After an incredibly impressive start to life on Aim, the honeymoon period appears to be coming to an end for 4D Pharma (DDDD). The novel biotechnology company has seen its share price struggle in recent months, perhaps as investors have cashed in their gains from the previous share price surges.
That said, the reported period has seen some important clinical development progress. In August, the group completed what it believed to be the first ever in-patient trial of a drug created using human gut bacteria. The drug, Blautix, achieved success in treating patients with irritable bowel syndrome and 4D now plans to begin Phase II clinical trials in 2017. Two acquisitions completed in the period have enhanced research capabilities which will allow the group to continue to discover more strains of bacteria with the potential to enhance human health. That library of bacteria currently stands at over 3,000 strains and the group has begun investigating new disease areas including cancer and autism.
Inevitably, costs associated with the research and development have also accelerated - up by a third compared with the first half of 2015 at £4m. But 4D has healthy cash reserves and strong institutional backing with both Invesco Asset Management and Woodford Investment Management contributing to December's £30m fundraise.
4D PHARMA (DDDD) | ||||
|---|---|---|---|---|
| ORD PRICE: | 780p | MARKET VALUE: | £506m | |
| TOUCH: | 780-790p | 12-MONTH HIGH: | 1,013p | LOW: 610p |
| DIVIDEND YIELD: | nil | PE RATIO: | na | |
| NET ASSET VALUE: | 142p | NET CASH: | £75m | |
| Half-year to 30 Jun | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2015 | nil | -4.3 | -6.9 | nil |
| 2016 | nil | -5.5 | -7.1 | nil |
| % change | - | - | - | - |
