C4X Discovery Holdings plc (AIM: C4XD), a pioneering Drug Discovery
company, today announces its half-year results for the six months
ended 31 January 2023.
Dr Clive Dix, CEO of C4X Discovery,
said:"C4XD has continued to make significant strides
across our portfolio during the period, culminating in our third
global out-licensing deal, this time with AstraZeneca for our NRF2
Activator programme worth up to $402 million. This external
validation of our ability to generate high-quality small molecule
discovery programmes builds on previous deals with globally
recognised partners Sanofi and Indivior and brings our total
potential deal value to $1.2 billion1.
"I'm excited that following a review of our
expertise and previous successes, our strategy is now focused on
treatments for immuno-inflammatory diseases. With our proven
expertise in drug discovery and our rigorous approach to programme
development, we believe that a more focused approach on
immuno-inflammatory diseases will allow us to harness our skillset
and take the development of our programmes further, providing
greater value for shareholders."
Operational Highlights (including
post-period events)
- Indivior's Phase 1 multiple
ascending dose clinical trial of C4XD's oral Orexin-1 receptor
antagonist, C4X_3256 (INDV-2000), for substance use disorder is
ongoing.
- Sanofi is progressing C4XD's IL-17A
inhibitor programme for inflammatory diseases towards the next
milestone.
- C4XD signed an exclusive worldwide
licensing agreement with AstraZeneca in November 2022, worth up to
$402 million, for its NRF2 Activator programme.
- α4β7 integrin inhibitor programme
for inflammatory bowel disease delivered compounds showing improved
activity at a lower dose compared to example competitor clinical
compounds in a pharmacodynamic model after oral dosing.
- MALT-1 inhibitor programme for
cancer examined a lead compound in a mouse xenograft study that
showed equivalent efficacy at equivalent dose to the Johnson &
Johnson clinical compound JnJ-67856633 (in Phase 1) and the project
is moving forward to identification of candidate shortlist
molecules.
- C4XD internal portfolio expanded in
inflammatory diseases and new programmes identified to progress
into Lead Optimisation and beyond.
- C4XD launched PatientSeek, a
Precision Medicine platform for optimised patient selection based
on its Taxonomy3® genetic analysis technology, following key
results from a collaboration with Australia's Garvan Institute of
Medical Research ("Garvan Institute").
- Dr Nick Ray has been appointed as
Chief Scientific Officer.
Financial Highlights
- Revenue was £1.7 million (January 2022: £0.1 million)
- Total loss after tax of £3.9 million or 1.55 pence per share
(January 2022: £4.5m or 1.98 pence per share)
- R&D expenses was £5.2 million (January 2022: £3.9m),
reflecting focused investment in key Drug Discovery programmes
- Net assets of £13.6 million (January 2022: £15.2m)
- Net cash as at 31 January 2023: £9.6 million (31 January 2022:
£11.7m)
Analyst webcast and conference call
today
Dr Clive Dix, Chief Executive Officer, and members of the
management team will host a webcast for analysts at 9:30am BST
today. The webcast can be accessed online at:
https://www.lsegissuerservices.com/spark/C4xDiscoveryHolding/events/d062ff53-5db5-4b93-a428-089daeee0030
A copy of the final results presentation will be
released later this morning on the Company website
at www.c4xdiscovery.com.
1. Total deal value
calculation based on exchange rates at the time of each deal.
- Ends -
Contacts
C4X Discovery Holdings |
|
Mo Noonan, Communications |
+44 (0)787 6444977 |
|
|
Panmure Gordon (UK) Limited (NOMAD and
Broker) |
|
Freddy Crossley, Emma Earl (Corporate Finance) |
+44 (0)20 7886 2500 |
Rupert Dearden (Corporate Broking) |
|
|
|
C4X Discovery Media - Consilium Strategic
Communications |
|
Mary-Jane Elliott, Chris Gardner, Matthew Neal |
+44 (0)203 709 5700 |
Notes to Editors:
About C4X Discovery
C4X Discovery ("C4XD") is a pioneering Drug
Discovery company, combining scientific expertise with cutting-edge
Drug Discovery technologies to efficiently deliver world-leading
medicines. We have a highly valuable and differentiated approach to
Drug Discovery through our enhanced candidate molecule design and
patient stratification capabilities, generating small molecule drug
candidates across multiple disease areas focused on
immuno-inflammation. Our commercially attractive portfolio ranges
from early-stage target opportunities to late-stage Drug Discovery
programmes and we have three commercially partnered programmes with
one candidate in clinical development.
For more information visit us
at www.c4xdiscovery.com or follow us on twitter
@C4XDiscovery.
Corporate Overview
We have continued to make strong progress across
the entire portfolio, both during the period and into the beginning
of 2023. Our most significant news was announced in November with
the out-licensing of our NRF2 Activator programme to AstraZeneca
for up to $402 million, including $2 million upfront, and up to $16
million in potential pre-clinical milestone payments, plus the
potential for tiered single-digit royalties.
Our portfolio of partnered programmes continues
to advance. Indivior's Phase I multiple-ascending dose clinical
trial of C4XD's Orexin 1 Antagonist candidate C4X_3256/INDV-2000 is
underway and, following the first milestone received from Sanofi,
our IL-17A Inhibitor programme is advancing through pre-clinical
studies towards the next milestone. We look forward to hearing how
these programmes progress throughout the year.
Following a review of our expertise and previous
successes, C4XD is evolving its strategy to become a company
focused on treatments for immuno-inflammatory diseases. With the
majority of our portfolio already focused on immuno-inflammatory
diseases, a proven drug discovery expertise and an expert team of
scientists who understand this disease area, we believe that with
this approach we can harness our skillset and take the development
of our programmes further, providing greater value for
shareholders.
Our internal portfolio will now focus on the
discovery and development of novel small molecule medicines with
Best-in-Class and First-in-Class potential to treat patients across
a range of immuno-inflammatory diseases. Our lead internal
programme, focused on oral small molecule inhibitors of α4β7, has
the potential to expand patient access to α4β7 inhibitor therapy
for the treatment of inflammatory bowel disease ("IBD"). This
programme is making significant headway through late-stage
discovery and progressing towards pre-clinical studies. We
have further immuno-inflammatory programmes in early discovery and
we anticipate moving the two most promising of these into Lead
Optimisation within the next 18 months.
In line with our new focus on
immuno-inflammatory diseases, the decision has been taken to
streamline our portfolio and prioritise resources, and we therefore
plan to out-license our pre-clinical MALT-1 inhibitor programme for
oncology.
In January 2023, we were delighted to appoint
Nick Ray as our Chief Scientific Officer. Nick has been with C4XD
for seven years, most recently as SVP Drug Discovery and
also leading the medicinal chemistry, structural analysis and
computational chemistry/cheminformatics teams. He has played a key
role in the growth of C4XD and his in-depth scientific expertise
has enabled C4XD to develop a growing portfolio of high-quality
small molecule programmes. Nick's leadership will be invaluable as
we look to take these programmes further into development.
In February 2023, following a successful
research collaboration with Garvan Institute, we announced the
launch of C4XD's new platform for patient stratification,
PatientSeek (powered by Taxonomy3®) - see study details in the
Portfolio Review. The results of the study demonstrate
PatientSeek's ability to optimise patient selection and
its potential to match the most effective treatments with
groups of patients who are most likely to benefit thereby ensuring
the right drug is given to the right patient, based on their
genetics. C4XD has already identified subgroups in a number of
immuno-inflammatory diseases using PatientSeek and we will be
exploring their application in bringing precision medicine
approaches to these patient populations.
The Company has a sufficient cash position and
manageable fixed cost base. Cash, cash equivalents, short-term
investments and deposits were £9.6 million at 31 January 2023 (31
January 2022: £11.7 million). R&D investment of £5.2 million in
the six months ending 31 January 2023 (January 2022: £3.9 million),
reflecting focused investment in key Drug Discovery programmes.
Administrative Expenses remained steady at £1.6 million for the six
months ended January 2023 (January 2022: £1.6 million).
Portfolio Review
Addictive disorders (Orexin-1
Antagonist) - out-licensed to Indivior
Phase 1 multiple ascending dose study
ongoing
Under C4XD's milestone and royalties agreement
with Indivior worth up to US$284 million for C4XD's oral Orexin-1
receptor antagonist C4X_3256 (INDV-2000) for the treatment of
substance use disorders, Indivior has completed the Single
Ascending Dose (SAD) Phase 1 study with no events of clinical
concern. The Multiple ascending dose (MAD) study is progressing
with Last Subject Last Visit (LSLV) scheduled for July 2023, and
with other clinical, non-clinical and chemical/formulation
development activities proceeding to plan.
Opioid addiction is an increasing burden on the
healthcare system, particularly in the US but is a growing global
issue. According to the U.S. Center for Disease Control
& Prevention (CDC), more than 107,937 people are predicted to
have died from drug overdose, up 56% in the 12-month period ending
August 2022, with 73,369 of these deaths attributed to synthetic
opioids, up 115%1.
Inflammation (IL-17A Inhibitor) -
out-licensed to Sanofi
Sanofi-led programme making significant
progress
Under the exclusive worldwide licensing
agreement worth up to €414 million, Sanofi continues to make strong
pre-clinical progress towards the second milestone; C4XD received
the first milestone payment of €3 million in July 2022. The
small molecules in C4XD's oral IL-17A inhibitor programme can
selectively block IL-17 activity whilst maintaining molecular size
of the molecule in the traditional "drug-like" range. A
novel, potent oral series of IL-17A inhibitors that significantly
reduce IL-17 induced inflammation in vivo is being
optimised. Sanofi has development and commercial rights to
the programme and is continuing to work with C4XD in the next
discovery phase, utilising our Conformetrix technology,
interpretation and application to compound design as the programme
progresses towards the clinic.
Inflammation (NRF2 Activator) - out-licensed to
AstraZeneca
Programme continues to move forward under AstraZeneca's
ownership
C4XD signed an exclusive worldwide licensing
agreement with AstraZeneca in November 2022, worth up to $402
million, for its NRF2 Activator programme. AstraZeneca will
develop and commercialise an oral therapy for the treatment of
inflammatory and respiratory diseases with a lead focus on chronic
obstructive pulmonary disease (COPD). Under the terms of the
agreement, C4XD will receive pre-clinical milestone payments worth
up to $16 million including $2 million upfront, ahead of the first
clinical trial. In addition, C4XD will receive a further
potential $385.8 million in clinical development and commercial
milestones and tiered mid-single digit royalties upon
commercialisation.
Inflammation is a key driver in many
pathological conditions. NRF2 plays a pivotal role in
controlling the expression of antioxidant genes that ultimately
exert anti-inflammatory functions. Targeting the NRF2 pathway
to reduce inflammatory damage offers the potential for a new
approach to treat a variety of inflammatory diseases.
Interest in this therapeutic approach covers multiple therapeutic
areas including chronic obstructive pulmonary disease, atopic
dermatitis, IBD, pulmonary arterial hypertension and sickle cell
disease.
Inflammation (α4β7 Integrin
Inhibitor)
Programme transitioned into Lead
Optimisation
C4XD's oral α4β7 integrin inhibitor programme
has identified multiple series of novel, potent and selective α4β7
integrin inhibitors for the treatment of IBD. Effective
antibody therapy against this target is already approved, removing
the clinical target risk, but an effective oral therapy remains
highly sought after. During 2021, Morphic Therapeutic's Phase
1 clinical study demonstrated high target occupancy in blood at
developable doses but with a twice daily profile. C4XD's
programme is targeting a much desired once-a-day profile.
Oral bioavailability has been demonstrated and
there is particular focus on improving PK properties to achieve a
good oral half-life. C4XD has compounds that match or exceed both
whole blood potency and selectivity values when compared to
examples from current clinical patent estates, with correspondingly
improved activity at a lower dose when profiled in a T-cell
gut-homing pharmacodynamic model.
Haematological Cancer (MALT1 Inhibitor)
Moving towards identification of
pre-clinical candidate shortlist
MALT1 is one of the key regulators of B-cell
receptor (BCR) and T-cell receptor (TCR) signalling. Mutations that
lead to constitutive activation of MALT1 are associated with
aggressive forms of non-Hodgkin B-cell lymphoma and inhibition of
MALT1 has potential therapeutic applicability as a mono
therapy for MALT1-driven cancers such as activated B-cell diffuse
large B-cell lymphoma (ABC-DLBCL) and in combination with BTK and
Bcl inhibitors across multiple haematological indications, as well
as broader potential in solid tumours and inflammation.
Our Conformetrix technology has yielded multiple
structurally distinct series, two of which have progressed into
Lead Optimisation. Profiling of a Lead compound in a mouse
xenograft study has shown equivalent efficacy at equivalent dose to
the Johnson & Johnson clinical compound JnJ-67856633 (in Phase
1) and the programme is moving forward to identification of
candidate shortlist molecules. C4XD has initiated partnering
discussions for this programme.
Expansion of Pipeline
As we look to scale our portfolio, early-phase
programmes targeting a number of targets across a range of
immuno-inflammatory diseases are being resourced to identify those
with the highest potential to warrant increased spend and
prosecution to and through Lead Optimisation and eventually into
the clinic. These programmes target clear unmet medical need,
combined with significant commercial potential and a unique
opportunity to produce valuable chemical equity through
interpretation of conformational insight via C4XD's Conformetrix
technology. Additionally, we are using our PatientSeek
platform (vide infra) to inform our target selection choices, based
on identification of patient stratification opportunities and
improved trial design. Details of each programme will be provided
once they have matured to Lead Optimisation stage.
PatientSeek
C4XD has launched a precision medicine platform,
PatientSeek, based on its Taxonomy3® technology, following
insights from a successful research collaboration with Garvan
Institute of Medical Research. In the collaboration, C4XD provided
Garvan Institute with the genetic signatures for its PatientSeek
sub-groups in Parkinson's disease. Garvan researchers then applied
this as part of a retrospective analysis of a failed Phase 3
Parkinson's clinical trial that had not reached its primary
endpoint, to assess if a genetic subgroup of participants showed a
benefit from the therapeutic. Very encouragingly, PatientSeek
identified a subgroup that responded to the trial drug. These
results provide the first validation of PatientSeek's ability to
identify patient subgroups to optimise patient selection, which in
turn could lead to enhanced probability of targeted success in
clinical trials. The results from this study will be
submitted for publication in a peer reviewed
journal. Whilst this study was focused on Parkinson's
disease, the PatientSeek platform is disease agnostic and can be
applied to any complex genetic disease and we will look to expand
and explore the immuno-inflammatory diseases subgroups for
application in our own portfolio.
Outlook
C4XD has continued to make huge strides across
our portfolio during the period, including our third global
out-licensing deal, this time with AstraZeneca for our NRF2
Activator programme worth up to $402 million. This brings our deal
value to a total of $1.2 billion with large pharmaceutical
companies, further validating our reputation for generating
high-quality small molecules. Following a review of our expertise
and previous successes, C4XD is evolving its strategy to become a
company focused on treatments for immuno-inflammatory diseases.
With our proven expertise in drug discovery and our rigorous
approach to programme development, we believe that a more focused
approach on immuno-inflammatory diseases will allow us to harness
our skillset and take the development of our programmes further,
providing greater value for shareholders.
1. https://www.indivior.com/resources/dam/id/1147/Annual%20Report%20and%20Accounts%202022.pdf2. https://www.ncbi.nlm.nih.gov/pmc/articles/PMC4530463/3. Plaque
Psoriasis: Global Drug Forecast and Market Analysis to 2027,
GlobalData, December 2018
Interim consolidated statement of comprehensive
incomeFor the six months ended 31 January
2023
|
|
Six months |
|
Six months |
|
Year |
|
|
|
to |
|
to |
|
to |
|
|
|
31 January 2023 |
|
31 January 2022 |
|
31 July2022 |
|
|
|
(Unaudited) |
|
(Unaudited) |
|
(Audited) |
|
|
|
£000 |
|
£000 |
|
£000 |
|
|
Notes |
|
|
|
|
|
|
|
|
Revenue |
3 |
1,676 |
|
66 |
|
2,699 |
|
|
|
|
|
|
Cost
of sales |
|
(22 |
) |
(59 |
) |
(130 |
) |
|
|
|
|
|
|
|
|
|
|
Gross profit |
|
1,654 |
|
7 |
|
2,569 |
|
|
|
|
|
|
Research and development expenses |
|
(5,194 |
) |
(3,942 |
) |
(9,426 |
) |
Administrative expenses |
|
(1,638 |
) |
(1,595 |
) |
(3,665 |
) |
|
|
|
|
|
|
|
|
|
|
Operating loss |
|
(5,178 |
) |
(5,530 |
) |
(10,522 |
) |
|
|
|
|
|
Finance income |
|
15 |
|
- |
|
- |
|
Finance costs |
|
(12 |
) |
(7 |
) |
(12 |
) |
|
|
|
|
|
Loss before taxation |
|
(5,175 |
) |
(5,537 |
) |
(10,534 |
) |
|
|
|
|
|
Taxation |
4 |
1,296 |
|
1,020 |
|
2,374 |
|
|
|
|
|
|
Loss for the period and total comprehensive loss for the
period |
|
(3,879 |
) |
(4,517 |
) |
(8,160 |
) |
|
|
|
|
|
Loss per share: |
|
|
|
|
Basic
loss for the period |
5 |
(1.55)p |
(1.98)p |
(3.57)p |
Diluted loss for the period |
5 |
(1.55)p |
(1.98)p |
(3.57)p |
Interim consolidated statement of changes in
equityFor the six months ended 31 January
2023
|
Issued equity |
Share |
Warrant |
Share based payment |
Merger |
Capital contribution |
Revenue |
|
|
capital |
premium |
reserve |
reserve |
reserve |
reserve |
reserve |
Total |
|
|
£000 |
£000 |
£000 |
£000 |
£000 |
£000 |
£000 |
£000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At 01 August 2021 |
4,302 |
53,043 |
|
979 |
|
1,191 |
920 |
195 |
(41,344 |
) |
19,286 |
|
|
|
|
|
|
|
|
|
|
Loss
for the six months to31 January 2022 |
- |
- |
|
- |
|
- |
- |
- |
(4,517 |
) |
(4,517 |
) |
Issue
of share capital |
- |
- |
|
- |
|
- |
- |
- |
- |
|
- |
|
Expenses of options |
- |
- |
|
- |
|
- |
- |
- |
- |
|
- |
|
Exercise of warrants |
11 |
297 |
|
(11 |
) |
- |
- |
- |
11 |
|
308 |
|
Share-based payments |
- |
- |
|
- |
|
114 |
- |
- |
- |
|
114 |
|
|
|
|
|
|
|
|
|
|
At 31 January 2022 |
4,313 |
53,340 |
|
968 |
|
1,305 |
920 |
195 |
(45,850 |
) |
15,191 |
|
|
|
|
|
|
|
|
|
|
Loss
for the six months to31 July 2022 |
- |
- |
|
- |
|
- |
- |
- |
(3,643 |
) |
(3,643 |
) |
Issue
of share capital |
- |
- |
|
- |
|
- |
- |
- |
- |
|
- |
|
Exercise of options |
3 |
15 |
|
- |
|
- |
- |
- |
- |
|
18 |
|
Exercise of warrants |
- |
- |
|
- |
|
- |
- |
- |
- |
|
- |
|
Share-based payments |
- |
- |
|
- |
|
238 |
- |
- |
- |
|
238 |
|
|
|
|
|
|
|
|
|
|
At 31 July 2022 |
4,316 |
53,355 |
|
968 |
|
1,543 |
920 |
195 |
(49,493 |
) |
11,804 |
|
|
|
|
|
|
|
|
|
|
Loss
for the six months to31 January 2023 |
- |
- |
|
- |
|
- |
- |
- |
(3,879 |
) |
(3,879 |
) |
Issue
of share capital |
228 |
5,467 |
|
- |
|
- |
- |
- |
- |
|
5,695 |
|
Expenses of placing |
- |
(287 |
) |
- |
|
- |
- |
- |
- |
|
(287 |
) |
Exercise of options |
1 |
5 |
|
- |
|
- |
- |
- |
- |
|
6 |
|
Exercise of warrants |
- |
- |
|
- |
|
- |
- |
- |
- |
|
- |
|
Share-based payments |
- |
- |
|
- |
|
214 |
- |
- |
- |
|
214 |
|
|
|
|
|
|
|
|
|
|
At 31 January 2023 |
4,545 |
58,540 |
|
968 |
|
1,757 |
920 |
195 |
(53,372 |
) |
13,553 |
|
Interim consolidated statement of financial
positionAs at 31 January 2023
|
|
31 January 2023 |
|
31 January 2022 |
|
31 July 2022 |
|
|
|
(Unaudited) |
|
(Unaudited) |
|
(Audited) |
|
|
Notes |
£000 |
|
£000 |
|
£000 |
|
Assets |
|
|
|
|
Non-current assets |
|
|
|
|
Property, plant and equipment |
|
43 |
|
30 |
|
47 |
|
Intangible assets |
|
59 |
|
67 |
|
61 |
|
Goodwill |
|
1,192 |
|
1,192 |
|
1,192 |
|
Right-of-use assets |
|
563 |
|
266 |
|
707 |
|
|
|
1,857 |
|
1,555 |
|
2,007 |
|
Current assets |
|
|
|
|
|
|
|
|
|
Trade
and other receivables |
|
567 |
|
571 |
|
3,069 |
|
Income tax asset |
|
3,661 |
|
3,073 |
|
4,427 |
|
Cash
and cash equivalents |
|
9,642 |
|
11,679 |
|
5,079 |
|
|
|
13,870 |
|
15,323 |
|
12,575 |
|
Total assets |
|
15,727 |
|
16,878 |
|
14,582 |
|
|
|
|
|
|
Liabilities |
|
|
|
|
Current liabilities |
|
|
|
|
Trade
and other payables |
|
(1,587 |
) |
(1,390 |
) |
(2,049 |
) |
Lease
liabilities |
|
(329 |
) |
(171 |
) |
(305 |
) |
|
|
(1,916 |
) |
(1,561 |
) |
(2,354 |
) |
Non-current liabilities |
|
|
|
|
Trade
and other payables |
|
- |
|
- |
|
- |
|
Lease
liabilities |
|
(258 |
) |
(126 |
) |
(424 |
) |
|
|
(258 |
) |
(126 |
) |
(424 |
) |
|
|
|
|
|
Total liabilities |
|
(2,174 |
) |
(1,687 |
) |
(2,778 |
) |
Net assets |
|
13,553 |
|
15,191 |
|
11,804 |
|
|
|
|
|
|
Capital and reserves |
|
|
|
|
Issued equity capital |
6 |
4,545 |
|
4,314 |
|
4,316 |
|
Share
premium |
6 |
58,540 |
|
53,339 |
|
53,355 |
|
Share-based payment reserve |
|
1,757 |
|
1,305 |
|
1,543 |
|
Warrant reserve |
|
968 |
|
968 |
|
968 |
|
Merger reserve |
|
920 |
|
920 |
|
920 |
|
Capital contribution reserve |
|
195 |
|
195 |
|
195 |
|
Revenue reserve |
|
(53,372 |
) |
(45,850 |
) |
(49,493 |
) |
Total equity |
|
13,553 |
|
15,191 |
|
11,804 |
|
Approved by the Board and authorised for issue on 25 April
2023Brad HoyChief Financial Officer25 April 2023Interim
consolidated cash flow statementFor the six months
ended 31 January 2023
|
Six months |
|
Six months |
|
Year |
|
|
to |
|
to |
|
to |
|
|
31 January |
|
31 January |
|
31 July |
|
|
2023 |
|
2022 |
|
2022 |
|
|
(Unaudited) |
|
(Unaudited) |
|
(Audited) |
|
|
£000 |
|
£000 |
|
£000 |
|
|
|
|
|
Loss after tax and interest |
(3,879 |
) |
(4,517 |
) |
(8,160 |
) |
Adjustments for: |
|
|
|
Depreciation of property, plant and equipment |
12 |
|
12 |
|
23 |
|
Depreciation of right-of-use assets |
143 |
|
111 |
|
212 |
|
Amortisation of intangible assets |
3 |
|
3 |
|
8 |
|
Share-based payments |
214 |
|
114 |
|
352 |
|
Finance income |
(15 |
) |
- |
|
- |
|
Finance costs |
12 |
|
7 |
|
12 |
|
Taxation |
(1,296 |
) |
(1,020 |
) |
(2,374 |
) |
Changes in working capital: |
|
|
|
Decrease/(increase) in trade and other receivables |
2,502 |
|
3 |
|
(2,496 |
) |
(Decrease)/increase in trade and other payables |
(462 |
) |
(321 |
) |
338 |
|
Cash outflow from operating activities |
(2,766 |
) |
(5,608 |
) |
(12,085 |
) |
Research and development tax credit received |
2,063 |
|
- |
|
- |
|
Net cash outflow from operating activities |
(703 |
) |
(5,608 |
) |
(12,085 |
) |
|
|
|
|
Cash flows from investing activities: |
|
|
|
Purchases of property, plant and equipment |
(8 |
) |
(10 |
) |
(36 |
) |
Finance income |
15 |
|
- |
|
- |
|
Net cash outflow from investing activities |
7 |
|
(10 |
) |
(36 |
) |
|
|
|
|
Cash flows from financing activities: |
|
|
|
Payment of lease liabilities |
(155 |
) |
(114 |
) |
(229 |
) |
Proceeds from the issue of ordinary share capital |
5,701 |
|
308 |
|
326 |
|
Expenses of placing |
(287 |
) |
- |
|
- |
|
Net cash inflow from financing activities |
5,259 |
|
194 |
|
97 |
|
|
|
|
|
Increase/(decrease) in cash and cash
equivalents |
4,563 |
|
(5,424 |
) |
(12,024 |
) |
Cash
and cash equivalents at the start of the period |
5,079 |
|
17,103 |
|
17,103 |
|
Cash, cash equivalents and deposits at the end of the
period |
9,642 |
|
11,679 |
|
5,079 |
|
Notes to the interim financial
reportFor the six months ended 31 January
2023
1. Corporate
information
The principal activity of the C4X Discovery Holdings plc is
research and development, a review of which is included in the
Chairman's and CEO's Statement.
C4XD is incorporated and domiciled in the United Kingdom and its
registered number is 09134041. The address of the registered office
is Manchester One, 53 Portland Street, Manchester, M1 3LD.
The interim financial information was approved for issue on 25
April 2023.
2. Accounting
policies
Basis of preparation
The accounting policies adopted in this interim financial report
are consistent with those followed in the preparation of the
Group's annual report and accounts for the year to 31 July
2022.
The interim financial information for the six months ended 31
January 2023 and 31 January 2022 is unaudited and does not
constitute statutory accounts as defined in the Companies Act
2006. This interim financial report includes audited
comparatives for the year to 31 July 2022. The 2022 annual
report and accounts received an unqualified audit opinion and have
been filed with the Registrar of Companies.
These interim financial statements have been prepared in
accordance with IAS34 Interim Financial Reporting. They do
not include all the information required for a complete set of IFRS
financial statements. However, selected explanatory notes are
included to explain events and transactions that are significant to
an understanding of the changes in the Group's financial position
and performance since the last annual consolidated financial
statements as at and for the year ended 31 July 2022.
Basis of consolidation
This interim financial report consolidates the financial
statements of C4X Discovery Holdings plc and the entities it
controls (its subsidiaries).
3. Revenue
|
Six months to |
Six months to |
Year to |
|
31 January |
31 January |
31 July |
|
2023 |
2022 |
2022 |
|
£000 |
£000 |
£000 |
Revenue recognised at a point in time -
Right-to-use licence revenue - Milestone
revenue |
1,652- |
-- |
-2,555 |
Revenue recognised over time - Research services
revenue - Consultancy services |
24- |
66- |
144- |
Total Revenue |
1,676 |
66 |
2,699 |
Revenue in the current period has been generated from contracts
with two customers.
In the current period a new contract was signed with a new
customer which has been determined to have three performance
obligations - the transfer of intellectual property which has been
recognised as right-to-use licence revenue at a single point in
time; the provision of consultancy and technical support which will
be recognised over time in line with the level of consultancy
provided; and the facility of on-going research which will be
reimbursed on a pass-through cost basis.
The revenue attributed to the delivery of research services was
generated from one customer and is recognised over time. The
progress is measured based on costs incurred to date as compared
with the total projected costs for both the current and prior
periods.
Revenue In the prior periods was generated from a contract with
a single customer. In the prior period, the milestone revenue was
determined to have one performance obligation and was recognised at
a point in time. The revenue attributed to the delivery of research
services was recognised on the same basis as in the current
period.
4. Taxation
|
Six months to |
|
Six months to |
|
Year to |
|
|
31 January |
|
31 January |
|
31 July |
|
|
2023 |
|
2022 |
|
2022 |
|
|
£000 |
|
£000 |
|
£000 |
|
UK
corporation tax losses in the period |
- |
|
- |
|
- |
|
Research and development income tax credit receivable |
(1,296 |
) |
(1,020 |
) |
(2,365 |
) |
Adjustment in respect of prior periods |
- |
|
- |
|
(9 |
) |
|
(1,296 |
) |
(1,020 |
) |
(2,374 |
) |
5. Loss per
share
|
31 January |
31 January |
31 July |
2023 |
2022 |
2022 |
|
£000 |
£000 |
£000 |
Loss for the financial period attributable to equity
shareholders |
(3,879) |
(4,517) |
(8,160) |
Weighted average number of shares: |
No. |
No. |
No. |
Ordinary shares in issue |
250,048,502 |
228,177,371 |
228,675,845 |
Number of exercisable share options and warrants |
305,197 |
22,005,021 |
12,231,972 |
Ordinary shares in issue for purposes of diluted EPS |
250,353,700 |
250,182,392 |
240,907,817 |
Basic and diluted loss per share (pence) |
(1.55)p |
(1.98)p |
(3.57)p |
The number of exercisable share options and warrants above are
those deemed to be potentially dilutive in nature as their exercise
price is less than the average share price for the period. As the
group made a loss in the current and comparative period the effects
of these potential ordinary shares are not dilutive.
6. Issued share capital
and share premium
|
Deferred shares |
Ordinary shares |
Share capital |
Deferred shares |
Warrant reserve |
Share premium |
|
Total |
|
|
Number |
Number |
£000 |
£000 |
£000 |
£000 |
|
£000 |
|
Ordinary and deferred shares as at 31 January
2022 |
2,025,000 |
228,912,697 |
2,289 |
2,025 |
968 |
53,339 |
|
58,621 |
|
Issue of share capital on exercise of options |
- |
319,275 |
3 |
- |
- |
15 |
|
18 |
|
Ordinary and deferred shares as at 31 July
2022 |
2,025,000 |
229,231,972 |
2,292 |
2,025 |
968 |
53,354 |
|
58,639 |
|
Issue of share capital on placing |
- |
22,781,200 |
228 |
- |
- |
5,467 |
|
5,695 |
|
Issue of share capital on exercise of options |
- |
106,425 |
1 |
- |
- |
5 |
|
6 |
|
Expenses of placing |
- |
- |
- |
- |
- |
(287 |
) |
(287 |
) |
Ordinary and deferred shares as at 31 January
2023 |
2,025,000 |
252,119,597 |
2,521 |
2,025 |
968 |
58,539 |
|
64,053 |
|
7. Interim financial
report
A copy of this interim condensed financial
report is available on C4XD's website
at www.c4xdiscovery.com.
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