Silence Therapeutics’ chief executive Jeff Vick knows that sexy science isn't attracting investors - the company's shares have fallen over 60 per cent in the last six months. But it is attracting the interest of big pharma players.
The company, formerly known as SR Pharma, demonstrated its deal-making potential in 2007 by signing two major deals with AstraZeneca. The first was finalised in July and involves using Silence Therapeutics' discovery and development technology, primarily in the respiratory field. The group's 'siRNA' technology 'silences' genes which cause disease - a technique that's much sought after by big pharma companies when researching therapeutics.
Of more tangible interest is Silence's receipt of an initial access fee of £7.5m, comprising a payment of £2.5m and an equity investment of £5m. The company’s other major collaborations are with Quark Pharmaceuticals and Pfizer and involve developing a treatment for a macular (eye) degeneration. That project is moving into Phase II studies.
Brokers, however, don't expect the group to make profits until 2010.
| SILENCE THERAPEUTICS (SLN) | ||||
|---|---|---|---|---|
| ORD PRICE: | 39p | MARKET VALUE: | £46.8m | |
| TOUCH: | 39-40p | 12-MONTH HIGH: | 150p | LOW: 29p |
| DIVIDEND YIELD: | nil | PE RATIO: | na | |
| NET ASSET VALUE: | 15p* | NET CASH: | £10.2m | |
| Year to 31 Dec | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2004 | 0.15 | -3.31 | -9.71 | nil |
| 2005 | 0.51 | -3.63 | -5.89 | nil |
| 2006 | 1.95 | -3.94 | -4.02 | nil |
| 2007 | 4.05 | -5.24 | -4.39 | nil |
| % change | +108 | - | - | - |
*Includes intangible assets of £7.3m, or 6p a share | ||||
Click for a guide to the terms used in IC results tables.
