are honoured".
Separately, Nuformix said chairman Dave Tapolczay has resigned with immediate effect and will be replaced by Chris Blackwell on an interim basis while it looks for someone with specialist life sciences experience.