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Nuformix inks development agreement; business remains resilient during lockdown

Published: 08:18 27 May 2020 BST

Nuformix PLC -

Nuformix PLC (LON:NFX) unveiled a new development agreement on Wednesday, alongside a trading update which demonstrated the resilience of the group's business during the coronavirus (COVID-19) lockdown.

Nuformix, which unlocks the therapeutic potential of known drugs, has teamed up with Nasdaq-listed VistaGen Therapeutics. The pair will work on new crystalline forms of VistaGen’s AV-101, which is being developed to treat conditions including neuropathic pain and epilepsy.

Turning to current trading, Nuformix chief executive, Dr Dan Gooding, said last year’s £1.25mln fundraise and the business’ low operating costs, meant the firm was “well-placed to ride out the current worldwide issues”.

“Proactive measures” have been taken to preserve cash during this period, investors were told. This included placing certain external research activities on hold and reducing administrative and operating expenditure where possible to further lower the cash-burn.

“We've focused expenditure on activities that deliver immediate benefit and maintain cashflow,” Gooding added.

So, negotiations with prospective partners in Asia for NXP002 (for the treatment of fibrosis) are in “good order” but going at a slower pace than due to the coronavirus pandemic.

Gooding noted that Nuformix was in an “excellent position to progress out-licensing negotiations as the COVID-19 situation improves, which would be transformative for the company”.

The priority going forward was to focus on NXP002 and NXP004  programmes “to create value for shareholders”, he went on.

“Whilst we are optimistic, we remain conservative and focused on delivery across the board in both our in-house and collaborative development programmes,” Gooding explained.

A “protracted fall-out” between Newsummit Biopharma (NSB) and its parent company will “impact the receipt” of a £2.5mln milestone payment from NSB.

“Since signing the NSB agreement, Nuformix has established a broader range of assets, opportunities and revenue sources that ought to mitigate such risks,” the company added.

Finally, revenues continue to be received under the Ebers cannabinoid collaboration, Nuformix said.

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