Diurnal Group PLC (AIM:DNL) shares plummeted 43% after it said further funding will be required to reach sustainable profitability, with the extent of additional aid to be assessed in the coming months.
Meanwhile, the hormone development therapeutics company said it was exploring financing options, including non-dilutive funding.
It attributed much of the cause of the problem to increased research and development spending, which was 225% higher to £5.9mln in the six months ended December 2021, while revenues were just £2.1mln.
The company said its near-term sales expectations of one of its commercial products, Efmody, were unlikely to be met.
"In early March 2022, we were disappointed to receive the SMC decision not to recommend Efmody® for automatic reimbursement in Scotland, which will impact near-term revenues in the UK,” Martin Whitaker, Diurnal chief executive, commented.
Diurnal will generate further clinical and health-economic data to support a re-submission to the SMC as soon as possible, it said.
Read: Diurnal drops after losses nearly double and it seeks funding