Shield Therapeutics plc (LSE:STX), a specialty
pharmaceutical company focused on secondary care, today announces
its preliminary Group results for the six months ended 30 June
2016.
Highlights (including post period
end)
Operational and commercial
- Achievement of first revenues of £240k from sales of Feraccru,
Shield Therapeutics’ first prescription medicine which was approved
in February 2016
- Initial stages of Feraccru’s European commercial launch
progressing in line with expectations:
- UK commercial activities accelerating, post- June 2016 launch,
as per plan
- >10 members of Shield Therapeutics’ team interacting with UK
customers on a daily basis
- Access to Formularies and approvals by Clinical Commissioning
Groups in the UK being achieved to cover an increasing number of
prescribers
- Feraccru pricing of £47.60 per 28-day treatment pack agreed
with the UK NHS
- Higher pricing of €64.00 per 28-day treatment pack agreed and
published in Germany, with sales operations to commence in October
2016
- Key Composition of Matter patent granted, significantly
increasing the level and duration of exclusive intellectual
property protection afforded to Feraccru from 2023 to at least
2034
- AEGIS-H2H and AEGIS-CKD Phase 3 studies of Feraccru progressing
on track
- Discussions progressing well with potential licensing partners
in a selection of non-core markets
- PT20 and PT40 activities continue in-line with plan
Financial1
- Successful completion of an Initial Public Offering (IPO) on
AIM raising £32.5m (gross) and further potential gross
proceeds of £17.5m, subject to the full exercise of
Warrants
- First reported UK revenues of £240k
- Net loss for period of £8.9m on an IFRS basis. Adjusted net
loss for period of £5.1m1
- Period end cash balance of £28.4m
Commenting on the interim results, Carl
Sterritt, Chief Executive Officer of Shield Therapeutics plc,
said: “The period covering the first half of 2016 and
particularly since the Company’s IPO in February has been one of
foundation building, implementation of the first stages of
Feraccru’s commercial launch and resource growth for Shield
Therapeutics; as well as receipt of our first commercial
revenues. During this time the Company has successfully
achieved attractive pricing agreements in the UK and Germany, and
has been accelerating our commercial activities for Feraccru in the
UK, whilst laying the foundations for launch in Germany in October
2016. Alongside this we have made solid progress with our two
Phase 3 clinical trials that will further enhance the commercial
opportunity available to Feraccru by broadening the prescribing
label and the geographies the product can be prescribed in; as well
as fundamentally improving the intellectual property rights of
Feraccru with a series of significant enhancements.
“Oral ferrous treatments are poorly tolerated
meaning patients frequently don’t adhere to treatment, resulting in
a real unmet need for a well-tolerated oral iron replacement like
Feraccru for IBD patients with IDA. The availability of
Feraccru is an important step in helping to fulfil this unmet need
and may help reduce the need to progress to IV iron treatments.
With our now-expanded team of industry-leading professionals we
look forward to building on these activities and further executing
our plans through the remainder of 2016 and beyond so that more
patients can benefit from Feraccru.”
Conference call for analystsA briefing for
analysts will be held at 11.00am BST on 20 September 2016 in the
Guildhall Room at 85 Gresham Street, London, EC2V 7NQ. There
will be a simultaneous live conference call with Q&A and the
presentation will be available on Shield’s website at
www.shieldtx.com.
Dial-in details:Participant
dial-in:
0800 279 5982 International
dial-in: +44 (0)1452 557851
Participant code:
17510768
An audio replay file will be made available shortly afterwards
via the Company website: www.shieldtx.com.
For further information please
contact:
Shield Therapeutics plc |
+44
(0)207 186 8500 |
Carl
Sterritt, Chief Executive OfficerRichard Jones, Chief Financial
Officer |
|
Nominated Adviser and BrokerLiberum
Capital LimitedChristopher Britton/Steve Pearce
|
+44
(0)20 3100 2222 |
Financial PR AdvisorConsilium Strategic
Communications |
+44
(0)203 709 5700shieldtherapeutics@consilium-comms.com |
Mary-Jane Elliott/Matthew Neal/Lindsey Neville/Hendrik Thys |
|
References1: Adjusted net loss
excludes IFRS financing costs in respect of pre-IPO structure,
one-off costs and share-based payments2: GfK report from 2015 as
included in IPO Admission Document3: IPO Admission Document
NoteThis announcement contains
inside information for the purposes of the Market Abuse Regulation.
Chief Executive Officer’s statementThe period
under review has been a transformational time for Shield
Therapeutics. Following the significant achievement of our
successful IPO onto the AIM market of the London Stock Exchange in
February 2016 to raise £32.5 million of growth capital and
receiving the pan-European Marketing Authorisation Approval of our
first product, Feraccru, the period has since been characterised by
the growth of Shield Therapeutics and operational implementation of
our commercial plans, focused on the launch of Feraccru in the key
first two markets of the UK and Germany. The immediate impact
of this has been to deliver our first product-related revenues and
by the end of 2016 approximately 60% of the IDA in IBD EU-5
commercial opportunity for Feraccru should be available to
us.
FeraccruFeraccru
launchTellingly, without requiring Health Technology
Assessments, Feraccru has achieved attractive price points in both
the UK and Germany, with a published price of £47.60 and €64.00 per
28-day treatment pack, respectively. Such achievements in two
strategically important – and often referenced – markets give a
clear indication of the value that Feraccru can deliver to
integrated healthcare systems and we expect they will support our
pricing and reimbursement activities across a broader basket of
countries throughout the pan-European launch of Feraccru.
Feraccru is estimated to have an achievable peak
annual sales opportunity in excess of £500 million in more than 4
million patients in Europe and the USA that make up its two core
markets of IDA in IBD and IDA in chronic kidney disease (CKD)
2. The Company believes the overall market has more than 33
million patients suffering with IDA who could be effectively
treated with Feraccru3.
Following the pricing agreement with the NHS and
Department of Health in the UK, our field-based team of Key Account
Managers and Medical Science Liaisons has been focused on three
core activities: (i) introducing commercially available Feraccru to
the initial target prescriber base of UK gastroenterologists; (ii)
educating Clinical Commissioning Groups (CCGs) on the health
economic benefits of Feraccru; and (iii) critically, with the
agreement and support of prescribers, submitting applications to
and achieving access for Feraccru from hospital formularies.
Steady progress is being made across this triumvirate of key
stakeholders in an IDA patient’s journey in the UK, as with their
support and approvals we will deliver commercial success for
Feraccru. Widening the audience of potential patients and
prescribers as quickly as possible is an important target and this
has been aided by the fact that, at the time of Feraccru’s UK
launch, the British Society of Gastroenterology (BSG) was holding
its main annual scientific and commercial meeting. We ensured
maximum coverage at this key event for the UK’s leading
gastroenterologists.
We are pleased to report our first commercial
revenues from Feraccru in this interim results statement. These
first revenues represent stock sold to our two UK wholesalers in
preparation for the commencement of commercial prescribing of
Feraccru as our in-house team of Key Account Managers and Medical
Science Liaisons commenced work. We look forward to updating
the market on Feraccru’s in-market demand in early 2017.
Whilst we have employed our own sales team of
Key Account Managers in the UK we have chosen to utilise a slightly
different field-based model via a Contract Commercial Organisation
in Germany to minimise time to commercial launch. As such, in
Germany, we are employing our own central team of commercial and
medical professionals, and have initially contracted the resources
of the highly regarded inVentiv Health to provide our field-based
team of eight Key Account Managers initially and a National Sales
Manager. This has significantly streamlined the otherwise
complicated logistics of identifying and recruiting our own
field-based sales team in this, our first overseas market, whilst
giving us the ability to have a lower risk ‘try before we buy’
period with each Key Account Manager. Product training is
scheduled for early October, after which the team will be out in
the market actively implementing our commercial strategy in
Germany.
As with the UK launch, we have an early,
pan-German opportunity to raise awareness of Feraccru at Deutsche
Gesellschaft für Gastroenterologie, Verdauungs und
Stoffwechselkrankheiten (DGVS), the annual scientific congress of
the German gastroenterology society, which is taking place just as
Feraccru becomes commercially available in Germany. The
commercial launch and prescriber/payor approval process in Germany
is more streamlined than in the UK and we also have the advantage
of starting our commercial operations with a broader prescriber
experience of Feraccru due to the clinical trials we have run and
are running in multiple key institutions in Germany. As a
result of this existing experience with Feraccru, it is hoped that
these key institutions will transition into important commercial
customers.
Over the period, we have also made significant
progress in refining our launch strategies in the other member
countries of the EU-5. In France, we have taken the
commercial decision to include data from the AEGIS H2H clinical
study in our Pricing and Reimbursement submission, as specialist
research conducted post Feraccru’s marketing authorisation approval
has provided a strong signal that this will facilitate optimum
pricing in this market. This has become even more relevant
following the recently announced news on Shield receiving the
composition of matter patent grant for Feraccru that will see
protection extended through at least 2034, versus the previously
estimated 2023 before approval-related term extensions.
Similar specialist research is ongoing in Spain and Italy and is
currently expected to result in the same decisions on the timing of
Pricing and Reimbursement submissions.
Feraccru Intellectual Property
Rights2016 has seen very significant intellectual property
progress on a number of fronts that protect, facilitate and enhance
Feraccru’s exclusive commercial opportunity. In particular, since
Admission:
i. The European approval of Feraccru has
provided the product with 10 years of data and marketing
exclusivity in the countries covered by the approval, giving
protection to February 2026.
ii. The approval in Europe has also allowed
Shield to apply for a supplementary protection certificate to be
applied to one of the core patents protecting Feraccru. We
have requested this be issued against the core manufacturing patent
that protects Feraccru and upon issuance this will extend that
patent out to August 2028 in a number of core markets.
iii. In addition to this increased coverage, our
patent protecting Feraccru’s use in achlorhydric patients was
granted in the USA in February, having already been granted in
other major territories. This patent covers an important
feature of Feraccru’s mode of action by demonstrating a unique
ability as an oral iron to remain in solution and be available for
absorption, even if a patient’s gastrointestinal pH has been
artificially increased. In many patients with diseases
concomitant to their IDA, the use of pH raising pharmacotherapies
like the proton pump inhibitors omeprazole or lansoprazole is very
common and in such patients ferrous-based oral iron therapies
simply precipitate out of solution and are unabsorbable. In
such patients, prior to the availability of Feraccru, parenteral
iron therapy was the only realistic option.
iv. However, the most significant progress we
have made with Feraccru’s IPR is the granting of UK Patent
GB2531742, entitled ‘Polymorphs of Ferric Maltol’, a composition of
matter patent that significantly expands Feraccru’s intellectual
property portfolio by protecting the active substance of Feraccru
through to at least 2034, as announced on 7 September 2016.
We are delighted that such a highly regarded body as the UKIPO has
granted Shield a composition of matter patent to the active
substance in Feraccru and in doing so has significantly added to
the breadth of the IP for Feraccru® as well as providing a lengthy
extension to that protection. Allowance at the UKIPO is an
indicator of the protection that we are anticipating in other
territories when the national phase is entered in April 2017.
We will now seek protection across a broad range of
geographies and such composition of matter protection should enable
Shield to prevent third parties from manufacturing or selling the
product for any use until at least 2034.
Feraccru clinical development
progressShield's two ongoing Phase 3 clinical trials are
moving forward as planned, with AEGIS H2H recruiting in Europe and
preparing to commence recruitment in the USA – an important
expansion as positive data from this study will now allow an
earlier filing of the NDA for Feraccru with the US FDA.
Meanwhile AEGIS CKD set-up is approaching finalisation and we
remain expectant of first patients being enrolled during
Q4-16. Together with existing data on Feraccru, these studies
are designed to further increase the product’s commercial
opportunity by achieving a broader label in Europe and giving
access to the USA.
Other products in
developmentPT20As previously advised, an
end of Phase 2 meeting with the FDA is due to take place in
Q4-16. The outcome of such a meeting is expected to allow us
to finalise what additional clinical and non-clinical work is
required for us to be able to submit an NDA. Our search for a
commercial/co-development partner for PT20 has begun with
meaningful discussions with potential development partners not
expected to occur until after the FDA meeting. Work on the
development of a suitable formulation of the drug product for use
in a second pivotal study is also ongoing.
PT40Following receipt of
guidance from FDA on how to most efficiently develop PT40 through
to submitting the supplemental New Drug Application (sNDA) that
would be required, activities have commenced to identify both a
suitable scale-up contract manufacturer and commercial partners who
would license this technology from Shield.
Financial review We are
delighted to report our first Group revenues of £240k for the
period, which relate entirely to sales of Feraccru into the UK
distribution channel. Operating loss for the period was £5.6
million after R&D costs of £0.8 million, which excludes £0.9
million of R&D that was capitalised following a review of our
R&D capitalisation policy in respect of Feraccru post-marketing
approval.
Our accounts for the period were again impacted
by various IFRS adjustments in respect of our pre-IPO corporate
structure. Phosphate Therapeutics Ltd (PTL) has been
consolidated into the results from the IPO. Reported net loss
was £8.9 million. On an adjusted basis net loss, after taking
account of these non-cash IFRS adjustments, one-off costs of £170k
and non-cash share based payments of £143k was £5.1 million and
adjusted loss per share was £0.05 per share.
Net cash at the period end was £28.4 million
after taking account of the non-cash IFRS adjustments, the positive
impact of the net IPO funds raised and funds raised immediately
prior to the IPO from pre-existing share options. Net assets
of £54.3 million include the £27 million acquisition of PTL
capitalised under intangible assets.
Referendum vote to leave the EU
Shield does not anticipate any direct regulatory or commercial
impact from Brexit and there has been no immediate impact on the
Company’s operations following the UK’s referendum vote to leave
the European Union. Considering foreign exchange rates, in
the short term we are both naturally hedged to Euro costs due to
investments made into the company prior to the IPO and have had no
significant expenditure in the USA in the period. Going
forward, we actively update our currency plans and keep a
conservative outlook on FX movements and, in addition, where
appropriate, we maintain healthy cash reserves to protect the
Company against large fluctuations in individual currencies.
Corporate development and
licensing Since Feraccru’s European approval we have had
an encouraging level of inbound interest from potential partners in
a wide range of non-core territories. We remain confident in
our ability to convert this interest into licensing agreements in
the near term and thereby expand the commercial opportunity for
Feraccru. Thinking more strategically, to supplement the
organic growth that Feraccru’s commercialisation will finance, we
are actively considering a narrow selection of both portfolio and
infrastructure enhancing opportunities in the specialty
pharmaceuticals arena, as we recognise that such expansion has the
potential to accelerate our growth and diversify our
opportunities.
Summary and outlookShield has
now transformed itself from wholly development-focused into a
commercially-focused and customer-facing organisation that is
selling its innovative and value-added lead product, whilst
continuing its development to enable the commercial opportunity to
be maximised throughout the lengthy period of intellectual property
protection that is available to and has recently been extended for
Feraccru.
Looking forward we are excited that, over the
course of the next few months, increasing numbers of patients will
have the chance to benefit from Feraccru therapy, as it is launched
in Germany and commercial progress continues to be made in the
UK. With detailed out-licensing discussions ongoing in a
number of non-core territories, we look forward to being in a
position to report positive news in this regard in the near
term. Finally, we also look forward to agreeing development
plans for PT20 with FDA and then identifying suitable
co-development and licensing partners for this attractive product,
so it can be moved into the final stage of development prior to MAA
& NDA filings.
Carl SterrittChief
Executive Officer
Consolidated statement of profit and
loss and other comprehensive incomefor the six
months ended 30 June 2016
|
|
|
|
|
|
|
Note |
|
|
|
Six months ended30 June2016(unaudited) |
Six months ended30 June2015(unaudited) |
Year ended31 December2015(audited) |
|
|
|
|
|
|
£000 |
£000 |
£000 |
|
Revenue |
|
|
|
|
|
240 |
|
|
- |
|
|
- |
|
|
Cost of
sales |
|
|
|
|
|
(54 |
) |
|
- |
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
Gross profit |
|
|
|
|
|
186 |
|
|
- |
|
|
- |
|
|
Operating
costs (selling, marketing, general and administrative
expenses) |
|
|
|
|
|
(5,004 |
) |
|
(574 |
) |
|
(1,371 |
) |
|
Other
operating income |
|
|
|
|
|
40 |
|
|
120 |
|
|
221 |
|
|
|
|
|
|
|
|
|
|
|
Operating loss before research and development
expenditure |
|
|
|
|
|
(4,778 |
) |
|
(454 |
) |
|
(1,150 |
) |
|
Research
and development expenditure |
|
9 |
|
|
|
(787 |
) |
|
(1,215 |
) |
|
(5,284 |
) |
|
|
|
|
|
|
|
|
|
|
Operating loss |
|
|
|
|
|
(5,565 |
) |
|
(1,669 |
) |
|
(6,434 |
) |
|
Financial
income |
|
|
|
|
|
27 |
|
|
- |
|
|
- |
|
|
Net foreign
exchange gains |
|
|
|
|
|
151 |
|
|
1,890 |
|
|
1,941 |
|
|
Foreign
exchange losses on financial instruments |
|
2 |
|
|
|
(1,059 |
) |
|
- |
|
|
- |
|
|
Net loss on financial instruments designated as fair
value through profit or loss |
2 |
|
|
|
(2,398 |
) |
|
(28,949 |
) |
|
(18,123 |
) |
Financial
expense |
|
|
|
|
|
(7 |
) |
|
(1,299 |
) |
|
(1,872 |
) |
|
|
|
|
|
|
|
|
|
|
Loss before tax |
|
|
|
|
|
(8,851 |
) |
|
(30,027 |
) |
|
(24,488 |
) |
|
Taxation |
|
|
|
|
|
- |
|
|
- |
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
Loss for the period |
|
|
|
|
|
(8,851 |
) |
|
(30,027 |
) |
|
(24,488 |
) |
|
|
|
|
|
|
|
|
|
|
Attributable to: |
|
|
|
|
|
|
|
|
Equity
holders of the parent |
|
|
|
|
|
(8,851 |
) |
|
(29,611 |
) |
|
(23,627 |
) |
|
Non-controlling interests |
|
|
|
|
|
- |
|
|
(416 |
) |
|
(861 |
) |
|
|
|
|
|
|
|
|
|
|
Other comprehensive income |
|
|
|
|
|
|
|
|
Items that
are or may be reclassified subsequently to profit or loss: |
|
|
|
|
|
|
|
|
Foreign
currency translation differences – foreign operations |
|
|
|
|
|
(30 |
) |
|
(295 |
) |
|
(257 |
) |
|
|
|
|
|
|
|
|
|
|
Total comprehensive income for the period |
|
|
|
|
|
(8,881 |
) |
|
(30,322 |
) |
|
(24,745 |
) |
|
|
|
|
|
|
|
|
|
|
Attributable to: |
|
|
|
|
|
|
|
|
Equity
holders of the parent |
|
|
|
|
|
(8,881 |
) |
|
(29,906 |
) |
|
(23,884 |
) |
|
Non-controlling interests |
|
|
|
|
|
- |
|
|
(416 |
) |
|
(861 |
) |
|
|
|
|
|
|
|
|
|
|
Earnings per share |
|
|
|
|
|
|
|
|
Basic and
diluted loss per share |
|
8 |
|
|
£(0.09) |
£(0.93) |
£(0.57) |
|
|
|
|
|
|
|
|
|
|
Non-GAAP measureAdjusted loss per share |
|
8 |
|
|
£(0.05) |
£(0.03) |
£(0.13) |
|
|
|
|
|
|
|
|
|
|
Consolidated balance
sheetat 30 June 2016
|
Note |
|
|
30 June2016(unaudited) |
30 June2015(unaudited) |
31 December2015(audited) |
|
|
|
|
£000 |
£000 |
£000 |
Non-current assets |
|
|
|
|
|
|
Intangible assets |
9 |
|
|
|
27,527 |
|
|
494 |
|
|
513 |
|
Property, plant and equipment |
10 |
|
|
|
23 |
|
|
20 |
|
|
17 |
|
|
|
|
|
|
|
|
|
|
|
|
|
27,550 |
|
|
514 |
|
|
530 |
|
|
|
|
|
|
|
|
Current assets |
|
|
|
|
|
|
InventoriesTrade and other receivables |
|
|
|
|
2461,182 |
|
|
-140 |
|
|
-1,605 |
|
Cash and cash equivalents |
2 |
|
|
|
28,455 |
|
|
3,663 |
|
|
725 |
|
|
|
|
|
|
|
|
|
|
|
|
|
29,883 |
|
|
3,803 |
|
|
2,330 |
|
|
|
|
|
|
|
|
Total assets |
|
|
|
|
57,433 |
|
|
4,317 |
|
|
2,860 |
|
|
|
|
|
|
|
|
Current liabilities |
|
|
|
|
|
|
Trade and other payables |
|
|
|
|
(2,978 |
) |
|
(1,023 |
) |
|
(3,502 |
) |
Interest bearing loans and borrowings |
2 |
|
|
|
- |
|
|
(12,107 |
) |
|
- |
|
Other liabilities |
|
|
|
|
(181 |
) |
|
(41 |
) |
|
(73 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
(3,159 |
) |
|
(13,171 |
) |
|
(3,575 |
) |
|
|
|
|
|
|
|
Non-current liabilities |
|
|
|
|
|
|
Interest bearing loans and borrowings |
2 |
|
|
|
- |
|
|
(891 |
) |
|
- |
|
Other financial liabilities |
2 |
|
|
|
- |
|
|
(38,728 |
) |
|
(17,928 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
- |
|
|
(39,619 |
) |
|
(17,928 |
) |
|
|
|
|
|
|
|
Total liabilities |
|
|
|
|
(3,159 |
) |
|
(52,790 |
) |
|
(21,503 |
) |
|
|
|
|
|
|
|
Net assets/(liabilities) |
|
|
|
|
54,274 |
|
|
(48,473 |
) |
|
(18,643 |
) |
|
|
|
|
|
|
|
Equity |
|
|
|
|
|
|
Share capital |
12 |
|
|
|
1,622 |
|
|
365 |
|
|
690 |
|
Share premium |
|
|
|
|
77,963 |
|
|
2,393 |
|
|
- |
|
Warrants reserve |
|
|
|
|
2,760 |
|
|
- |
|
|
- |
|
Merger reserve |
|
|
|
|
28,358 |
|
|
- |
|
|
28,358 |
|
Currency translation reserve |
|
|
|
|
(69 |
) |
|
(77 |
) |
|
(39 |
) |
Retained earnings |
|
|
|
|
(56,360 |
) |
|
(52,484 |
) |
|
(47,652 |
) |
|
|
|
|
|
|
|
Equity attributable to owners of the
parent |
|
|
|
|
54,274 |
|
|
(49,803 |
) |
|
(18,643 |
) |
Non-controlling interest |
|
|
|
|
- |
|
|
1,330 |
|
|
- |
|
|
|
|
|
|
|
|
Total equity |
|
|
|
|
54,274 |
|
|
(48,473 |
) |
|
(18,643 |
) |
|
|
|
|
|
|
|
Consolidated statement of changes in
equityfor the six months ended 30 June
2016
|
Issuedcapital |
Sharepremium |
Warrants reserve |
Merger reserve |
Currencytranslationreserve |
Retainedearnings |
Non-controllinginterest |
Total |
|
£000 |
£000 |
£000 |
£000 |
£000 |
£000 |
£000 |
£000 |
|
|
|
|
|
|
|
|
|
Balance at 1 January 2015 |
365 |
|
2,393 |
|
- |
- |
|
218 |
|
|
(23,006 |
) |
|
1,746 |
|
|
(18,284 |
) |
|
|
|
|
|
|
|
|
|
Loss for
the period |
- |
|
- |
|
- |
- |
|
- |
|
|
(23,627 |
) |
|
(861 |
) |
|
(24,488 |
) |
Other
comprehensive income |
- |
|
- |
|
- |
- |
|
(257 |
) |
|
- |
|
|
- |
|
|
(257 |
) |
|
|
|
|
|
|
|
|
|
Total
comprehensive income for the period |
- |
|
- |
|
- |
- |
|
(257 |
) |
|
(23,627 |
) |
|
(861 |
) |
|
(24,745 |
) |
Group
reorganisation |
325 |
|
(2,393 |
) |
- |
28,358 |
|
- |
|
|
(1,901 |
) |
|
(885 |
) |
|
23,504 |
|
Equity-settled share based payment transactions |
- |
|
- |
|
- |
- |
|
- |
|
|
882 |
|
|
- |
|
|
882 |
|
|
|
|
|
|
|
|
|
|
Balance at 31 December 2015 |
690 |
|
- |
|
- |
28,358 |
|
(39 |
) |
|
(47,652 |
) |
|
- |
|
|
(18,643 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss for
the period |
- |
|
- |
|
- |
- |
|
- |
|
|
(8,851 |
) |
|
- |
|
|
(8,851 |
) |
Other
comprehensive income |
- |
|
- |
|
- |
- |
|
(30 |
) |
|
- |
|
|
- |
|
|
(30 |
) |
|
|
|
|
|
|
|
|
|
Total
comprehensive income for the period |
- |
|
- |
|
- |
- |
|
(30 |
) |
|
(8,851 |
) |
|
- |
|
|
(8,881 |
) |
Share issue
– IPO |
325 |
|
26,487 |
|
2,760 |
- |
|
- |
|
|
- |
|
|
- |
|
|
29,572 |
|
Share
options exercised |
309 |
|
25,011 |
|
- |
- |
|
- |
|
|
- |
|
|
- |
|
|
25,320 |
|
Phosphate
Therapeutics Ltd acquisition |
298 |
|
26,465 |
|
- |
- |
|
- |
|
|
- |
|
|
- |
|
|
26,763 |
|
Equity-settled share based paymenttransactions |
- |
|
- |
|
- |
- |
|
- |
|
|
143 |
|
|
- |
|
|
143 |
|
|
|
|
|
|
|
|
|
|
Balance at 30 June 2016 |
1,622 |
|
77,963 |
|
2,760 |
28,358 |
|
(69 |
) |
|
(56,360 |
) |
|
- |
|
|
54,274 |
|
|
|
|
|
|
|
|
|
|
Consolidated statement of cash
flowsfor the six months ended 30 June
2016
|
|
|
|
Six months ended30 June2016(unaudited) |
|
Six months ended30 June 2015(unaudited) |
Year ended31 December2015(audited) |
|
|
|
|
£000 |
|
£000 |
£000 |
|
|
|
|
|
|
|
|
Cash flows from operating activities |
|
|
|
|
|
|
|
Loss for
the period |
|
|
|
|
(8,851 |
) |
|
|
(30,027 |
) |
|
(24,488 |
) |
|
|
|
|
|
|
|
|
Adjustments
for : |
|
|
|
|
|
|
|
Depreciation and amortisation |
|
|
|
|
1,372 |
|
|
|
27 |
|
|
50 |
|
Loss on
derivative financial instruments |
|
|
|
|
2,398 |
|
|
|
28,949 |
|
|
18,123 |
|
Equity-settled share based payment expenses |
|
|
|
|
143 |
|
|
|
133 |
|
|
882 |
|
Financial
(income)/expense |
|
|
|
|
(155 |
) |
|
|
1,299 |
|
|
1,872 |
|
Unrealised
foreign exchange losses/(gains) |
|
|
|
|
1,105 |
|
|
|
(1,923 |
) |
|
(1,927 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
(3,988 |
) |
|
|
(1,542 |
) |
|
(5,488 |
) |
(Increase)/decrease in inventories |
|
|
|
|
(246 |
) |
|
|
- |
|
|
- |
|
Decrease/(increase) in trade and other receivables |
|
|
|
|
427 |
|
|
|
(61 |
) |
|
(1,526 |
) |
(Decrease)/increase: |
|
|
|
|
|
|
|
Trade and other payables |
|
|
|
|
(988 |
) |
|
|
329 |
|
|
2,808 |
|
Other liabilities |
|
|
|
|
108 |
|
|
|
(9 |
) |
|
23 |
|
|
|
|
|
|
|
|
|
Net
cash flow from operating activities |
|
|
|
|
(4,687 |
) |
|
|
(1,283 |
) |
|
(4,183 |
) |
|
|
|
|
|
|
|
|
Cash flows from investing activities |
|
|
|
|
|
|
|
Acquisitions of intangible assets |
|
|
|
|
(378 |
) |
|
|
(84 |
) |
|
(123 |
) |
Capitalised
development expenditure |
|
|
|
|
(879 |
) |
|
|
- |
|
|
- |
|
Acquisition
of property, plant and equipment |
|
|
|
|
(10 |
) |
|
|
(10 |
) |
|
(9 |
) |
Cash
acquired with Phosphate Therapeutics Ltd |
|
|
|
|
177 |
|
|
|
- |
|
|
- |
|
|
|
|
|
|
|
|
|
Net
cash flow from investing activities |
|
|
|
|
(1,090 |
) |
|
|
(94 |
) |
|
(132 |
) |
|
|
|
|
|
|
|
|
Cash flows from financing activities |
|
|
|
|
|
|
|
Proceeds of
IPO (Note 2) |
|
|
|
|
32,500 |
|
|
|
- |
|
|
- |
|
IPO costs
(Note 2) |
|
|
|
|
(2,427 |
) |
|
|
- |
|
|
- |
|
Other
costs |
|
|
|
|
(501 |
) |
|
|
- |
|
|
- |
|
Share
options exercised (Note 3) |
|
|
|
|
3,935 |
|
|
|
- |
|
|
- |
|
Issuance of
convertible bonds |
|
|
|
|
- |
|
|
|
1,062 |
|
|
1,062 |
|
Issuance of
preference shares |
|
|
|
|
- |
|
|
|
3,501 |
|
|
3,501 |
|
|
|
|
|
|
|
|
|
Net
cash flow from financing activities |
|
|
|
|
33,507 |
|
|
|
4,563 |
|
|
4,563 |
|
|
|
|
|
|
|
|
|
Net
increase in cash |
|
|
|
|
27,730 |
|
|
|
3,186 |
|
|
248 |
|
Cash and
cash equivalents at 1 January |
|
|
|
|
725 |
|
|
|
477 |
|
|
477 |
|
|
|
|
|
|
|
|
|
Cash and cash equivalents at period end |
|
|
|
|
28,455 |
|
|
|
3,663 |
|
|
725 |
|
|
|
|
|
|
|
|
|
Notesfor the six months
ended 30 June 2016
1
General information
Shield Therapeutics plc (the “Company”) was
incorporated in England and Wales as a public limited company on 3
September 2015. The Company was admitted to the London Stock
Exchange’s AIM market on 26 February 2016. The Company’s Ordinary
Shares and Warrants commenced trading on 26 February 2016.
The Company is domiciled in England and the
registered office of the Company is at Northern Design Centre,
Baltic Business Quarter, Gateshead Quays NE8 3DF.
This interim report, which has not been audited
has been prepared in accordance with the measurement and
recognition criteria of EU Adopted International Financial
Reporting Standards. It does not include all the information
required for full annual financial statements and should be read in
conjunction with the financial statements of the Company and its
subsidiaries (the “Group”) as at and for the year ended 31 December
2015. This financial information does not constitute statutory
financial statements as defined in Section 435 of the Companies Act
2006. It does not comply with IAS 34 Interim financial reporting,
as is permissible under the rules of AIM.
The interim report was approved by the board of
directors on 19 September 2016.
2
AIM listing
Shield Therapeutics plc was admitted to AIM on
26 February 2016 with a placing price of £1.50 per share for the
additional 21.7 million new shares to be issued pursuant to the
placing. The Company’s Shares and Warrants commenced trading on 26
February 2016. £32.5 million gross was raised through the listing
process and £2.4 million of issue costs were incurred in the
process.
As part of the listing process Warrants with a
subscription price of £1.50 were issued to participants in the
placing, providing an opportunity for the Company to raise up to
£17.5 million by 30 June 2017 when the Warrants expire. The
Warrants trade under the ticker STXW.
On 26 February 2016 debt with a fair value of
£21.4 million was converted to equity and this included certain
options converted to equity at an exercise price of £3.9 million.
As a consequence of this transaction, reserves have increased by
£25.3 million and the Group is now debt free. Fair value costs of
£2.4 million and foreign exchange translation costs of £1.1 million
were charged to the profit and loss account during the period as a
consequence of the fair value remeasurement of the debt prior to
its conversion.
3
Acquisition of Phosphate Therapeutics Limited
On 26 February 2016 Shield Therapeutics plc
acquired 100% of the share capital of Phosphate Therapeutics
Limited in consideration for 19,887,791 shares in the Company with
a fair value of £27 million. As this does not meet the definition
of a business combination this has been accounted for as an asset
acquisition of the intellectual property of Phosphate Therapeutics
Limited.
4
Selected relevant
accounting policies
The accounting policies set out below have,
unless otherwise stated, been applied consistently to all periods
presented in this financial information. The financial information
is prepared on the historical cost basis except for derivative
financial instruments that are stated at their fair value. The
functional currency of the Company is GBP. The consolidated
financial information is presented in GBP and all values are
rounded to the nearest thousand (£000), except as otherwise
indicated.
Notes (continued) for
the six months ended 30 June 2016
4
Selected relevant accounting policies (continued)
Basis of consolidationThe
consolidated interim financial information comprises the financial
information of the Group and its subsidiaries as at 30 June
2016.
Subsidiaries are fully consolidated from the
date of acquisition, being the date on which the Group obtains
control, and continue to be consolidated until the date when such
control ceases. The financial statements of the subsidiaries are
prepared for the same reporting period as the parent company, using
consistent accounting policies. All intra-group balances and
transactions, unrealised gains and losses resulting from
intra-group transactions and dividends are eliminated in full.
Losses within a subsidiary are attributed to the
non-controlling interest even if that results in a deficit balance.
A change in the ownership interest of a subsidiary, without a loss
of control, is accounted for as an equity transaction.
Group reorganisations in the prior period are
accounted for as a continuation of the existing Shield Group.
Accordingly, the consolidated financial information of Shield
Therapeutics plc has been prepared as a continuation of the
existing Group. Shield Holdings AG in effect remains the accounting
parent entity. The consolidated financial information reflects any
difference in share capital between Shield Therapeutics plc and
Shield Holdings AG as an adjustment to equity.
Foreign currency
Transactions in foreign currencies are
translated to the Group’s functional currency at the foreign
exchange rate ruling at the date of the transaction. Monetary
assets and liabilities denominated in foreign currencies at the
balance sheet date are retranslated to the functional currency at
the foreign exchange rate ruling at that date. Foreign exchange
differences arising on translation are recognised in the income
statement. Non-monetary assets and liabilities that are measured in
terms of historical cost in a foreign currency are translated using
the exchange rate at the date of the transaction. Non-monetary
assets and liabilities denominated in foreign currencies that are
stated at fair value are retranslated to the functional currency at
foreign exchange rates ruling at the dates the fair value was
determined.
The assets and liabilities of foreign
operations, including goodwill and fair value adjustments arising
on consolidation, are translated to the Group’s presentation
currency, Sterling, at foreign exchange rates ruling at the balance
sheet date. The revenues and expenses of foreign operations are
translated at an average rate for the year where this rate
approximates to the foreign exchange rates ruling at the dates of
the transactions.
Exchange differences arising from this
translation of foreign operations are reported as an item of other
comprehensive income and accumulated in the translation reserve or
non-controlling interest, as the case may be.
Intangible assets
Research and development
Expenditure on research activities is recognised
as an expense in the statement of profit and loss.
During the period the Group met the criteria to
capitalise development expenditure for the first time due to the
progression of certain projects beyond the research phase.
Consequently the policy on research and development costs has been
expanded to include the capitalisation criteria for and composition
of development costs. No previously reported balances have been
restated as a consequence of this change.
Notes (continued) for
the six months ended 30 June 2016
4
Selected relevant accounting policies
(continued)
Intangible assets
(continued)
Expenditure on development activities directly
attributable to an intangible asset is capitalised when the
following conditions are met:
- it is technically feasible to complete the product so that it
will be available for use;
- management intends to complete the product and use or sell
it;
- there is an ability to use or sell the product;
- it can be demonstrated how the product will generate probable
future economic benefits;
- adequate technical, financial and other resources to complete
the development and to use or sell the product are available;
and
- the expenditure attributable to the product during its
development can be reliably measured.
The Group considers that Marketing Authorisation
Approval “MAA” regulatory approval in the relevant jurisdiction
confirms these criteria.
Internally developed intangible assets are
recorded at cost and subsequently measured at cost less accumulated
amortisation and accumulated impairment losses.
Capitalised directly attributable development
costs include clinical trial costs, Chemistry Manufacturing and
Controls “CMC” costs and contractor costs. Internal salary costs
have not been capitalised as they are not considered to directly
relate to bringing the asset to its working condition and employee
costs are not allocated by project.
Expenditure in relation to patent registration
and renewal of current patents is capitalised and recorded as an
intangible asset. Registration costs are continually incurred
as the Group registers these patents in different countries. Patent
assets are stated at cost less accumulated amortisation and
accumulated impairment losses.
Amortisation is charged to the statement of
profit and loss on the straight line basis. Amortisation commences
when patents are issued, or in the case of other capitalised
development expenditure when substantive revenue is being generated
from products. Amortisation is charged as follows.
Patents – over the term of the patentsCMC costs
– over five yearsIntellectual property purchase costs – over the
term of the patents
Impairment of assets
An impairment review is carried out annually for
assets not yet in use. An impairment review is carried out for
assets being amortised or depreciated when a change in market
conditions and other circumstances indicates that the carrying
value may not be recoverable. The recoverable amount is the higher
of an asset’s fair value less costs to sell and value in use. For
the purposes of assessing impairment, assets are grouped at the
lowest levels for which there are separately identifiable cash
flows.
Revenue
Revenue is net invoice value after the deduction
of value added tax and other sales taxes. Deductions are made for
product returns based on historical experience.
Revenue is recognised in the consolidated
statement of profit and loss and other comprehensive income when
the risks and rewards associated with the ownership of goods are
transferred to the customer. This is deemed to occur when the
customer collects and loads the product, resulting in the legal
transfer of title.
Notes (continued)for the
six months ended 30 June 2016
4
Selected relevant accounting policies
(continued)
Operating income
Other operating income is measured at the fair
value of consideration received or receivable for management
services supplied to related parties. Income is recognised when the
service has been delivered.
Expenses
Financing income and expenses
Financing expenses comprise interest payable,
finance charges on shares classified as liabilities and net foreign
exchange losses that are recognised in the income statement (see
foreign currency accounting policy). Financing income comprises
interest receivable on funds invested, dividend income and net
foreign exchange gains.
Interest income and interest payable is
recognised in profit or loss as it accrues, using the effective
interest method. Dividend income is recognised in the income
statement on the date the entity’s right to receive payments is
established. Foreign currency gains and losses are reported
on a net basis.
Taxation
Tax on the profit or loss for the period
comprises current and deferred tax. Tax is recognised in the income
statement except to the extent that it relates to items recognised
directly in equity, in which case it is recognised in equity.
Current tax is the expected tax payable or
receivable on the taxable income or loss for the year, using tax
rates enacted or substantively enacted at the balance sheet date,
and any adjustment to tax payable in respect of previous
periods.
A deferred tax asset is recognised only to the
extent that it is probable that future taxable profits will be
available against which the temporary difference can be
utilised.
Share-based payments
The Group operates equity-settled, share-based
compensation plans, under which the entity receives services from
employees as consideration for equity instruments (options) of the
Group. The fair value of the employee services received in exchange
for the grant of the options is recognised as an expense. The total
amount to be expensed is determined by reference to the fair value
of the options granted:
- including any market performance conditions;
- excluding the impact of any service and non-market performance
vesting conditions; and
- including the impact of any non-vesting conditions.
Non-market performance and service conditions
are included in assumptions about the number of options that are
expected to vest. The total expense is recognised over the vesting
period, which is the period over which all of the specified vesting
conditions are to be satisfied.
In addition, in some circumstances employees may
provide services in advance of the grant date and therefore the
grant date fair value is estimated for the purposes of recognising
the expense during the period between the service commencement
period and the grant date.
The grant by the Company of options over its
equity instruments to the employees of subsidiary undertakings in
the Group is treated as a capital contribution. The fair value of
employee services received, measured by reference to the grant date
fair value, is recognised over the vesting period as an increase to
investment in subsidiary undertakings, with a corresponding credit
to equity in the parent entity accounts.
- Critical accounting judgments and key sources of
estimation uncertainty
In the application of the Group’s accounting
policies, which are described in Note 4, management is required to
make judgments, estimates and assumptions about the carrying
amounts of assets and liabilities that are not readily apparent
from other sources.
Notes (continued)for
the six months ended 30 June 2016
5
Critical accounting judgments and key sources of estimation
uncertainty (continued)
The estimates and underlying assumptions are
reviewed on an ongoing basis. Revisions to accounting estimates are
recognised in the period in which the estimate is revised if the
revision affects only that period or in the period of the revision
and future periods if the revision affects both current and future
periods.
Share-based payment transactions
The Group measures the cost of equity-settled
transactions with employees by reference to the fair value of the
equity instruments at the date at which they are granted.
Estimating fair value for share-based payment transactions requires
determining the most appropriate valuation model, which is
dependent on the terms and conditions of the grant. This estimate
also requires the determination of the most appropriate inputs to
the valuation model including the expected life of the share
options and volatility and making assumptions about them.
Fair value of derivative instruments
Where the fair value of derivative instruments
recorded in the statement of financial position cannot be derived
from active markets, their fair value is determined using valuation
techniques. The inputs to these models are taken from observable
markets where possible. Where this is not feasible, a degree of
judgment is required in establishing fair values. The judgments
include considerations of inputs such as entity value and
volatility.
Deferred tax assets
Estimates of future profitability are required
for the decision whether or not to create a deferred tax asset. To
date no deferred tax assets have been recognised.
Development expenditure
Development expenditure is capitalised when the
conditions referred to in Note 4 are met.
Valuation of intellectual property acquired with
Phosphate Therapeutics Limited
The valuation of intellectual property acquired
with Phosphate Therapeutics Limited during the period is based on
cash flow forecasts for the underlying business and an assumed
appropriate cost of capital and other inputs in order to arrive at
a fair value for the asset. The realisation of its value is
ultimately dependent on regulatory approval and successful
commercialisation of the asset. In the event that commercial
returns are lower than current expectations this may lead to an
impairment.
6
New standards and interpretations
The Group has adopted the following new
standards in these financial statements for the first time. The
adoption of these pronouncements has not had a material impact on
the Group’s accounting policies, financial position or
performance.
- Amendment to IFRS 11 Joint arrangements.
- Amendment to IAS 1 Presentation of financial statements.
- Amendment to IAS 16 Property, plant and equipment.
- Amendment to IAS 27 Separate financial statements.
- Amendment to IAS 38 Intangible assets.
- Amendment to IAS 41 Agriculture.
- Annual improvements to IFRSs – 2012-2014 cycle.
7
Segmental reporting
The Board regularly reviews the Group’s
performance and balance sheet position for its operations and
receives financial information for the Group as a whole. As a
consequence the Group has one reportable segment whose revenue,
expenses, assets, liabilities and cash flows are measured and
reported on a basis consistent with the financial information. All
revenue reported in the period relates to the UK market and
originated in the UK. No additional numerical disclosures are
necessary.
Notes (continued) for
the six months ended 30 June 2016
8
Loss per share
|
|
|
|
|
Six months ended30 June 2016 |
Year ended 31December 2015 |
|
|
|
|
|
Loss £000 |
Weighted shares000 |
Loss per share£ |
Loss £000 |
Weighted shares000 |
Loss per share£ |
IFRS –
basic and diluted |
|
|
|
|
|
(8,851 |
) |
94,107 |
|
(0.09 |
) |
|
(23,627 |
) |
41,507 |
|
(0.57 |
) |
Adjusted
– basic and diluted |
|
|
|
|
|
(5,081 |
) |
94,107 |
|
(0.05 |
) |
|
(5,279 |
) |
41,507 |
|
(0.13 |
) |
Proforma
adjusted – basic and diluted |
|
|
|
|
|
(5,081 |
) |
108,135 |
|
(0.05 |
) |
n/a |
n/a |
n/a |
The diluted loss per share is identical to the
basic loss per share in both periods, as potential dilutive shares
are not treated as dilutive since they would reduce the loss per
share. Warrants issued as part of the IPO process would potentially
provide an additional 11,666,658 shares (approximately 10.8% of the
current share capital) if exercised between the period end and 30
June 2017 (8,012,815 on a weighted basis), which are considered to
be non-dilutive as they would increase the loss per share.
The adjusted loss is calculated after adding
back non-recurring items as illustrated in the table below.
The adjusted loss per share is calculated using
the weighted average number of Ordinary Shares in issue during the
period.
The adjusted proforma loss per share is
calculated using the number of Ordinary Shares in issue following
the IPO.
The table below reflects the loss used in the
basic and diluted adjusted (non-GAAP) EPS computations:
|
|
|
|
|
Six months ended30 June2016(unaudited)£000 |
Year ended31 December2015(audited)£000 |
|
|
|
|
|
|
|
Loss for the period |
|
|
|
|
|
(8,851 |
) |
|
(23,627 |
) |
Interest on preference shares |
|
|
|
|
|
- |
|
|
1,761 |
|
FX movement on preference shares |
|
|
|
|
|
- |
|
|
(259 |
) |
Fair value remeasurement of preference share embedded
derivative |
|
|
|
|
|
- |
|
|
15,610 |
|
Interest on convertible bonds |
|
|
|
|
|
- |
|
|
139 |
|
FX movement on convertible bonds |
|
|
|
|
|
- |
|
|
10 |
|
Fair value remeasurement of convertible bond embedded
derivative |
|
|
|
|
|
- |
|
|
1,146 |
|
Fair value remeasurement of share options |
|
|
|
|
|
2,398 |
|
|
(59 |
) |
FX movement on share options |
|
|
|
|
|
1,059 |
|
|
- |
|
Non-recurring legal and professional fees |
|
|
|
|
|
170 |
|
|
- |
|
Share based payments charge |
|
|
|
|
|
143 |
|
|
- |
|
|
|
|
|
|
|
|
Adjusted loss |
|
|
|
|
|
(5,081 |
) |
|
(5,279 |
) |
|
|
|
|
|
|
|
Notes (continued) for
the six months ended 30 June 2016
9 Intangible
assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Patents and trademarks£000 |
Development costs£000 |
Phosphate Therapeutics licences£000 |
Total£000 |
|
Cost |
|
|
|
|
|
|
|
|
|
|
Balance at 1 January 2015 |
|
|
|
|
|
|
566 |
|
|
- |
|
|
- |
|
|
566 |
|
|
Additions – externally purchased |
|
|
|
|
|
|
104 |
|
|
- |
|
|
- |
|
|
104 |
|
|
Effect of movements in foreign exchange |
|
|
|
|
|
|
19 |
|
|
- |
|
|
- |
|
|
19 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at 31 December 2015 |
|
|
|
|
|
|
689 |
|
|
- |
|
|
- |
|
|
689 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Additions – externally purchased |
|
|
|
|
|
|
378 |
|
|
- |
|
|
- |
|
|
378 |
|
|
Additions – internally developed |
|
|
|
|
|
|
- |
|
|
879 |
|
|
- |
|
|
879 |
|
|
Acquisition with Phosphate Therapeutics Limited |
|
|
|
|
|
|
- |
|
|
- |
|
|
27,047 |
|
|
27,047 |
|
|
Effect of movements in foreign exchange |
|
|
|
|
|
|
104 |
|
|
- |
|
|
- |
|
|
104 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at 30 June 2016 |
|
|
|
|
|
|
1,171 |
|
|
879 |
|
|
27,047 |
|
|
29,097 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortisation |
|
|
|
|
|
|
|
|
|
|
Balance at 1 January 2015 |
|
|
|
|
|
|
(130 |
) |
|
- |
|
|
- |
|
|
(130 |
) |
|
Charge for the period |
|
|
|
|
|
|
(46 |
) |
|
- |
|
|
- |
|
|
(46 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Balance at 31 December 2015 |
|
|
|
|
|
|
(176 |
) |
|
- |
|
|
- |
|
|
(176 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Charge for the period |
|
|
|
|
|
|
(42 |
) |
|
(84 |
) |
|
(1,242 |
) |
|
(1,368 |
) |
|
Effect of movements in foreign exchange |
|
|
|
|
|
|
(26 |
) |
|
- |
|
|
- |
|
|
(26 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Balance at 30 June 2016 |
|
|
|
|
|
|
(244 |
) |
|
(84 |
) |
|
(1,242 |
) |
|
(1,570 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Net book amount |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At 30 June 2016 |
|
|
|
|
|
|
927 |
|
|
795 |
|
|
25,805 |
|
|
27,527 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At 31 December 2015 |
|
|
|
|
|
|
513 |
|
|
- |
|
|
- |
|
|
513 |
|
|
|
|
|
|
|
|
|
|
|
|
|
£27 million of additions during the period to 30
June 2016 relate to the acquisition of intellectual property with
Phosphate Therapeutics Limited (see Note 3).
£1.7 million was spent on development
expenditure during the period, with £0.9 million capitalised above
and £0.8 million charged to the profit and loss account.
Notes (continued) for
the six months ended 30 June 2016
10
Tangible assets
|
|
|
|
|
|
Total£000 |
Cost |
|
|
|
|
|
|
At 1
January 2015 |
|
|
|
|
|
|
12 |
|
Additions |
|
|
|
|
|
|
9 |
|
|
|
|
|
|
|
|
At 31
December 2015 |
|
|
|
|
|
|
21 |
|
|
|
|
|
|
|
|
Additions |
|
|
|
|
|
|
10 |
|
|
|
|
|
|
|
|
At 30
June 2016 |
|
|
|
|
|
|
31 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortisation |
|
|
|
|
|
|
At 1
January 2015 |
|
|
|
|
|
|
- |
|
Charge
for the period |
|
|
|
|
|
|
(4 |
) |
|
|
|
|
|
|
|
At
31December 2015 |
|
|
|
|
|
|
(4 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Charge
for the period |
|
|
|
|
|
|
(4 |
) |
|
|
|
|
|
|
|
At 30
June 2016 |
|
|
|
|
|
|
(8 |
) |
|
|
|
|
|
|
|
Net book amount |
|
|
|
|
|
|
|
|
|
|
|
|
|
At 30
June 2016 |
|
|
|
|
|
|
23 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At 31
December 2015 |
|
|
|
|
|
|
17 |
|
|
|
|
|
|
|
|
11
Related party transactions – Phosphate Therapeutics
Limited
During the period the Company acquired the share
capital of Phosphate Therapeutics Limited, as described in Note
3.
Phosphate Therapeutics Limited is considered to
be a related party of the Company by virture of its linked key
management personnel.
12
Called up share capital
|
|
|
|
|
|
|
|
|
|
Number |
£000 |
At 31
December 2015 (audited) |
|
|
|
69.0m |
690 |
|
|
|
|
|
|
2 for 3
share consolidation |
|
|
|
(23.0)m |
- |
Issuance of
shares pursuant to listing |
|
|
|
21.7m |
325 |
Exercise of
share options |
|
|
|
20.5m |
309 |
Acquisition
of Phosphate Therapeutics Limited intellectual property |
|
|
|
19.9m |
298 |
|
|
|
|
|
|
At
30 June 2016 (unaudited) |
|
|
|
108.1m |
1,622 |
|
|
|
|
|
|
|
|
|
|
|
|
Details of the reasons for the movements in
share capital are provided in Notes 2 and 3.
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