- N4 Pharma Plc has reported an increase of 5.9% in operating loss during H1 FY20.
- The Company has started the first phase of research to test the stability of different formulations of Nuvec® in collaboration with Nanomerics Limited.
- The Company is having a closing cash balance of £2.44 million as of 30 June 2020.
N4 Pharma Plc (LON: N4P) is the LSE listed healthcare stock. Based on 1-year performance, shares of N4P have generated a return of 303.23%. Shares of N4P were up by close to 5.60% from the last closing price (as on 07 December 2020, before the market close at 08:10 AM GMT).
N4 Pharma Plc is the FTSE AIM All-Share listed Company, which is the UK based specialist pharmaceutical Company developing Nuvec® used for cancer treatments and vaccine purpose. The Company is reformulating its existing drugs and vaccines to improve their performance.
Oncology Industry Overview
Oncology is the branch of science that deals with the prevention and treatment of cancer. The worldwide market for oncology drugs is growing at a rapid rate driven by several factors in the domain of cancer research. The development of cancer drugs is a gradual process that involves deep research, high-quality testing, and analysis. Hence, the oncology/cancer drugs market provides ample opportunities for expansion in recent times. Cancer is a non-treatable chronic disease which remained as a challenge for the entire healthcare industry for decades. The severe nature of the disease, combined with the low rate of success for treatments, has prompted medical professionals to adopt new research methodologies. The entire medical research fraternity has put cancer research on priority to find innovative methods of treatment and analysis.
Formulation work update - On 03 December 2020, the Company has updated regarding its ongoing research collaboration agreement with Nanomerics Limited ("Nanomerics"). The Company has initiated the first stage of research to test the stability of several formulations of Nuvec® containing well-characterised plasmid DNA. The Company has updated that, in addition to not degrading the plasmid DNA, Nuvec® formulations is freeze-dried and then kept in storage for 14 days either at room temperature or four degrees Celsius, showed negligible fall in vitro transfection tendency following reconstitution compared to the fresh formulations. These vaccines require proper storage conditions.
On 18 November 2020, the Company has updated regarding its joint broker SP Angel Corporate Finance LLP has provided a research report about the Company.
On 9 November 2020, the Company has updated regarding the appointment of Nanomerics Limited ("Nanomerics") to investigate the true potential of Nuvec® in cancer therapy. The two-stage programme, which is starting immediately, will take up around one complete year and will run simultaneously with the Company's ongoing vaccine target.
Operational Highlights as of 05 November 2020
Optimisation - The optimisation program encapsulates study of different formulations of Nuvec® including the type of Polyethylenimine ("PEI"), the need for phosphonation and the quantity of DNA/Nuvec® amongst other things. The Company has further updated that it has successfully developed various plans to make a fully monodispersed formulation of Nuvec® repleted with plasmid DNA.
Oral Application – Nuvec® is going through various feasibility work to decide on the possible resolution for all the challenges faced during oral delivery of the vaccine. The Company should generate some data following the results of planned studies as to its viability by the end of this year.
Financial Highlights (H1 FY20 ended on 30 June 2020 as on 17 September 2020)
(Source: Company result)
- The Company is just operating in one business segment and not yet generated any revenue.
- Nuvec® is the commercial delivery system of the Company.
- The operating loss of the Company has increased by 5.9% from negative £550,573 during H1 FY19 to negative £585,066 for H1 FY20 due to a significant increase in Research & Development cost from £117,694 during H1 FY19 to £213,869 for H1 FY20.
- With regards to its financial position, the Company has managed to increase its cash balance by more than 100% from £1,167,547 as of 30 June 2019 to £2,443,518 as of 30 June 2020.
- The Company has raised an additional £1.9 million, net of expenses, through the issuance of 50,731,250 new ordinary shares during the first half of 2020 ended on 30 June 2020.
Share Price Performance Analysis of N4 Pharma Plc
(Source: Refinitiv, chart created by Kalkine group)
Shares of N4 Pharma Plc were trading at GBX 13.20 and were up by close to 5.60% against the previous closing price as on 07 December 2020, (before the market close at 08:10 AM GMT). N4Ps 52-week High and Low were GBX 16.00 and GBX 2.00, respectively. N4 Pharma Plc had a market capitalization of around £19.51 million.
The Company has updated that the strategy, value potential and prospects for Nuvec® are going to remain the same as mentioned before. The vaccine is in the development phase, and every study of Nuvec® brings new learnings. The combination of work with Nuvec®to address solutions for multiple injectable vaccines supplemented by the preliminary work on oral and oncology applications means the Company is seeking to balance the significant risk of development with the substantial reward of any one of these applications leading to commercial collaborations. The Board has also remained open to augmenting other assets to its portfolio in the event in case any such opportunity pops up.