Despite disruption to the management team, Silence Therapeutics (SLN) has been keen to maintain a "business as usual" approach. In the six months to June the biotech company raised nearly four times the amount of money it did in the same period last year, bringing in heavyweight healthcare investors such as Woodford Investment Management and Invesco, Neil Woodford's former employer. Between them, these two institutions hold a combined 18 per cent stake in Silence. Nearly £40m in fresh funds will go towards the company's extensive research and development activities as well as potential acquisition opportunities.
Silence develops DNA-based gene therapies using RNA interference (RNAi), a biological process where certain molecules inhibit gene expression, typically by causing the destruction - or 'silencing' - of other targeted molecules. This technique is particularly applicable to the search for effective treatments for deadly diseases linked to genetics, including cancer. The company's main product currently in development - simply named Atu027 for now - is aimed at generating a synthetic version of the protein PKN3, which can inhibit the progression of several metastatic cancers.
Analysts at Canaccord Genuity have pencilled in losses of £9.2m this year, compared with losses of £12m in 2014.
| SILENCE THERAPEUTICS (SLN) | ||||
|---|---|---|---|---|
| ORD PRICE: | 250p | MARKET VALUE: | £172m | |
| TOUCH: | 247-250p | 12-MONTH HIGH: | 335p | LOW: 168p |
| DIVIDEND YIELD: | nil | PE RATIO: | na | |
| NET ASSET VALUE: | 90p | NET CASH: | £56m | |
| Half-year to 30 Jun | Turnover (£'000) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2014 | 7.0 | -5.6 | -11.5 | nil |
| 2015 | 0.0 | -4.1 | -7.1 | nil |
| % change | - | - | - | - |
