Shares in 4D Pharma (DDDD) were marked down following release of half-year results in which progress on the clinical front was tempered by an 18 per cent decline in net assets, coupled with an increased earnings loss. It has been a slow road towards commercialisation, so a 10 per cent increase in net operating cash outflow wouldn't have set any alarm bells ringing, but 4D is moving into a clinical trial phase that will place a major drain on its cash resources.
4D has successfully completed the first clinical trial of a molecule found by its MicroDx drug discovery platform. Blautix – which has a single-strain bacteria at its core – is used as a treatment for irritable bowel syndrome (IBS) and will soon begin a second phase patient study. MicroDX has also proved effective at diagnosing patients with IBS based on the amount and type of healthy bacteria in their body – otherwise known as the microbiome. Later this year the company will make its first foray into cancer treatment with an in-man monotherapy trial.
4D PHARMA (DDDD) | ||||
ORD PRICE: | 340p | MARKET VALUE: | £223m | |
TOUCH: | 335-350p | 12-MONTH HIGH: | 820p | LOW: 220p |
DIVIDEND YIELD: | – | PE RATIO: | na | |
NET ASSET VALUE: | 115p* | NET CASH: | £59.8m |
Half-year to 30 Jun | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
2016 | nil | -5.5 | -7.1 | nil |
2017 | nil | -13.0 | -17.4 | nil |
% change | - | - | - | - |
Ex-div: | na | |||
Payment: | na | |||
*Includes intangible assets of £14.6m, or 22p a share |