Nuformix PLC (LON:NFX) said there has been increased interest in its assets and their potential treatment for coronavirus (COVID-19), as well as the resultant fibrosis.
“These business discussions are confidential and further announcements will be made as and when appropriate,” the drug developer told investors as it reported its preliminary results for the year ended March 31, 2020.
WATCH: Nuformix PLC focused on licensing agreements and further fee-for-service work
The group, a specialist in cocrystal technology, also touched on its strategy review in the few weeks since the resignation of chief executive Dan Gooding.
The new approach will focus on licensing agreements and fee-for-service work; the use of its technology to create ‘out-licensing’ opportunities; co-development tie-ups to extend the patent life of generic products.
“Whilst we are optimistic, we remain conservative and focused on delivery for both our in-house and collaborative development programmes and with a determination to create and deliver shareholder value," said Nuformix chairman, Dr Chris Blackwell in the results statement.
Nuformix said the preparations are underway “for first clinical exposure” of its anti-fibrotic candidate, NXP002, and added that it is “looking at all options for deriving value from this product globally”. It was a period of significant operational progress in which the inhaled version NXP002 was prioritised.
The group said it also believes oncology candidate NXP001 “could also be of interest to third parties”.
“Whilst it is too early to characterise this, we will be extending our business development efforts in this area over the coming 12 months,” investors were told. “This will be greatly assisted by our network of key opinion leaders and scientific advisors.”
In the meantime, Nuformix said it will continue to pursue £2.5mln of milestone payments owed to it by Newsummit Biopharma related to an agreement it had with the Chinese firm.
Separately, it said some encouraging early work carried out on NXP004 with the highly acclaimed Newcastle Fibrosis Research Group has been hampered by the coronavirus lockdown.
“Evaluation of this important data on an exciting candidate that could be applicable to several disease indications is now expected to complete later this year,” the company said. “Again, we are looking at all options for deriving value from this product.”
Turning to the finances, the group made a loss in the year, which is not uncommon for a business focused on research and development. The after-tax deficit was a much reduced £756,376. As at the period-end it had cash of £543,772.
“The board believes the group has sufficient cash when combined with expected income to deliver on its objectives and following the board's recent review of the group's cash flow needs and opportunities,” Nuformix said.