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Nuformix PLC (NFX)

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Tuesday 22 December, 2020

Nuformix PLC

Half-year Report

RNS Number : 4412J
Nuformix PLC
22 December 2020
 

Nuformix plc

("Nuformix", the "Company" or the "Group")

 

Interim Results for the six months ended 30 September 2020

 

Cambridge, UK - 22 December 2020:  Nuformix plc (LSE:NFX), a drug re-purposing specialist, announces its unaudited results for the six months ended 30 September 2020.

 

Operational Highlights (including post-period)

 

· Leadership team enhanced with the appointment of Dr Anne Brindley as CEO and Board strengthened with the appointment of two Non-Executive Directors that bring additional R&D, business development and financial leadership experience

· Continued discussions with potential partners on licensing lead asset, NXP002, for the Asian market

· Expanded activities to seek additional licensing partners to cover other important pharmaceutical market regions for NXP002

· Pre-clinical development activities prioritised and initiated to evaluate the benefits of NXP002 alone and in combination with standard of care for the treatment of Idiopathic Pulmonary Fibrosis (IPF), a serious lung disease

· Application submitted for an Innovate UK Grant for the further development of NXP002 which, if successful, would supplement investment and provide important non-dilutive funding for the lead asset

· Continued to strengthen patent portfolio, especially on the early-stage asset NXP004

· Exclusive option agreement signed with Oxilio Ltd for the development and exploitation of NXP001 in oncology indications

 

Financial Highlights

 

· Total revenue of £195,550 (H1 2019: £535,000)

· Loss before tax £475,874 (H1 2019: loss of £131,842)

· Loss on ordinary activities (after tax credit) of £474,659 (H1 2019: loss of £131,842)

· Loss per share 0.10p (H1 2019: 0.03p)

· Net assets £4,301,236 (30 September 2019: £3,980,126) including £216,412 cash and cash equivalents (30 September 2019: £132,764)

· Successful placing on 7 October 2020 raising additional cash of £650,000 before expenses for the Company post period end

 

Dr Chris Blackwell, Non-Executive Chairman   of Nuformix, said:

 

"A key priority for the Group was to establish strength in the areas of drug development, business development and financial control. With the successful appointment of an experienced CEO in Dr Anne Brindley, and our new Non-Executive Directors, Maddy Kennedy and Dr Julian Gilbert, we can now look forward to driving the value we all see in Nuformix. As our discussions continue on NXP002, I look forward to working with Anne and the rest of the Board, as the Group moves forward under its new leadership."

 

Dr Anne Brindley, CEO   of Nuformix, said:

 

"One of the attractions of Nuformix when I joined the Company just three weeks ago was the opportunity to grow value from its key assets. I relish the opportunity to work with the team on our strategic priorities and will update the market further in Q1 2021."

 

Enquiries:

 

Nuformix plc

Dr Chris Blackwell, Non-Executive Chairman

Fleur Wood, Investor Relations

Email: [email protected]

 

 

 

+44 (0)1223 627222

 

 

 

Allenby Capital Limited

Tim Sohal / Matt Butlin (Sales and Corporate Broking)

Nick Athanas (Corporate Finance)

 

 

+44 (0)203 328 5656

 

About Nuformix

Nuformix is a pharmaceutical development company focused on unlocking the therapeutic potential and value of known drugs to develop novel medicines which provide therapeutic and commercial advantages to the currently available drug form. Nuformix's model of repurposing drugs utilises technologies primarily focussed on its acknowledged expertise in cocrystal technology, through which the Group has developed and patented novel forms of many small molecules. Using its expertise, the Group is developing proprietary medicines for its own development pipeline and in partnership with pharmaceutical and biotech companies.

 

Nuformix plc shares are traded on the London Stock Exchange's Official List under the ticker: NFX. For more information, please visit www.nuformix.com .

 

Operational Review

 

NXP002 - Inhaled therapy for Fibrotic Diseases

The priority of the Group remains the development of an inhaled therapy for the treatment of Idiopathic Pulmonary Fibrosis (IPF), a serious lung disease, with its lead asset, NXP002.

 

Pre-clinical development activities were prioritised to evaluate the benefits of NXP002 alone and in combination with standard of care for the treatment of IPF. Results of this study are expected in the first quarter of 2021.

 

Whilst discussions continue in Asia regarding the licensing of Asian rights to NXP002, the Group has expanded its activities to evaluate additional licensing opportunities. 

 

After the period end, the Group submitted an application for an Innovate UK Grant to support the development of NXP002 in IPF and with potential in other respiratory diseases including respiratory complications arising as a result of Covid-19. The outcome will be known in Q1 2021 and, whilst success would provide important finances for NXP002, it is by no means assured, as these grants are highly competitive. The Board is therefore in the process of considering contingencies and additional sources of investment to supplement its existing cash resources and to provide additional cash runway for the Group.

 

 

NXP004

NXP004 uses Nuformix proprietary technology applied to the active drug of a multi-billion-dollar product currently marketed for oncology indications. Despite the commercial success of the marketed product, side-effects pose a significant challenge to its existing use and extension into new indications, that could also benefit from its mechanism of action. We are currently evaluating new IP that could overcome some of the challenges posed by the originator's formulation.

Additionally, in August, the Group reported results from a pre-clinical pilot study evaluating the anti-fibrotic and anti-inflammatory effects of NXP004 against standard of care, a therapeutic area not currently exploited by the originator of the drug. We will confirm next steps in Q1 2021.

 

NXP001 - Oncology

 

An option to license the use of Nuformix patents covering NXP001, without the need for development commitment, was granted to Oxilio Ltd "Oxilio" and announced in September 2020.  The agreement with Oxilio triggered an undisclosed up-front payment for an exclusive option period of 6 months from September 2020 and within which period the global licensing agreement can be triggered.  Should Oxilio exercise the option, Nuformix will licence its patent estate and know-how on NXP001 in return for an upfront payment and additional development milestones, with a royalty on net sales, capped at £2m per annum. Further updates will be provided in H1, 2021.

 

 

Board Changes

 

Post-period, several changes have been announced.

 

The appointments of Dr Julian Gilbert and Maddy Kennedy to the Board as Non-Executive Directors, were announced in November and December, respectively. Both appointments will be extremely valuable as the Group moves forward with its near-term strategic priorities focussed on business development and licensing opportunities and to provide the Board with additional and relevant experience. The experience that Maddy brings will strengthen the Group's financial governance as she takes up the role of Chair of the Audit Committee.

 

In December, Dr Anne Brindley was appointed Chief Executive Officer and Executive Director of the Group. Anne brings a wealth of relevant pharma experience coupled with leadership and Board experience that will help the Group move forward with its strategic priorities.  As previously communicated, upon appointment of the CEO, Dr Chris Blackwell resumes the role of Non-Executive Chairman.

 

Outlook

 

With an augmented Board and new CEO in place, bringing additional expertise and new leadership, the Group is now in a position to drive its near-term strategic priorities focussed on deriving optimal value through business development and licensing opportunities with its existing assets. 

 

The Group intends to provide further updates and detail on the strategic priorities in Q1 2021.

 



 

Financial Review 

 

In the second half of the financial year, the Board has continued to focus expenditure on activities that deliver immediate benefit and cashflow whilst continuing licensing discussions for the Group's lead programmes and supporting new initiatives with the potential to add further value. The Board has overhauled the financial management of the Group and scrutinised the cash flow and runway based on various scenarios. The Board has initiated numerous measures to ensure the Group's cost base is kept to a minimum.

 

 

Nuformix plc

Unaudited Interim Results

Consolidated Income Statement and Statement of Comprehensive Income for the six months ended 30 September 2020

 


6 months ending 30 September

6 months ending 30 September

Year ending 31 March

2020

2019

2020

Unaudited

Unaudited

Audited


Note

£

£

£

Revenue


195,550

535,000

535,000

Costofsales


(115,507)

(105,417)

(333,595)

Grossprofit


80,043

429,583

201,405

Total administrative expenses


(554,822)

(557,043)

(1,119,580)

Otheroperatingincome


1,300

1,800

4,130

Operating loss


(473,479)

(125,660)

(914,045)

Financecosts


(2,395)

(6,182)

(15,837)

Loss before tax


(475,874)

(131,842)

(929,882)

Income tax receipt


1,215

0

173,506

Loss for the period and total comprehensive income for the period


(474,659)

(131,842)

(756,376)

Loss per share - basic and diluted

4

0.10p

0.03p

0.16p


 

Consolidated Statement of Financial Position as at 30 September 2020

 

 



30 September

30 September

31 March

 

Note

2020

Unaudited

£

2019

Unaudited

£

2020

Audited

£

Assets





Non-current assets





Property, plant and equipment

5

64,661

28,628

82,912

Intangibleassets

6

4,225,381

4,255,755

4,247,862



4,290,042

4,284,383

4,330,774

Current assets





Trade and other receivables


88,956

134,152

79,496

Income tax asset


-

-

172,391

Cash andcashequivalents


216,412

132,764

543,772



305,368

266,916

795,659

Total assets


4,595,410

4,551,299

5,126,433






Equity and liabilities





Equity





Share capital

7

490,145

469,467

490,145

Share premium


4,480,400

3,163,578

4,480,400

Merger relief reserve


10,950,000

10,950,000

10,950,000

Reverse acquisition reserve


(8,005,195)

(8,005,195)

(8,005,195)

Share option reserve


1,847,988

1,765,185

1,814,613

Retained earnings


(5,462,102)

(4,362,909)

(4,987,443)

Total equity


4,301,236

3,980,126

4,742,520

Non-current liabilities


Loans and borrowing

-

-

37,257

Current liabilities




Trade and other payables

243,846

556,121

308,525

Loansandborrowings


50,328

15,052

38,131


294,174

571,173

346,656

Total equity and liabilities

4,595,410

4,551,299

5,126,433


 

Consolidated Statement of Changes in Equity for the six months ended 30 September 2020

 

 


Share capital

£

Share premium

£

MergerRelief

Reserve

£

Reverse acquisition

reserve

Shareoption

reserve

Retained earnings

£

Total

£

 

At 31 March 2019

 

460,750

 

2,932,590

 

10,950,000

 

1,708,252

 

(4,231,067)

 

3,815,330

Loss for the half-year and total

-

-

-

-

-

(131,842)

(131,842)

comprehensive loss

Issue of share capital

Share and warrant based payment

 

8,717

 

230,988

 

-

 

-

 

-

56,933

 

-

 

239,705

56,933

 

As at 30 September 2019

 

469,467

 

3,163,578

 

10,950,000

 

(8,005,195)

 

1,765,185

 

(4,362,909)

 

3,980,126

Loss for the half-year and total comprehensive loss

 

-

 

-

 

-

 

-

 

-

 

(624,534)

 

(624,534)

Issue of share capital

Share issue costs

20,678

1,381,822

(65,000)

-

-

-

-

1,402,500

(65,000)

Share and warrant based payment

-

-

-

-

49,428

-

49,428


 

-

 

-

 

-

 

-

 

-

 

-

-

 

At 31 March 2020

 

490,145

 

4,480,400

 

10,950,000

 

(8,005,195)

 

1,814,613

 

(4,987,443)

 

4,742,520

Loss for the half-year and total comprehensive income

 

-

 

-

 

-

 

-

 

-

 

(474,659)

 

(474,659)


-

-

-

-

-

-

-

Share and warrant based payment

-

-

-

-

33,375

-

33,375

 

As at 30 September 2020

 

490,145

 

4,480,400

 

10,950,000

 

(8,005,195)

 

1,847,988

 

(5,462,102)

 

4,301,236


Nuformix plc

Unaudited Interim Results

 

Consolidated Statement of Cash Flows for the six months ended 30 September 2020

 

 



6 months ending 30 September

6 months ending 30 September

Year ended 31 March

 

 

2020

Unaudited

£

2019

Unaudited

£

2020

Audited

£

Cash flows from operating activities





Loss for the year


(474,659)

(131,842)

(756,376)

Adjustments to cash flows from non-cash items:





Depreciation and amortisation


41,337

27,804

81,716

Finance costs/ (income)


2,395

6,182

15,837

Income tax expense


-

-

(173,506)

Share and warrant based payment


33,375

56,933

106,361


 (397,552)

(40,923)

(725,968)

Working capital adjustments




(Increase)decreaseintradeandotherreceivables

(9,460)

28,713

83,369

Increase (decrease) in trade andotherpayables


(89,739)

(249,991)

(256,178)

Cash generated from operations

(496,751)

(262,201)

(898,777)

Income taxes (paid)/received


172,391

181,495

180,965

Net cash flow from operating activities


(324,360)

(80,706)

(717,812)

Cash flows from investing activities


Acquisitions of property plant and equipment

(605)

(24,314)

(10,733)

Disposals of property plant and equipment

-

-

-

Acquisition of intangible assets


-

-

(32,470)

Net cash flows from investing activities


(605)

(24,314)

(43,203)

Cash flows from financing activities


Proceeds of share issue

-

239,705

1,337,500

Interest paid

(2,395)

(5,112)

(9,785)

Reduction in other loans

-

-

(26,651)

Foreign exchange gains/(losses)

-

(1,070)

(538)

Net cash flows fromfinancingactivities

(2,395)

233,523

1,300,526

Net increase in cash andcashequivalents

(327,360)

128,503

539,511

Cash and cash equivalents at startofperiod

543,772

4,261

4,261

Cash and cash equivalents at endofperiod

216,412

132,764

543,772

 

 

 

Nuformix plc Unaudited Interim Results

 

Notes to the Consolidated Financial Statements for the six months ended 30 September 2020

 

1. Basis of preparation of interim financial information

The consolidated interim financial statements have been prepared in accordance with the recognition and measurement principles of International Financial Reporting Standards as endorsed by the European Union ("IFRS") and expected to be effective at the year-end of 31 March 2021.

Accounting policies remain unchanged from the financial statements for the year ended 31 March 2020.

The interim financial statements are unaudited and do not constitute statutory accounts within the meaning of Section 434 of the Companies Act 2006. Statutory accounts for the year ended 31 March 2020, prepared in accordance with IFRS, have been filed with the Registrar of Companies. The Auditors' Report on these accounts was unqualified and included a reference to which the Auditors drew attention by way of an emphasis of matter, without qualifying their report, that a material uncertainty existed that might cast significant doubt on the Group's ability to continue as a going concern at that time. The Auditors' Report did not contain any statements under section 498 of the Companies Act 2006.

The consolidated interim financial statements are for the 6 months to 30 September 2020.

The interim consolidated financial information does not include all the information and disclosures required in the annual financial statements, and should be read in conjunction with the group's annual financial statements for the year ended 31 March 2020, which were prepared in accordance with IFRS as adopted by the European Union.

 

2. Basis of consolidation

On 16 October 2017 the Company acquired the entire issued ordinary share capital of Nuformix Technologies Limited and became the legal parent of Nuformix Technologies Limited. The accounting policy adopted by the Directors applies the principles of IFRS 3 (Revised) "Business Combinations" in identifying the accounting parent as Nuformix Technologies Limited and the presentation of the Group consolidated statements of the Company (the legal parent) as a continuation of financial statements of the accounting parent or legal subsidiary (Nuformix Technologies Limited).

 

3. Going concern

The financial statements have been prepared on the going concern basis of preparation which, inter alia, is based on the directors' reasonable expectation that the Group has adequate resources to continue to operate as a going concern for at least twelve months from the date of their approval. In forming this assessment, the directors have prepared cashflow forecasts covering the period ending 31 December 2021 which take into account the likely run rate on overheads and research expenditure and the prudent expectations of income from its lead programmes.

Whilst there can be no guarantee of the successful outcome of future trials, in compiling the cashflow forecasts the directors have made cautious estimates of the likely outcome of such trials, when income might be generated and have considered alternative strategies should projected income be delayed or fail to materialise. These strategies include postponing non-committed research expenditure, securing alternative licensing arrangements from those currently planned and using the Group's established network for fundraising.

These circumstances indicate the existence of a material uncertainty which may cast significant doubt on the Group's ability to continue as a going concern.  The financial statements do not include any adjustments that would result if the company or Group was unable to continue as a going concern.

After careful consideration, the directors consider that they have reasonable grounds to believe that the Group can be regarded as a going concern and, for this reason, they continue to adopt the going concern basis in preparing the Group's financial statements.

 

 

4 Loss per Share

Loss per share is calculated by dividing the loss after tax attributable to the equity holders of the Group by the weighted average number of shares in issue during the period.

The basic earnings per share for each comparative period is calculated by dividing the loss of the legal entity in each of those periods by the legal entity's historical weighted average number of shares outstanding.

 

 


30 September

30 September

31 March

2020

Unaudited

£

2019

Unaudited

£

2020

Audited

£

Loss after tax

(474,659)

(131,842)

(756,376)

Weighted average number of shares

490,145,083

467,323,107

477,064,822

Basic and diluted loss per share

0.10p

0.03p

0.16p

 

 

5 Property, Plant and Equipment

 

Leasehold improvements

 

Computer equipment

 

Laboratory equipment

 

 

Total


£

£

£

£

Cost or valuation





At 31 March 2019

32,204

17,487

9,732

59,423

Additions

751

6,448

7,199

At 30 September 2019

32,204

18,238

16,180

66,622

Additions

 

81,414

 

2,630

 

904

 

84,948

Disposals

(3,235)

-

(3,235)

At 31 March 2020

113,618

17,633

17,084

148,335

Additions

-

605

-

605

At 30 September 2020

113,618

18,238

17,084

148,940

 

Depreciation





At 31 March 2019

11,807

12,017

8,079

31,903

Charge

3,220

1,741

1,130

6,091

At 30 September 2019

15,027

13,758

9,209

37,994

Charge

27,923

2,197

513

30,633

Eliminated on disposal

(3,204)

-

(3,204)

 

At 31 March 2020

 

42,950

 

12,751

 

9,722

 

65,423

Charge

2,145

1,190

18,856

At 30 September 2020

58,471

14,896

10,912

84,279

 

Carrying amount





At 30 September 2019

17,177

4,480

6,971

28,628

 

At 31 March 2020

 

70,668

 

4,882

 

7,362

 

82,912

At 30 September 2020

55,147

3,342

6,172

64,661

 

 

6 Intangible Assets

 

Goodwill

 

Patents

 

Total

Cost

£

£

£

At 31 March 2019

4,023,484

417,141

4,440,625

Additions

-

17,115

17,115

At 30 September 2019

4,023,484

434,256

4,457,740

Additions

-

15,355

15,355

At 31 March 2020

4,023,484

449,611

4,473,095

Additions

-

-

-

At 30 September 2020

4,023,484

449,611

4,473,095

Amortisation




At 31March2019

-

180,272

180,272

Amortisationcharge

-

21,713

21,713

At 30September2019

-

201,985

201,985

Amortisationcharge

-

23,248

23,248

At 31March2020

-

225,233

225,233

Amortisation charge

-

22,481

22,481

At 30 September 2020

-

247,714

247,714

Net book value




At 30 September 2019

4,023,484

232,271

4,255,755

At 31 March 2020

4,023,484

224,378

4,247,862

At 30 September 2020

4,023,484

201,897

4,255,381

 

 

 

For impairment testing purposes, management consider the operations of the Group to represent a single cash-generating unit ("CGU") focused on research and development. Consequently, the goodwill is effectively allocated and considered for impairment against the business as a whole being the single CGU.

 

7 Share Capital

Allotted, called up and fully paid shares


30September

2020

Unaudited

30September

2019

Unaudited

  31 March 2020

Audited


No.

£

No.

£

No.

£

Ordinary each

shares

of

£0.001

490,145,083

490,145

496,466,512

 

469,467

490,145,081

490,145

 

On 7 October 2020, a share placing raised cash of £650,000 before expenses via the issue of 23,214,285 new Ordinary Shares of £0.001 each.

 

8 Share Options and Warrants

The Group operates share-based payments arrangements to remunerate directors and key employees in the form of a share option scheme. Equity-settled share-based payments are measured at fair value (excluding the effect of non-market-based vesting conditions) at the date of grant. The fair value determined at the grant date of the equity-settled, share-based payments is expensed on a straight line basis over the vesting period, based on the Group's estimate of shares that will eventually vest and adjusted for the effect of non-market based vesting conditions.

 

Statement of Directors Responsibilities

We confirm that to the best of our knowledge:

 

1.  this interim condensed set of financial statements has been prepared in accordance with IAS 34 'Interim Financial Reporting' as issued by the IASB and adopted by the EU;

2.  the interim management report includes a fair review of the information required by:

 

2.1.  DTR 4.2.7R of the Disclosure Guidance and Transparency Rules, being an indication of important events that have occurred during the first six months of the financial year and their impact on the condensed set of financial statements; and a description of the principal risks and uncertainties for the remaining six months of the year; and

 

2.2.  DTR 4.2.8R of the Disclosure Guidance and Transparency Rules, being related party transactions that have taken place in the first six months of the current financial year and that have materially affected the financial position or performance of the entity during that period; and any changes in the related party transactions described in the last annual report that could do so.

 

 

The directors of Nuformix plc are listed in the Group's 2020 Annual Report and Accounts and the current board are set out on the Investors Information section of Nuformix's website at: Investors Information - Nuformix

 

 

Dr Chris Blackwell

Non-Executive Chairman

 

Further copies of this document are available from the company's registered address and will be available on the company's website later today.

 

 

 

 

Nuformix plc

Registration number: 09632100

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