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Silence brings in new boss

The group cited good R&D progress, while operating losses widened
September 14, 2020

As is the norm for Silence Therapeutics (SLN), research and development progress took centre-stage within the half-year results to June.

IC TIP: Hold at 472p

Indeed, on the financial front, the group – a specialist in RNA (ribonucleic acid) therapies, ‘silencing’ the production of disease-causing proteins – only reported a slight uptick in revenues from a ‘nil’ value 12 months earlier. That related to the partial recognition of payments from collaborations with pharma groups Mallinckrodt and Takeda, along with royalty income from Alnylam Pharmaceuticals. Operating losses swelled from £9.7m to £14.2m after R&D costs doubled.

That said, those costs are being put towards the advancement of its two wholly-owned product candidates – with both being prepared for clinical testing. Post-period-end, the group’s ‘SLN360’ product received approval for an Investigational New Drug (IND) application from the Food and Drug Administration (FDA) – relating to its treatment of cardiovascular disease. This marked the first IND in Silence Therapeutics’ history.

Silence signed a collaboration deal with AstraZeneca (AZN) in March, relating to the treatment of cardiovascular, renal, metabolic and respiratory disease. That helps to explain the 50 per cent rise in the group’s cash, cash equivalents and term deposits over the six months under review, to £50.3m. Revenues for said tie-up have not yet been recognised, with the relevant services starting in the second half.

SILENCE THERAPEUTICS (SLN)  
ORD PRICE:472pMARKET VALUE:£ 391m
TOUCH:469-472p12-MONTH HIGH:610pLOW: 170p
DIVIDEND YIELD:nilPE RATIO:na
NET ASSET VALUE:33p*NET CASH:£10.3m
Half-year to 30 JunTurnover (£m)Pre-tax profit (£m)Earnings per share (p)Dividend per share (p)
2019nil-9.6-11.5nil
20201.1-13.3-13.7nil
% change----
Ex-div:na   
Payment:na   
*Includes intangible assets of £8.3m or 10p a share