Earnings are still conspicuous in their absence at drug discovery outfit e-Therapeutics (ETX), but the early-stage clinical programme is moving along. Last year the group spent £9.3m on research and development (R&D). While this left more than £33m in the bank at the year-end, chief executive Malcolm Young said the rate of cash-burn would increase in the coming year.
The group's lead product - simply named ETS2101 - has a number of clinical trials underway. Last year, a Phase Ia trial established a maximum tolerated dose, which means a new Phase IIb trial to treat pancreatic and liver cancers can kick off in mid-April. Results from a separate brain cancer trial in the US are due imminently.
But the best news came from the group's in-house discovery platform. Last year the platform successfully tested 2,200 molecules, compared to just 100 in 2013. This means the analysis of a disease process can take a matter of hours rather than weeks. Mr Young said some molecules would be developed in-house, while others might catch the attention of external buyers.
Analysts at N+1 Singer have put their forecasts under review, but previously expected losses of £12.2m for the current financial year.
| E-THERAPEUTICS (ETX) | ||||
|---|---|---|---|---|
| ORD PRICE: | 39p | MARKET VALUE: | £103m | |
| TOUCH: | 38-40p | 12-MONTH HIGH: | 49p | LOW: 23p |
| DIVIDEND YIELD: | nil | PE RATIO: | na | |
| NET ASSET VALUE: | 14p | NET CASH: | £33.8m | |
| Year to 31 Jan | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2011 | nil | -2.7 | -3.5 | nil |
| 2012 | nil | -3.9 | -2.5 | nil |
| 2013 | nil | -5.0 | -3.0 | nil |
| 2014 | nil | -6.1 | -2.0 | nil |
| 2015 | nil | -9.8 | -2.9 | nil |
| % change | - | - | - | - |
Ex-div: na Payment: na | ||||
